British Market-Led Restructuring: A Case Study of Wearside

Abstract

The UK economy has, since the 1970s, undergone far-reaching change arising out of de-industrialisation and government-led attempts to create a more flexible and market-responsive economy, particularly with respect to the labour market. This experience, though generally shared by western European economies confronting the effects of global restructuring since the 1970s (Sengenberger and Campbell, 1994), has been especially pronounced in the UK, reflecting the early onset and extent of de-industrialisation and the determination of a succession of Conservative governments to improve the economy’s competitiveness. The most dramatic experiences of restructuring are found in the old industrial areas of the UK, where de-industrialisation has been especially sharp due to the extent of contraction among the traditional industries and newer branch factory implants. One such area is the North East of England, which has traditionally displayed economic and employment features similar to those of other peripheral regions in terms of its industrial structure, poorly developed service sector, high incidence of external ownership, low rates of new firm formation, low labour activity rates and above average rates of unemployment and long-term unemployment.