Posted on April - 22 - 2010
Call to support innovators
Policy makers in Manchester need to work harder at creating the right conditions for growth in private sector employment if they are to stave off the worst effects of cuts in public spending, a new paper warns.
The briefing by the city’s Commission for the New Economy calls for such measures as increased support for innovative businesses, especially in science and technology, to create a more sustainable employment base.
The report by the publicly-funded think tank concedes that Manchester should be less affected than other regional cities by any public spending because it has a higher percentage of private sector jobs.
Outside London, Manchester has the highest number of residents employed in the private sector of any UK city – with only 28.5 per cent employed in the public sector.
The report says this is a sign of a ‘more robust’ private sector, but warns that cuts in public spending could still have a serious impact on the city, because so much of recent employment growth has come from the public sector.
It also points out that small businesses have become more dependent on public sector work throughout the recession, so any cuts would have an impact on them.
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