Bristol needs plan on jobs to beat recession

Bristol's reliance on jobs in the financial sector will leave it exposed during the recession, experts have warned.

The city has been given an amber ranking in a nationwide economic study, which means that while it is better placed than some cities to cope during the current climate, it does have major vulnerabilities.

Bristol has the fourth largest concentration of banking, finance and insurance jobs – one of the most risky sectors over the coming months – of any British city.

But the Centre for Cities think-tank claims these workers are highly skilled, more flexible and mobile, so are better able to endure the turbulent times.

Dermot Finch, director of the Centre for Cities, a research unit set up to understand how and why economic growth and change takes place in British cities, said: "UK cities will be hit harder than they think by this recession. Nearly all say they are well-placed to weather the storm – but they can't all be right. The recession will hit our cities in different ways, and some will be hit worse than others.

"Bristol will lose a lot of financial services jobs, but many of its workers are highly skilled and adaptable.

"Cities will lead us out of recession – but they can't just rely on action from Whitehall. Each city needs its own front-line action plan, to keep jobs and retrain workers – and more powers over economic development."

The organisation has charted the economic fortunes of Britain's biggest cities and towns by evaluating their performance on jobs, population growth, skills and incomes.

Bristol has higher rates of employment than the national average and lower rates of people with no qualifications, according to the report, and one in three working age adults holds a degree.

The average income is almost £1,600 lower than the national average wage of £24,700, however. It comes on the back of the organisation's report earlier this month that predicted up to 20,000 jobs could be axed in the city over the next two years if the economy contracts by as much as 2.5 per cent, which experts believe is likely.

Sir Jeremy Beecham, vice chairman of the Local Government Association, said: "The fastest way to get out of recession is for more decisions about the economy to be taken at the local level, which means councils and other local bodies continuing to work together with local people and businesses.

"All over the country councils are reacting quickly to the needs of businesses in their area.

"Councils are keen to be partners of Government in fast-tracking investment in infrastructure and the environment, and in addition to stimulate the local economy by promoting the take-up of council tax and other benefits alongside small business rate relief."