Think-tank warns jobs figures point to North-South divide

Analysis of official job figures by the Institute for Public Policy Research suggests that while unemployment fell by around six per cent in Yorkshire over the last year, it was reduced by more than 12 per cent in the South-East.

One in five young people in Yorkshire are out of work, a total of 94,000.

As many as 24,000 extra jobs would need to be created in Yorkshire if it was to match the best performing region, the South-West, where just 15 per cent of young people are out of work.

The think-tank expects the number of young people out of work to pass the one million mark when the latest unemployment data is published tomorrow.

Unemployment rose in Yorkshire by 3,000 to 246,000 in the three months to the end of January compared to the previous quarter, but fell in London by 17,000.

The director of IPPR North, Ed Cox, said: “The rise in unemployment in northern regions makes it clear that we are a long way off any sense of recovery outside London and yet there is such potential in Northern towns and cities.

“Budget announcements about regional growth and infrastructure investment are too little too late.

“We need a much more comprehensive and rapid response to the Heseltine and Northern Economic Futures Commission reports.”

The IPPR is warning that the struggle facing thousands of young people trying to secure work could lead to them experiencing longer term problems over staying in work.

It is calling on the Government to introduce a job guarantee for anyone out of work and claiming Jobseeker’s Allowance for more than a year.

Labour has promised to introduce a job guarantee but has said it will initially only apply to those who have been out of work for two years.

Last month’s employment figures showed that nationally the number of people out of work had risen by 7,000 to 2.52m.

However, the same figures showed the number of people claiming Jobseeker’s Allowance had fallen by 1,500 to 1.54m.

That is the lowest number of people to be claiming the benefit since June 2011.