The unemployment debate raged on but very little was being said about investment away from London – with the focus being on the Olympics and reinvigorating our service industries. This was perhaps my first properly “journalistic” article as opposed to comment – it was the first time I had used and analysed data as opposed to rhetoric. I really enjoyed writing this piece and hope to to write more of a similar ilk.
You can find the original article by clicking here.
Unemployment has hit a 17-year high and the figures are, as usual, being masked by political mud-slinging.
“Unemployment doesn’t just happen overnight – it’s the mess you’ve left behind that has caused this,” say the Conservatives. “Our mess is part of a wider mess but if you’d used a broom instead of a pneumatic drill to deal with it, we wouldn’t have consecutive bouts of unemployment!” say Labour.
Both arguments have merit but amid all this, young people are being left behind: the number of young unemployed has reached its highest level since the mid-1980s.
History shows us that migration, particularly internal migration, has a very important role to play in generating economic growth. This graph is based on ONS data on regional migration:
The data, from March 2010 to March 2011, shows that people are generally leaving London, apart from those aged 15 to 24, who are moving in.
Of those who left London, where did they go? Some 84,600 moved to the South East; 53,660 moved to the East; and 19,480 moved to the South West. Unsurprisingly, house prices had a large part to play: the South East experienced the second highest annual fall in house prices nationally.
As for young people migrating to London, the overwhelming majority came from the South East, then the East. This suggests that London is being seen as the place to find work. But data shows that the largest numbers of job vacancies are in the North West – 48,700 as at November 2011 with London second (31,000 jobs in banking, finance and insurance). Interestingly, 220,000 vacancies nationally are in banking, finance and insurance, after distribution, hotels and restaurants with 46,000.
London is second only to the North East in terms of unemployment rates. Youth unemployment in London has jumped by 26,000 in three years. But with 77,000 young people aged 15 to 24 migrating to London in the last year alone, it is hardly surprising that a sizeable number have been unable to secure employment.
This has to change: jobs have to be created away from London and the South East. Concentrating wealth and opportunities in one part of the country leads to pressure on housing stock and public services, and results in over-population.
Young people are highly mobile, so they should see other parts of the country as feasible places to work and live. House prices are be cheaper the further North you go and, with Londoners already spending £489 more on travel than those in the West Midlands and North of England combined, cheaper travel should be a more appealing prospect.
The Prime Minister has been criticised for protecting the “one square mile of the 86,000 in the UK” with his unprecedented EU veto. He must create hubs in other parts of the country for our financial industry and other services industries to grow.