UK manufacturing loses 34,000 jobs, but is still 64,000 short
The number manufacturing jobs in the UK dropped by 34,000 in the past year, but there are still 64,000 vacancies – representing around £6bn per annum in lost output – according to a new analysis by Make UK and BDO. Their annual Regional Manufacturing Outlook Report also reveals that the three devolved nations of Wales, Scotland and Northern Ireland have seen a significant growth in the number of manufacturing jobs, unlike every part of England (except for the East), which have recorded falls in employment.
Make UK is urging the new Government to make tackling skill shortages and reforming the technical education system the centrepiece of its industrial strategy.
“Industry remains critical to the growth of the economy, providing high-value, high-skill jobs and aiding the process of creating wealth across the UK,” says Make UK’s director of policy, Verity Davidge. “The new Government has made a welcome bold statement of its intent to tackle the UK’s anaemic growth at national and regional level. It should now back this with a radical, cross-government, long-term industrial strategy which has measures to tackle the UK’s acute skills crisis at its heart.
“This mission-critical vision should be allied with local growth strategies and the priorities of each region, including infrastructure and innovation, together with other measures to ensure the UK is now fully open for business,” she adds.
In the 12 months to March 2024, the number of manufacturing jobs in Wales rose by 13,000, in Scotland by 10,000 and in Northern Ireland by 2,000. By contrast, every English region saw a drop in manufacturing jobs in the same period, with the East of England being the only region showing a slight rise.
According to Make UK, the increase in Wales is likely to have been driven by the significant supply chain in the aerospace and defence sectors, which have grown strongly in the last year. The transport equipment sector (mainly aerospace) accounts for 15.5% of manufacturing in Wales – its largest sub-sector. In Scotland, the increase is likely to have been driven by the growth of investment in renewables, especially offshore wind.
The longer-term trends look better for England. The report shows that, despite the challenges posed by Covid, Brexit and the energy crisis, every English region, bar one, has shown double-digit growth in GVA (gross value added) since 2013. Yorkshire & Humber GVA rose by 40% in that period, followed by the North East (30%), and South West (27%). This compares with an average growth in manufacturing GVA across the whole of the UK of around 23% in the same period.
The report highlights the importance of manufacturing to local economies in every region, except for the South East & London. For example, the North East may have the smallest share of the UK’s manufacturing output (around 4%), but industry contributes almost 15% to the local economy.
The East Midlands has the highest share of manufacturing in its regional economy (almost 16%), while the West Midlands and Yorkshire & Humber regions also have contributions above the national average.
The survey also shows that output in every region and nation has returned to above pre-pandemic levels, except for the West Midlands where the downturn in the automotive sector and the move to electric vehicle production have taken their toll.
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