³ÉÈËÂÛ̳

³ÉÈËÂÛ̳ BLOGS - Moss Missives
« Previous | Main | Next »

North East vulnerable to new wave of job losses

Richard Moss | 12:30 UK time, Tuesday, 9 February 2010

Public sector workers leaving the Government site at LongbentonHow many times have you seen an MP excitedly welcoming the arrival of government jobs into their constituency?

Quite a few judging by the growth in public sector employment in the North East in the last decade.

has found that around a third of people in the region now work for the public sector - the highest proportion in the country.

.

But now think how many MPs will be bemoaning the loss of those jobs if, as many expect, big government spending cuts lead to significant redundancies in the next few years?

And also think how that might affect any tentative economic recovery.

People working in private enterprises may understandably feel it's time their public sector counterparts shared the pain.

But of course the economic impact won't end in the councils and government departments which shed jobs.

Those organisations also contribute to the wider economy - directly in terms of contracts for the likes of stationery, indirectly through the salaries of their employees.

So we all may suffer if substantial job cuts really do happen.

Of course, all this is for the moment theoretical. We don't know who'll be in government, and how deep they'll have to cut.

But for the North East, the figures may be indicative of deeper problems within the economy.

As Professor John Tomaney from Newcastle University points out, it's not that the region has more public sector jobs than anyone else.

It's the private sector that isn't as strong, so making the public sector look more significant.

That's not to say there hasn't been progress in the last decade. Employment has grown, new industries have emerged.

But more of ³ÉÈËÂÛ̳ Newcastle's research - released tomorrow - also reveals how relatively poor the region's record is in terms of business start-ups.

The country may be officially out of recession, but the North East could have more problems ahead.


Comments

or to comment.

More from this blog...

Topical posts on this blog

Categories

These are some of the popular topics this blog covers.

    Latest contributors

    ³ÉÈËÂÛ̳ iD

    ³ÉÈËÂÛ̳ navigation

    ³ÉÈËÂÛ̳ © 2014 The ³ÉÈËÂÛ̳ is not responsible for the content of external sites. Read more.

    This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.