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Recession is biting hardest hit in the north

LONDON (Bloomberg) — The UK economy, shrinking at the fastest pace since 1980, is being hardest hit in the major cities north of London, according to analysis of employment data by the Work Foundation.

The number of people claiming allowances for job seekers has jumped the most in Birmingham, Leeds, Glasgow and Sheffield in the past year, the London-based organization said. Those cities are in areas where manufacturing and heavy industry dominate the economy, it said.

"Places in the eye of the storm as job losses mount are the UK's core cities and areas associated with traditional manufacturing," Naomi Clayton, a senior researcher at the foundation, said in a report.

Unemployment jumped the most since 1971 in February, with claims for jobless benefits rising 138,400 in the month to 1.39 million, the Office for National Statistics said March 18.