White collar job losses ‘rising rapidly’

Friday 12th June 2009, 8:59AM BST.

White collar job losses 'rising rapidly'The number of managers and professional employees claiming Jobseekers Allowance has risen rapidly during the last year, new research shows.

Data from the Local Government Association (LGA) suggests the current recession is hitting white collar workers in the south-east and blue collar workers in West Midlands, Yorkshire and south Wales.

The research also highlights the fact blue collar workers have lost the largest number of jobs over the course of the last twelve months, but white collar job losses are rising at a quicker rate.

The LGA claims the number of managers and professionals seeking Jobseekers’ Allowance has increased by 154 per cent over the last year – to a total of 118,700.

Jobseeker Allowance claims from skilled trade workers and elementary workers, such as cleaners, catering assistants and labourers, rose by 77 per cent to 589,000.

Sir Jeremy Beecham, LGA vice-chairman, said: “The analysis clearly shows that different parts of the country are being affected by the recession in very different ways – even within individual regions there are marked differences as to how local areas are faring.”

Best increases in jobseeker allowance claimants from ‘elementary’ occupations are concentrated in the West Midlands, Yorkshire and south Wales – although the largest increases were recorded in Corby and Swindon.

The biggest increases for claimants from skilled trades work were in the West Midlands, south Yorkshire and the Mersey-Manchester corridor, while the south-east and West Midlands saw the greatest number of manager claimants.

The LGA claims the regional differences mean any national recovery plans should be targeted more locally.

“A national, one size fits all approach to dealing with the recession simply isn’t going to work,” said Sir Jeremy.

“The needs of leafy middle class suburbs are poles apart from the action that needs to be taken in more deprived inner city areas. An unemployed factory worker from Barnsley or Birmingham needs to be retrained very differently from a City financial analyst.”

He went on to welcome the £1 billion earmarked in the Budget for job creation schemes from councils but claimed “with greater freedoms over transport, infrastructure, planning, economic development and skills, councils would be able to do even more for local people”.



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