The impacts of technological transformations are unevenly spread and can create or entrench inequalities, not only for individuals, but between demographic groups, communities and regions.

Following the Covid-19 pandemic, unemployment rocketed to record levels, particularly amongst younger people, Black, Asian and minority ethnic workers and the low paid. Many of those still in work lost pay and hours, especially in sectors involving high levels of human contact.  This period exposed and hastened many of the same vulnerabilities that are associated with technological transformation, and highlighted the ‘frictions’ that exist in the labour market - the theoretical work for which Professor Sir Christopher Pissarides was awarded the Nobel Prize for economics.

One of the key labour market frictions is geography, where an individual’s and employer’s choice about work are constrained or enabled by place. By the standards of OECD countries, the UK is in the midst of this current period of rapid change with regional inequalities at very high levels. As such, addressing regional inequality is of increasing importance across the political spectrum. However, granular research and proposals to guide this ambition are often lacking. 

As significant efforts are made to encourage ‘reshoring’ back to the UK, and supply chains are reconfigured to reduce risks, some traditional occupations are likely to become obsolete. New tasks and roles in both the public and private sectors are then likely to be created in different industries and regions, resulting in pronounced geographic challenges as individuals may be expected or required to relocate to seek work.

There is a risk that wealthier areas of the country will benefit more from the new technologies, widening the gap with the poorer regions. New opportunities and demands will certainly not be experienced uniformly and are likely to highlight old and new barriers to relocation, which is difficult and expensive. 

Through local area surveys, worker interviews and place-based institutional analyses, the Review has aimed to highlight the groups and communities across the country that are most vulnerable to the effects of technological transformation, and consider the way public policy choices are realised and embedded in place.

Publictations relevant to this theme include: