Research on the relationship between new technology and productivity has just been published by The Productivity Institute. The study concluded that management skills (core and technology related) are required to maximise the returns of new technology investments. Those companies that had a strategic approach to technology investments and management development implemented their investments more effectively. Currently, management training in the West Midlands is not configured to support businesses to effectively implement new technology, and companies rely on technology suppliers.

The UK, like most other countries, introduced a “lockdown” in late March in order to reduce contact between people thereby reducing infections and “taking pressure off” the National Health Service. This involved preventing most businesses involving social contact to stop operating and for workers to work from home wherever possible. The implication was a huge cut in economic activity. The National Institute for Economic and Social Research made estimates of considerable economic recession. The Bank of England’s view (on May 7th) of the probable impact of the lockdown is that the UK economy will shrink by 14% in 2020 but rebound quickly, with growth of 15% in 2021.

This blog presents tentative estimates of the possible impact of the lockdown on employment and enterprises within the Coventry and Warwickshire local enterprise partnership (LEP) area and for small areas within Coventry and Warwickshire.

The UK unemployment rate for 16-64 year olds increased very slightly over the last 3 months (November to February compared with August to October 2017), but this was composed of a small fall for men and a slightly larger increase for women. For the West Midlands, the unemployment rate fell very slightly for both men and women over this period, but the fall was larger for men than for women.

In the UK as a whole, the percentage of both men and women in the labour force and the percentage of men and women in work increased slightly. However, in the West Midlands, the percentage in work did not change, but the percentage of men in the workforce fell, slightly more than the fall for women. This suggests that the more favourable trend for the West Midlands may be the result of formerly unemployed people (mainly men) no longer looking for work.

At the local scale, unemployment has been increasing sharply (568 more JSA claims in February 2017 than December 2017 - an increase of 20.6%, but only 25 more than 1 February 2017) in Coventry during 2018 (for both men and women), but has fallen in Birmingham (by 783 or 3.6% and by 2.6 thousand or 11.3% 2017-18). However, the unemployment rate for Coventry is 2 per cent, less than half that for Birmingham (4.1 per cent).

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The Institute for Employment Research at the University of Warwick is doing some research for the Home Office on why and how different groups of people work in hotels, restaurants and fast food outlets or in the construction industry in the Greater West Midlands area. The experiences of those working in these two sectors of the economy will be compared and contrasted.