The recession and government cuts will cost Greater Manchester almost 95,000 jobs, say leading economists.
It is estimated that 48,660 jobs will go in the next five years – 21,900 in public sector administration, education and health, and 26,760 in the private sector in the ‘extremely challenging’ times ahead. Some 46,000 jobs have been lost since the economy began shrinking in 2008, says the study for the region's ten council leaders.
The report was written by senior economists at Greater Manchester's Commission for the New Economy.
It forecasts that it will be 2014/15 before unemployment rates – currently over 65,000 – return to pre-recession levels.
The recovery will rely heavily on the private sector which ‘has the potential to bring over 76,000 new posts to offset job losses.’
But New Economy chief executive and author of the report, Mike Emmerich, warned: "Not a lot will stop the next couple of years being incredibly hard on the jobs front. "
His report says Greater Manchester was hit hard by the recession, after a decade of growth. But he said the region had better opportunities to bounce back than most.
He said: "I’d rather be in Manchester than any other city in the north of England right now."
Although the region’s economy may have started to grow again, it remains behind the pace of the southern-based recovery,
Reduced public spending will exacerbate this in the short-term.
Manchester council leader, Sir Richard Leese, said: "There are going to be less people in work, people are going to have less money and, particularly when the VAT increase comes in next year, the cost of living will go up, so it's going to be a triple hit.
"The task we face is minimising that."
The dramatic drop in jobs will be accompanied by the loss of £333m-a-year in benefits payments to Greater Manchester residents following the welfare shake-up.
Calculations show Greater Manchester will lose £42.6m-a-year through changes to the tax credits system and £110.9m from the controversial scrapping of child benefit for higher rate taxpayers.
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No doubt a report commissioned and funded by left-leaning Manchester authorities. Fact is the country was close to 'broke' and something had to be done. I have yet to hear from any Liebour or leftie leaning authority a coherent policy or idea as a resolution to the massive overspend and waste of the Liebour years. The UK was on the verge of financial collapse, we couldn't carry on the socialist mantra of pouring taxpayers money down the drain.
These the same Economic Experts that didn't see the recession coming? How about we save a few quid by sacking the lot of them.
I'm quite surprised to hear that Greater Manchester actually has 95,000 people working.
Sorry I do apologise, I forgot about the infamous public sector rusty old anchor.
"Perhaps they needed to as they have to shoulder the responsibility of years of economic mismanagement & incompetence."
I hate to burst your ideological bubble, but untill the world financial crisis that broke in 2008, the government percentage of spending as expressed by GDP was actually on average lower than that of the Tory governments from 1979 to 1997.
That is a verifiable fact - you seem to be rather averse to such things. Note also that between 79 to 97 the Tory administrations were more often in deficit than in surplus. So much for the fabled Tory competence, eh?
Finally, two points to consider - again, both facts, although I'm sure you'll simply have another little paddy - Cameron and co. were pledging to equal Labour's spending up till and including said global financial crisis; so, not much evidence of the much vaunted fiscal probity that you seem so confused about. Also, in 2007 John Redwood - arch uber Tory - was actually calling for less regulation of the financial markets, rather than more.
And to finish with - take a good look at Ireland. They enacted the sort of level of cuts that I presume to deem to be essential here in the UK. The result? IMF bailout and £7,000,000,000 from the UK taxpayer, which roundly torpedoes any assertion that the UK is broke.
Right off you go - let's have another fact free rant from you.