West of England Local Enterprise Partnership Economic Overview. 1. Introduction

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1 West of England Local Enterprise Partnership Economic Overview 1. Introduction 1.1 This data report provides evidence for a number of key economic indicators in relation to social inclusion and diversity. Diversity is concerned with all the ways in which people differ. Coupling economic growth with social inclusion ensures a more holistic approach to economic development. 2. Overview of the WE Economic Structure 2.1 The West of England Local Enterprise Partnership (WE LEP) covers the four unitary authorities of Bath & North East Somerset Council (B&NES), Bristol City Council, North Somerset Council and South Gloucestershire Council. The WE has a population of 1,69,583 (211 Census) across an area of 133,244 hectares. The economically active population (aged 16-64) is 742,5, or 69.4% of the total population. 2.2 The WE LEP contributes 2.2% of employment, 2.% of enterprises and 2.3% of GVA to the economy of England. Since 29 the WE LEP economy has seen a reduction in employment but an increase in enterprises and GVA (Table 1). Table 1: Current State of the West of England LEP Indicator WE LEP Significance to England (% England Economy) Performance (29 212) (% Change) Employment(a) 538, Enterprises (b) 45, GVA ( m) (c) 26, Source: (a) BRES, 212; (b) UK Business: Activity, Size and Location (ONS, 29 & 212); (c) Regional GVA NUTS 3, ONS, The WE LEP has a broad and diverse economy (Table 2). The largest sector by employment is Health & Social Care, with 13.7% of total employment. This is not unusual amongst all LEP areas, with the majority having this sector as the largest employer. Other sectors with large proportions of employment in the WE are Retail (1.4%), Education (9.6%), Business Administration (8.%) and Professional & Science (8.%). The WE also has a higher proportion of employment in Finance & Insurance (5.3 %) than any LEP (excluding London). 2.4 The sectors which make the largest GVA contributions to the WE Economy are Manufacturing (11.4%), Finance and Insurance (11.4%), Retail (9.3%), Property (8.9%) and Health (8.%) (Table 2). Between 29 and 212 most broad industrial sectors within the WE experienced a decline in employment (Table 3), although there are a number of exceptions to this. Eight sectors in the WE have experienced an increase in employment during this period these are: Agriculture; Accommodation; Information and Communication; Property; Professional and Science; Education; Health and Arts and Leisure.

2 Table 2: Current State of West of England LEP by Broad Industrial Group Industry Employment (a) Enterprises (b) GVA ( m) (c) Number % LEP Number % LEP Number % LEP Agriculture 4.1 1, Mining 5, Manufacturing 39, , Construction 24, , Motor Trades 9, , Wholesale 17, , Retail 55, , Transport & Storage 22, , Accommodation 36, , Info & Communication 23, 4.3 3, Finance & Insurance 28, , Property 1,7 2. 1, Professional & Science 43,3 8. 7, Business Administration 43,1 8. 3, Public Admin & Defence 31, Education 51, , Health 73, , Arts & Leisure 21,4 4. 3, Source: (a) BRES, 212; (b) UK Business: Activity, Size and Location (ONS, 212); (c) The WE LEP Area Economy Model produced by the RED Group at the University of Plymouth (21) Table 3: West of England LEP Performance by Broad Industrial Group, Industry % Change Employment (a) Enterprises (b) Agriculture 3. Mining -4 - Manufacturing -1,5-3.5 Construction -1,2-6. Motor Trades -.7 Wholesale -2,7-4.1 Retail Transport & Storage -2,8. Accommodation 2,3-2.6 Info & Communication Finance & Insurance -1, Property 4,3 3.4 Professional & Science Business Administration -3,4-7.5 Public Admin & Defence -3, Education 2,3 4.2 Health 3,5 8.4 Arts & Leisure Source: (a) BRES, 212; (b) UK Business: Activity, Size and Location (ONS, 29 & 212)

3 Figure 1: Employment Distribution by UA, West of England LEP Whole Economy by Broad Industrial Sector (SIC 27) 1 : Agriculture, forestry & fishing (A) 2 : Mining, quarrying & utilities (B,D and E) S.Glos 3 : Manufacturing (C) 4 : Construction (F) 5 : Motor trades (Part G) 6 : Wholesale (Part G) N.Som 7 : Retail (Part G) 8 : Transport & storage (inc postal) (H) 9 : Accommodation & food services (I) 1 : Information & communication (J) Bristol 11 : Financial & insurance (K) 12 : Property (L) 13 : Professional, scientific & technical (M) B&NES 14 : Business administration & support services (N) 15 : Public administration & defence (O) 16 : Education (P) % 2% 4% 6% 8% 1% Proportion of Employment % 17 : Health (Q) 18 : Arts, entertainment, recreation & other services (R,S,T and U) Source: BRES, The composition of employment by broad industrial group shows largely similar employment distributions across all of the UAs in the WE LEP (Figure 1). However there are some variations. For instance, there are higher proportions of manufacturing employment in North Somerset and South Gloucestershire; whereas Bristol has a higher proportion of employment in Finance and Insurance, and Professionals, Scientific and Technical industries. B&NES has a higher proportion of employment in Accommodation & Food Services, as well as Education and Health.

4 Derby, Derbyshire, Nottingham and Nottinghamshire Greater Birmingham and Solihull Greater Manchester Leeds City Region Liverpool City Region North Eastern Sheffield City Region West of England 3. Workplace Analysis Table 4: Overview analysis of the West of England LEP workplace. Working Age Population (16-64) (a) Business Stock (per 1, residents) (b) New Firm Formation (per 1, residents) (b) Employment Rate (c) Selfemployment Rate (c) Proportion of highly skilled (Level 4 +) (c) B&NES 114, Bristol 294, N.Som 122, S.Glos 169, WE LEP 71, England 34,37, Source: (a) ONS Mid Year Population Statistics (212); (b) Business Demography 212 (ONS, 212); (c) Annual Population Survey (212, 213) 3.1 Business Stock As of 212 the WE had a business stock of 41,625; equating to 389 businesses per 1, residents. Of the UAs B&NES has the highest number of businesses per 1, residents at 447, the lowest being in South Gloucestershire at 352 per 1, residents. New firm formation rates per 1, residents in the WE (44/1,) are just below that of England (45/1,); however Bristol exhibits a greater formation rate at 48/1,. 3.2 Employment The WE LEP in the year to June 213 had an employment rate of 73.3%, this was higher than the rate for England which stood at 71.3%. Three out of the four UA s in the WE exhibited an employment rate higher than that of England. Bristol being the exception with an employment rate of 7.7%. South Gloucestershire indicated the highest employment rate of 78.5%. Figure 2: Employment Rate Amongst the Working Age Population by Ethnicity, year to June aged employment rate - white aged employment rate - ethnic minority Source: Annual Population Survey, ONS 213

5 3.3 Across all of the Core City LEP areas the employment rate amongst the working age white population is higher than it is for the working age ethnic minority population. Of all the Core City LEP areas the WE has the highest employment rate amongst ethnic minorities with a rate of Jobs density - is a measure of the number of jobs per working age resident (16-64). WE LEP has a jobs density above that of England (.88 and.78 respectively); of the four WE UAs all with the exception of North Somerset (.74) have a jobs density higher than England. Table 5: Jobs Density by Area, 211 Area Jobs Density B&NES.86 Bristol.92 North Somerset.74 South Gloucestershire.93 WE LEP.88 England Self-employment The WE LEP has a self-employment rate below the national average with a rate of However, B&NES has a considerably higher rate at 18.1%. The WE exhibits a lower rate of male self-employment than the average for England at 15.7% but higher female self-employment at 1.1%. B&NES is the only UA to demonstrate a male self-employment rate higher than the average for England in the WE; whereas all authorities, with the exception of North Somerset, have a female self-employment rate higher than England (Figure 3). 3.6 Figure 4 looks at the proportion of self-employment across the eight Core City LEP areas in the year to June 213. Of the Core City LEP areas the WE had the highest proportion of self-employment amongst the working age population (16-64). 3.7 Skills Bristol and B&NES have a higher proportion of highly skilled residents aged 16 and above (5.4% and 49.% respectively) than the WE LEP (43.3%). However, the other UAs have a lower proportion of higher qualified residents than the England average.

6 Derby, Derbyshire, Nottingham and Nottinghamshire Greater Birmingham and Solihull Greater Manchester Leeds City Region Liverpool City Region North Eastern Sheffield City Region West of England Figure 3: Self Employment by Gender, year to June % in employment who are self employed - aged 16+ % of males in employment % of females in employment who are self employed - aged who are self employed - aged B&NES Bristol N.Som S.Glos WofE England Source: Annual Population Survey, ONS 213 Figure 4: Total Self Employment of the working age population in Core City LEP Areas, year to June Source: Annual Population Survey, ONS NEET - The successful transition of young people from school to Further Education, employment or training is crucial in safeguarding them against economic and social exclusion in later life. Those who do not make this transition successfully are referred to as NEET, some of whom may have had previous negative experiences of education.

7 3.9 By the year end (212) 7.9% of the young people aged in Bristol were NEET. This was significantly higher than the average for the South West 5.5%. B&NES (4.8%), North Somerset (3.2%) and South Gloucestershire (4.7%) all have a proportion of NEET below that of the South West. Table 6: year olds NEET and not known - summary (End 212) year olds year olds NEET % whose known to the local authority Estimated number % % activity is not known B&NES 5, Bristol * 11, N Som 6, S Glos 9, SW 17,754 9, Source: Department for Education, Children and Young People Notes: *The proportion of year olds whose current activity is not known is more than 5% above the England average. As a result, it is possible that the number and proportion NEET will be inaccurate. 3.1 Despite the NEET levels in Bristol, the rise in participation age to 17 in 213, and the proposed rise to 18 by 215, should help to tackle this issue. Rising the participation age does not necessarily mean young people must stay in school; they will able to choose one of the following options: full-time education, such as school, college or home education work-based learning, such as an apprenticeship part-time education or training if they are employed, self-employed or volunteering for more than 2 hours a week. 4. Economic Diversity % of the WE LEP population is white, 2.3% mixed / multiple ethnic groups, 3.4% Asian / Asian British, 2.8% Black/African/Caribbean/Black British and.5% other ethnic group (211 Census). Bristol is the most ethnically diverse UA within the WE area (84.% white, 3.6% mixed / multiple ethnic groups, 5.5% Asian / Asian British, 6.% Black/African/Caribbean/Black British, and.9% other ethnic group).

8 % 16+ employed as managers, directors & senior officials % 16+ employed in pressionals occupations % 16+ employed in associate pressional & technical % 16+ employed in administrative & secretarial % 16+ employed in skilled trades occupations % 16+ employed in caring, leisure and other service % 16+ employed in sales & consumer service % 16+ employed as process, plant & machine % 16+ employed in elementary occupations Figure 5: Industry of Employment by Ethnicity, WE, 212 A Agriculture & fishing (SIC 27) B, D, E Energy & Water (SIC 27) C Manufacturing (SIC 27) F Construction (SIC 27) G, I Distribution, Hotels & Restaurants (SIC 27) H, J, Transport & Communications (SIC 27) K-N Banking finance & insurance etc. (SIC 27) O-Q Public admin education & health (SIC 27) R-U Other Services (SIC 27) G-Q Total Services Source: Annual Population Survey, ONS An examination of industry employment in the WE shows that the service sector has a larger proportion of ethnic minority employment (Figure 5). There is a considerably lower proportion of ethnic minority employment in professional and skilled occupations than white ethnicity employment (Figure 6). The lower skilled occupations illustrate a more even distribution of employment between white and ethnic minority groups. Figure 6: Occupation by Ethnicity, West of England, White Mixed Indian Pakistani/Bangladeshi Black Other Ethnic Group White Ethnic Minority Source: Annual Population Survey, ONS 212

9 1. Managers, directors and senior officials 2. Professional occupations 3. Associate prof & tech occupations 4. Administrative and secretarial occupations 5. Skilled trades occupations 6. Caring, leisure and other service occupations 7. Sales and customer service occupations 8. Process, plant and machine operatives 9. Eelementary occupations 4.3 Workplace occupations also vary between UA, with B&NES and Bristol having significantly higher proportions of professional occupations then the other UAs in the LEP (Figure 7). 4.4 The WE has about the same proportion of Managers, Directors and Senior officials than the England average (1.5% and 1.3% respectively), however North Somerset has a significantly higher proportion at 13%. Occupations in the WE are broadly in line with the average for England, the one occupation where the WE is significantly behind the average for England is Process, Plant and Machine operatives. 4.5 Further analysis of occupations in the UAs identifies distinct profiles. B&NES have a high proportion of professional occupations, and associate professional and technical occupations but few process, plant and machine operatives. Like B&NES, Bristol has a high proportion of professional occupations, and associate professional and technical occupations but unlike B&NES has few skilled trades occupations. 4.6 As previously mentioned N.Som has the highest proportion of managers, directors and senior officials than any other WE UA. N.Som also exhibits the highest proportion of elementary occupations but the lowest proportion of caring, leisure and other service occupations. Conversely, South Gloucestershire has the lowest proportion of managers, directors and senior officials, and professional occupations but the highest proportion of administrative and secretarial occupations, skilled occupations, sales and customer service occupations and process plant operatives. Figure 7: Proportion of Employment by Occupations in Geographic Area, B&NES Bristol N.Som S.Glos WofE England Source: Annual Population Survey, ONS 212

10 Figure 8: Proportion of the Ethnic Minority Population in Employment by Occupation by Core City LEP Area Source: Annual Population Survey, ONS There are four universities in the WE LEP area; Bath Spa, the University of Bath, the University of Bristol, and the University of West of England. According to the Higher Education Statistics Agency (HESA) there were approximately 69,8 students registered at the four universities during the academic year 212/13. Of all the students registered in the WE in 212/13, 54.6% were female. At this time 9.7% of the students in the WE had a known disability. 4.8 The data provided by HESA indicates that the majority of people enrolled at Higher Education institutions are white, in the WE 86.7% of the students were white, this is higher than for England which in 212/13 stood at 76.5%.

11 Figure 9: % of West of England Students by Gender, 212/13 Total England Total WE UWE University of Bristol University of Bath Bath Spa University % 2% 4% 6% 8% 1% Female Male Source: HESA, 212/13 Figure 1: % of West of England Students with a Known Disability, 212/13 Total England Total WE UWE University of Bristol University of Bath Bath Spa University % 2% 4% 6% 8% 1% Known to have a disability No known disability(#4) Source: HESA, 212/13

12 Figure 11: % of West of England Students by Ethnicity, 212/13 Total England Students Total WE Students UWE University of Bristol University of Bath Bath Spa University % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% White Black Asian Other inc. Mix Not Known Source: HESA, 212/ The following maps illustrate the resident population of ethnic minority groups by ward, this data has been taken from the 211 census.

13 4.1 As illustrated by Map 1 above the majority of wards in the WE ethnic minorities account for less than 5% of the resident population. Those wards with a higher proportion of ethnic minorities tend to be in the cities of Bristol and Bath. With Bristol having a particular higher proportions in inner city wards The following four maps show the resident population (by ward) of the following ethnic groups: Mixed race Asian /Asian British Black/African/Caribbean/Black British Other Ethnic Group 4.12 Again these maps illustrate that the wards with a higher proportion of ethnic minority residents tend to be in urban areas, primarily in inner city wards.

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16 5. Deprivation in the West of England LEP 5.1 The following map shows the distribution of economic inactivity in the WE (211 Census). Economically inactive people are not in work and do not meet the internationally agreed definition of unemployment. They are people without a job who have not actively sought work in the last four weeks and/or are not available to start work in the next two weeks. 5.2 Looking at the maps showing the resident population of ethnic minority groups in relation to the 211 Census economic inactivity map there is a clear correlation. This shows a link between areas of high economic inactivity and higher percentages of ethnic minority residents. 5.3 As illustrated the vast majority of wards in the WE have an economic inactivity rate of between 2-3%. Five wards within the WE have an economic inactivity rate greater than 4%. Please note that the census counts the economically active age as whereas other data sources look at the age band

17 Table 7: Economic Inactivity, 212 % who are economically inactive (aged 16-64) % of economically inactive who want a job % of economically inactive who do not want a job B&NES Bristol N. Som S. Glos WE LEP England Source: Annual Population Survey, ONS Economic Inactivity - The WE LEP has a below England average rate of economic activity in the working population (aged 16-64), however Bristol has an economic inactivity rate higher than the England average at 23.4%. 5.5 Economic inactivity across the WE is particularly high amongst Pakistani/ Bangladeshi (35.1%); Black or Black British (33.8%) and mixed ethnic groups (31.%). Female inactivity is particularly high amongst the Pakistani /Bangladeshi population (75.2%), Indian (48.9%), mixed ethnic groups (39.9%) and Black or Black British (39.6%) Figure 12: Economic Inactivity in the West of England by Ethnicity and Gender, 212 % of mixed ethnic groups aged who are economically inactive % of Indians aged who are economically inactive % of Pakistanis / Bangladeshis aged who are economically inactive % of Black or Black Brisish aged who economically inactive Total Males Females % of other ethic groups aged who are economically inactive % of whites aged who are economically inactive Source: Annual Population Survey, ONS

18 5.6 There is considerable variation in economic inactivity rates between males and females in the WE. Particular ethnic groups having a far higher rate of inactivity amongst females (Figure 12). 5.7 Claimant Count (Jobseekers Allowance) - The Claimant Count, the number of people claiming Jobseekers Allowance (JSA), is updated monthly. Although it is not a full count of the number of people unemployed (not everyone is eligible for JSA, some people claim other out-of-work benefits and some choose not to claim), it does provide a more up-to-date indicator of the level of unemployment than the ILO definition of unemployment. ILO unemployment, which is taken from the Annual Population Survey (APS), is subject to a significant time lag of six to nine months, in addition the data is subject to confidence levels, which can mask the real picture for lower level geographies. 5.8 In the year to February 214 there has been a considerable decline in the number of claimants across the West of England. However, pockets of long-term unemployment in the West of England remains and continues to be a particular issue amongst those aged If left unaddressed further polarisation is likely to occur amongst communities and those long term unemployed will find it increasingly difficult to re-enter employment. Figure 13: Claimant Rate Monthly Time Series February 214 January 214 December 213 November 213 October 213 September 213 August 213 July 213 June 213 May 213 April 213 March 213 Source: NOMIS, ONS B&NES Bristol N. Som S.Glos WofE England

19 Figure 14: Claimant Rate by Age Cohort February 214 January 214 December 213 November 213 October 213 September 213 August 213 July 213 June 213 May 213 April 213 March 213 Source: NOMIS, ONS Total Female Total Female Total 5-64 Female Total Male Total Male Total 5-64 Male 5. Out of Work Benefits - Department of Work and Pensions (DWP) data, covering welfare payments but not tax credits shows a total of 2,44.4 Million for the WE in 211/2. The main out-of-work benefits (JSA and ESA/IB) accounts for Million. This is an increase of 111% from 2-21 (most of the increase is from 26/7 to 211/12 at 67%, while 2/1 to 26/7 was just 5%). 5. This is compared with national changes in out-of work benefits which increased 71% from 2/1 to 211/12, (With the increase attributed 28% between 2/1 to 26/7 and 34% between 26/7 to 211/2). This suggests that WE faired relatively less well following recession, as measured by the outof-work benefit bill.

20 Figure 15: % Change in benefit expenditure 2/1-211/12 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.% B&NES Bristol N.Som S.Glos WofE GB.% Total Pension* & Winter Fuel Total less Pension* & Winter Fuel IB/ESA JSA Source: DWP Statistical and Accounting Data 5. Index of Multiple Deprivation (IMD) - Please note this section was produced by the HCA SSW Strategy & Information Team May 211. The full report can be found on the South West Observatory Website at 5. There are 652 LSOAs in WE LEP area, split between the LEPs four unitary authorities. According to the IMD 21, 41 of these LSOAs are among the most deprived 1% nationally, slightly lower than in 27, and are home to almost 73, people. Most of these areas are in Bristol (32 LSOAs) with the rest in North Somerset (nine LSOAs). 5. Of these 41 areas there are three in the most deprived 1% nationally, one less than in 27.Two of these LSOA areas are in North Somerset with one in Bristol. These areas represent around 4,5 people. The overall pattern of multiple deprivation in WE LEP area for IMD 21 is shown in the first map. The second map shows the pattern for IMD for the earlier IMD WE LEP area has 2 LSOAs within the most deprived 5% nationally. With the two most deprived LSOAs within the LEP area being in Weston super Mare and North Somerset, ranked 228 & 25 most deprived LSOAs in England. 5. Deprivation by Domain - The domains within which deprivation is most prevalent in WE can be highlighted by which have the highest number of LSOAs within the most deprived 1% or 2% nationally.

21 Table 8: No. of LSOAs in the West of England in the 1% most Deprived in England County and IMD Domains Districts (total no. of LSOAs shown below) Income Employment Health & Disability Education, Skills & Barriers to Housing & Crime WE (653) B&NES (115) Bristol (252) N. Somerset (124) S Glos (162) WE (653) B&NES (115) Bristol (252) N. Somerset (124) S Glos (162) Training Services No. of LSOAs in most deprived 1% in England (change 7-1 shown below): No. of LSOAs in most deprived 2% in England (change 7-1 shown below): The most prevalent forms of deprivation in WE relate to Crime and Education, Skill & Training. Nearly 18% of the LEP area LSOAs are within the most deprived 1% in England in the former domain and 8% of the LSOAs in the latter. Living Environment 5. In the other five domains, the most significant pockets of deprivation relate to Income, Employment, Health & Disability each with less than 6% of the LIP area LSOAs in the most deprived 1% nationally. 6. Conclusion 6.1 The data in this report indicates that there are clear social disparities within the WE with distinct pockets of deprivation. It also demonstrates that the WE is also very diverse. 6.2 The West of England Vision is explicit that by 23 we will have closed the gap between disadvantaged and other communities and our strategic objectives are likewise explicit that we will ensure all our communities share in the prosperity, health and well-being and reduce the inequality gap

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