This is no time to be complacent

Jun 29 2009 by Kevin Rowan, The Journal

WE still need an urgent focus on generating new employment.

The rate of increase of unemployment is slowing down across the country. In the North East the unemployment rate even showed a fall in this month’s figures.

Unfortunately, the number of people in work in the region also went down. With the addition of this statistic the fall in the unemployment rate is actually bad news, because it means that there are either more people who have moved into ‘economic inactivity’, meaning they are even further away from the labour market, or they have left the region altogether, a dynamic the region cannot afford.

There are indicators that are positive. Engineering and manufacturing employers are reporting increasing activity and there is some limited recruitment taking place.

The business community generally is showing less pessimism, but qualify this with the view that there will be no upturn this year and it could be, in fact, well into 2010 before we’re seeing anything like consistent growth.

So, the mood music might be slightly less menacing, but it remains grim.

In this context it seems some of the urgency to intervene and respond has dissipated. Yet it remains critical to keep our eye firmly on the ball.

There is confidence that the medium term offers strong opportunities and that the North East can capitalise on low carbon future and green manufacturing jobs.

Offshore wind manufacture will be a feature of the region’s economy within 12 months; it is looking like all of the key developments are in place to make Wearside a key centre for the production of electric cars; the current consultation on clean coal, carbon capture and storage gives a boost to aspirations in Teesside and south east Northumberland; and European Redevelopment Funding has been secured to give a significant boost to businesses focusing on reducing energy consumption in homes through micro generation and improving insulation.

There is no doubt at all that the region will benefit from these developments – the only questions are when and by how much.

We need to maintain our sense of urgency to ensure the North East is able to lead the UK in these areas.

Kevin Rowan is regional secretary of the Northern TUC