Manchester has more jobs than working age people, yet only 62% are in work while three fifths of neighbourhoods are in the 20% most deprived nationally and a quarter of those have ‘jobs on the doorstep’.
The figures are revealed in the latest report out this morning from the Joseph Rowntree Trust which has highlighted the deprived areas where jobs are available ‘on the doorstep’, but people living there are unable to access them because they lack the skills to secure the work on offer.
The report, Overcoming deprivation and disconnection in UK cities, found thousands of areas are unable to share in the country’s record employment levels because people living there are disconnected from the jobs on offer, often because they lack the skills to take up the available roles. Health problems and the type and quality of jobs are also barriers.
As the Economy and Industrial Strategy Cabinet Committee considers how to boost growth and productivity across the country, forthcoming JRF analysis suggests improving the skills of people living in poverty by could boost the Treasury by £4 billion by 2020. JRF will launch its strategy to solve poverty in the UK next month.
Overcoming deprivation and disconnection in UK cities analysed the connection of the country’s 20% most deprived neighbourhoods to the labour market over the last decade.
34% of neighbourhoods in Core Cities (the 10 biggest cities outside of London) are in the fifth most deprived nationally, showing despite enjoying strong economic and jobs growth over the last decade, many areas are left behind from their city’s success. The Core Cities have been the focus of devolution deals and efforts to rebalance the economy.
Around 12.5 million people live in the 20% most deprived areas, around 8,500 neighbourhoods, across the country. Of these, 2.44 million people live in the Core Cities in deprived areas, 1579 deprived neighbourhoods 2,892 of deprived neighbourhoods overall are in the Northern Powerhouse, a third of the UK total (34.3%) and 2300 are classified as in Primary Employment Zones, deprived areas which also happen to have high numbers of jobs in them – 429 in the Core Cities.
The authors are calling on the Economy and Industrial Strategy Cabinet Committee, new metro mayors and businesses to harness their efforts to ensure the areas are not left behind, and develop a strategy which ensures everyone can benefit from record employment.
Josh Stott, head of cities at JRF, said:
“Cities are engines of growth and many have created significant numbers of jobs in recent years. They have rightly been the focus of attempts to rebalance the economy, but this analysis shows people and places have been left behind, despite seeing rising prosperity on their doorsteps.
“Our research shows how rising employment alone will not tackle entrenched pockets of deprivation. To make Britain work for all, we need to connect growth in cities to deprived neighbourhoods, and an industrial strategy which provides skills that business needs.
“The rewards in return are significant, improving the living standards and opportunities for people on low incomes across the country and helping business improve their productivity. The Treasury and mayors feel the benefit in their coffers from increased tax take by ensuring everyone can contribute.”
Alasdair Rae, author of the report from the University of Sheffield, said:
“Our research shows that some poorer neighbourhoods have not been able to fully benefit from the economic growth that has occurred in their wider cities over the past decade. This can be seen all across the UK, and particularly in the core cities. In fact, some areas face a kind of ‘double disadvantage’ in that they are not very well connected to local jobs and also not well connected to their local housing market.
“The challenge now is therefore to find ways to ensure that economic growth is more inclusive and that no neighbourhood is left behind. We think specific policy mechanisms are needed to solve this ongoing challenge and hope that our research can make a contribution to that effort.”
