Adjustment to job loss in Britain's major cities

Abstract

This paper examines the labour market consequences of severe employment decline in Britain's major cities between 1981 and 1991, using labour market accounts. Significant adjustment to employment change occurred through out-migration and commuting, but unemployment in cities also rose, although much of it was recorded as inactivity. On average, women were less able to adjust through out-migration or commuting than men, while women in lower skilled jobs showed much less adjustment than those in professional or managerial occupations. This suggests that the creation of employment opportunities for less skilled occupations brings far greater direct benefits to the resident population of major cities than the creation of professional or managerial employment.