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The Coventry Economy Key Information

The Coventry Economy Key Information. Corporate Research August 2012. www.facts-about-coventry.com. Contents. Context Demographics Deprivation in Coventry Current economic picture in Coventry Productivity and growth – Gross Value Added Disposable Household Income New (August 2012)

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The Coventry Economy Key Information

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  1. The Coventry EconomyKey Information Corporate Research August 2012 www.facts-about-coventry.com

  2. Contents Context • Demographics • Deprivation in Coventry Current economic picture in Coventry • Productivity and growth – Gross Value Added • Disposable Household Income New (August 2012) • Earnings of people in work • Structure of the Coventry economy • Enterprise – new business formation • Coventry City Centre – footfall & void unitsUpdated (August 2012) • Labour Market – Employment, Jobseekers, out-of-work benefits and Job VacanciesUpdated (August 2012) • SkillsUpdated (August 2012) • Public sector job losses - BBC research Click on an item to go directly to that content, alternatively scroll through the slides All data is current and up to date as of August 2012

  3. The next update of this information is due in September 2012 ▼ indicates Coventry rate lower than comparator ▲ indicates Coventry rate higher than comparator ● indicates Coventry rate no different to comparator BME = Black Minority Ethnic (non White British) *General Fertility Rate = number of live births per 1,000 women aged 15–44 Back to Contents page

  4. The next update of this information is due in 2013/2014 Deprivation in Coventry • Index of Multiple Deprivation 2010. This uses data from 2008 so measures deprivation just before the recession hit • Coventry became slightly more deprived between 2005 and 2008 relative to other local authorities • 50th most deprived local authority (56th in 2005) • Income and employment deprivation most stark in Coventry, no change in this type of deprivation • Deprivation pattern within Coventry is broadly the same. Familiar picture, concentrated in the North East • Canley in particular became relatively more deprived, as did Tile Hill North and Radford Stoke Aldermoor and North Holbrooks became less deprived, as did NDC area, modestly See map on Facts about Coventry See report on Facts about Coventry Source: Indices of Deprivation 2010, Department for Communities and Local Government Back to Contents page

  5. Gross Value Added • Gross Value Added (GVA) is a high level indicator of the general heath of the local economy. It measures the amount Coventry contributes to the UK economy • GVA per head is used as an approximate measure of productivity, total output per job in the area • GVA per head in Coventry in 2009 was £18,032, about 12% lower than the national average • Unsurprisingly, given the national economy was still in recession during the first two quarters of 2009, GVA per head in Coventry fell by 5% between 2008 and 2009 from £18,988 • GVA per head in Coventry fell by more than the national average; a 2.5% drop on average across England • In 1995 GVA per head was higher than the national average but has grown since then by only 41% compared to 82% nationally • GVA per head is higher in Coventry than in areas considered appropriate to compare with (CIPFA statistical neighbours), see the charts below Source: Office for National Statistics Back to Contents page

  6. The next update of this information is due end of December 2012 Gross Value Added per head Back to Contents page

  7. The next update of this information is due end of December 2012 Gross Value Added per head Back to Contents page

  8. Disposable Household Income • Disposable income is the amount of money a household has available to spend or save after income is redistributed through measures such as taxes and benefits. • The 2010 Gross Disposable Household Income (GDHI) per head for Coventry was £12,447, below that of Warwickshire (£16,628), the UK average (£15,727) and the average for all metropolitan areas (£13,931). • GDHI per head in Coventry has grown slower than that of both Warwickshire and UK, having seen a 24% increase between 2001 and 2010 compared to 31% and 33% respectively. • Real household disposable income is gross disposable income adjusted for the effects of inflation. • In 2010 Coventry individual residents have the same real household disposable income as in 2005, although they were worse off between 2006 and 2008. • Although individual residents have seen falls in RHDI levels, the city as a whole has seen an increase in total real disposable household income, helped by population increase. Back to Contents page

  9. The next update of this information is due May - June 2013 Gross Disposable Household Income Source: Regional Gross Disposable Household Income 2010 , Office for National Statistics Back to Contents page

  10. The next update of this information is due May - June 2013 Real Disposable Household Income Source: Regional Gross Disposable Household Income 2010 , Office for National Statistics Back to Contents page

  11. Earnings of people in work • The average (median) annual wage in 2011 (before tax) of all people who work in Coventry is estimated to be £23,549; higher than the average for all Coventry residents, £21,439 • Those who work in Coventry, on average, earn 9% more than the England average of £21,650 • People who work in Coventry earn on average 10% more than Coventry residents; many people commute into Coventry to work • The average annual growth in earnings between 2008 and 2011 for residents of Coventry and for those who work in Coventry has been just under 3% compared to an England average of just under 1% • Earnings growth in Coventry in 2011 was the higher than the previous 2 years Back to Contents page

  12. The next update of this information is due: 12th December 2012 Earnings of people in work Back to Contents page

  13. Employment by industry • The largest broad sector of the Coventry economy is public administration, education and health which employs approximately 45,750 people in Coventry, almost a third (32%) of all employment • Manufacturing has become an increasingly smaller part of the economy in recent years and now makes up about 11% of employment, about 15,000 people • ‘Business services’ (banking, finance and insurance) has employed an increasing number of people in the city since 1998, increasing from 14% to 23% of all employment in 2008 (England 23%) • 58% of employees work for SMEs (business with less than 200 employees) compared to an England average of 69% (2008) • Between 2008 and 2010 the estimated number of employees at Coventry workplaces fell from about 147,000 to 143,000 with notable falls in business services, manufacturing and ‘other services’ jobs and a notable increase in public administration, education and health jobs Back to Contents page

  14. The next update of this information is due: September 2012 Employment by industry – Coventry workplaces Source: ONS business register and employment survey 2010, NOMIS Back to Contents page

  15. Employment by industry Back to Contents page Source: Annual Business Inquiry 1998-2008, NOMIS

  16. The next update of this information is due: September 2012 Employment by industry Back to Contents page This data must not be compared to the 1998-2008 data on the previous slide, they are from different sources

  17. New business formation • 965 new business registered in Coventry in 2010, an increase on 855 in 2009. The rate of business formation is however lower than it was in 2008 and in previous years. The rate is 38 per 10,000 adults compared to the England average of 49 • Due to the recession there has been a 14% fall nationally and a 16% fall amongst similar metropolitan areas between 2008 and 2010 • Fall of 18% in business formation in Coventry, a greater fall than in the UK overall and other similar areas • Coventry has relatively more public sector employment, less self employment and relatively fewer SMEs than England • There was a significant fall between 2008 and 2009 before a recovery in 2010; this suggests that the extent of the drop in 2009 may have been the result a statistical ‘blip’ in the measurement Back to Contents page

  18. The next update of this information is due: December 2012 Business formation Source: ONS Business Demography data 2010 Back to Contents page

  19. City Centre Footfall • Following a positive 2010, Coventry City Centre footfall returned to a year-on-year decline, with fewer visitors to the city centre being a result of the recession and slow growth in the economy Footfall collected from the following sites; Smithford Way, Market Way, Upper Precinct, Hertford Street, City Arcade, Priory Place, Lower Precinct and West Orchards Back to Contents page

  20. The next update of this information is due: October 2012, January 2013 and April 2013 City Centre Void Units • After a positive reduction in the number of empty units in the city centre since 2009, figures have slightly risen over the past 18 months to 47 void units in the city centre in mid 2012 Back to Contents page

  21. Source: ONS Annual Population Survey April 2011 – March 2012 , NOMIS Labour MarketApril 2011 – March 2012 data • There are an estimated 208,800 people of working age resident in Coventry (aged 16 – 64); about two thirds of the total population • About two thirds (64%) of working age residents of Coventry are in employment. Lower than the national average employment rate of 70% • The employment rate of 64% is down from 71% in 2007 before the recession; about 10,000 fewer in employment • About 133,000 people are in employment, 14,000 are unemployed and 61,700 people are economically inactive (e.g. long term sick, full time student, looking after family / home etc.) • The data gives an indication that the employment rate fell during the third quarter of 2011, with economic inactivity increasing. Employment, unemployment and economic activity appears to have been relatively stable since then. • Those claiming Jobseekers’ Allowance make up the majority of those considered unemployed, although some don’t claim JSA • Many of those claiming other out of work benefits (IB / ESA, lone parents on IS) are considered to be economically inactive Back to Contents page

  22. The next updates of this information are due: 17th October 2012, 23rd January 2013, 17th April 2013 Labour Market Back to Contents page

  23. Unemployment • The official unemployment rate estimates the number of people who are out of work and have actively sought work in the last 4 weeks. It is measured using a survey, the Labour Force Survey • Using this definition, an estimated 14,000 Coventry residents are unemployed (April 2011 – March 2012). The makes an unemployment rate of 9.5% of the economically active population compared to the England average of 8.2%. This rate should not be compared to the JSA rate • 10,033 claimants of Jobseeker’s Allowance (JSA) in July 2012, a reduction from 10,766 in July 2011 • The seasonally adjusted JSA claimant rate is 4.8% of the working age population (July 2012).The JSA claimant count peaked at 11,570, 5.6% in October 2009 • JSA rate in July 2012; 3.9% across UK, 4.8% across the West Midlands region and 2.4% in Warwickshire Back to Contents page

  24. Unemployment (JSA) - trends • There has been a general downward trend in the seasonally adjusted JSA claimant count in Coventry between August 2011 and July 2012 after an increase during the summer of 2011. The claimant count is now over 700 (7%) lower than it was at the same time last year • Regionally and nationally the claimant count has been falling more slowly during 2012 overall, the West Midlands is 1% down and the UK 2% up on the same time last year. Warwickshire is down by 12% on last year • Between June and July 2012 the downward trend in the number of Coventry residents claiming JSA halted, the claimant count increased by about 150 • The gap between the UK and Coventry has narrowed since the recession in 2009-10; it increased during the recession when the Coventry claimant count increased by more than the national average. The gap between Coventry and Warwickshire has widened • 30,150 people claiming all out of work benefits, 14.4% of the working age population (q4 2011) (Metropolitan authorities average 15.9%, England average 11.9%) • During 2011 the total number of Coventry residents claiming out of work benefits was stable with slightly increasing numbers of jobseekers (JSA) and falling numbers of lone parents claiming Income Support Back to Contents page

  25. The next updates of this information are due: 17th September 2012, 17th October 2012, 14th November 2012 Unemployment (JSA) trends Back to Contents page

  26. The next updates of this information are due: 17th September 2012, 17th October 2012, 14th November 2012 Unemployment - JSA See map report on Facts about Coventry Source: Jobseeker’s Allowance claimant count, ONS, NOMIS Back to Contents page

  27. The next update of this information is due: 14th November 2012 Total out-of-work benefits claimants See report on Facts about Coventry Total Other Lone Parents Incapacity Benefits / ESA JSA Source: DWP Work and Pensions longitudinal study, NOMIS Back to Contents page

  28. Job Vacancies • 2,335 vacancies in Coventry reported to Jobcentre Plus during July 2012. This represents only a proportion of all job vacancies • The number of notified vacancies in July is lower than in the previous month and generally down on the level of vacancies reported so far during 2012. Up to June 2012 vacancies were generally higher than they were during 2011 • In July 2012 there were just over 4 Jobseeker’s Allowance claimants chasing every reported vacancy in Coventry, a slightly higher ratio than across the region and the country as a whole. In Warwickshire there were under 2 job seekers per vacancy • In July 2012 the ratio between job seekers and job vacancies was slightly lower than it was in August 2011. Back to Contents page

  29. The next updates of this information are due: 17th September 2012, 17th October 2012, 14th November 2012 JobVacancies Source: Jobcentre Plus vacancies, Department for Work and Pensions, NOMIS Back to Contents page

  30. The labour market mismatch • On average there were 4.3 people on JSA per Jobcentre Plus vacancy in July 2012 • In addition there are currently about 3,000 – 4,000 Coventry residents looking for work who are not on JSA benefits • Jobseekers looking for work in professional roles appear to face less competition with only about 2 claimants looking for such work per vacancy • Higher skills generally better balanced but many start own business / do not need to sign on • The biggest mismatches is found in, sales & customer service occupations. There were 10 jobseekers per reported vacancy for this type of work • There is also an imbalance in the market for administrative & secretarial and elementary occupations; an average of 7 jobseekers looking for work in these fields per reported vacancy Back to Contents page

  31. The next updates of this information are due: 17th September 2012, 17th October 2012, 14th November 2012 The labour market mismatch Back to Contents page

  32. Skills • It is estimated that 27% of working age residents of Coventry have higher level qualifications, those equivalent to or higher than a degree. Lower than the national average, similar to the regional average and higher than the West Midlands city region average • 17% have no qualifications, higher than the national average Back to Contents page

  33. The next update of this information is due: 17th April 2013 Skills See report on Facts about Coventry *Birmingham, Dudley, Sandwell, Solihull, Telford & Wrekin, Walsall & Wolverhampton Source: ONS Annual Population Survey Jan 2011 – Dec 2011, NOMIS Back to Contents page

  34. www.bbc.co.uk/coventryatwork *Incomplete data for quarter 4 2011, awaiting results from some organisations. 122 posts cut is therefore a minimum for Q4 2011. Data source: BBC & Coventry City Council research. www.bbc.co.uk/coventryatwork Back to Contents page

  35. www.bbc.co.uk/coventryatwork Is the private sector absorbing public sector job losses? • The total public sector job cuts in Coventry captured in this research in the quarter July to September 2011 was 311 • In the quarter October – December 2011 there were at least 122 job cuts although not all organisations provided data for this quarter • All together from October 2010 to December 2011 there were 1,357 jobs cuts reported. About half the cuts have been in local public service providers and half in national ‘quango’ organisations with a small number reported from Universities. • It should be noted that the organisations supplying data in response to press enquiries has varied from quarter to quarter therefore the number of jobs cut may be under-reported • There has been limited in-sourcing or out-sourcing of services, and no evidence of wholesale transfer of jobs to the private sector through contracting • At the moment it is not possible to say whether or not the private sector is absorbing jobs lost to the public sector Back to Contents page

  36. www.bbc.co.uk/coventryatwork www.facts-about-coventry.com Back to Contents page

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