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The North South divide

The North was heavily industrial, but these manufacturing industries have declined due to de-industrialisation.

The South has an economy based on services and increasingly quaternary industries.

The North East is England’s lowest income region, with an average household income of £26,000 per year.

It also is England’s most deprived regions with high unemployment, poor health and overcrowded housing.

In 2011, a quarter of all jobs in the North East were in the public sector (local and national government organisations – NHS)

Public sector jobs are being cut due to the reduced government spending.  Between 2010 to 2011 – 32,000 jobs were lost from the North East public sector

 

  • Industry once dominated by coal mining, iron and steel production, shipbuilding and chemicals but declined rapidly in 20th and 21st centuries due to foreign competition and high labour costs

  • The chemicals industry is still important but employs fewer people due to automation and improved technology. 

  • The Nissan car factory in Sunderland is an important part of the recovery of the area.  Other newer industries include the manufacture of North Sea oil and gas platforms.

  • Unemployment is fairly high (10.3% in 2013)

  • For example in 1947 there were 108,000 miners in the region in 127 pits, but by 1994 the last mine was closed.  In 1971 manufacturing accounted for 40% of employment in the region, but by 1996 this had fallen to 24% = loss of 95,000 jobs

  • Manufacturing is still important – growth of industry in the region established by the creation of a enterprise zone in the 1980s.  The new companies employed 63,000 people, however only 13,000 were genuine jobs.

  • In 2011, new enterprise zone covering Durham, Sunderland and South Tyneside

  • Since de-industrialisation – the growth the public sector has been very important in the region – in 2012 the sector employed 263,000 people.

  • Starting to develop certain areas as a centre of quaternary industry, science and high technology – Sunderland

 

The North East suffered from the process called the ‘domino effect’ – when one industry collapses, it leads to the collapse of others.  When this happens, it also damages other local businesses and services. 

 

2010 data:

Unemployment – 10.2%

Average full-time weekly earnings - £443

Working age people with no qualifications – 14%

Population change 1971-2010 – 3% decline

 

Manufacturing in the North East has declined and the tertiary sector has increased.  Part of the region’s problem is a lack of high salary jobs in the quaternary sector.

Outside London, South East England is the most expensive area in the UK for house and land prices.

Many people live in commuter towns outside London, so good rail links to London are vital.

 

The average household income of South East residents is the UK’s second highest - £35,000

 

  • Many of the workers living in the South East commute to London. Working in high paid tertiary or quaternary jobs. (Financial and business services)

 

  • In the public sector, civil jobs in government departments are better paid and offer good promotions

 

  • Private sector – knowledge economy jobs and company headquarters in London provide senior – highly paid jobs

 

  • Being the UK region closest to Europe – the South East contain the UK’s two largest ports (Southampton and Dover).  These help provide thousands of jobs.

 

 

The region is attractive to industry because:

 

  • Focus of the UK’s motorway and rail networks. M4 corridor which is located near to Heathrow – development of quaternary industry and research.

 

  • Four major airports – Gatwick, Heathrow, Stansted and Luton – good international communications

 

  • Important ports – Southampton and Dover – allow movement of heavy, bulky goods.

 

  • Large local market – 19million people – with high incomes

 

  • Large skilled work-force

 

  • Close to power and decision making based in London  - headquarters of large companies

 

  • Proximity to the rest of Europe – easy access via the Channel Tunnel

 

 

2010 data:

Unemployment – 6.1%

Average full-time weekly earnings - £548

Working age people with no qualifications – 8%

Population change 1971-2010 – 25% increase

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