Weak economy highlighted by U4D

The dire state of the local economy highlights the need for a major boost to the city, the group states. U4D believes this can only be achieved by a substantial expansion of Magee.

The data reveals: Londonderry/Strabane is within 1 per cent of the highest rate of economic inactivity in the whole of the UK (Liverpool). The rate in Londonderry/Strabane is 34.2 per cent, compared to an average of 21.1 per cent in the UK and just 8.3 per cent in the lowest area (Bury St Edmunds in Suffolk).

Londonderry has the highest unemployment rate in Northern Ireland at 7.2 per cent, compared to 4.9 per cent in Northern Ireland and 4.2 per cent across the UK.

Twenty-nine per cent of working age people in Londonderry and 40 per cent in Strabane have no qualifications, compared with 22 per cent in Northern Ireland.

There is a very low level of graduates in the Londonderry population. Eighteen per cent of 15 to 75 year olds in Londonderry have qualifications at ISCED levels 5/6. This compares to 35 per cent in the comparable Scottish city of Aberdeen.

Londonderry has average pay far below the norm. The weekly median pay is 359 in Londonderry, compared to 417 in Northern Ireland and 478 in the UK.

Northern Ireland has the third lowest productivity level of any UK region. Northern Ireland has the lowest R&D investment of any UK region.

Universities are a major driver of wealth and contribute substantially to economic well-being. Universities contributed 31bn to the UK economy in the 2007/8 year.

The University of Lincoln - only founded in 2001 and which U4D is seeking to emulate in Londonderry - already generates 187m - 250m a year to the local economy and employs 1,180 staff.

Qualifications are good for employment prospects. Eighty-nine per cent of working aged adults with degree/professional level qualifications are in employment in the UK, compared with 65 per cent of those with lower school level qualifications.

Graduates of working age earn around 70 per cent more per week than their non-graduate counterparts.

"This report makes clear that the economy of Derry-Londonderry and Strabane is terribly weak," says U4D chair Padraig Canavan.

"For the economy to become stronger requires higher local skills, which will drive higher levels of employment and higher pay.

"The way to achieve this is obvious - it is to expand Magee, so that Derry-Londonderry becomes a proper University City. That will provide this city with the necessary skills for the modern economy.

"That, in turn, will enable local firms to expand and attract inward investment. Greater job opportunities and spending power would be good for everyone in the city - and not only those who would actually study at the university."