Case study of structural change - Birmingham Metropolitan area

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Historical timeline of Birmingham's economic change 

Pre industrial revolution - prior to industrial revolution, poor agricultural region with half a dozen streets, a church and a market square. Trade took off and metal workings. 

Industrial revolution - 15,000 people now live in Birmingham, migration from rural areas being the main growth. The first factory in the World Cotton machinery invented in Birmingham in 1730s along with air filled tyres, steam engines and x-rays. During WW2 radar was developed here. In 19th and 20th century gun, jewellery, button and brass industry dominated and other industries grew to support the growing populations. The Cadbury family set up the Bourneville site on the outskirts of Birmingham, with all the industry banking and insurance firms developed in Birmingham. Birmingham was at the heart of the national canal network and was connected in 1838 to the London railway network. 

1900 and 1950s - new engineering industries developed such as the Austin car plants in 1906, the multiplier effect meant huge amount of supporting industries expanded e.g. Dunlop tyres opened and by 1950 employed 10,000 people. The chemical industry grew with products such as Bakelite. Due to Birmingham's high diversity across many industries it survived the Great Depression of the interwar years. Metal based industries accounted for 50% of total employment. 

Post war - Birmingham continued to be a prosperous city during the 50's and 60's with unemployment below 1%. Between 1970 and 1983, earnings went from the highest to almost the lowest across the UK. For example jobs in metal went from 28.4% in 1978 to 5.8% in 2000 and unemployment reached 19.4% in 1982. The oil crisis of the 1970s, war in the Middle East, competition from overseas created the perfect storm…

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