It has been widely believed that Britain experiences a so-called north-south division, wherein much of the country’s economic prosperity is centred in London and the southeastern areas. But based on actual compiled figures this belief does not hold water in real life.
In the five London boroughs, employment levels are below the already-low European average. These five areas, namely, Newham, Hackney, Tower Hamlets, Haringey and Barking & Dagenham – account for more than 50 per cent of only eight local authorities in Britain where the employment level is below the EU average of 63.3 per cent. Contrast this to the robust employment rate of 74.7 per cent for Britain – which is considered a record high.
This employment problem is not limited to the five boroughs. Figures reveal that employment is still below the national average for much of the rest of inner London. Only the outlying boroughs enjoy employment that can be considered at or above the UK average. London’s average employment rate has been found out to be the worst of any part of the country at 69.4 per cent.
According to Employment Minister Margaret Hodge, “London is the only area where unemployment is higher now than in 1979.”
Hodge revealed that there are enough jobs in the city for all of the 850,000 Londoners who have been identified to be jobless or inactive. But for various reasons, these people have not been able to take the jobs on offer.
Company formation and business solutions professionals said the government’s recently released statement to tackle the issue to ensure that the jobs that will be created will go to the people in the boroughs is a welcome development.