Regional labour market fails to follow national lead

Figures released by the Office for National Statistics today indicate that unemployment in the UK was down 156,000 to 2.50m in the year to December 2012, and down 14,000 on the previous quarter.

Figures for the North West show unemployment was up 2,000 to 295,000. More locally the Jobseeker’s Allowance claimant count across Greater Manchester was up 3,151 to 85,210 in January, in contrast to a 12,500 fall nationally.

Commenting on the figures, Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce, said: “These statistics are notoriously difficult to digest and interpret. However, despite the disappointment of a large increase in the Jobseeker’s Allowance claimant count, this is not unexpected, and actually lower than the increase we have seen at this time of year in recent years. Although that will be no consolation to those who now find themselves out of work.

“The jump in January reflects the number of temporary hires across the region that are released after Christmas, although our Quarterly Economic Survey suggests that private sector recruitment will remain positive.

“However, in the current slow growth environment with uncertainty ahead, recruitment is not strong enough to offset these temporary worker losses, losses from some business failures and the coming public sector losses. There is cautious optimism amongst businesses and conditions are improving, though support for regional growth would help consumer confidence at this time.”