Olympic decision makers in Government, London, and the rest of the UK must be careful not to over emphasise the economic benefits of the 2012 Olympic and Paralympic Games if they want to deliver a lasting legacy, according to a new report published today (Tuesday) by Centre for Cities at ippr.

The Centre for Cities argues that expectations need to be managed better when talking about the overall employment impact of the Games in East London, London and the rest of the country. The report says that many of the job figures used in promoting the Games do not take into account the complexities of the job market. Analysis used in the report shows that the net impact of the Games will deliver around 8,000 jobs in East London, 39,000 jobs in Greater London and 8,000 jobs outside London. This contrasts with the 96,000 "person years of employment" forecast by the London Development Agency.

The Centre for Cities report also recommends that:

• The Olympic Delivery Authority (ODA), London Development Agency (LDA) and local partners should focus on connecting local employment and training programmes to longer term regeneration opportunities in East London through the London Employment Skills agency, Employer Accord, Construction Skills Academy.
• More focus should be on civic and social benefits like improved fitness and civic pride, which will be bigger and longer lasting. Examples include, ‘Street Olympics', encouraging more local cycling and walking networks and boosting youth sport through the UK Schools Olympics.
• Cities and regions outside of London should co-operate and not compete with each other to take advantage of joint opportunities on offer, such as training camps and supply contracts.

Dermot Finch, Director Centre for Cities, says:

"We need to be more realistic about the benefits of 2012. The Government is right that the Games will have a positive impact, as will the wider regeneration of the Lower Lea Valley. But we need to be careful to manage people's expectations. Economic gains will be relatively small and focused on London, and not all the new jobs will go to locals. Social gains could be much bigger. Olympic decision-makers should use the Olympics to accelerate long term regeneration in East London and boost civic pride across the UK – rather than trying for a short term jobs gold rush.”

Setting the Bar: Preparing for London's Olympics Legacy by Tracy Kornblatt is available to download.

Notes to Editors:

The net Olympic employment figures are from a 2005 study by Adam Blake, The Economic Impact of the London 2012 Olympics, Nottingham University commissioned by Department for Culture Media and Sport. These figures refer to net jobs, i.e. the additional impact of the 2012 Games. This study shows that:

• The net Olympic impact on jobs in the UK is expected to reach 2,955 before the event, 3,261 during the event, and 1,948 after with an overall job increase of 8,164.
• The net Olympic impact on jobs in Greater London is expected to reach 25,824 before the event, 3,724 during the event and 9,327 after with an overall job increase of 38,875.
• The net Olympic impact on jobs in boroughs in East London covering the Olympic site is expected to reach 7,344 before the event, 311 during the event and 311 after with an overall job increase of 7,966. This includes Barking and Dagenham; Bexley; City of London; Greenwich; Hackney; Havering; Lewisham; Newham; Redbridge; and Tower Hamlets.

The gross Olympic employment figure refers to 96,000 gross "person years” and is from a 2006 study by Experian Business Strategies, Employment and Skills for the 2012 Games: research and evidence, commissioned by the Learning and Skills Council and London Development Agency.

The London Organising Committee of the Olympic Games and Paralympic Games (LOCOG) and the ODA have developed a number of programmes designed to connect Londoners to Olympic jobs. These include:

• The London Employment and Skills Taskforce (LEST), is an idea set out by ippr and Demos ( After the Goldrush, Vigor et al 2004), designed to improve training for disadvantaged residents both for jobs related to the 2012 Olympics.
• Pre-Volunteer Programme (PVP) and London Employer Accord, were recently announced by LEST to help connect local residents to Olympic opportunities. The PVP will train up to 20,000 people from the most disadvantaged communities in London. PVP graduates will then become part of the 70,000 London 2012 volunteers, and be connected to employers signing the London Employer Accord.
• Employer Accord will help employment and training agencies to link up with businesses to facilitate opportunities for disadvantaged.
• Construction Skills Academy will help provide training for local residents, and aim to connect them to local employment opportunities.

The UK School Games and Street Olympics were first recommended in the ippr/Demos publication After the Gold Rush: A sustainable Olympics for London by Anthony Vigor, Melissa Mean and Charlie Tims.

Dermot Finch, Director of the Centre for Cities, is available for interview.

The Centre for Cities is one of the UK's leading voices on urban policy. An independent urban research unit based at ippr (Institute of Public Policy Research), it is taking a fresh look at how UK cities function.