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
How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung
Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT
Among the general public, solar thermal energy is currently associated with dark blue, rectangular collectors on building roofs. Technologies are needed for aesthetically high quality architecture which offer the architect more room for manoeuvre when it comes to low- and plus-energy buildings. With the “ArKol” project, researchers at Fraunhofer ISE together with partners are currently developing two façade collectors for solar thermal energy generation, which permit a high degree of design flexibility: a strip collector for opaque façade sections and a solar thermal blind for transparent sections. The current state of the two developments will be presented at the BAU 2017 trade fair.
As part of the “ArKol – development of architecturally highly integrated façade collectors with heat pipes” project, Fraunhofer ISE together with its partners...
At TU Wien, an alternative for resource intensive formwork for the construction of concrete domes was developed. It is now used in a test dome for the Austrian Federal Railways Infrastructure (ÖBB Infrastruktur).
Concrete shells are efficient structures, but not very resource efficient. The formwork for the construction of concrete domes alone requires a high amount of...
Many pathogens use certain sugar compounds from their host to help conceal themselves against the immune system. Scientists at the University of Bonn have now, in cooperation with researchers at the University of York in the United Kingdom, analyzed the dynamics of a bacterial molecule that is involved in this process. They demonstrate that the protein grabs onto the sugar molecule with a Pac Man-like chewing motion and holds it until it can be used. Their results could help design therapeutics that could make the protein poorer at grabbing and holding and hence compromise the pathogen in the host. The study has now been published in “Biophysical Journal”.
The cells of the mouth, nose and intestinal mucosa produce large quantities of a chemical called sialic acid. Many bacteria possess a special transport system...
UMD, NOAA collaboration demonstrates suitability of in-orbit datasets for weather satellite calibration
"Traffic and weather, together on the hour!" blasts your local radio station, while your smartphone knows the weather halfway across the world. A network of...
Fiber-reinforced plastics (FRP) are frequently used in the aeronautic and automobile industry. However, the repair of workpieces made of these composite materials is often less profitable than exchanging the part. In order to increase the lifetime of FRP parts and to make them more eco-efficient, the Laser Zentrum Hannover e.V. (LZH) and the Apodius GmbH want to combine a new measuring device for fiber layer orientation with an innovative laser-based repair process.
Defects in FRP pieces may be production or operation-related. Whether or not repair is cost-effective depends on the geometry of the defective area, the tools...
10.01.2017 | Event News
09.01.2017 | Event News
05.01.2017 | Event News
16.01.2017 | Trade Fair News
16.01.2017 | Automotive Engineering
16.01.2017 | Life Sciences