The UK’s membership of the European Union has helped boost job creation and growth in the North East for more than forty years, with as many as 100,000 jobs in the region currently linked to exports to the Single Market, the CBI has said.
Now, according to figures from HM Treasury*, there is the potential to create 41,590 future jobs for the North East if the UK remains in the EU, and continues to deepen economic ties with its member states.
Several key sectors in the region depend on the Single Market including:
- 41,640 manufacturing jobs – 67 per cent of all jobs in the sector in the North East – are linked to UK exports to EU countries. Remaining in the EU and extending the Single Market could see an additional 5640 manufacturing jobs being created in the region
- 12,370 jobs in wholesale and retail trade are boosted by trade with the Single Market. 5690 jobs could be added to the North East’s distribution and retail sector by staying in, and strengethening, the Single Market
- 9200 jobs in administrative and support services benefit from British exports to the EU.
Sarah Glendinning, CBI North East director, said: “The UK’s membership of the European Union has been of enormous benefit to the North East for over 40 years. Some of the key sectors that lie at the heart of communities across the region, from manufacturing to retail, rely on our membership of the Single Market.
“Virtually every economist agrees that leaving the EU would likely cause an economic shock, damaging the North East’s prospects. We’d not only put a dent in what we have now, we’d also miss out on thousands of jobs in the near future, as a result of losing access to the Single Market, pulling the rug from under our local economy.
“This is why the majority of businesses want the UK to remain inside the EU, to best drive growth, support and create jobs, and increase prosperity for our region.”
*All figures are taken from estimates published by HM Treasury, based on employment statistics for December 2015, and analysed by the Centre for Economic and Business Research (Cebr). The research can be found here.