Coventry economy proves resilient through recession

COVENTRY’S economy has proved itself stronger and more resilient during the recent recession than in previous slumps, business leaders have been told.

Economic expert Myles Mackie told members of the  Coventry branch of the Coventry & Warwickshire Chamber of Commerce that the balance of the city’s economy meant it had not suffered in the same way as it did in the recessions of the 1980s and 1990s.

Unemployment had risen during the latest downturn, he said, but not to the extent it had previously when thousands of jobs were lost because of individual company closures.

He said there were still uncertainties in the air but added that business people had responded more quickly to this recession rather than adopting a ‘wait and see’ approach as in previous slumps.

“I hear people say ‘There are no jobs in Coventry’ but that is simply not true.

“Unemployment has gone up but the evidence shows that Coventry has not felt the brunt of the recession as hard as the rest of the country,” he said.

He said the area’s economy was more balanced now than previously and our labour market has proved to be more flexible than in other recessions.

“Also, we saw swathes of closures in the 1980s and 1990s. That hasn’t been the case this time,” he added.

However, he did warn of a potential skills crisis that could stall economic growth.

Currently, for every unskilled job available in the city, there are 25 people applying, whereas vacancies in the professional sector attract far fewer applications.

“It is something that needs to be addressed,” he said.

“For the city’s economy to grow it needs to have a value-added edge. People must look to ‘upskill’ themselves if they want to assist their job search.

“We must continue to be innovative, flexible and competitive to meet the challenges of the future.”

Amrik Bhabra, chair of the Coventry branch, said businesses had reduced overheads and driven through efficiencies more quickly.

“Companies knew they had to act and they appear to have done so. The chamber too saw the recession coming and was quick to support businesses in their hour of need.

“As well as holding group ‘weathering the storm’ sessions it also made it clear to businesses that they were there to help them with any advice or support they needed,” he said.