Public sector job cuts will fall disproportionately on urban ex-industrial areas of Britain, widening the North-South divide, says a new study.
An analysis of public sector employment trends shows the largest number of public sector jobs concentrated in the North East, North West, Scotland and the Midlands – areas likely to be worst hit by job cuts.Between 2000 and 2010, public sector employment grew by 16% – or 800,000 jobs – and the last government redistributed tax revenues from London and the South East to older industrial areas ‘in the form of increased levels of public sector employment’ says the report by the Local Futures Group.
It adds: ‘In many of these localities, net job creation has been largely state-sponsored, with private sector activity to some degree dependent on public sector contracts.
‘Not surprisingly, areas with the greatest dependence on public sector jobs will be the most vulnerable to the spending cuts.’
Its report estimates the biggest public sector job losses will be in Birmingham, Glasgow, Leeds, Liverpool and Sheffield.
