Evidence review: Responding to local economic shocks


There were a number of firm closures and significant job losses during, and in the aftermath, of the 2008 financial crisis. Some of the most recent examples include the closure of the steelworks in Redcar and Port Talbot. These closures have significant employment effects in
the immediate term and impacts on people’s future employment and earnings prospects.

Local labour markets can also be significantly impacted by new developments or relocations that result in significant job gains (Crossrail, for example). Local partners will often have a role to play in helping organisations recruit locally and ensure local residents have the skills
necessary to access new job opportunities.

This review explores the national and international evidence on what works to support displaced workers back into work to help inform responses in local areas. Displaced workers are usually defined as individuals with a stable employment history who have been made
redundant and have little chance of being recalled to jobs with their old employer or industry.

The review also includes an overview of the evidence as it relates to positive economic shocks and what works to improve residents’ local employment and earnings as a result.