North-South divide is widening, says new survey

Posted on 15 Aug 2011 by The Manufacturer

A survey conducted by the Chartered Institute for Personnel and Development and accountants KPMG has shown serious regional differences in job growth between the North and South.

According to the latest Labour Market Outlook from the Chartered Institute of Personnel and Development (CIPD) and accountants KPMG, more private sector companies intend to fire rather than hire new employees.

The survey claims that the effects will hit the North hardest, and threatens government plans to offset job losses in the public sector through gains in export-led businesses.

There was a balance of minus six among northern businesses, indicating that they will shed staff, while in the South the balance was plus 10 – suggesting companies are still.

As well as this, a report by global economic think-tank the Organisation for Economic Co-operation and Development (OECD) suggested that the UK’s economic recovery could be jeopardised unless the North participates in the recovery fully.

Gerwyn Davies, CIPD’s public policy adviser, said: “Together with the public sector redundancies, which will affect one in 20 frontline workers, the recent story of an employment revival may become one of an employment relapse.”

Andrew Smith, chief economist at KPMG, claimed that declining manufacturing confidence will also puncture hopes that cuts in public sector employment will be offset by the private sector.

George Archer