The study, of 69 different sectors of industry, found that manufacturing made up three of the worst five areas for percentage change in employment numbers. Chemical manufacture has seen a 12.9% decrease in employment numbers in the past 12 months (from 101,000 to 88,000), and came last of all the sectors surveyed. Also struggling are computer manufacturing (an 11.5% decrease) and the pharmaceutical industry (down 9.8%).
However, the automotive industry has bucked the trend, with an increase of 7% in employment (from 142,000 to 152,000) since 2015, along with an increase in overall output. Manufacturing output as a whole, though, has fallen by just under 1%, according to the latest ONS figures.
According to UHY, a chartered accountant firm, the fall in employment can be put down to the ongoing shift in manufacturing to countries with cheaper labour costs. The rise of technology such as automation is also being felt, with companies able to invest in robotics instead of people.
“Although the weaker pound should make exports cheaper, the fall in output in the last quarter for manufacturing overall is a worrying sign that the full effects of the Brexit vote are yet to be realised,” said Paul Daly, partner at UHY Hacker Young.
The oil & gas industry was also amongst the struggling industries, with an 11.8% fall in employment numbers; waste management topped the league with a 25% increase in job numbers.
“These fluctuations in employment numbers across different sectors makes for interesting reading and provides key insights about the shifting landscape of the UK economy,” added Daly.
