More than 4,000 former MG Rover workers have found jobs since the car firm collapsed, but half are earning much less than before, a government task force reported today.
About 6,300 workers at the Longbridge plant in Birmingham lost their jobs when Rover, the last British-owned mass car maker, went broke last April just before the May general election.
To cushion the blow and minimise the political fallout, the government appointed a task force to help find new jobs for Rover workers.
In its final report, released today, the task force said that former Rover employees had found work at the rate of 100 per week since April last year.
About 63% of those who had lost their jobs now had work.
More than 90% have full-time jobs and most see their new career as long-term.
But just over half of those are earning much less than they did at Rover, particularly those previously in the £15,000 to £25,000 range. One-fifth now earn more, the report found.
For the 1,850 former MG Rover workers still unemployed, the government announced a new £2m package for help with job searches, childcare, CV and interview techniques.
The task force also pledged £3m to set up a vocational training centre for 14 to 19-year-olds.
"We have to guard against a spiral of decline where young people perceive that there are little or no prospects for them now that a major employer has gone and many people of a working age are jobless," the report said.
In addition to direct Rover jobs, several thousands more were lost at companies supplying components to the plant.
However, only 11 supply chain firms closed, far fewer than anticipated, the report said.
Nanjing Automobile, the Chinese car firm, last month signed a 33-year lease for the Longbridge site and said it would begin producing sports cars at the factory next year.
However, the new lease - with rent at about £1.8m a year - includes a six-month break clause in case Nanjing is unable to confirm a viable long-term future for the site.
"Much has been achieved by the MG Rover task force since April 2005, but there remains a lot still to be done. Although the task force comes to an end, the work goes on to help those who still need it," the report said.