News Article

Report reveals how badly credit crunch is biting

14/01/2009

AIRDRIE & COATBRIDGE ADVERTISER
THE credit crunch is biting across Monklands

A total of 332 jobs have been lost in the area, with with only 43 new jobs being created. The number of people claiming out-of-work benefits is up 26 per cent, Jobcentre vacancies are down 30 per cent and the last year saw 1754 large-scale redundancies.

A new North Lanarkshire Council report lists the economic gloom and says that after a period of growth from the mid-1990s “the outlook has worsened” in recent months. Large-scale redundancies have included 130 jobs at Newhouse’s Terex in November last year, 50 at KRG Precision Engineering in Coatbridge and 30 at Woolworths in Airdrie. A report for councillors by North Lanarkshire Council’s Head of Regeneration Services -  Maureen McConachie - revealed:

“ In previous years, North Lanarkshire has seen falling numbers of those claiming out of work benefits. Since early 2000, the number of individuals claiming Job seekers Allowance has fallen by over 40 per cent to a low of 5060 in May 2008. However, this is now beginning to grow again. “In January 2008, the numbers claiming JSA had decreased to 4926 from a high of 6112 in January 2007. Recent figures released by Department of Work and Pension show that the numbers claiming JSA in North Lanarkshire in October 2008 is now at 6224, an increase of 26 per cent. Of additional concern is the fall in the number of vacancies posted at Jobcentre Plus. In the past year, there has been a drop by over 30 per cent of vacancies posted at Jobcentre Plus offices in North Lanarkshire. “With the economy expected to continue its downturn well into 2009, employment growth is forecast to slow throughout 2009. In turn, the number of individuals claiming out-of-work benefit is forecast to increase further over the next year.”

Business start-up rates have also slowed in recent months. Between 2000 and 2007, North Lanarkshire had one of the highest growth rates of new business in Scotland but now the area is witnessing a reduction in the number of new businesses opening. Recent indicators from Scottish Clearing Banks show a reduction in the number of bank accounts being opened by businesses in North Lanarkshire. Mid-2007 saw a peak of 400 new bank accounts being opened but by the middle of 2008 this had dropped to under 300. “While this is not an indicator of business start-ups, it does suggest that there is less business activity in North Lanarkshire compared to previous years. The report continues:

“The North Lanarkshire economy is now entering a very challenging period. No area in Scotland is immune from world and UK economic conditions, and the whole of the country is experiencing problems due to the downturn. “Businesses are finding it difficult to access loans and financial support for investment and expansion. There is also a lack of confidence in the business community as more companies are forced into administration and receivership, with redundancies often a result of these hard times for businesses. “While it is clear that there are challenging economic conditions, North Lanarkshire remains an area of economic opportunity that is attractive to business. Negative news regarding redundancies was tempered by the number of jobs created, almost 1000 in 2008. “Significant opportunities remain for job creation in North Lanarkshire, not least from the Maxim development at Eurocentral, which if successful could create up to 8000 jobs over the coming years.”