According to the Local Government Association (LGA), the construction and manufacturing industries will be severely hit by the economic downturn. Almost two in five jobs in London and the South East could be at risk over the next two years.

In “From Recession to Recovery: The Local Dimension Report????, LGA predicts how each region could be affected by the recession if no action is taken. The structure of each region’s economy, its performance over the last two years and how it endured the last two recessions were analysed.

LGA estimates that by the end of 2010, up to 370,000 jobs, or 7.9 percent of all jobs in London, could be lost. Meanwhile, up to 280,000 jobs, or 6 percent of all jobs in the South East, could be lost.

Further focusing on the region, the South East Regional Assembly recently opposed the government’s plans to build a minimum of 33,000 homes there every year.

According to the assembly, if the government’s infrastructure investment does not match development, then the South East Plan could have a negative accumulative effect on the region by stretching existing resources. Worse, the plan could have an additional impact on the environment.

“There is a clear mismatch between the government’s housing ambitions and its lack of commitment to invest in the South East,???? said Chairman Councilor Paul Carter. “Without investment in roads, transport, health services, schools, sewerage and water supplies to support new homes, we will see a decline in qualify of life for both new and existing residents.????