Nearly 6m jobs in rural areas at risk, council leaders warn

Almost 6m jobs in county areas could be at risk because of the coronavirus pandemic, a report has warned.

The report from Grant Thornton UK LLP for the County Councils Network (CCN) concludes that county areas are potentially more vulnerable to the economic impact of the virus compared to England’s major cities.

It estimates almost 6m employees working in ‘at risk’ job sectors and the vast majority projected to have an gross value added (GVA) decline greater than the national average, a new report reveals.

With 3.5m employees in the 36 counties featured in the study currently furloughed, county leaders fear that a significant number of those people will not have jobs to go back to once the scheme ends in October and have called on the government provide them with devolved powers to protect employment.

Grant Thornton recommends that targeted investment needs to focus on the county areas identified to help narrow the gap between high-growth areas and those with lower growth, otherwise the pandemic will exacerbate the divide between the major cities and England’s shire counties that the government’s ‘levelling-up’ agenda sought to address.

Looking longer term, an effective recovery will be hugely assisted by devolved powers and resource, particularly over skills and transport to re-train people into new jobs in a new economy, whilst providing both the physical and digital infrastructure for growth.

These are powers currently enjoyed by metro mayors in areas whose economic growth prospects are better than counties, and the report concludes that new powers and budgets will create more effective local recoveries.

‘The scale of the economic challenge posed by coronavirus cannot be overstated and today’s research illustrates how exposed county areas are with over half of those areas’ workforces currently in sectors “at risk”,’ said CCN chairman, Cllr David Williams.

‘We fear a significant number of those furloughed will not have employment to go back to unless we act now.

‘There is a real risk the pandemic simply exacerbates the longstanding economic divide between county areas and the major cities, with urban metro mayors having more powers and resources at their disposal to address the impact of coronavirus,’ said Cllr Williams.

‘County authorities must be a central part of the economic growth jigsaw, alongside the government’s ‘Plan for Jobs’ and efforts from business and the education sector. Each area will have differing needs, and we know our residents and businesses well. Restructuring councils with devolved powers to new and ambitious unitary authorities will allow us to grasp the ‘levelling-up’ nettle and provide hope to our communities.’

The full report – Place-Based Recovery: How counties can drive growth post-COVID-19  by Grant Thornton UK LLP – is available to read here.

Photo Credit – Tmcsparron (Pixabay)