03-02-09, UpMyStreet ©

A new report by the Centre for Cities has revealed which UK cities it believes will be hardest hit by the current recession - and which are set to ride out the storm.

With Britain officially deemed to be in recession on January 23, and Ireland having entered recession in September last year, the report is very timely. Read on to find out how your city will be affected in 2009, and why.

Three cities will be hardest hit

The report by Centre for Cities identified three UK cities that it believes will be the hardest hit in the current recession:

1. Liverpool

• Although Liverpool has created over 50,000 jobs in the last decade, many of these are now being made redundant
  
• It has had one of the highest percentage rises in Jobseeker's Allowance claimants (+1%, 2007-08)
  
• In a comparison of major cities, Liverpool comes bottom for economic performance and social deprivation
  
• It has the lowest employment rate in the UK (65.2%)

2. Hull

• Only 15% of the population have degree level qualifications, so those made unemployed may find it harder to get back into work
• Largest rise in Jobseeker's Allowance claimants in the last year (+1.8%)
• One of four cities to be ranked in the bottom ten in the three main criteria - economic prosperity, built environment and social deprivation
• Second only to Liverpool for lowest employment rate. But, has had strongest earnings growth (2006-08)

3. Belfast

• Low unemployment levels the last few years but new job losses will affect concentrated areas of unemployment
• Very slow growing population (-0.1% a year currently)
• 24% of all residents have no qualifications

Other cities that will be affected

Residents of cities such as Bristol, London and Edinburgh may also face problems, as these cities have the some of the highest concentrations of banking and finance jobs - sectors that are currently at risk.

But, these cities also have high levels of skilled workers, which should be more flexible in the face of redundancies - 44% of Edinburgh's residents have degree level qualifications (compared with only 15% in Hull).

Some cities may be relatively unaffected

According to the report, cities in the South East with diverse economies may be the least affected by the recession. In 2008, nearly half of the cities with the lowest numbers of Jobseeker's Allowance claimants, were in the South East - such as Reading and Oxford. Cambridge in particular has the UK's lowest level of residents claiming Jobseeker's Allowance, and the fourth highest salaries of the UK cities.