London benefits from less reliance on public sector jobs
London and the south east of England are in a more confident position economically – partly due to not relying on the public sector for employment.
This is the conclusion drawn from a survey carried out by Begbies Traynor and reported by Personnel Today, which found a correlation between the areas of the country where the state is a major employer and those that have seen the most financial problems among businesses.
The jobs London and the South East have to offer are spread around a wider variety of organisations, which has meant the recent economic difficulty in the UK has not been as troubling in this region.
Data from the Office for National Statistics showed the number of job cuts slowed between the second and third quarters of the year in the two regions. Begbies Traynor said the areas were also the only ones where commercial financial distress had fallen.
Ric Traynor, chairman of the company, said: “As the threat of public sector job cuts became a reality in the past few months, a North/South divide has begun to emerge, with the South East and London areas showing much greater economic resilience than the rest of England and Wales.”
The Banking Times highlighted how the study shows the north east of England to be the region suffering the most difficulties; however the South West, Midlands, North West and Wales are also struggling.
Traynor suggested the months leading up to Christmas will be pivotal for firms in these regions.