OPINION: The Economic Impact of COVID-19 – A Birmingham View

Words by Ifor Jones – Head of Partnerships, The Pioneer Group / Picture of Birmingham skyline by Luke Matthews, profile pic courtesy of The Pioneer Group

As the economic impact of the COVID-19 lockdown has become clear with the threat of a tsunami of redundancies across the West Midlands I couldn’t help but reflect on what I experienced first-hand with the closure of MG rover first hand back in 2005 with 6,300 redundancies being made.

This had a profound economic and social impact on local communities which was mitigated by the action of the MG Rover Taskforce. I led the community support strand of the Taskforce which started with mobilising advice services to work in tandem with JC plus and the Learning Skills Council and progressed with a community regeneration programme supporting grass roots organisations and focusing on providing support for workers and the MG Rover community.

The following sets out the learning and the lessons which arose from this tragic time which I feel are very relevant to the potential impact of COVID-19 across the City.

In the lead up to COVID-19, statistics for the first quarter of 2020 confirmed Birmingham’s comparatively high unemployment claimant rate (9.3%) compared to other major English cities.

The figure had been relatively stable but began to increase during 2018 in the wake of benefit changes connected to the roll out of Universal Credit.

It is my assertion that, when considering the potential impact of COVID-19, we will see two distinct cohorts within the unemployment claimant count for Birmingham.

  • Longer term cases clustered in geographical hotspots or demographic characteristics such as youth unemployment, BAME groups and people with disabilities.
  • Those who have lost their jobs as an economic consequence of COVID-19, across a range of sectors and impacting on an even wider cross section of the working population.

A Precedent for What’s Next

In 2005, MG Rover at Longbridge closed with the overnight loss of 6,300 jobs. Further job losses in the supply chain pushed this figure to over 8,000.

However, a significant number of workers were able to retrain to change their careers; undertaking academic vocational training. A report indicated around 4,000 (63%) of former MG Rover workers found new, mostly full-time, work. Approximately 25% of these workers were earning more with over 50% of them earning less.

Strong partnerships were key to the management and mitigation process, especially in relation to the social and economic impact of such a significant plant closure.

In a two-year period, I witnessed a shift from crisis management to sustained economic and social strategies for recovery. At the heart of this was a collaborative approach coordinated at different levels, from the very local in Longbridge and Northfield to across the city, region and nation as a whole.

My engagement through a localised team in the City Council was to co-ordinate the initial crisis response regarding advice and community support delivered in partnership with agencies such as JobCentre Plus and The Learning Skills Council. This was complemented with the support of organisations across the voluntary and community sector and, most critically, the MG Rover communities themselves.

Mobilising a response to administer change at pace was critical, as was building relationships with the workers and MG Rover to ensure engagement with and wider community buy-in.

The lessons that were learned, that can help us deal with the anticipated fallout of COVID-19 include:

  • mobilise interventions at pace working with both cohorts – existing and new claimants
  • get new cohort of unemployed into training and work as soon as possible
  • quickly intervene with training agencies and providers for re-skilling
  • ensure personal contact with individuals whether through advice and support or training
  • recognise importance of welfare advice and wellbeing services and administering benefits quickly
  • use opportunities for public service employers to take on and train former MG Rover workers, for example the city council created opportunities in youth, leisure and community development services
  • work in partnership – at regional, city and local levels – with public services, employers, community and third sector agencies
  • provide community support in the moment of crisis – e.g. helplines, social events, funding for holiday breaks
  • create a strategy for inclusive growth e.g. local area regeneration – Longbridge transitioned from a centre of economic activity of regional and national significance to an important local centre with a mix of new housing, retail, public services and some retained manufacturing.

Ifor Jones is Head of Partnerships at The Pioneer Group – for more on The Pioneer Group, visit: www.pioneergroup.org.uk

The Pioneer Group is a member of the Erdington COVID19 Taskforce, facilitated by Witton Lodge Community Association.

Established in April 2020, the Taskforce is a network of local organisations from a wide variety of sectors, working together to support people who have been adversely affected by the pandemic.

To access the online address book and database of local support services compile by the Erdington COVID-19 Taskforce, visit: www.erdingtonlocal.com/covid-19/local/support

Please follow and like us: