Facing up to job losses

With the announcement of more job losses in Swindon, BBC News Online looks at the town's economic position and future.

Vodafone's job cuts came as a blow to Swindon

On Tuesday, Endeva became the latest company to announce job cuts at a Swindon call centre.

In the summer, 450 jobs went when Vodafone closed its newly-bought Cellular Ops call centre.

And Zurich Financial Services also cut "hundreds" from its IT and customer services division.

Chris Firth, an economics consultant and management lecturer at Cranfield, told BBC News Online that job losses - particularly in the call centre industry - where always on the cards.

We should also benefit from the bounce back in IT and telecommunications Chris Worthington Swindon Borough Council

"Swindon grew very quickly in this area in the last five years, but the industry has now consolidated," he said.

"Companies are moving to cheaper parts of the UK, or abroad, and they were always transient and low-skilled jobs."

Unfortunately for the town, Mr Firth says the new job losses can no longer be absorbed - as they had been in the past.

"Swindon does have a problem. The big boys like Honda and Motorola are not hiring and we need a rethink on how to attract investment and build the economy."

Enter the Borough Council who say this exactly what they are planning.

Unemployment

"A new promotional campaign for the town is planned for spring," said Chris Worthington, principal economic development officer at the council.

"We are also planning to redevelop the town centre, which will attract new retail investment."

Mr Worthington is less pessimistic about the Swindon's future: "Unemployment has dropped to 2% in September from 2.3% in spring, and we are still attracting between 20 and 30 new companies every year, which equates to 300 to 400 new jobs.

"We should also benefit from the bounce back in IT and telecommunications, and there is a strong future in smaller, hi-tech engineering firms."

'Vicious circle'

He also points to the new £10.5m National Trust building - with 400 new jobs - that is expected to open in 2005, as evidence that the town is attracting solid conservation and heritage businesses.

But Mr Firth added: "The problem is that job losses are compounded if the labour force increases and new jobs do not keep pace.

"There is this vicious circle every 10 years in Swindon - as in any economy where you depend on waves of new investment.

"We need to be proactive. The chamber of commerce and the regional development agency need to put the infrastructure in place for Swindon to be attractive."