Downturn takes cruel toll as the jobs dry up
Jan 22 2009 by Adrian Pearson, The Journal
JOBLESS figures continued to rise in the North East on a day when the Government was again accused of being “out of touch” over optimistic comments.
Unemployment in the North East went up by 8,000 over three months with 104,000 people across the region now without a job.
Employment experts say 8.2% of the working age population in the North East is out of work, the highest rate in Britain and 31,000 higher than last year.
Nationally, unemployment rose by 131,000 to 1.92 million between September and November.
Hundreds of jobs have been lost since the data was compiled. Since the turn of the year, Newcastle Productions, which runs the Findus Foods factory in Longbenton, put 360 jobs on the line by calling in administrators. Elsewhere car giant Nissan, in Washington, revealed it was axing 1,200 jobs. Newcastle Building Society is also cutting 150 staff.
The figures were released on the same day that Employment Minister Tony McNulty responded to claims the British economy was close to financial collapse by saying “There is light at the end of the tunnel. It is some way off, I think that’s clear, but all that we are doing in terms of the economy, which is being followed by most other western economies, will mean that we will get through this downturn and this recession.”
Businesses leaders last night urged employers to wait and see the effects of recent Government announcements before making any long-term decisions.
James Ramsbotham, North East Chamber of Commerce chief executive, said: “The Chancellor has announced new measures to kick-start the money markets but this will not happen overnight.
“The Government needs to introduce further innovative schemes such as short-term working to safeguard jobs. Businesses have to look at the immediate opportunities available to help them, a significant one being the Train to Gain programme.
“We would also reinforce the need for the public and private sectors to pay suppliers more promptly to make sure local companies have stronger cash flow.”
Ian Williams, One North East Director of Business and Industry, said the figures did not “reflect the challenge that the region faces to tackle the economic difficulties caused by the global downturn”. Mr Williams said: “While there is no doubting the scale of the challenges the region faces, its broad and diverse business base makes it better placed than in the past to emerge from this downturn.
“Key sectors such as oil and gas and new and renewables are still performing strongly with opportunities for growth.
“While this downturn is impacting on the economy and presents real challenges, the region’s economy is still far stronger than it was in previous downturns.”
Shadow Work and Pensions Secretary Theresa May said: “Labour’s astonishing claim that there is ‘light at the end of the tunnel’ shows how out of touch they are.”
