New policies needed to boost jobs

This Is Money13 April 2012

THE Government needs to introduce policies to boost job growth in 'lagging' regions if it wants to achieve its goal of 80% employment.

Leading think tank, the Institute for Public Policy Research, said a strong focus was needed in improving job prospects in northern England, particularly the North East.

It said that strong employment growth recorded in recent years had been fuelled by certain pockets of the country.

Almost one in five of the working age population in the North East were claiming benefits, IPPR pointed out.

Research found that in Easington, Durham, 22.5% of people were claiming benefits relating to sickness and incapacity benefit, compared with just 2.6% in Wokingham, Berkshire.

In areas such as Middlesbrough and Hartlepool only one in three people with no qualifications had a job, compared with 51% nationally.

John Adams, research director at IPPR North, said: 'With a renewed commitment and a concerted effort, full employment might soon be within our grasp. The challenge may seem great, but the rewards would be enormous.'

He said Government initiatives, such as welfare to work, were not enough to take unemployment in certain regions and investment in business was needed to generate jobs.

Work and Pensions Secretary Alan Johnson welcomed the report, claiming that 1m people on incapacity benefits and 300,000 lone parents needed to return to work to help it achieve the 80% target.

He said: 'But we know there is more to do. Our Pathways to Work programme - which combines job support, health advice and a £40 a week credit to ensure work pays - is now successfully helping people with a health condition or disability into work.'

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