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date: 16 May 2011

embargo: For immediate release

London's worst employment blackspots have had the biggest spending cuts

The worst employment blackspots in the capital are also experiencing the biggest cuts in government spending, the TUC has revealed today (Monday).

The TUC analysis, published ahead of the latest unemployment figures this week, ranks the City of London and each of the 32 London boroughs by the number of Jobseeker's Allowance (JSA) claimants for every Jobcentre Plus vacancy from March 2005 to March 2011.

The analysis also ranks the reductions in government grant for 2011/12 by London borough and finds that six of the ten worst employment blackspots - those with the biggest claimant to vacancy ratios - are also in the top ten areas facing the biggest spending cuts.

Haringey, Lewisham and Hackney - the worst employment blackspots in the capital where over 25 dole claimants are chasing every vacancy - are experiencing cuts of 11.8 per cent, 8.9 per cent and 11.1 per cent in government funding this year, among the biggest in London.

Islington, which has a 12 per cent reduction in its government grant - the biggest in London - is currently ranked the 18th hardest borough to find a job.

The five London boroughs experiencing the biggest spending cuts are also among the most deprived communities in the UK, the TUC analysis shows.

The TUC has examined unemployment data from March 2005 to March 2011 and finds strong evidence of persistent poor local job prospects, with London the worst hit area of the country.

Hackney, Haringey, Lambeth and Lewisham have been in the top ten employment blackspots in Britain for five of the last seven years.

In March 2005 the London Borough of Newham was ranked the worst employment blackspot in Britain with nearly 15 dole claimants per job vacancy. Back then, every one of the top ten employment blackspots was in London.

Six years on in March 2011, West Dunbartonshire and East Ayrshire has overtaken London boroughs to become the worst employment blackspots in the country but there are still five London boroughs in the top ten.

Across Britain, the number of dole claimants per vacancy has quadrupled from 1.5 in 2005 to 6 this year.

TUC General Secretary Brendan Barber said: 'Beyond the dazzling wealth of the City, many ordinary Londoners are struggling to find work, particularly in the most deprived areas of the capital.

'Worse still, the poorer the area the harder it is to get a job, yet the more the government is cutting.

'By hitting the poorest areas of London the hardest, the government is fuelling an employment divide across the capital.

'The reductions in government grant will hit local services and depress demand in local economies, making it harder for businesses to create new jobs.

'Strong economic growth is the only way to tackle our jobs crisis but the government's deep and rapid spending cuts are jeopardising our chances of recovery. The government must change course before economic stagnation sets in.'

NOTES TO EDITORS:

Top ten employment blackspots in London, March 2011

Borough	Claimant count	Vacancies	Ratio	Government grant cut (%), 2011/12	UK deprivation ranking (1=highest)
Haringey	10,300	352	29.3	11.8	13
Lewisham	9618	371	25.9	8.9	31
Hackney	10,653	412	25.9	11.1	2
Greenwich	7,509	328	22.9	10.4	28
Lambeth	11,425	598	19.1	10.2	29
Barking & Dagenham	6,451	339	19.0	8.2	22
Waltham Forest	8,958	496	18.1	7.9	15
Tower Hamlets	10,364	637	16.3	11.1	7
Redbridge	7,106	444	16.0	4.6	134
Newham	10,802	701	15.4	11.0	3

Source: nomisweb.co.uk, Department for Communities and Local Government website

- The TUC analysis is available at www.tuc.org.uk/tucfiles/18/employment blackspots London.xls

- The figures available for Islington Borough Council also include changes in estimated revenue spending power for 2011/12, which includes council tax, and is available at www.local.communities.gov.uk/finance/1112/grant.htm#set1112.

- All TUC press releases can be found at www.tuc.org.uk

- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Gibson T: 020 7467 1337 M: 07900 910624 E: egibson@tuc.org.uk

Press release (800 words) issued 16 May 2011