A UNION leader has warned that new figures highlighting the huge loss of manufacturing jobs to the services sector are a "cause for concern".

Tom Brennan, regional secretary for the GMB union, said the figures, published today at the GMB Congress in Newcastle, show a worrying trend.

In York, 61.2 per cent of workers are employed in commercial services, such as wholesale and retail distribution, hotel and catering, transport, storage, financial and business services, recreational, cultural and sporting activities.

The figure means the city has the greatest percentage of service sector workers in the Yorkshire and Humber region and is well above the national average of 55.6 per cent.

In the northern region, Darlington came top of the table with 54.5 per cent.

Official figures show that the number of people employed in manufacturing is at a record low of 3.2m.

Mr Brennan said: "These jobs are replacing the higher paid manufacturing jobs, so this is a cause for concern.

"The pay packets in the service industry are far less than in manufacturing. It also means that the employees make considerably less contribution to the local economies.

"The great loss of highly paid manufacturing jobs is around the southern part of the Northern region - in Darlington and the Tees Valley areas.

"Obviously, they are replacing jobs with those in the commercial services sector."

Paul Kenny, acting general secretary of the GMB, said: "These figures vividly illustrate the huge shift from manufacturing to the service economy. Many of the jobs in this sector are repetitive, badly paid, and insecure, and lack proper recognition of their vital role.

"Many of the employers are highly profitable and can well afford to do a lot better by their employees.

"Trade unions have a big job to do to persuade more of the service sector workers, particularly the lower paid ones, to join the union and to work with the employers to design jobs that are well-paid, secure and fulfilling.

"We need to replace the well-paid manufacturing jobs of yesterday with well-paid commercial services jobs for tomorrow, and some areas are better geared up than others."