26-08-2024 | Stuart McIntyre
Local labour markets across the UK have experienced a succession of well-documented shocks in recent years, including shocks common across the UK, like the CoViD-19 pandemic and the rise of homeworking, but also more localised shocks stemming from the closure of large local employers. In the focal area of this project we’ve seen this kind of local economic shock with the closure of a large distribution centre, following on the back of other plant closures over the past decade and more. While some larger trend changes like the rise in homeworking have a particular sectoral focus, see the analysis here, these will also have a differential impact on local labour markets because their impact will reflect the local economic mix. Some of these impacts will be positive, but others less so – and there is likely to be inequalities in how these are distributed across the workforce. This recent lecture by Nick Bloom from Stanford provides an overview of changes in homeworking internationally and the impact that this is having on the labour market. A key point is the differential impacts across occupations and industries, which will map differently to local labour markets. The resilience of local labour markets to economic shocks was the subject of a recent special issue in Regional Studies – which emphasised the ways in which local labour markets experience a whole array of types of shocks, and that an understanding of their resilience requires an assessment of their pace and extent of recovery but also an assessment of their foundational features and how these can be enhanced to produce more resilient labour markets. The annual CIPD Good Work Index report provides a snapshot of the UK labour market alongside more regional breakdowns (for example for Scotland) which helps us to better understand the health of the regional labour markets across each of the CIPD’s 7 dimensions of Good Work (Pay and benefits; Contracts; Work–life balance; Job design and the nature of work; Relationships at work; Employee voice; Health and wellbeing). These reports have important insights into the evolving resilience, and underlying drivers of resilience, of these regional labour markets.
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