Bournemouth, Dorset & Poole LEP (Economic Profile)

An Economic Snapshot

• According to the latest data, in 2009 the Gross Value Added of the Bournemouth, Dorset & Poole (BDP) economy was £12.6bn.  This represented a fall of 1.4% from 2008, highlighting the effects of the early part of the recession (comparing to a decline of 1.9% in the wider South West).

• The GVA per head at current basic prices in 2009 for Bournemouth & Poole was £21,142, representing a fall of 0.7% from 2008.  In comparison, GVA per head for Dorset CC was £15,252, an annual fall of 2%.  The lower figure in Dorset reflects that this is a workplace measurement – most rural areas tend to suffer on this measurement as wealth flows out in the form of commuting.  The greater annual fall in GVA per head for Dorset, when compared to the headline GVA figure, is due to population growth being higher in rural areas – affecting the denominator for this measurement.

• The marked difference in GVA per head measurement is highlighted by their relative position against the UK average – 105.7% for Bournemouth & Poole and 76.3% for Dorset.

• The importance of the financial & insurance sector to Bournemouth & Poole is reflected in the fact that it represents 21.6% of output (£1.4bn).  In comparison, it constitutes just 2.5% of output in Dorset, although this has grown significantly over the past 10 years from a low base. Of particular note is the significant decline in the output for the real estate sector, declining by 18% between 2008 & 2009. This highlights the adjustment that has taken place as a consequence of the housing market downturn since 2008.

• The average (median) annual gross earnings for residents in 2011 were - Bournemouth (£19,132), Poole (£20,018) and Dorset (£20,339).  This shows that broadly earnings are similar across the whole LEP area.  However, whilst average earnings declined in Bournemouth & Poole by 2.5%, they increased by 5% in Poole – the data indicating the strongest wage growth in the South West.  Of particular note is strong growth in male earnings.  Some caution needs to be applied in any analysis due to the confidence intervals associated with this dataset.

• There were a total of 9,877 claimants in the area in December 2011, 2.3% of the working age population.  The ILO defined unemployment measurement is higher at 6.1%.  Claimant count has remained relatively stable through 2011, remaining low by historical standards.

• Whilst long term unemployment remains an issue in the LEP area, levels tend to be lower than elsewhere in the region.  10.7% (1,005) of all claimants have been claiming for over 12 months whilst 25.5% - this represents a significant increase from 17.8% in June 2008.

• In 2010, there were 2,685 business births in the LEP area, an annual decrease of 0.9%. There were 3,795 business deaths in the same year – an increase of 8%.

• As a consequence of the excess of business deaths over births, there were 30,120 active enterprises in the LEP area at the end of 2010, an annual fall of 2.5%. Approximately half of all enterprises in the BDP area that started activity in 2005 were still trading in 2010. 1 in 4 firms that began trading in 2008 had ceased trading by 2010.