The North-South Divide and Margaret Thatcher, by Kim, Changhyun, Oct 2005

The Rise of the Service Sector

During Margaret Thatcher's period in office, the private sector, especially financial services, grew while the manufacturing sector declined. During the 1980s, the private services sector accounted for virtually all of the growth in employment. After 1981, when the worst part of the recession was over, the service sector added 3.3 million jobs to the economy, offsetting the manufacturing sector's loss of 1.7 million. Of the 3.3 million, 2 million came from the banking, insurance, finance and business services sectors.
From the beginning of the 1980s, the private service sector was more important to the economies of southern regions than northern regions. In 1981, 41% of the jobs in the Southeast were private service sector jobs, but only 30% of the jobs in the North were.
Throughout the 1980s, the service sector grew at a faster pace in the South than in the North, expanding the gap. From 1979 to 1990, per anum growth of service sector employment was 3.4% in the South but only 2.0% in the North.
Every major city in the United Kingdom once had a sizeable stock exchange. But during the 1980s, United Kingdom's stock trading activity was concentrated overwhelmingly in London. The City of London and Cannery Wharf are two places in the greater London area where financial industry came to be concentrated, with back offices and administrative activities scattered throughout South England. London became one of the financial hubs of the world along with New York and Tokyo. By early 1990s, London had more American banks than New York, along with branches of over 500 foreign banks.

Kim, Changhyun
December 2005

I used the following sources in addition to the sources I used for Thatcherism

North-South Divide in the United Kingdom, from Wikipedia
Economic Geography of the United Kingdom, from Wikipedia
REFERENCE The following books were used in addition to the books I used for Thatcherism

Smith, North and South: Britain's Economic Social and Political Divide, Penguin Books, 1994, 375 pages
Harrison and Hart, Spatial Policy in a Divided Nation, Jessica Kingsley Publishers, 1993, 304 pages
Cairncross, The British Economy Since 1945, Blackwell Publishers, 1994, 338 pages