Hidden unemployment figures reveal stark north-south divide
New research has revealed a considerable north-south divide, with economic inactivity more prevalent up north, according to research unit Centre for Cities.
Unemployment figures are also three times higher than first thought, with official figures rating unemployment at 3.7%, but this rises to 12.1% when ‘hidden’ unemployment is considered.
While official figures only consider those actively looking for jobs, hidden unemployment refers to people who are not looking for work due to circumstances out of their control.
Nine out of ten places with the highest rates of hidden unemployment are based in the north, with the 10th based in Wales, highlighting regional divides which affect local economies.
Centre for Cities is urging the government to take action to deliver promised levelling up policies, support job creation and upskill communities.
Andrew Carter, Chief Executive at Centre for Cities, said: ‘Since the pandemic we have seen lots of headlines alluding to record-low numbers of job seekers but Cities Outlook shows that in many cities, particularly in the North, there is actually a jobs shortage.
‘With the UK predicted to enter a recession, the Government must address its lack of action on levelling up so far and act swiftly to create more opportunities to get people back into the labour force.
‘This will require implementing an agenda that delivers much-needed investments in skills and public services, while supporting job creation in struggling places.’
Blackburn was found to have the highest rate of hidden unemployment at 10.5%, followed by Middlesborough and Sunderland at 20.2% and 19.9% respectively.
Reading, on the other hand, had the lowest rate in the country (8.2%), with Basildon and Gloucester closely behind at 8.3% and 8.4% respectively.
Centre for Cities highlighted how discussions on addressing unemployment have often focused on improving public health to bring people back to work, but this may not be the problem.
Instead, there is a jobs shortage in much of the UK, rather than a lack of workers, with the North and Wales accounting for 16% of job postings but 21% of hidden unemployment. These areas also have less high-skilled jobs and more unskilled workers.
Photo by Clem Onojeghuo