Stagnant jobs market in Milton Keynes could suppress economic growth​​​​​​​, new figures show

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The jobs market in Milton Keynes has followed the stagnating national trend which may suppress business creativity.

The steady rate of job creation and destruction, known as "creative destruction", is necessary for long-term economic growth because it encourages new ideas and activities, the Office for National Statistics said.

The Institute for Public Policy Research said a healthy economy is "driven by businesses that are constantly changing, evolving and adapting to market conditions".

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But ONS figures show the UK jobs market is stagnant, with fewer roles created and destroyed and job creation and destruction rates falling in 87% of areas between 2004-07 and 2016-19, including in Milton Keynes.

The stagnant jobs market in Milton Keynes is stifling economic growth, figures suggestThe stagnant jobs market in Milton Keynes is stifling economic growth, figures suggest
The stagnant jobs market in Milton Keynes is stifling economic growth, figures suggest

It comes as Chancellor Rachel Reeves announced a National Wealth Fund, a £7.3 billion state investment in businesses in manufacturing, green and other high-growth industries to boost the economy.

Pranesh Narayanan, research fellow at the IPPR, said Labour "seems to be taking the right steps in driving risky investments" to aid a stagnating jobs market with its National Wealth Fund.

The job market in Milton Keynes followed the stagnating national trend, as the creation and destruction rates fell from 18.6% and 17.3% in 2004-07 to 16.4% and 13.7% in 2016-19 respectively.

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A growing economy requires both creation and destruction rates to increase, indicating higher job churn and fuelling greater "creative destruction".

Mr Narayanan said: "Over time, most of the country has fallen into economic stasis, driven by established businesses reducing their rate of job creation and destruction.

"This suggests an increasing nervousness to risk-taking among established businesses and highlights the need for a new approach to economic policy."

The figures also show 4.4 million jobs were created across the UK in 2022, while 4 million were destroyed.

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The net growth in jobs follows 2021, in which the coronavirus pandemic was a major factor in the net loss of 200,000 jobs – the first time more jobs were destroyed than created since 2010, when 1.2 million were lost following the 2008 financial crash.

In Milton Keynes, 23,600 jobs were created in 2022, whereas 21,990 jobs were destroyed, meaning there was net job growth of 1,610.

In 2021, 6,040 more jobs were lost than created, while there was a fall of 10,980 in 2010.

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