West Midlands particularly vulnerable to public sector job cuts

Public sector employment has grown significantly in recent years across the UK and has been the key driver of the economy’s expansion. But proposals announced by the government to make £83bn worth of cuts in public sector spending are forecast to lead to the loss of up to 600,000 public sector jobs across the UK over the next 6 years, according to a study¹ by Oxford Economics.

The West Midlands economy is particularly vulnerable to the impact of the cuts. Between 1998 and 2008 (latest available figures), the West Midlands saw the most significant increase in dependence on public sector employment in the country².

The share of jobs accounted for by the public sector increased from 22% in 1998 to 27% in 2008, a rise of 5 percentage points, bringing total public sector employment to some 637,000.

We forecast that between 2010 and 2016 there will be a net loss of nearly 50,000 jobs across the West Midlands and, based on the ratio of the number of private sector jobs dependent on public sector spending and the associated supply chain nationally, a further 310,000 jobs are at risk at private sector firms directly or indirectly reliant on public sector spending³.

Local enterprise partnership proposals announced

56 proposals for local enterprise partnerships across the country have been submitted, the government has confirmed, following the closing day for submissions.

There are seven proposals from the West Midlands:

• Birmingham and Solihull with East Staffordshire, Lichfield and Tamworth: two page summary (pdf, 17kb) and  the full proposal (doc, 243kb)
• Coventry and Warwickshire (doc, 3.5mb)
• Stoke-on-Trent and Staffordshire (pdf, 1.3mb)
• The Black Country (pdf, 2.74mb)
• The Marches Enterprise Partnership (pdf, 1mb) – Herefordshire, Shropshire and Telford & Wrekin
• West Midlands (an overarching proposal from Business Voice West Midlands)
• Worcestershire (pdf, 603kb)

Three distinct responses in respect to cross boundary working arrangements have also been received from Peak District, South East England and West Leicestershire and Northern Warwickshire.

Here’s the full list of proposals.

Inward investment into the West Midlands 2009/10 – a local analysis

In 2009/10 there were 84 inward investment successes in the West Midlands and another four knowledge-based investments. These investments created over 1,500 new jobs and safeguarded another 4,300.

Although these 88 investments represented the lowest number of jobs created or safeguarded since 1992/93, they also represented the 7th highest total number of projects since 1991.

Inward investment is usually spread reasonably evenly between the West Midlands metropolitan areas and the shire counties. In 2009/10 the shire counties attracted the majority of inward investment projects (55%). See left.

However, the metropolitan areas of Birmingham, Coventry, Solihull, Dudley, Sandwell, Walsall and Wolverhampton have attracted perhaps just over half of the projects over the years – see below. The number of jobs created and safeguarded also generally follows a similar pattern.

Government awards grant to boost town centres

The government is making £3 million available to help areas hardest hit by the recession find creative ways to reduce the negative impact empty shops are having on the high street.

Coventry, Birmingham, Stoke-on-Trent, Dudley, Sandwell, Wolverhampton and Walsall councils are each being given a grant of £52, 632.

The councils will use the grants as they see fit to boost town centres and transform empty shops into a variety of places including learning centres, meeting places or a showroom for artists.

Inward investment: record high for West Midlands

In the period 2008 to 2009 the West Midlands region received 117 foreign direct investment (FDI) projects, a record high since records began in 1991 (shown by the blue line in the graph below).

Tracking a plant disease across Cannock Chase using GISlp

GIS (Geographical Information Systems) is helping to track and treat a plant disease, previously unknown in the United Kingdom, which is infecting and killing bilberry across the northern part of Cannock Chase Country Park.

Staffordshire County Council’s Environment and Countryside team, with help from many volunteers, have been surveying the outbreak of Phytophthora pseudosyringae in the bilberry on Cannock Chase.

This alga-like fungus can cause the rotting of roots of some deciduous trees in Europe, and is associated with the condition known as oak decline.

It is rare in the United Kingdom. Few previous records on the infection of bilberry seem to exist.

Latest gross disposable household income estimates indicate metropolitan West Midlands is UK’s poorest sub-region

The 2007 Regional Gross Disposable Household Income (GDHI) (Word, 411KB) estimates are released today by the Office for National Statistics.

Indexed GDHI per head (where UK=100) for the West Midlands in 2007 was 90, stable in comparison to the revised 2006 index value of 90.

GDHI per head in the West Midlands rose from £12,700 in 2006 to £12,900 in 2007, an increase of 1.9%, in line with the increase seen in England and the UK.

Gross Disposable Household Income (GDHI) per head is preferred to Gross Value Added (GVA) per head as a measure of economic welfare.

West Midlands rural areas hit particularly hard by recession

The Observatory’s Skills Team are working on an assessment of skills and labour market issues in the rural areas of the West Midlands on behalf of the Regional Skills Partnership and the Rural Affairs Forum.

While we expect to publish in April 2009, we can report now on emerging findings relating to the impact of the recession.

Rural areas of the West Midlands have out-performed the rest of the region in recent years in terms of business growth, new business formation and employment growth.

However, there remains a significant dependence on lower value added sectors and industries such as agriculture, manufacturing industries such as food and drink, construction, hotels and catering, and transport.

West Midlands local development annual monitoring reports

The Planning and Compulsory Purchase Act 2004 requires local planning authorities to regularly monitor planning policies that affect the planning and development of their areas.

Each council is required to produce an Annual Monitoring Report which is published in December to assess the effectiveness of policy in the Local Development Framework.

These show whether the progress towards targets and milestones in the Local Development Framework are being met and whether council planning policies are being successfully implemented. If policies are not working as intended – or are not achieving sustainable objectives – the Annual Monitoring Report includes suggested actions.

Heart of enterprise: West Midlands feature in the Guardian

Wednesday’s Guardian newspaper included a special supplement to the Society Guardian all about the West Midlands, Heart of enterprise. If you missed it, all of the articles are available online.

The supplement includes commentary by Ian Austin MP, who re-iterated points made during his inaugural speech as Regional Minister for the West Midlands at the Observatory’s annual conference back in October 2008.

There are also articles looking at how the region is being affected by the current economic situation and what steps are being taken to address the current challenges. Regeneration schemes in the Black Country, Birmingham and North Staffordshire are featured.

Research vacancies in the West Midlands

The NHS Institute for Innovation and Improvement is currently advertising for two posts in their Research and Evaluation team on a secondment and maternity cover basis.

The posts are both full time and based at the University of Warwick Campus in Coventry. For details on how to apply, job description and contacts, visit the NHS Institute website.

Also, Staffordshire County Council are seeking an experienced research officer to lead the corporate research team within the County Council’s Research Unit. More details on www.staffordshire.gov.uk.

West Midlands Regional Integrated Economic Assessment published

The West Midlands is the first English region to produce a Regional Integrated Economic Assessment. The aim of the project is to provide an assessment of the performance of the West Midlands’ economy and of the factors which contribute to it. It also assesses the relative position of the different parts of the region.

The Assessment is made up of:

• An overarching regional summary (PDF, 1.7MB)
• Three thematic chapters:
  • Economic Structure and Output (PDF, 1.7MB)
  • Communities and Connections (PDF, 1.5MB)
  • The People of the Region (PDF, 0.6MB)
• Local authority area profiles for each of the 14 strategic authorities

Local Area Agreements: The next generation

In June 2008, 150 new Local Area Agreements (LAA) were signed off by central government. A Local Area Agreement is a three year agreement, based on local Sustainable Community Strategies, that sets out the priorities for a local area.

The 14 strategic authorities in the West Midlands each have a Local Area Agreement.

Life expectancy in the West Midlands

A recent press release [no longer available online] from trade union GMB highlights the difference in life expectancy at birth across the West Midlands.

Women living in Solihull have the highest life expectancy in the region at 83.3 years with those living in Stoke-on-Trent having the lowest at 79.6.

For men, the difference is greater with those living in South Shropshire expected to live on average to 79.4 years of age, the longest in the West Midlands region. However those living in Sandwell have the lowest life expectancy – a full five years lower.

West Midlands sub-regional information sources

If you are looking for specific data or information about one of the sub-regions, in addition to our Resource Catalogue on wmro.org, you might also like to try one of the sub-regional intelligence units.

Here is a list of some of them to help you track down the information that you need.

• Herefordshire Partnership
• Worcestershire Research & Intelligence Unit
• Warwickshire Observatory
• Black Country Observatory
• Staffordshire Observatory

In addition to these, many of the local authorities also have intelligence or research units that can provide data and statistics. I’ve previously looked at one, Research Sandwell, in an earlier posting.

If you have other sources of sub-regional information that are not listed here, why not post a comment to let others know about it. And of course, you can always submit details of any research and data sources relevant to the West Midlands to the resource catalogue, thereby making it even easier for others to track down!