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Warning given over 'split recovery'

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A new report by thinktank the Work Foundation has said cities across the UK with a high dependency on public sector jobs will take a long time to recover from the recession.

The left-leaning foundation said cities such as Doncaster and Barnsley, where around a third (30%) of the workforce works in the public sector are unlikely to make a swift recovery.

The report said such cities would be hit with high unemployment rates and had low potential for future growth, leaving them very vulnerable.

Neil Lee, lead author of the report, warned the economic recovery would “”bypass some cities altogether” and that there was the danger of having a “split recovery” where some towns and cities bounce back from the recession while others are left behind.

And the report urged the government to turn its attention away from London and the south-east and focus on areas more likely to take longer to recover.

Of the 10 towns and cities most likely to struggle, according to the thinktank, five of them are located in the north of England.

The largest risk was in Liverpool, where around 38% of jobs are in the public sector.

On the other hand, seven of the top 10 places most likely to recover were in the south-east.

According to the foundation, London was among three places listed with “very high” growth potential.

The others were Cambridge and Reading & Bracknell.

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