Poorest communities remain forgotten post-recession: lessons need to be learnt

The first ever analysis of the impact of recession on local communities over the past 30 years, conducted by the Joseph Rowntree Foundation (JRF), reveals that many deprived communities struggle before, during and after recessions, and even during periods of economic growth.

Released today (21 October 2009) Communities in recession: the impact on deprived neighbourhoods draws on JRF's wealth of research on communities, as well as data on unemployment at neighbourhood level from 1985-2009 (www.nomisweb.co.uk). It illustrates how the poorest communities are worst affected by recession, and shows how they remain disadvantaged long after recessions have hit.

The report finds:
In recessions the number of unemployed people increases most in neighbourhoods where there are already high levels of unemployment.
Communities with high proportions of manufacturing workers and rented homes are hit hardest by recession - places with many public sector workers have been more resilient.
Unemployment may continue to rise one, two or more years after growth returns to the economy.
5% of deprived communities have remained in the top 10% for number of Job Seeker’s Allowance (JSA) claimants even during periods of growth.
The research also highlighted that neighbourhoods in the West Midlands and North of England have been hardest hit by the recession of 2008/2009, undermining the widespread belief that it was a 'white-collar' recession affecting Middle England.

Speaking about the report, Julia Unwin, Chief Executive of the JRF commented:
"Talk is already focusing on the UK's emergence from the current recession, but this report illustrates how the poorest communities struggle to recover from economic downturns even in periods of wider prosperity.
"We face tough decisions over the next few months. It is essential that these decisions do not further disadvantage the very poorest communities which have already suffered the most. We need to emerge from this recession with an economy that is both just and sustainable."

The report suggests ways in which local authorities, community and voluntary organisations can help maintain gains and 'recession-proof' the poorest communities.

Recommendations include:
Monitoring of job and service cuts for their impact on vulnerable groups and neighbourhoods.
Maintaining and expanding local jobs, employment and training advice and public transport information.
Creating more services for young people.
Increasing crime prevention activities.

To accompany this report, the JRF commissioned a journalist to describe the day-to-day reality of recession on four disadvantaged communities: Broad Green in Swindon, Gellideg in Merthyr Tydfil, Barkerend in Bradford and Hedworth in South Tyneside. You can read her reportage here.