Regional development through freeports: an evaluation of the potential local employment effects of the East Midlands Freeport

Freeports were reintroduced in the UK as part of the post-Brexit levelling up agenda. Although freeports have the potential to create jobs, the evidence is mixed. This study assesses the potential employment effects associated with the East Midlands Freeport. The results for the core scenario suggest that the freeport increases the number of jobs in the D2N2 region with a high proportion of jobs created in the high-skilled occupation categories. In evaluating the sensitivity of the number of jobs created, changes to key parameters indicate that the freeport will create fewer jobs the lower the occupancy rate and the higher the displacement effect. In evaluating the sensitivity of the type of jobs created, modifications to the sectoral mix indicate that the number of high-skilled jobs is reduced if the site is logistics-oriented or is more broadly defined in line with an inclusive growth strategy. In illustrating the quantity and the quality of labour effects of freeports, the findings highlight potential tensions between maximising the imperative to maximise occupancy rate versus greater selectivity towards higher-quality jobs; minimising displacement effects, whether regional or national; and targeting growth-driving priority sectors versus an inclusive industrial strategy that better matches the region’s existing sectoral strengths.