Ref. 30023Every week, it seems, job losses are announced in Swindon. Indeed, over the next few months, the number of people who work in the town should fall by around 1,300. But is this just a blip or the start of a worsening trend? JEREMY SMITH reports.

It's like a rash.

Zurich, one of Swindon's biggest employers, is currently shedding more than 450 jobs. Retail giant WH Smith is axing of 300 staff from its Greenbridge headquarters, while Swindon College is cutting 150 jobs.

Meanwhile, Swindon Pressings will see approximately 330 jobs disappear, 60 jobs are to go from drug manufacturer Cardinal Health and the closure of the Endeva call centre has resulted in more than 60 redundancies.

And if that weren't enough, even the Church is feeling the pinch, with the number of vicars in the town set to fall from 27 to 20 in an effort to elude its worsening financial crisis.

So is this just the start of a slippery slide into recession or a blip that will soon right itself?

On the bright side, Swindon can hold its head up high compared to national statistics on job losses.

And of course, if the Renault building is indeed transformed into a trading post for the Chinese Government as has been intimated, such an initiative would bode well for the town's future financial security.

In addition, new jobs will undoubtedly also be created by the relocation of the National Trust headquarters to the town. And every week it seems, new companies are setting up in Swindon.

But no matter how positive this tableau may appear, there lurks behind this picture-postcard image a fear. Or rather a fear of the fear to be more precise that for every new company that opens, two or three others will inevitably close.

Such soiling of an otherwise rosy and prosperous landscape is frankly inevitable as the cumulative effect of the job cuts begins to take hold. Pour salt on a wound often enough and it stays raw and sensitive.

In fact, according to Dennis Grant, chief executive of Swindon Chamber of Commerce, it would be all too easy to take the optimistic view.

Instead, he suggests that while the job losses themselves are cause for concern, what the town should really be addressing is whether sufficient new businesses and therefore jobs are starting up to compensate for those lost.

"And if that's not the case," he said, "we should be asking ourselves, why not?

"Job losses are inevitable in all economies because business is a dynamic environment and Swindon cannot escape the effect of globalisation.

"For example, there is nothing the town could have done to alter the decision by EMI to move their business to the Netherlands, nor could anyone have prevented the closure of Cellular Operations to improve profitability following their acquisition by Vodafone.

"These are the realities of business life. However, perhaps we all tend to focus too much on the remedial aspect of the problem rather than the preventive one.

"Surely the question should be, 'How do we minimise the trend in job losses and encourage new jobs?' rather than, 'Why did it happen and what do we do with the newly unemployed?' an initiative that Swindon Borough Council has recently embarked on."

Chris Worthington, principal economic development officer in the Council's economic development team, said: "Although there have been job losses in the Swindon area, the latest statistics show that the rate of unemployment in Swindon is remaining low. This indicates an underlying strength and resilience in the local economy.

"There continues to be interest in investment in Swindon, demonstrated by the relocation of the National Trust's headquarters to the town centre.

"We also now have interest in investment from China coming to Swindon to establish a base for Chinese manufacturing companies in the UK. This will provide access for these companies to the UK and European markets.

"Swindon Borough Council's economic development team is continuing to work with its partner organisations to attract new businesses to the town.

"There is a strong focus on attracting investment and jobs and joint work with The New Swindon Company the company established by the Council to redevelop the town centre will take this forward.

"The Council also recognises that, critical to the economic prosperity of the area, is the importance of supporting and encouraging existing businesses, as well as attracting new organisations."

Clive Milner, business adviser at Business Link Berkshire and Wiltshire, says: "We need to view this more as part of the general economic cycle than dismiss it as a general business downturn for the town."

He said: "There is good news for Swindon, with major businesses moving in to the town all the time, such as the National Trust.

"The town is still home to a vibrant and highly successful business community.

"From our point of view, these company closures offer a real opportunity for our typical clients, the small to medium sized businesses to recruit from a highly-trained workforce, thereby growing their companies.

"For instance, in the months following the redundancies of Dyson we saw a real increase in the number of start-up enquiries we received, suggesting that this was a catalyst for people who previously had not felt ready or able to set up their own company."

Paul Jameson, managing director of IT recruitment firm Outsource UK, said: "It's just a blip. The economy is actually recovering in most sectors with many medium-sized companies recruiting in IT for the first time in years.

"Redundancies from larger firms hit the headlines, which skews people's perceptions, but Swindon's unemployment remains lower than the UK average."

John Warner, operations manager with Ace Courier Services at Westmead, is equally optimistic.

"Although it may look worrying when large firms make a lot of people

redundant, I certainly don't sense a decline in Swindon," he said. "In fact, it's a hive of activity and there are plenty of new businesses moving in."

Jeremy Smith