Mixed fortunes for Newport economy (From South Wales Argus)
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Mixed fortunes for Newport economy
9:40am Monday 23rd January 2012 in News
NEWPORT is in the top ten UK cities to have seen an increase in private sector jobs but is likely to lose thousands of public sector jobs by 2016, a new report has revealed today.
Cities Outlook, by research group Centre for Cities, is an annual report on the state of the UK’s largest towns and cities.
It ranks Newport ninth out of only 14 cities to experience growth, and the only Welsh city, to have seen an increase in private sector jobs between 2009 and 2010, from 49,300 to 49,800.
This is a completely different picture from that of 2010, when Newport was ranked 61st out of 64 cities for the number of private sector jobs between 1998 and 2008. Yet despite this, today’s report also predicts a huge loss of 4,500 public sector jobs in Newport by the end of 2016.
This places Newport at the bottom of the table – ranking it 63rd out of 63 cities for the change in public sector jobs expected by then.
The report says Newport may be vulnerable because of government reductions in the civil service.
Newport council leader Councillor Matthew Evans said: “Like other cities in the UK Newport is facing challenges, but we are working with our partners to address these and create the right conditions for new and existing businesses to grow.”
But he said the report only gives a snapshot of the city’s economic conditions.
“It does not provide the whole picture or take into account the work that is continuing in the city to attract new jobs and businesses,” he said.
Cllr Evans said the council is looking for other ways to reduce unemployment in the city and is trying to attract employers, support new businesses, encourage existing firms to employ local people, and is working with schools and colleges on skills for the workplace.
Cllr Evans said businesses in the city such as Cintec, Go Compare, Rowecord and Brace’s are doing well.
Reference was also made to the announcement at the end of last year that Newport’s Udex House will become home to a new entrepreneurship programme for graduates, and Admiral’s recently announced plans to move staff from Langstone Business Park to the city centre.
Prosperity for some – but not for all
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NEWPORT has continued to see both private sector success – and private sector woe – over the last 12 months since figures used to compile the Cities Outlook report was published. Crumlin-based Brace’s last year expanded into the former Warburtons bakery site in Rogerstone, Newport, last year, recruiting 26 more people. Newport engineering firm Cintec recently secured a £400,000 contract to help reinforce railway bridges in India. Currently the company is working to save the Pyramid of Djoser in Egypt from collapse, with the hope of eventually opening it to the public. The Argus reported last year that Udex House on Bristol Packet Wharf would become home to a boot camp for gifted young entrepreneurs run by Celtic Manor owner Sir Terry Matthews. The Alacrity Foundation’s graduate entrepreneurship programme plans to help graduates develop products and learn what it takes to start a new venture. Cwmbran-born founder of Newport-based insurance website Gocompare.com Hayley Parsons was awarded an OBE last month – it employs 96 people. However, job losses were seen at the Newport Passport Office, where the government announced 120 posts would be cut. |
EDITORIAL COMMENT: City’s tale of two fortunes |
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NEWPORT is in for years of mixed fortunes if a new report is to be believed. According to the research group Centre for Cities, Newport is one of the leading cities in the UK for attracting private sector jobs. It places Newport ninth out of 14 cities that experienced growth – and is the only Welsh city – to record an increase from 49,300 to 49,800 jobs. Those 500 jobs may not seem a lot, but in the financial climate in which they were created and the fact that only 14 cities in the country recorded a growth while the others recorded a loss, we should certainly take a lot from it. Newport has always been attractive to investors. Its location makes it a perfect base for any firm and the area has always been one that has never shied away from wanting to attract new business. The only thing that would have slowed down growth in the last few years would have been the worldwide economic climate, something which nobody predicted. All in all, though, Newport should take pride in this, given that a year ago the same people ranked Newport 61st out of 64 cities in the same category. More worrying, though, is the prediction of public sector job losses. The report estimates 4,500 public sector jobs could be lost between now and 2016 as government cutbacks bite deep. That is a huge worry. We have already seen, with the loss of passport office jobs, how reliant the city is on public sector work. Some might even say it is the lifeblood of the city. These figures are, however, based solely on the fact so many public sector jobs are already based here and not on any hard or firm evidence that they will be lost. We can only hope that the figure is wide of the mark for the sake of the city and all the people who work in the public sector. |
