Manufacturers struggling with high unemployment rates

News Article - 24 May 2012
Category: Business

Major manufacturing heartlands spread throughout the United Kingdom continue to struggle with the highest unemployment rates in the UK. Recently released figures from the Office for National Statistics for Q1 2010 reveal the worst unemployment figures in 15 years in Britain, with 2.51m out of work. This includes a rise of 18,000 in the three months to March.

The Yorkshire and Humber area is the worst hit, with 258,000 out of work. In terms of demographics, 16-24 year olds were badly hit with unemployment at 941,000, a rise of 18,000 on the previous quarter. In addition, workers in the 35-49 age-bracket have been severely affected - a significant issue considering the industry is keen to retain staff that have acquired key skills.

The Chartered Institute of Personal Development (CIPD) has said the unemployment statistics reveal a clear warning sign to the new Government, who must balance cutting the budget deficit with investment to regenerate industry growth and support job creation where necessary. Dr Philpott, chief economic advisor at the CIPD, points to the record number of economically inactive citizens as the most troublesome statistic. These people are unemployed and not currently seeking employment; numbers have risen by 100,000 over the last quarter to 8.2 million.

This may be worrying for the manufacturing industry, which was hit particularly hard by the economic crisis and has struggled to regain market share in the post-recession climate. However, there are positive signs: in March the Santander Corporate Banking Confidence Index revealed 78% of manufacturing company owners are confident profits will increase over the coming months. Early reports also suggest manufacturing pace grew significantly in Q1 2010, with a survey from the Chartered Institute of Marketing and Supply claiming manufacturing activity in January grew at the fastest rate in 15 years.

Access supports the UK manufacturing industry and its importance in leading economic recovery across all sectors. As the new Government starts to drive the economic agenda, strategic investments in key areas, such as job creation, will help revitalise the sector and encourage innovation. Manufacturing firms looking to drive efficiency internally should consider a business software solution to unify operations. For example, features such as inventory management allow companies to make sound financial decisions on the back of accurate data, ensuring that over- or under-stocking does not impact the bottom line.

For more information, please call Access on 0845 345 3300.

Article keywords: business software solution, inventory management, Office for National Statistics, unemployment figures, The Chartered Institute of Personal Development, CIPD, budget deficit, Dr Philpott, manufacturing industry, Santander Corporate Banking Confidence Index, Chartered Institute of Marketing and Supply

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