Employment
2.43 South West England has a relatively strong labour market with high levels of participation and employment and the lowest regional unemployment rate. The region has a relatively good skills base but there are some issues around both basic and high end skills. The South West has lower than average earnings, though there is substantial variation across the region.
2.44 According to the Office for National Statistics’ Labour Force Survey, around 2.5 million people were employed in the South West in 2007, 78.5% of the working age population (2007 Q3). Since 2001, an additional 142,000 jobs have been created in the region, a growth rate of approximately 1.0% per annum. During this period, economic activity (81% to 82% of working age) and employment (78% to 79% of working age) have remained largely unchanged. Unemployment (measured as the proportion of all adults aged 16+) has been creeping upwards, however – 4.1% in 2007 Q3, at its highest since 2000.
2.45 Sub-regional information is neither as robust nor up to date. The SW Regional Accounts estimate an additional 80,000 full time equivalent jobs were created in the region between 2001 and 2005. Half of these were in either Cornwall or Devon, driven by growth in the construction and services sectors. South Gloucestershire, Somerset, Cornwall and Bournemouth had the fastest growth rates – 2.7%+ per annum, compared to 0.9% for the South West. Swindon and Wiltshire, Bristol and Torbay have all seen a slight contraction in employment over this period.
2.46 An analysis of growth in SW employment between 2006 and 2007 by industry suggests that employment grew strongly in some sectors while other sectors experienced considerable losses. Agriculture and the utilities sectors both grew strongly in the South West though are relatively small sectors. The largest increase in numbers of jobs was in the banking, finance and insurance sector. Construction employment grew relatively quickly, compared to the England average, with an increase of around 8,000 jobs in the region.
2.47 Manufacturing, the public sector and transport and communications all experienced declines – manufacturing due to increased international cost pressures, the public sector due to cuts in Government spending.
|
South West England |
England |
|||
|---|---|---|---|---|
|
Annual Growth Rate |
Contribution to Total Growth (no. of jobs) |
Annual Growth Rate |
Contribution to Total Growth (no. of jobs) |
|
| Energy and water |
19.8 |
4,300 |
19.2 |
35,000 |
| Agriculture and fishing |
17.1 |
7,400 |
8.1 |
21,300 |
| Banking, finance and insurance |
5.3 |
17,900 |
1.5 |
56,300 |
| Construction |
4.1 |
8,300 |
1.1 |
20,700 |
| Other Services |
2.1 |
3,200 |
4.5 |
64,600 |
| Distribution, hotels and restaurants |
0.0 |
100 |
-0.7 |
-31,200 |
| Manufacturing |
-1.3 |
-4,000 |
-0.4 |
-12,500 |
| Public admin. education and health |
-1.4 |
-9,800 |
0.0 |
500 |
| Transport and communications |
-5.0 |
-6,900 |
-2.1 |
-34,700 |
| Total |
0.8 |
20,500 |
0.5 |
120,000 |
| Source: Annual Population Survey, ONS | ||||
2.48 Employment Growth Projections - Total employment in the South West (measured by employee jobs, as opposed to people in employment) is projected to rise at an average annual rate of 2.1 per cent during 2006-2014, the second highest growth rate among the UK regions after London (South West Economy Projections: 2007). This implies around 400,000 new jobs in the region over this period, many of them part-time. However, these forecasts do not take account of effects of the anticipated credit crunch.