Gloucestershire LEP (Economic Profile)

Coverage

• Cheltenham, Cotswold, Forest of Dean, Gloucester, Stroud, Tewkesbury

Quick Statistics

• The Local Enterprise Partnership covers an area with a workforce of 291,500, representing 1.2% of the national total. The area supports 24,055 businesses.

Visions & Aims

The Gloucestershire LEP’s key aim is to support growth and the creation of private sector jobs in the area. Their programme is based on four core priorities:

• investment – growing and developing businesses through the implementation of locally-based business support networks across the county – improving business and encouraging innovation
• connection –working with partners to develop the right planning environment and infrastructure – encouraging investment and sustainable growth
• skills - connecting education and skills with the needs of business and the local economy – ensuring the ready supply of talent, and attracting and retaining young people
• promotion – of Gloucestershire as a great place to invest, work, live, and visit – attracting inward investment and tourists,
  

An Economic Snapshot

• According to the latest data, in 2009 the Gross Value Added of the Gloucestershire economy was £11.5bn.  This represented a fall of 1.8% 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 was £19,438, representing a fall of 2.3% from 2008.  The marginally greater fall in the GVA per head measure, compared to the headline GVA figure, is due to the population of the area growing slightly faster than economic growth during that year.  GVA per head was 97.2% of the UK average.

• Contrary to the regional and national picture, manufacturing remains a significant proportion of the Gloucestershire economy.  In 2009, it represented 21.7% of local economic output (£2.5bn) and remains the largest industrial sector, although it has only grown by 13% in 10 years. Since 2000 the financial & insurance GVA grew by 162%.  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 in 2011 was £20,729, representing a slight increase of 0.4% since 2010.  Earnings in Gloucestershire have remained relatively subdued during the period of pressure on earnings experienced nationally.  Male earnings suffered an annual decline of 0.4% whilst female earnings proved more robust – increasing by 2%.  Despite this slight convergence, average female earnings are still only 59% of average male levels .

• There were a total of 9,717 claimants in the area in December 2011, 2.6% of the working age population.  The ILO defined unemployment measurement is higher at 5.6%.  The claimant count has remained relatively stable throughout 2011, remaining low by historical standards.

• Long term unemployment remains an issue, approximately 1 in 8 (1,200) of all claimants have been claiming for over 12 months. 35.3% have been claiming for more than 6 months, compared to 26.8% in June 2008 – the start of the present economic downturn.  Men tend to have a higher propensity to be claimants and longer-term claimants at that.

• In 2010, there were 2,300 business births in the LEP area, an increase of 2.4% from the number of births in 2009. There were 2,900 business deaths in the same year.  This represented a significant increase of 13.3% - the largest increase of any South West LEP area.

• As a consequence of the excess of business deaths over births, there were 25,815 active enterprises in the LEP area at the end of 2010, a slight annual fall of 0.6%.

• Just under half (49.5%) of all enterprises that started activity in 2005, were still trading in 2010. Just over 1 in 5 firms started in 2008 had ceased trading by 2010.