Councillors told 1,700 retail and manufacturing jobs could be lost in Derry by 2030

A senior economist has told Derry councillors that hundreds of local jobs in retail and manufacturing could be lost this decade.

However, at this afternoon's meeting of the Governance and Strategic Planning Committee he also said that City Deal investment will help to combat rising unemployment levels in the city.

Dr Eoin Magennis, from Ulster University’s Economic Policy Centre, gave a presentation to Derry City & Strabane District Council.

He provided an overview of the council area's economic performance in recent years in comparison to NI as a whole which highlighted high levels of unemployment and claimant count rates.

Employment forecasts were given for the period 2021-2030.

In a best case scenario there could be 5,200 new jobs by 2030 and in a worst case scenario growth by just 600 jobs.

Growth will be driven by ICT and Health - contributing around 1,100 to 2,400 jobs - allowing for better wages and incomes by 2032.

Research centres at Ulster University's Magee campus are seen as a key part of that.

However, retail is under ‘significant pressure’ with a forecast of 900 jobs lost in a worst case scenario and 600 in a best case.

Dr Magennis cited the recent revelation by the Derry News that the Richmond Centre had gone into receivership saying that retail is a ‘very important’ sector but looking at its future is ‘tricky’.

“We go through phases with these shopping centres where they become very popular and then fall out of popularity.

“It seems to be difficult at the moment for older shopping centres to continue to renew themselves,” he explained.

He added: “Our town centres are changing with a shift to cafes operating beside retail.  Whether or not we can see ourselves reinvented as recreational centres of which retail forms one part.”

The manufacturing industry will also be impacted to a lesser extent with job losses of between 100 and 800.

City Deal investment is expected to attract more students, people taking up jobs and locals will be able to stay and work whereas they had to migrate for work in the past.

The City Deal is also projected to generate an additional £240m for the local economy.

Under the City Deal 7,200 jobs could be created by 2032, with residents filling 70 per cent and commuters and migrants the rest.

“Employability supports in the Inclusive Future Fund will be crucial in getting people up to Level 4 qualifications,” Dr Magennis said.

FULL STORY IN THURSDAY'S EDITION OF THE DERRY NEWS.