By John R. Short
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Example text
Has been mainly in public sector services, for welfare reasons. Associated with these regional employment shifts, broad convergence has also occurred in regional rates of unemployment, female employment, population migration, and earnings (Keeble, 1977, 1980a). 1), as is the West Midlands' steady deterioration throughout the period. Female employment (or activity) rates also rose much faster in Scotland, Northern England and Northern Ireland than in the country as a whole, because of a relative growth there of female-employing manufacturing and government services (Cambridge Economic Policy Group, 1980).
In a period of substantial economic decline, this conflict is heightened. It is exacerbated because the pressures on the central state mean that it has to determine spending priorities among its major functions. Successive governments have seen their principal task as the promotion of economic change, preparing an environment in which investment will increase, jobs will be created, and the economy will boom again. To do this, it is seen as necessary to cut social consumption expenditure of the welfare state, not only to allow more expenditure on investment but also to reduce the state's borrowing requirements, thereby (it is hoped) leading to reduced interest rates, and more borrowing and investment in private industry: hence cuts in education - especially those elements not perceived as relevant to industrial expansion - proposals to privatise parts of the health service, and plans to reduce the real value of unemployment payments.
The latter argue forcefully that changes in overall regional employment are basically a response to changes in the regional level of primary (mining, agriculture) and manufacturing employment, since the great bulk of service employment serves local markets and population and is dependent on income brought into the region by its primary and manufacturing industries (see Keeble, 1976, p. 201 ). ; Keeble, 1980a, p. 102) form part of the regional economic base, an exception that helps to explain the continuing relative prosperity of the South East despite its manufacturing decline.