Wednesday, 28 November 2012

The current economic state of Hull


Mainstream News


As the national economy begins to regain stability and emerge from a period of financial destruction, the local picture has a somewhat indifferent response to that development.

In recent months, Hull has had significant economic torment, tearing away at its already delicate infrastructure.

News that British Aerospace in Brough will lose up to 120 workers in the new year through compulsory redundancy has left a stale taste to the initial reduction of jobs to be lost at the site.

The supposed original figure of jobs to be cut stood at 845. This has been reduced for the foreseeable future, but further redundancies may be inevitable.

Deals such as the one struck by Saudi Arabia based company Hawk earlier this year, may be needed again to damper the crushing effect of redundancy that threatens the working livelihoods of so many at the company.

Manufacturing and industry have been at the very core of this working man’s city for many years.

These job losses cut a very thin line between a city having economic growth, and a retraction that ripples through for years to come.

Announcements of job losses at a local branch of electrical retailer Comet, echo this very notion, and swing another hammer blow to the local economic picture. There are 200 jobs at the business centre for the retail giant, that are being plunged into uncertainty as the firm lingers in administration.

Comet had already cut 240 jobs in Hull earlier this year after the closure of one of its call centres. There are a total of 6500 people employed by the electrical superstore chain. The percentage of that number of jobs that have been cut in the city of Hull stands at almost 5%.

With a potential for a further 200 losses, it paints a very desolate picture for the city.

The firm has been operating in Hull as a superstore for over 40 years, and news of its demise only heaps more misery on the local economic landscape.

The chief executive of Hull and Humber Chamber of Commerce, Ian Kelly, had reiterated his disappointment at these tough economic challenges facing the region

“It’s another of those great companies which had a long tradition and history in the city.

It’s bad news for the city and bad news for the sub region.”

Another local stronghold in the city that has announced possible closure is Seven Seas of Hedon Road.

Their production at the plant could be transferred to London, leaving a void in its place at Hull.

There has been no disclosure of a figure of job losses, but with 250 people employed at the site and operations being transferred to the capital, it’s a bleak outlook for the manufacturing giant.

Local MP’s are in talks to prevent these job losses, a further blow to the local economy, whose unemployment rate within the city of Hull itself stands at 15.8%. 

There is a great fear that this region could become more engrossed in unemployment over the coming years. Unless some form of investment and trade is provided to boost the local economy in the very near future, this area, as projected, could be left dwindling in recession.

As the state of local businesses and companies that have traditions in the city begin to fade away, could there be hope on the horizon for a brighter future for the city of Kingston Upon Hull?

By Jason Russell

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