It has been a busy week for UK business news, with stronger-than-expected economic growth sitting alongside major investment announcements, new jobs and significant changes within the automotive sector.
Fresh figures released by the Office for National Statistics showed that the UK economy grew by 0.4% in July, outperforming expectations that GDP would remain unchanged. The economy was also 1.6% larger than a year earlier, with services providing much of the recent growth.
There has also been positive news for UK manufacturing and engineering.
Alstom has secured contracts worth more than €1.2 billion to supply and maintain 29 new battery-electric trains for TransPennine Express. The project will support more than 350 jobs in Derby and around 5,500 roles throughout Alstom’s wider UK supply chain.
The automotive sector, meanwhile, provides a reminder that the business picture is rarely straightforward.
While investment and job creation continue in parts of the industry, Jaguar Land Rover has announced plans to reduce its global workforce by around 4,000 roles over the next two years as it looks to reduce costs and respond to changing market conditions. At the same time, JLR plans to continue significant investment in electrification, digital technologies and advanced manufacturing.
Looking beneath the headlines
Individually, these stories tell us something about particular businesses or sectors. Put them together and a much more interesting picture begins to emerge. Some businesses are investing while others are restructuring. New jobs are being created as established roles disappear, technology is changing the skills organisations require and economic conditions continue to influence the decisions employers are making.
For recruitment and workforce planning, those changes matter.
Major investments can increase competition for particular skills within a local labour market, while new contracts can quickly create additional workforce requirements throughout supply chains. Equally, restructuring can change candidate availability and bring experienced people back into the labour market.
Understanding what is happening beyond your own organisation can therefore provide valuable context when you’re making decisions about the people and skills your business may need next.
This week, we’ve taken a deeper look at the stories behind the headlines, including what the contrasting announcements across UK automotive could tell us about a changing workforce and why national business news can have very local recruitment implications.
Read the latest edition of Beneath the Headlines: Growth, Investment and a Changing UK Workforce.
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