Redundancy is a predominant form of adjustment to changes in the demand for labour. Why it is chosen as an adjustment option by firms, the labour market experience of subsequently unemployed workers and the secondary employment effects of redundancy, form the central topics of the research. The study is based upon the labour market experience and behaviour of a sample of the 2,400 employees made redundant in April 1985 by the Michelin company, the major employer in the Stoke on Trent travel-to-work area. The research aims to study the means by which redundant workers find employment and the ease or difficulty of doing so. This is to be done by a questionnaire which will seek to identify the channels through which jobs are sought, the number of firms approached and the wages expected and gained. Local firms will also be investigated to see, first how they adapt to increased labour supply and secondly in what circumstances they use redundancy as a means of adjusting their labour force. Central to the research, therefore, is the study of redundancy in the context of how labour markets adjust. An overview of the workings of the local economy will be obtained by linking the changing expenditure patterns of redundant workers with local demand and employment effects, by integrating the research with an already established input-output model.

Start date
31 August 1985
End date
30 August 1986
Grant holder
Prof Fishman
Grant amount
Grant reference
Grant type