Snakes and Ladders: Labour market mobility and UK cities

1. Naomi Clayton Centre for Cities 24th January 2012 Snakes and Ladders: Labour market mobility and UK cities

2. Context • Nick Clegg’s Social Mobility Strategy • The Work Programme – ‘sustainable employment’ and ‘in-work progression’ • Returns to individuals and the wider economy • But estimates from the BHPS suggests many people in the UK are not upwardly mobile …How do these issues play out across our cities?

3. There is a clear spatial pattern to unemployment… Hardest hit cities Source: NOMIS, 2012

4. The geography of jobs across the country continues to change – across UK cities… …and the gap is likely to widen as the economy moves towards a high skill, service based economy

5. And within UK cities… Disparities at neighbourhood level within Cambridge and Rochdale – JSA claimant count, November 2011 Source: Cities Outlook, 2012

6. Geography matters People living and working in the same local authority area • Typically people only travel a short distance to work (45mins) • People working in low skill, low wage jobs tend to travel even less Source: City Collaboration, 2011

7. The nature of jobs is changing Change in the number of jobs and resident population by qualification, 2004 to 2010 Changes in the use of generic skills, 1997 to 2006 Source: Learning Curve, 2011

8. The skills challenge is greater in struggling cities Qualifications across city groups, average 2004 to 2010 Source: Learning Curve, 2011

9. Educational attainment has been slow to respond… Source: Learning Curve, 2011

10. This has implications for pupils and for businesses 5 A*-C 5 A*-C inc Maths & English Source: Learning Curve, 2011

11. Patterns being reinforced through the skills system - at school level… Youth unemployment, 2007/10 average GCSE attainment including Maths and English, 2007/10 average Source: Learning Curve, 2011

12. …and in adult education and training Participation in job-related training, 2004/5 to 2010/11 Source: Learning Curve, 2011

13. At the same time low skilled jobs are dispersing Geography of high and low skilled jobs in Sheffield City Region, 2010 Source: City Collaboration, 2011

14. Low skilled workers are less able to respond to these changes Travel by income group and main mode of transport, 2009 Source: City Collaboration, 2011

15. For many the cost of public transport can be an issue… Changes in the cost of transport by mode, wages and retail price index, 1999 to 2009 …as can speed, frequency, timetabling and integration Source: City Collaboration, 2011

16. Individuals’ access to work is affected by a range of factors…

17. Encouraging labour market mobility across the UK Critical to have a detailed understanding of the unique labour market conditions and to recognise the interdependencies between places Explicit policies to capitalise on areas with greatest growth potential and to form mutually beneficial links with neighbouring areas Work with Local Enterprise Partnerships, business and Further Education (FE) colleges to match local skills provision to employer needs Department for Work and Pensions needs to work with other national government departments to better coordinate transport, jobs, planning and housing policies Cities need financial freedoms to decide on the priorities for investment at the local level – the Community Budget pilots and City Deals may be an important step forward here

18. Naomi Clayton Centre for Cities 24th January 2012 n.clayton@centreforcities.org 020 7803 4314