The Manchester Monitor is a dashboard of Greater Manchester specific data and indicators designed to provide a monthly analytical snapshot of the economic wellbeing of the city region.

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SEPTEMBER 2010

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Positive news for business growth in Greater Manchester

With the recent news that economic growth in the UK is at its highest level since 2001, the gloom around business growth appears to be lifting in Greater Manchester. But has this business growth meant more employment? Not necessarily – despite a growth in job vacancies up to August, more people are claiming jobseeker’s allowance and competing for these jobs.

Public sector cuts are at the heart of the matter this month. The tight control of government finances has left businesses – and the IMF – more confident in the future of the economy. The growth of the national economy is mirrored in the growth in the number of businesses in Greater Manchester. After a fall of 0.2% last year, the number of businesses in Greater Manchester grew by 22.3% between 2009 and 2010 – much higher than levels in London and across the UK.

And despite an increased number of jobseekers, consumer confidence continues to grow. The city centre especially has benefited from an annual growth in footfall, and an annual growth in retail spend. Coupled with this, the summer months have seen city centre hotel occupancy rates rise, year-on-year, in spite of an annual fall in passengers passing through Manchester Airport.

How are government spending cuts affecting individuals, though? For one, several high-profile public sector organizations are being closed down or merged, which may lead to rising numbers looking for work in the private sector. And changes to the benefits system to generate public sector savings have led – and will continue to lead to – more female lone parents claiming jobseeker’s allowance.

The future, as such, still remains uncertain. A nod to the government from the IMF shows a sign of confidence, and a reduced likelihood of the UK’s credit rating being downgraded. The IMF have highlighted the UK’s high level of debt as an impeding factor to growth since early 2009, and the Coalition government’s plans have reassured the IMF.

Locally, the onus is on private business growth to generate the jobs needed to get the local economy back on track. Simultaneously, through the Local Enterprise Partnership process, Greater Manchester’s public sector needs to show it can work even more closely with the private sector, whilst operating in a fiscally tighter environment, to ensure that unemployed residents can make the best of the opportunities on offer.

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worklessness
MONITOR

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In August 2010, JSA claimant figures remained relatively static. The number of JSA claimants in Greater Manchester now stand at 74,987, up 0.9% on July but down 8.1% on August 2009. The increase was as a result of large increases in the female claimant count.

Vacancies rose this month to 21,075 – an annual increase of 11.1%. In a positive move, long-term claimant numbers continue to fall at a faster rate than the average across Great Britain.

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business
MONITOR

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The proportion of businesses considered ‘high risk’ fell this month in Greater Manchester, against rising proportions of high risk businesses in the North West.

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economic
MONITOR

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House prices fell marginally in the month to July 2010, reaching an average of £111,550 across Greater Manchester. Annually, house prices are up 4.4%, though this is lower than the national average.

Tourism indicators are more mixed. Hotel occupancy rates have shown a slight annual increase but Manchester Airport’s performance is still down on last year. There are signs, however, that it is beginning to recover.

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DISCLAIMER

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All data contained in the Manchester Monitor, and all Monitor-related reports, has been compiled by New Economy from a range of sources and is published for general information purposes only. While every effort has been made to ensure the accuracy of the data and other material contained in this report, the Commission for the New Economy does not accept any liability (whether in contract, tort or otherwise) to any person for any loss or damage suffered as a result of any errors or omissions. The information, opinions and forecasts set out in the report should not be relied upon to replace professional advice on specific matters, and no responsibility for loss occasioned to any person acting, or refraining from acting, as a result of any material in this publication can be accepted by the Commission for the New Economy.