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GDP per head still 5.7% down and real value of average earnings 13.8% down on 2007 levels

Friday, July 25, 2014

In places like Dundee, Nottingham, Birmingham, Newcastle upon Tyne, Liverpool, Leicester, Newham, Walsall, Hartlepool, Manchester and Middlesbrough the employment rate is way below the UK average of 71.6% says GMB. 

GMB commented on the figures from ONS which show the UK growth of 0.8% in the second quarter of 2014 taking the size of the economy above its pre-recession peak. 

Paul Kenny, GMB General Secretary, said “The six years between the start of the downturn and now is the longest for over a 100 years.  However there is some way to go before GDP per head recovers to pre- recession levels.  This is because much of the growth is due to demographic factors. The increase in population means GDP per head is still 5.7% below 2007 levels.  

See notes to editors 1 for figures.

So size of the cake is back to pre-recessions levels but the slice per person is smaller.  This is the root cause of average earnings being down 13.8% in real terms since then. The recovery is patchy. There are large swathes of the country and a great number of workers that have seen little or no benefit from this recovery. In places like Dundee, Nottingham, Birmingham, Newcastle upon Tyne, Liverpool, Leicester, Newham, Walsall, Hartlepool, Manchester and Middlesbrough the employment rate is way below the UK average of 71.6%.  

See notes to editors 2 for list of 20 areas with the lowest employment rates. 

This needs addressing.  

End 

Contact Kamaljeet Jandu 07956 237178 or Rehana Azam 07841 181656 or Martin Smith 07974 251 722 or GMB press office 07921 289880 

Notes to editors 1 Changes in GDP at current prices and population since 2007 

Year GDP seasonally Population  GDPper head £ Index % change
  Adjusted £m        
2007 1,552,989 61,319,100 25,326 100  
2008 1,541,039 61,823,800 24,926 98.4 -1.6
2009 1,461,361 62,260,500 23,472 92.7 -7.3
2010 1,485,616 62,759,500 23,672 93.5 -6.5
2011 1,502,216 63,285,100 23,737 93.7 -6.3
2012 1,505,993 63,705,000 23,640 93.3 -6.7
2013 1,532,431 64,135,000 23,894 94.3 -5.7

 2 Twenty areas with lowest  employment rates
  
    Employment rate April 2013-March 2014 % above or below the UK average
       
1 Dundee City 59.6 -16.8
2 Nottingham 60.3 -15.8
3 Birmingham 60.3 -15.8
4 Newcastle upon Tyne 60.6 -15.4
5 Liverpool 61.2 -14.5
6 Leicester 61.2 -14.5
7 Newham 61.8 -13.7
8 Walsall 62.0 -13.4
9 Hartlepool 62.3 -13.0
10 Manchester 62.3 -13.0
11 Middlesbrough 62.4 -12.8
12 Rochdale 62.5 -12.7
13 Wolverhampton 62.7 -12.4
14 North Ayrshire 62.7 -12.4
15 Blackburn with Darwen 63.0 -12.0
16 Barking and Dagenham 63.2 -11.7
17 Kingston upon Hull, City of 63.3 -11.6
18 Ceredigion 63.6 -11.2
19 Hackney 63.7 -11.0
20 Kensington and Chelsea 63.7 -11.0

 

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