Member Article

Greater Manchester paints mixed picture as recession exits

Greater Manchester is still facing challenges in labour, manufacturing and housing market functions, despite the lifting of recession.

The monthly analysis of Greater Manchester from think-tank New Economy suggests that whilst the UK has emerged from the economic downturn, the area is still struggling.

Latests Jobseeker’s Allowance (JSA) figures show that 84,900 people in Greater Manchester were claiming in September 2012, an annual increase of 2,400 that runs contrary to the year-on-year declines experienced nationally.

For the first time, manufacturing sector companies reported growth in UK sales over Q3 standing at -2%. Despite this, export sales and order for Greater Manchester manufacturers remain positive.

Baron Frankal, director of economic strategy at New Economy, said: “The recent announcement that the UK has finally emerged from the double-dip recession is a cause for measured optimism. The economy remains fragile and there are likely to be many ups and downs in the coming years before a firm growth trajectory is established.

“Greater Manchester’s increase in unemployment is also extremely concerning. Efforts to boost productivity will need to be doubled over the medium-term in order to generate sustainable jobs growth. In the short-term, work that we’re undertaking on apprenticeships and skills is critical to enable our residents to take up opportunities that are emerging in the growing knowledge economy.”

Other indicators were more positive, as the visitor economy in particular remained strong; Manchester Airport saw an increase in passenger numbers from £2.18m a year ago, to £2.21m.Hotel occupancy in Manchester city centre was 81.7% in September 2012, up 2% on an annual basis; the best occupancy rate since September 2006.

Mr Frankal continued: “Not unconnected, Lord Heseltine published a major report last week, which adds weight to the argument that places like Manchester are stunted in their ability to create jobs because the UK is too centralised in terms of its power and funding. With many of the things that we would like to do in Greater Manchester being decided in Whitehall rather than say, Wigan, Heseltine has dedicated himself to ‘reversing a century of centralisation’.

“The sort of devolution that Lord Heseltine is talking about would help us to build better upon the strengths that Greater Manchester has, like our visitor economy, which keeps our external profile strong. With so many big events taking place inManchester over the winter months, this should continue to have a positive impact on the economy in terms of boosting visitor numbers and trade.”

This was posted in Bdaily's Members' News section by Tom Keighley .