Thursday, 9th February 2012

Region at high risk of job cuts, warns report

Wem could be ‘significantly hit’ with future job losses because of its large percentage of public sector workers, according to a new report.

In the document called ‘Rural evidence base 2010’ compiled by development agency Advantage West Midlands, it states that Wem is one of a number of rural towns in the region which is at high risk of rising unemployment.

The town has 43 per cent of its working population in the public sector and these posts could be hit hard under Government plans to slash spending in that area.

It says the situation could be made worse by a shortage of, and reduced access to, alternative work in rural towns.

But rural areas also have the potential to recover more quickly because of the high number of skilled workers.

The report states: “High levels of public sector employment possess a high risk to future recovery in light of Government austerity measures.

“Linked with poor access to alternative jobs, some places could be significantly hit – for example, Wem has 43 per cent of population working in the public sector.”

It comes after it was announced in June that 600,000 jobs are expected to be lost in the public sector across the UK in the next six years.

Advantage West Midlands have warned that unemployment could affect one in four people living in rural areas, meaning other towns in north Shropshire could also bear the brunt of public spending cuts.

Peggy Carson, of Wem Town Council, said: “I think there’s a lot of unemployment already in north Shropshire, and people could be hard pressed to find other work if there are redundancies because there are very few job vacancies. Wem doesn’t seem to be doing too badly at the moment – the shops are coping and we hope it continues that way.”

By David Seadon