How is the UK economy changing?

How is the UK economy changing?

Over the last 200 years, the employment structure of the UK has changed as the country developed. Within the last 50 years, there have been further dramatic changes in the share of jobs in the different sectors of industry.

However, these changes have not been equal within the UK, and the North-east and the South-east of the UK have seen very different changes.

The North East

The North East was the centre of heavy industries, leading in shipbuilding, steel production, and coal mining. When these industries started to move abroad due to lower labour costs and foreign competition, the North East lost a vital part of its economy. Once a manufacturing hub with over 40% of the population working in these industries in the 1970s, this fell to just 10% by 2011.

As a result of this decline, this area has seen a rise in unemployment of 8% and child poverty increased in areas such as Middlesbrough (40%) and Newcastle Central (38%). The area still has primary industries such as agriculture, fishing and mining, but these employ fewer people than 50 years ago. The manufacturing industry is still a key employer, but due to automation and technological improvements, fewer jobs are available. However, in recent times, with the growth of the tertiary industry (service sector), more jobs have been created, which has helped to reduce unemployment figures. In 2013, 257,000 people (22% of all employment) were employed in the public sector.

(Include a map of the North East)

The South East

Primary industries still play a major role in the economy of the South East. Agriculture, such as fruit farming, wheat farming, and barely farms, is located in the more rural areas but contributes positively to the local economy. Clarkson’s Farm is a famous farm in this area.

While the manufacturing industry in the North East is in decline, in the South East of England, this industry is growing rapidly, mainly around urban areas. There are key oil refineries in Southampton (a busy port for imports and exports), and along the M4 corridor, many smaller industries focus on electronics and engineering.

The tertiary and quaternary industries contribute to the low unemployment rate in this area. With attractive locations boasting green, open countryside, many companies offering finance and business services firms are located in these areas. Towns that have benefitted from these new businesses include Newbury and Basildon.

What attracts these industries to the South East?

Many reasons have led businesses to decide to locate in this region, including transport, markets and labour, political reasons, and geographical reasons.

• Transport: Good transport links, such as railways and motorways (M25/M4) and four major international airports (Gatwick, Heathrow, Luton, and Stansted), allow excellent access to other countries. The ports at Southampton and Tilbury are vital for the export and import of heavy goods.
• Markets and Labour: With over 19 million people living in the South East, there is a large pool of skilled labour for jobs and people to purchase goods and services.
• Political: Close to central London, where the UK government and many corporate headquarters are located. In the past, governments have encouraged businesses to move out of London and relocate to the South East.
• Geographical: Key rail and road networks centre on London and expand outwards, allowing easy access to the capital. Many people can commute from outside London to the capital for work. Located close to the English Channel, there is quick and easy European access via the Channel Tunnel or Ferry Services.

(Include map of South East)