'Masked variation' of job losses

The effect of the recession on local areas is masked by general unemployment statistics, say councils.

Blue-collar jobs have been hit hardest - notably in the Midlands, Yorkshire and South Wales, the Local Government Association (LGA) said.

But unemployment in the year to April rose fastest in the South East of England for managers and professionals.

The LGA said it was wrong to conclude that there had been a north/south divide during the recession.

"It is too simplistic to say that the recession has bitten harder in the north while the south has escaped unscathed," the report said.

Workforce

The number of skilled trade workers claiming Jobseekers Allowance rose by 77% in the 12 months to April from 332,400 to 589,000, the LGA report covering England and Wales found.

BIGGEST CHANGE IN JOBSEEKERS

• Blaenau Gwent: 3.79 percentage points
• Cannock Chase: 3.70
• Swindon: 3.68
• Corby: 3.61
• Redditch: 3.46

BBC UK jobs tracker

Skilled trades have been hit the most in the West Midlands, South Yorkshire and the Mersey-Manchester corridor, the report suggested.

The largest increase in jobseekers among occupations such as cleaners, catering assistants and labourers were in Corby and Swindon, the research found, although they were generally concentrated in the West Midlands, Yorkshire and South Wales.

Meanwhile, managers and professionals claiming Jobseekers Allowance jumped by 154% in the 12 months to April from 46,700 to 118,700,

Managers looking for work again were found in the biggest numbers in the South East of England and the West Midlands. Professional jobseekers were concentrated in London.

Solutions

Many of these people were hit by the financial crisis and the effect of the squeeze on the amount of credit available to organisations.

SMALLEST CHANGE IN JOBSEEKERS

• Derbyshire Dales: 1.11 percentage points
• Merton: 1.10
• Craven: 1.09
• Rutland: 1.08
• Guildford: 1.06

"The analysis clearly shows that different parts of the country are being affected by the recession in very different ways - even within individual regions there are marked differences as to how local areas are faring," said Sir Jeremy Beecham, vice-chairman of the LGA.

"The needs of leafy middle class suburbs are poles apart from the action that needs to be taken in more deprived inner city areas. An unemployed factory worker from Barnsley or Birmingham needs to be retrained very differently from a City financial analyst."

He argued that as many economic decisions should be made at local level as possible as a national blanket policy to stimulate economic recovery would not work.

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