By Tony Dickson, David Judge
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Extra info for The Politics of Industrial Closure
Growth in the service sector, which some people have argued should compensate for job loss in manufacturing, has taken place at a much slower rate in the north than in the south. The very fact of high unemployment contributes further to the problems in that it affects the market for new products and services. Large-scale closure, in particular, threatens not only the position of existing manufacturing and service industries in a given locality, but also the prospects for new jobs. Low levels of demand, which are a consequence of high unemployment, diminish the market for new services, which tends to be very heavily influenced by marginal shifts in disposable income.
93) writing about skilled workers in the shipbuilding industry: membership of such an occupational group was of central importance in the life experience of the group member. Not only did his craft training implant in him a sense of his exclusive competence in relation to a particular range of techniques, which members of the trade could undertake, but his work expectations were geared to that particular craft. To this extent he was captive by his occupation and, upon the fortunes of his occupation in the labour market, hinged his own personal and familial security.
However, a condition of government aid was invariably the restoration of profitability on the part of assisted firms. Short-term concessions were made by the government in the prospect of the longer-term restructuring of the industries concerned. Initial subsidies were thus to be paid for in the long run by 'rationalisation' and job-loss. Hence, the corporate plans for BSC, NCB and BL, for example, all entailed the mutilation of the corporations and their workforces. Clearly, jobs were no longer a priority of the Thatcher government.