Fortunately even more jobs are created.
- 2.65m jobs lost each year, but 2.76m jobs created.
- Small firms more important than many previously claimed — accounting for 70 per cent of new jobs, but also 60 per cent of jobs destroyed.
- Most detailed analysis of the scale of job creation and destruction ever carried out in the UK. Researchers surprised by the figures, which they say could influence public policy makers
One in seven private sector jobs is destroyed in the UK each year, according to new research from GEP – the Globalisation and Economic Policy Centre at The University of Nottingham. Fortunately even more jobs are created.
The researchers claim that, based on data from 1997–2005, 2.65m private sector jobs are destroyed in the UK each year, and 2.76m created (equivalent to 51,000 jobs lost each week and 53,000 created).
This is the first comprehensive research into the scale of job creation and job destruction across UK private sector firms and the results could influence public policymakers say the researchers.
GEP Associate Professor, Dr Peter Wright, said: “People might be surprised at the results. It doesn’t mean all these workers have been fired — when a firm shrinks it may do so by not replacing workers who leave voluntarily — but it shows how dynamic the UK employment market is.
“It is not necessarily a bad thing for the economy that we have so much movement in the employment market, but it does mean that there are likely to be many people changing jobs involuntarily, which may involve considerable adjustment costs. And it also has important implications in terms of training provision as many workers are likely to need to regularly change or update their skills if they are to stay employed and maintain income levels in such a dynamic market.”
The analysis, based on data from Customs and Excise (VAT registered businesses) and the Inland Revenue (PAYE registered businesses) also shows the importance to the economy of small firms (under 100 staff). These businesses employ around half of the workforce and account for up to 70 per cent of jobs created, but also account for 60 per cent of jobs destroyed.
Dr Wright said this is likely to reignite a longstanding debate between economists and other academics.
He said: “There has always been a big debate about whether small entrepreneurial firms or large firms are most important in terms of job creation. If you talk to most economists they would probably say that big firms are the key to understanding how the economy works, but within business schools there has always been a bias towards small firms and the outcome of this debate does have importance in terms of public policy.
“It is clear from this research that small firms employ a significant proportion of the workforce and account for most new jobs but, on the flip side, their failure rates are much higher. This means that Government support to small firms is inherently risky, but if the Government could identify why so many of these firms fail it could have a significant impact on net job creation.”
Emma Thorne | alfa
RWI/ISL-Container Throughput Index ending 2017 on a positive note
24.01.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
Uncovering decades of questionable investments
18.01.2018 | University of Texas at Austin, Texas Advanced Computing Center
Breakthrough provides a new concept of the design of molecular motors, sensors and electricity generators at nanoscale
Researchers from the Institute of Organic Chemistry and Biochemistry of the CAS (IOCB Prague), Institute of Physics of the CAS (IP CAS) and Palacký University...
For photographers and scientists, lenses are lifesavers. They reflect and refract light, making possible the imaging systems that drive discovery through the microscope and preserve history through cameras.
But today's glass-based lenses are bulky and resist miniaturization. Next-generation technologies, such as ultrathin cameras or tiny microscopes, require...
Scientists from the University of Zurich have succeeded for the first time in tracking individual stem cells and their neuronal progeny over months within the intact adult brain. This study sheds light on how new neurons are produced throughout life.
The generation of new nerve cells was once thought to taper off at the end of embryonic development. However, recent research has shown that the adult brain...
Theoretical physicists propose to use negative interference to control heat flow in quantum devices. Study published in Physical Review Letters
Quantum computer parts are sensitive and need to be cooled to very low temperatures. Their tiny size makes them particularly susceptible to a temperature...
Let’s say the armrest is broken in your vintage car. As things stand, you would need a lot of luck and persistence to find the right spare part. But in the world of Industrie 4.0 and production with batch sizes of one, you can simply scan the armrest and print it out. This is made possible by the first ever 3D scanner capable of working autonomously and in real time. The autonomous scanning system will be on display at the Hannover Messe Preview on February 6 and at the Hannover Messe proper from April 23 to 27, 2018 (Hall 6, Booth A30).
Part of the charm of vintage cars is that they stopped making them long ago, so it is special when you do see one out on the roads. If something breaks or...
15.02.2018 | Event News
13.02.2018 | Event News
12.02.2018 | Event News
16.02.2018 | Information Technology
16.02.2018 | Health and Medicine
16.02.2018 | Physics and Astronomy