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Economic stress is a concern for households

by Staff Writer

Increasing joblessness, dropping house prices, stunted wage growth and economic uncertainty have all contrived to further widen the historic North-South divide since the start of the recession, according to the latest analysis on Thursday.

The separation is also likely to continue against a backdrop of "very modest" growth of around only 1 percent this year and next, according to a new regional household financial stress index by PwC.

The firm's latest UK economic outlook report said unemployment rose 2.8 percent from the end of 2007 to stand at 8 percent in the second quarter of this year. House prices have fallen by 9.4 percent on average since their third-quarter peak in 2007.

The public sector, accounting for around 20 percent of total jobs, began to severely cut back on jobs this year. This is a contributing factor to why Wales and the North East have been the hardest hit regions because the public sector is a major employer in these areas.
To learn more please visit:
http://www.cfoworld.co.uk/news/financial-planning/3317444/north-south-divide-widens


Published: November 16, 2011

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