In a report by the Office of National Statistics (ONS), released on 10 November, the unemployment rate (for those aged 16 and over) currently stands at 4.8%. With an increase in unemployment across the country sparked by the pandemic and its devastating effect on the economy and small businesses, the news that hundreds of jobs are to be created across the region couldn’t be better timed.
Which companies are involved?
DHL, the distribution firm, will be opening its second warehouse at the SEGRO Logistics Park East Midlands Gateway with plans to employ over 1,000 people. Rolls-Royce, leading a project to build nuclear power stations, is waiting for approval for this project to go ahead. If it gets permission to proceed, then this will lead to the creation of up to 6,000 jobs in the region over the next five years. Amazon is already looking to employ 900 seasonal workers and 400 permanent jobs will go on offer.
SEGRO’s business unit director, Andrew Pilsworth, highlighted the need for space for such companies to locate to in order to extend their distribution capabilities. In a time of uncertainty and growing unemployment, this will bring a welcome boost to the region and combat the unemployment damage caused by the pandemic.
Supporting the local economy
The input to the local economy comes not just from people spending money or businesses making investments but is clearly dependent upon workers having jobs in order to have money to spend in the first place. Those claiming unemployment benefits had grown between March and October of 2020 by 1.4 million people. However, as furloughed staff take on additional jobs, this may have some form of compensating effect on the economy, according to the ONS.
Another report from the CIPD found that 32% of roles are likely to change significantly in the face of accelerated technology adoption. More jobs carried out by humans risk becoming redundant as automation and Artificial Intelligence (AI) start to take up duties, such as data entry and other administrative tasks. Therefore, the news that more jobs will appear over the next few years is a welcome boost for the people in the Derbyshire region.
The growing shadow of automation is a concern for many people but, while businesses may promote a drive towards such technology, automation itself still requires the human touch and many organisations are fueling growth in the jobs market for skills that help with the production, sale and care of automotive systems.
Nonetheless, it is vital for local and national economies that job markets continue to focus on people rather than machines as it is the former who are going to spend their income in shops, cafes, pubs and restaurants, boosting the local economies.
