London and the South East have been relatively protected from public sector job losses that have hit other areas of the UK, research suggests.
Since the 2008 financial crisis, public sector employment has fallen by just 3.1% in London and the South East compared with 19% in the North East and a 12.4% drop in the West Midlands.
Analysis of Office for National Statistics figures by the Sheffield Political Economy Research Institute (SPERI) found Yorkshire lost 12.6% of its public sector jobs over the same period, while Scotland and Wales both saw near 10% falls.
Research suggests this trend has continued under the Coalition Government, with London and the South East increasing its share of public sector employment from 23.7% to 25.1% of the UK total since 2010.
SPERI today put the figures down to ‘more intense’ pressure placed on public sector employment in regions outside of London, where cuts to local authorities have impacted more heavily.
The report also highlighted: ‘Central government has been relatively protected from budget cuts relative to local government. Since a disproportionately large number of central government jobs are located in the capital, public sector job cuts have had less of an impact there.’
Researchers added that assumptions the public sector ‘crowds out’ private sector growth were ‘highly questionable’, with London seeing both the fastest growth in private sector jobs and the smallest loss of public roles since 2008.
The news follows serious concern about a widening north south divide across the UK. Centre for Cities earlier this month warned that a two-tier economy was being created, with fears that for every 12 new jobs created between 2004-2013 in the south, only one had been generated elsewhere.
