The FINANCIAL — Good jobs – and plenty of them – are the most important factor in reducing poverty in the UK’s cities, according to a new report released co-authored by LSE academics.
The Joseph Rowntree Foundation report on Cities, Growth and Poverty shows that the quality and quantity of jobs is the most important factor linking economic growth and poverty.
The report looked at the 60 largest cities in the UK in the period between 2000 and 2010 and how employment and output growth impacted on poverty. Significant increases in economic disparities between British cities were found in this period, with London and surrounding cities experiencing more rapid growth than elsewhere, according to LSE.
There is no guarantee that economic growth will reduce poverty: some economically-expanding cities experienced unchanged or increasing poverty rates;
Employment growth has the greatest impact on poverty, but it is context dependent: If jobs are low-paid and lack opportunities for progression, the impact on poverty is minimal;Growth in output is important for economic success, but it can worsen poverty because it can lead to increases in the cost of living;
Some cities are tackling this challenge by promoting employment in expanding sectors or providing training targeted at disadvantaged groups to enable them to access opportunities associated with major infrastructure projects
The researchers found that progression within the workplace was one of the key routes out of poverty, particularly for people in low-paid, low-skilled work, according to LSE.
Discussion about this post