YORK is more vulnerable than ever to job losses but should ride out the recession better than other cities, according to a report published today.

The Cities Outlook 2009, published by the Centre for Cities, says York’s high dependence on the financial sector means it could suffer many job losses.

But the report says York’s skilled workforce, coupled with its high initial employment rate, should stand it in good stead.

The report’s authors write: “York is a successful city, which has successfully recovered from the decline in traditional manufacturing, such as confectionery, restructuring towards higher value service sectors.

“…But as the UK enters a difficult recession, York looks susceptible and the city will need to maintain efforts to sustain economic success.”

Financial services account for five per cent of York’s jobs, and the report says that, if the national economy were to shrink by two per cent in 2009, York’s could shrink by 1.3 per cent, resulting in the loss of 2,800 jobs in 2008/9.

The authors said that, despite its vulnerability, York’s skilled workforce made it well-placed for a subsequent economic up-turn, and job losses would not be permanent. The report said York and Warrington were the only two smaller cities in the Midlands or North performing well.

York was also identified as the fourth-fastest growing city, with a population increase of one per cent a year. It had the fifth-lowest number of benefit claimants (8.5 per cent); was the fourth-lowest for deprivation; and had the seventh-lowest rating for economic inequality.