Official Flintshire Report into Unemployment Worries

SPECIAL ECONOMIC REPORT: Flintshire facing unemployment crisis in recession

FLINTSHIRE is facing an unemployment crisis, with the number of people out of work set to double as the recession bites.
That’s the worrying finding of a new study, which examines the Flintshire’s prospects over the next decade.

The draft economic regeneration strategy predicts that unemployment in the county could jump from 2.8 per cent to 6.7 per cent.

More than 1,200 jobs have been lost since January, 2006, and there are fears the number could explode because of the economic downturn.

Part-time and lower-skilled workers are more likely to be affected, according to the wide-ranging document.

Concerns are also raised over the fact that “pockets of poverty” still exist in a county that is seemingly lacking in entrepreneurs.

Cllr Mel Higham, executive member for regeneration and tourism, said: “Flintshire has seen a strong economy over the last 10 years, however many parts of the county have not shared in that prosperity.

“We now face very uncertain times and we will now need to work hard to maintain the prosperity we now enjoy.”

Other key findings of the strategy include:

- Flintshire is highly dependent on manufacturing, which accounts for 34 per cent of all jobs in the county compared to a UK average of about 14 per cent.

- Flintshire contributes about 60 per cent to the North East Wales GDP of £4,269m.

- Deeside Industrial Park represents one of the largest employment centres in Wales, with more than 10,000 people employed by more than 600 businesses.

- Four per cent of Flintshire companies are responsible for 47 per cent of all jobs.

- 11.1 per cent of the working age population, or 10,250 people, are reliant on key out-of-work benefits.

- Tourism is worth £160m a year to the county’s economy, generated by 2.7m visitors each year.

The report says: “Over the last 20 years, traditional industries in Flintshire have given way to aerospace, food, paper, chemicals and automotive components.

“However, although engineering, manufacturing, retail and financial and business services were recently predicted to grow, there is now concern that these sectors are to be among those most subject to the economic downturn.”

The study adds that while unemployment is relatively low, the county could be vulnerable to a rise in jobless similar to that predicted in the north west of England.

While the county has enjoyed the benefits over the last decade, some areas have been left behind resulting in pockets of deprivation that are “masked” by surrounding affluence.

Areas in Holywell, Greenfield, Shotton, Mold and Flint are among the most deprived in Wales and every town has at least some level of deprivation, according to the study.

It says the success in attracting major employers like Airbus, Toyota and Corus has not been matched by the development of home-grown local small businesses.

“Flintshire has a poor tradition of business start-up, in part a reflection of its large employer culture and in part because of the choice of jobs available”, says the strategy.

The county’s rate of business start-ups is about three quarters of the UK level, and local entrepreneurs need more support.

The study says that one of the biggest challenges facing the county is worklessness, adding: “The number of claimants unemployed is relatively low but in addition there are up to to a further 1,200 people who have been made redundant or taken early retirement, or are out of work and living on benefits.

“Although many of these people would like to work, various factors, including discrimination, poor childcare and transport facilities and low wages, often allied to a lack of skills, have combined to make them feel that it is often not worth even applying for jobs.”

About 28 per cent of people in Flintshire have problems with literacy and 27 per cent have problems with numeracy.

Nearly 40 per cent of companies believe there is a gap between the skills needed for business and those of applicants.

Despite the problems, the strategy says there are real long-term opportunities for the future, adding that the economy is very different than when the county faced the recession of the early 1990s.

Originally posted 2009-05-27 12:28:37.