Issue - items at meetings - Employment Update

Verbal update from the Economic Development Team.

71.1         The Leader considered an update from the Economic Research and Project Support Officer, Thomas Perrigo, concerning employment in Brighton & Hove.

71.2         The Economic Research and Project Support Officer gave a presentation concerning youth employment and wage inequality and inflation in Brighton & Hove. He explained that in relation to the number of 18-24 year olds claiming job seekers allowance (JSA) the city was below both the national and regional average; however, the number of 25-49 years olds claiming JSA was above the regional average, but just below the national average. In relation to wage inequality and inflation, it was highlighted that in the period 1997 – 2010 the gender pay gap between men and woman had closed, despite pay for women still being lower, but the growth in female wages was much higher in the upper quartile than the lower quartile. It was also explained that in 2008/9 inflation had outpaced wage growth, suggesting that some families on lower incomes might have to sacrifice spending on luxury goods; recent fuel poverty research indicated that increases in the cost of fuel were shown to hit elderly and single earner households hardest.

71.3         Councillor Morgan asked for further information on the breakdown of not in employment, education or training (NEET) youths by ward, and it was confirmed that this information would be circulated separately to Members after the meeting. The Economic Development Manager, Cheryl Finella, added that the problems in relation to NEET youths were recognised by the Council.

71.4         Councillor Carol Theobald asked if there was any evidence to explain if those 18-24 year olds in employment were in jobs that they wanted to be in. The Economic Research and Project Support Officer explained that there were issues in relation to underemployment of graduates, and it was important that entry level positions were created and freed up for graduates.

71.5         The Leader acknowledged that the information from Officers demonstrated the depth of some of the employment issues the city faced. He went on to state that women were most affected by budget savings from central government. He also highlighted that housing costs were high in the city and rents had increased by approximately 5% in the last year together with increased costs to energy; and he stated that more work should be done to insulate properties across the city.

71.6         Following a query from Councillor Morgan Officers clarified that wage growth for women was being driven by increases in the highest quartile.

71.7         Councillor Carol Theobald noted that much of the changes in the wage inequality could be due to the increased number of women working and the increased number who were now the sole earner in households. She went on to note that increased costs to energy and fuel affected everyone, and expressed concern about the number of residents of the city below the poverty line.

71.8         RESOLVED – That the update be noted.