From the TUC

London’s worst employment blackspots have had the biggest spending cuts

17 May 2011, by in Labour market

Analysis by the TUC has revealed that the worst employment blackspots in the capital are also experiencing the biggest cuts in government spending.

The analysis, published ahead of the latest unemployment figures this week, ranks the City of London and each of the 32 London boroughs by the number of Jobseeker’s Allowance (JSA) claimants for every Jobcentre Plus vacancy from March 2005 to March 2011. The analysis also ranks the reductions in government grant for 2011/12 by London borough and finds that six of the ten worst employment blackspots – those with the biggest claimant to vacancy ratios – are also in the top ten areas facing the biggest spending cuts. 

Haringey, Lewisham and Hackney – the worst employment blackspots in the capital where over 25 dole claimants are chasing every vacancy – are experiencing cuts of 11.8 per cent, 8.9 per cent and 11.1 per cent in government funding this year, among the biggest in London.

The analysis also shows that the five London boroughs experiencing the biggest spending cuts are also among the most deprived communities in the UK.

The TUC has also examined unemployment data from March 2005 to March 2011 and finds strong evidence of persistent poor local job prospects, with London being one of the worst hit areas of the country. Hackney, Haringey, Lambeth and Lewisham have been in the top ten employment blackspots in Britain for five of the last seven years. In March 2005 the London Borough of Newham was ranked the worst employment blackspot in Britain with nearly 15 dole claimants per job vacancy. Back then, every one of the top ten employment blackspots was in London. Six years on in March 2011, West Dunbartonshire and East Ayrshire has overtaken London boroughs to become the worst employment blackspots in the country but there are still five London boroughs in the top ten.

Top ten employment blackspots in London, March 2011

Borough Claimant count Vacancies Ratio Government grant cut (%), 2011/12 UK deprivation ranking (1=highest)
Haringey 10,300 352 29.3 11.8 13
Lewisham 9618 371 25.9 8.9 31
Hackney 10,653 412 25.9 11.1 2
Greenwich 7,509 328 22.9 10.4 28
Lambeth 11,425 598 19.1 10.2 29
Barking & Dagenham 6,451 339 19.0 8.2 22
Waltham Forest 8,958 496 18.1 7.9 15
Tower Hamlets 10,364 637 16.3 11.1 7
Redbridge 7,106 444 16.0 4.6 134
Newham 10,802 701 15.4 11.0 3