EXAMPLES OF THE ECONOMIC IMPACT ON JOBS


• We have calculated the potential economic impact of large scale job losses at BAE Systems and Rolls Royce. We have used the national average aerospace wage of £41,000 and our calculations assume that the multipliers used to measure the impact of job creation can be reversed to provide the negative impact of job destruction.


BAE Systems • If 5,000 jobs were eliminated from its UK workforce then the company’s output would drop by 10.3 per cent, or £2.15 billion per year.


• The impact on the UK’s wider economy would be huge and UK national output would decrease by £2.15 billion.


• If all else remained equal then a reduction of 5,000 workers at BAE Systems would remove £48.6 million worth of annual household spending from the economy.


Rolls Royce • If 5,000 jobs were eliminated from its UK workforce then the company’s output would drop by 13 per cent, or £2.2 billion per year. UK national output would drop by £2.1 billion.


• If all else remained equal we estimate that the impact of 5,000 job losses at Rolls Royce would remove £48.6 million a year from the economy, due to the resulting decrease in household spending.


Additional information • Boeing spent an estimated £2.1billion with UK suppliers in 20164. • Airbus in the UK spent over £4 billion in 2017 in the supply chain.


• The impact of reduced output and subsequent impact on jobs and communities would be significant.


4 House of Commons research paper, “The aerospace industry: statistics and policy”, 2017 28


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