07 September 2007
The expansion of Wales' public sector is turning the principality into one of the dynamic 'knowledge economies' driving UK growth, a report by the Work Foundation has concluded.
Research published by the think-tank on September 3 shows that Wales has moved up from seventh to fourth in the list of UK nations or regions utilising the specialist skills that have underpinned UK growth since the decline of manufacturing and the rise of globalisation.
The study shows that London and the Southeast of England continues to be the UK's powerhouse local economy, as a consequence of its 'high-skilled, high-productivity' service sector.
Few other areas have been able to match its growth rate over the past decade because they have yet to create a critical mass of 'knowledge industry' jobs such as financial services, consultancy, ICT or research and development roles.
'Laggard' English regions, such as Yorkshire & the Humber and the Midlands, are perpetuating a North-South divide which might endure, researchers warn.
Elsewhere, Wales has bucked the UK trend through its public sector reform.
Neil Lee, a Work Foundation researcher and author of the study, said: 'Wales has emerged as something of a success story over the past decade, moving from the seventh to the fourth most dense area of knowledge sector employment... driven by the expansion of the public sector.
'The government's commitment to devolution has created opportunities in education and health, but the private sector in the principality remains relatively weak.'
Lee concludes that other areas 'must renew efforts to close the gap and avoid being left behind'.
PFsep2007
