The Institute for Public Policy Research (IPPR) North warned that areas already struck by high unemployment are seeing job losses. This is compounded by the credit crunch halting housing-led regeneration, with little hope of projects getting off the ground before 2012.
The decline in the construction industry is also holding back regeneration. IPPR North said that while there are exceptional pockets of unemployment in the south, most areas seeing the biggest job losses are in the West Midlands and Yorkshire. Manufacturing jobs are especially vulnerable.