Exploring Economic and Labour Market Developments and Change

Exploring economic and Labour market developments and change: participation, equality and disadvantage at the national and regional level. Issues and implications for people management policy and practice

“The most competitive and dynamic knowledge-based economy in the world, capable of sustaining economic growth with more and better jobs and greater social cohesion”

(Lisbon, 2000)

Introduction

This report aims to introduce economic and labour market changes (both in UK and London) and developments since 2000, analyse organisational and HR responses to these changes (and to consider specific negative impacts) and explain possible causes of inequality and disadvantage within London’s labour market. The report also addresses the impact of the recent Equality Act on organisations, HR practitioners and London labour market and outlines key future developments in London’s economy and labour market and their national and regional impact in terms of organisational performance and changes in HR practice.

UK Economic and Labour market changes since 2000

UK economy performance has always been particularly strong in terms of import, export, technology developments and business infrastructure. Globalisation opened the doors to substantial opportunities in trade and employment in countries around the world and “increased openness to goods and services trade, increased capital flows and changes in the nature of migration into the UK … [and] played important roles in shaping the UK economy and helping to raise productivity and competitiveness” (BERR, 2008:29). During the period of 2000-2008 we see a continuing shift from manufacturing towards services. This was a partial result of the attractive income level in service industries, IT development and shift of manufacturing jobs to Eastern Europe and the Far East. The level of UK export volume has significantly risen in recent years due to contribution of financial and other business services. All these changes are,...