1 West Midlands Overview

Transcription

1 1 West Midlands Overview 1.1 Key Economic Indicators for the West Midlands Description Year West Midlands UK Source Population m 62.3m* NOMIS 2011 Census *NOMIS 2010 midyear estimates Population from minority ethnic groups % 14% 2011 Census Gross value addedhttp:// lications/re-reference- tables.html?edition=tcm%3a bn 93.06bn bn bn ONS Gross value added per capita 2008 Gross value added per hour worked (relative to UK average) , , % 100% ONS ONS regional trends Median gross weekly wage NOMIS Employment rate In employment Claimant count rate JSA claimants Feb-Apr 2010 Feb-Apr 2010 May 2010 Aug 2012 Rate of employment in manufacturing 2008 June 2012 Number of enterprises 2008 No qualifications NVQ 4 and above Trade apprenticeships Oct 2011 Jan- Dec 2011 Jan- Dec 2011 Jan- Dec % 69.4% 4.9% 6.0% 13.3% 11.1% , % 71.2% 3.9% 4.8% 9.5% 8.1% ,542, % 10.9% 26.3% 32.7% 3.3% 3.7% NOMIS NOMIS NOMIS BIS Enterprise Directorate Analytical Unit NOMIS NOMIS NOMIS

2 The West Midlands: Saw an 11 percentage points decline in manufacturing jobs from 22 per cent of the workforce in 1996 to 11 per cent in 2010, although this is still one of the highest regional percentages. Manufacturing is the highest contributor to GVA in the West Midlands. Has the highest proportion of the working-age population having no qualifications among all the English regions Has the largest non-white regional population outside of London. Asian or Asian British is the ethnic group that makes up the biggest non-white proportion of the West Midlands population (10.8 per cent, 2011 Census ONS) Has the highest total fertility rate of all the English regions at 2.08 births per woman in 2008 Has the highest infant mortality rate of all the regions and countries in the UK 6.0 per 1,000 live births in 2009 compared with 4.6 for the UK Has the lowest risk of household residents being a victim of crime out of all English regions: 15.0 per cent of households were victimised at least once, compared with the national average of 16.4 per cent in 2009/10 Has a good record of waste disposal with the lowest regional percentage of local authority collected waste going into landfill (28 per cent compared with 49 per cent for the UK in 2009/10), and the largest percentage incinerated as a method of energy recovery (ONS (1), 2011) 1.2 Summary Although the population of the West Midlands is growing faster than expected, it is not growing as fast as in the south. Moreover, in the West Midlands the growth in the population is likely to outstrip the growth in jobs. Population growth, economic growth and growth in employment and higher qualified jobs are all connected and it is expected that the drift of people and jobs to the south will continue. While the West Midlands economic and employment situation is improving, in many cases quite dramatically, due to the extent it fell during the recession and improvements in other parts of the country, in many ways it is running to stand still (CLGWM, 2013). The West Midlands economy bounced back quickly from the recession, employment is continuing to increase and according to HMRC figures, between September 2011 and September 2012, the growth in exports from the region was the best in the country (7.4%). Successes in manufacturing, particularly in the automotive sector have been dramatic and there are opportunities to strengthen supply chains and increase diversification within the West Midlands. Moreover, statistics consistently show that the West Midlands is one of the most successful places in Europe for attracting inward investment and its related job creation. The West Midlands produces a declining share of the country s economy and is failing to improve its productivity relative to other regions. A predominance of low skilled work, a poorly qualified workforce and the lowest relative increases in income in the country are likely to be related to the biggest proportional increases in poverty, child poverty and homelessness in the country. Projections suggest that low paid jobs will continue to predominate and poverty increase. Poverty is known to be linked to social immobility and health issues, potentially storing up problems for the future. Men in the West Midlands are more likely to be overweight or obese than anywhere else in England and for adults as a whole the region exercises less than any other (CLGWM, 2013). Compared to much of the UK the West Midlands continues to under-perform in the development of higher value sectors that are required to drive forward sustainable economic growth and job creation. The West Midlands has a lower proportion of high growth firms and lower rates of innovation and consequently the demand for higher level skills and the creation of higher skilled, well paid jobs is lessen (RSP, 2010).

3 1.2.1 Low Added Value and Productivity One of the key factors contributing towards the West Midlands poor economic and skills performance is the continued reliance on low productivity and added value economic activity. More than half the GVA and employment within the West Midlands is generated through low value activities such as wholesale & retail, hotels & catering and cultural, recreational & sporting activities. Similarly, other traditional private sector industries such as engineering transport technologies, construction and building technologies and public sector activities such as public administration, education and health & social care are heavily represented in the West Midlands economy. In contrast, higher value added activities (specialist business & professional services, digital media, environmental technologies, medical technologies etc) generate much more limited levels of GVA and employment (WMRO (3), 2010) Figure 1.1: High growth firms as a percentage of all firms (10+ employees) Source: NESTA Measuring Business Growth Oct 2009 The lack of fast growing higher added value sectors is demonstrated by the relatively slow growth of the private sector in the West Midlands in comparison to the rest of the UK (See Figure 1.1) (NESTA, 2009); between employment increased by just 30,000, growth of 2% which compares to an increase of 19% across the UK (WMRO (3), 2010). The lower value sectors are clearly an important source of jobs for people with fewer skills and can play a key role in reducing worklessness and economic and social deprivation. However, the long term future of the West Midlands economy can only be secured by attracting and developing more businesses in higher value added sectors Skills Gap The most obvious impact of the West Midlands reliance on low productivity and added value sectors is the low skill levels of the workforce compared to the rest of the UK. Clearly without a skilled workforce it will be difficult to boost the West Midlands productivity and economic performance.

4 This weakness can only be addressed by more investment in training and up-skilling within the existing business base. Within the West Midlands, 20% of businesses have staff who have skills gaps; the average for England was 19% (LSC, 2009). Staffs with skill gaps are most likely to lack business and sector-specific technical and practical skills. A significant proportion also lack softer generic skills in areas such as customer handling, problem solving and team working (WMRO (3), 2010).

5 1.3 Geography of the West Midlands The West Midlands is situated at the heart of England and comprises the counties of, Staffordshire, Warwickshire and Worcestershire, together with the unitary authorities of Herefordshire, Shropshire, Stoke-on-Trent and Telford and Wrekin, and the seven metropolitan districts of Birmingham, Coventry, Solihull, Wolverhampton, Dudley, Sandwell and Walsall (the latter four commonly known as the Black Country). There are two conurbations: the Birmingham/Black Country, Coventry and Solihull conurbation in the central area, known as the Metropolitan Conurbation and the North Staffordshire conurbation. The West Midlands shares its borders with the North West, East Midlands, South East and South West of England, and with Wales. It is the only landlocked region in England, with an area of 13,000 square km, making it the third smallest English region by area, after London and the North East. The West Midlands is often described as an area of contrasts. It includes the densely populated conurbation of Birmingham, which is the largest urban area in England outside London, as well as areas of remote countryside within the counties of Herefordshire and Shropshire. It contains areas of high deprivation, particularly in Birmingham, Coventry and Stoke-on-Trent, but also very prosperous areas such as Solihull, South Warwickshire and Evesham. Historically, employment in the West Midlands has been dominated by manufacturing, including major employers such as Rover, Jaguar, Wedgwood, JCB and Cadbury. In the fourth quarter of 1996 manufacturing accounted for the biggest proportion of workforce jobs in the West Midlands, at 22 per cent of the workforce (575,500 jobs). However, by the fourth quarter of 2010 these figures had changed considerably, with manufacturing only accounting for 11 per cent of workforce jobs (285,500 jobs) in the West Midlands, an 11 percentage point decline from However, manufacturing is still an important part of the West Midlands economy and in the last 18 months exports to non-european markets have a seen a resurgence in the automotive sector. This upturn in manufacturing was revealed in the 2009 West Midlands GVA figures; manufacturing was largest single contributor at 11.8 billion (ONS (3), 2012). The main cities and towns in the West Midlands include Birmingham, Coventry, Hereford, Shrewsbury, Stafford, Stoke-on-Trent, Telford, Wolverhampton and Worcester. There are twelve universities: Aston, Birmingham City, Coventry, Keele, Staffordshire, Harper Adams, Newman, University of Birmingham, University of Warwick, University of Wolverhampton, University of Worcester and University College Birmingham. The West Midlands central location means that it is well linked to other parts of the country, making it one of the most accessible regions. The region is linked to the north and south, east and west by rail and road networks. It has several motorways serving the area including the M5, M6, M40, M42 and M54, and is the home to the UK s first toll motorway, the M6 Toll north of Birmingham, which was designed to relieve congestion. The West Midlands is also home to Birmingham International Airport, the third largest airport in England outside of the London area, serving over 180 destinations in Europe, Asia and the Middle East, and handling over 9.5 million passengers in 2008.The National Exhibition Centre (NEC) in Solihull, adjacent to Birmingham International Airport and Birmingham International Railway station, is the largest exhibition centre in the UK, with 21 interconnected halls (ONS (1), 2011).

6 1.4 Spatial Patterns in the Economy of the West Midlands Urban Over the last three decades there has been a significant shift outwards from Birmingham and the Black Country to a belt that encircles this conurbation. In particular, an on-going process of restructuring within key industrial sectors has seen the extension of many manufacturing and tertiary activities to a surrounding belt broadly between miles from this conurbation. Importantly, this evolving pattern of economic geography is also likely to reflect the continued development of business and professional services, together with R&D capacity, beyond the confines of this conurbation. In part, a key driver is access to the national transportation network with, for example, the geography of innovation facilitated by the motorway network, specifically the M50, M5 and the M40. Notably, other factors may be closely related to the attraction of places in the belt as high quality residential environments. Liveability factors attract commuters working in the service sector to these areas Rural The general picture of the rural West Midlands is one of a high quality environment, low unemployment, expanding population, higher business start-up rates than in the major urban areas and its residents enjoying a higher quality of life. However, there are pockets of deprivation, particularly in the western remote rural areas, the rural West -Herefordshire and West Shropshire - along with parts of North Staffordshire which comprise some of the most remote and sparsely populated areas in England (WMRO, 2005). Ludlow Henley ward (Shropshire) and Gatacre ward in Oswestry, are among the most disadvantaged areas in the West Midlands on the Rural Disadvantage Index (WMRO (1), 2010). While there are low levels of unemployment in most rural areas, there are major issues such as underemployment, seasonality, low wages and too great a dependence on the declining land based sectors. The existing economic base in a number of rural areas shows a higher than average number of low value businesses e.g. agriculture and a below average number of knowledge intensive activities, as well as a high level of business churn. The issue of low numbers of knowledge intensive businesses is not helped by lack of suitable ICT infrastructure in many rural areas. 1.5 Local Enterprise Partnerships Local Enterprise Partnerships (LEPs) are locally-owned partnerships between local authorities, businesses and other key stakeholders. They play a central role in determining local economic priorities and undertaking activities to drive economic growth and the creation of local jobs. Local Enterprise Partnerships were proposed by the UK government in 2010 with the majority launched by the beginning by The West Midlands encompasses 6 LEPs allowing the diverse and complex nature of the West Midlands economy to be more effectively represented. The Government expects LEPs to be the key driver in setting the priorities and the delivery of the SIF (Structural & Investment Funds) through the development of EU Investment Strategies. They will receive a notional allocation based upon submission of an EU Investment Portfolio that will identify the key priorities for their locality to be funded through the SIF. The socio-economic framework, whilst providing a West Midlands overview, will also consider socioeconomic needs and priorities at a LEP level (ONS (1), 2012), (The LEP Network, 2012): The Black Country LEP: population of just over one million, 25 enterprises per 1,000 of population, an unemployment rate of 11.2% and a GVA per head of 14,800. It incorporates the metropolitan authorities of Dudley (population of 307,000), Sandwell (293,000), Walsall (257,000) and Wolverhampton (239,000).

7 Coventry and Warwickshire LEP: population of 848,600, 35 enterprises per 1,000 of population, an unemployment rate of 7.6% and a GVA per head of 18,800. It incorporates the metropolitan authority of Coventry (population of 318,600) and the County Council of Warwickshire (538,000). Greater Birmingham and Solihull LEP: population of nearly two million, 29 enterprises per 1,000 of population, an unemployment rate of 10.2% and a GVA per head of 16,900. It incorporates the metropolitan authorities of Birmingham and Solihull with a population of 1.23 million, the Southern Staffordshire local authorities of Cannock Chase, Lichfield, Tamworth and East Staffordshire with a population of 380,000 and the Northern Worcestershire local authorities of Redditch, Bromsgrove and Wyre Forest with a population of 270,000. The Marches LEP: population of 489,600, 44 enterprises per 1,000 of population, an unemployment rate of 6.9% and a GVA per head of 15,700. It incorporates the councils of Herefordshire (population of 183,500), Shropshire (306,100) and Telford and Wrekin (166,800). Stoke-on-Trent and Staffordshire LEP: population of 1.12 million, 31 enterprises per 1,000 of population, an unemployment rate of 8% and a GVA per head of 14,900. It incorporates the city council of Stoke on Trent (population of 249,000) and County Council of Staffordshire (830,000) Worcestershire LEP: population of 557,400, 44 enterprises per 1,000 of population, an unemployment rate of 5.7% and a GVA per head of 15, Figure 1.2: Characteristics of West Midlands LEPs Private and other services employment : share of total (per cent) 2010 Manuafacturing employment: share of total (per cent) 2010 Share of population classed as rural (per cent) 2009 Share of total employment in the public sector (per cent) 2010 Source: ONS 2010, DEFRA Transition Region As part of the planned reorganisation that has taken place under the SIF, the European Union has introduced a new classification of regions based on NUTS 2 codes; essentially at county council level in the UK. From 2014 there will be three types of region: 1. Less developed regions, GDP below 75% of EU average 2. Transition regions, GDP 75-90% of EU average 3. More developed regions, GDP above 90% of EU average

8 55 regions across Europe will be reclassified as transition, 11 (20%) in the UK covering over 12 million people and in the West Midlands will include Shropshire, Telford & Wrekin Staffordshire and Stoke upon Trent; this area has a GDP at 84% of the EU Average (ranking 8 th of the 11 in deprivation terms). The West Midlands area classified as transition as a population of 1.43 million and encompasses a range of socio economic conditions. In particular in rural areas there are pockets of deprivation where the economic structure tends to be less growth orientated, with a higher than average dependence on low value added traditional sectors such as agriculture, related land based activities and tourism. Specifically the transition area is typified by: A significant proportion of Lower Super Output Area s within the 10% most deprived nationally including Stoke-on-Trent ranking 15 th in the top 50 nationally with over 30% of the districts falling within the 10% most deprived. An average unemployment rate of 7.45% (Staffordshire 8%, Shropshire 6.9%) comparatively lower than the UK average of 8.4%. An average GVA of 15,300 (Staffordshire 14,900, Shropshire 15,700) comparatively lower than the West Midlands and UK totals of 17,060 and 20,476 respectively. An average density of SME s per 1,000 adults significantly below the West Midlands total of 30 with Telford and Stoke operating at an average of 20. An over dependence on employment in small enterprises with 27% of employees in Shropshire working in companies employing less than 10 people - 8% higher than the West Midlands average. A net in-migration of people per year in rural areas (which account for 80% of the Midlands area) driving up house prices and reducing affordability for those seeking to enter the rural housing market. 1.7 Population of the West Midlands The population of the West Midlands on census day (27 March 2011) was 5.6 million, 8.9% of the UK population, an increase of 6 per cent from By comparison the population across the whole of England and Wales increased by 7 per cent to 56.1 million, the largest growth in population in any 10-year period since census taking began in There was a growth in population in all West Midlands local authorities. The largest growth was in Rugby (14 per cent) and the smallest growth was 0.3 per cent in North Warwickshire which also had the smallest population (62,000). Birmingham was the largest local authority by population in the whole of England and Wales with 1.1 million people, an increase of 88,000 (9 per cent) between 2001 and Birmingham is the only local authority in England and Wales with a population greater than a million (Table 1.1) (ONS (1), 2012). Projections indicate that the rate of population growth will remain below the national average. Total population is projected to reach nearly six million by 2026 (ONS (1), 2011). Table 1.1: Local Authorities in West Midlands ranked by population size (ONS (1), 2012) West Midlands 2011 population 2001 population Change (per cent) Birmingham 1,073, ,600 9 Coventry 318, , Dudley 312, , Sandwell 308, , Shropshire 306, ,300 8 Walsall 269, , Wolverhampton 249, ,

9 West Midlands 2011 population 2001 population Change (per cent) Stoke-on-Trent 249, , Solihull 206, , Herefordshire, County of 183, , Telford and Wrekin 166, ,600 5 Warwick 136, , Stafford 130, , Nuneaton and Bedworth 125, , Newcastle-under-Lyme 123, , Stratford-on-Avon 120, ,600 8 Wychavon 116, , East Staffordshire 113, , South Staffordshire 108, , Lichfield 100,700 93,200 8 Rugby 100,100 87, Worcester 98,800 93, Wyre Forest 98,000 96, Cannock Chase 97,500 92, Staffordshire Moorlands 97,100 94, Bromsgrove 93,600 87, Redditch 84,200 78, Tamworth 76,800 74, Malvern Hills 74,600 72, North Warwickshire 62,000 61, In 2009 the West Midlands population density was 418 people per sq km (Figure 1.3), the fourth highest of all the regions, and higher than the England average of 398 people per sq km. Of all the lower tier authorities and metropolitan districts within the West Midlands, Birmingham was the most densely populated, with 3,840 people per sq km, followed by Wolverhampton (3,440 people per sq km). This contrasts with Herefordshire which only had 84 people per sq km and Malvern Hills (130 people per sq km), reflecting the rural nature and sparse population of these areas (ONS (1), 2011). In terms of where these people live, 84% live in towns or cities with populations of more 10,000, 6% live in areas classed as town and fringe and 9% in villages, hamlets and isolated dwellings (ONS (1), 2011). The total number of households in the West Midlands was 2.3 million. Birmingham had the largest average household size in the region, with 2.6 people, and Malvern Hills the smallest (2.2). Figure 1.3: West Midlands population density: by local and unitary authority, 2010 (ONS (5), 2012)

10 1.7.1 Ethnic make-up The West Midlands was the second most diverse after London across the English regions and Wales with a White British ethnic group at 79.2% according to the 2011 Census data (ONS (1), 2012). It had a higher than average percentage of minority ethnic groups: Pakistani at 4.1%, Indian at 3.9% and Caribbean at 1.5%. It also had a lower than average White ethnic group at 82.7% Age distribution The local authority with the largest proportion of people aged 65 and over was Malvern Hills with 24%; the smallest proportion in this age group was 13 per cent in Birmingham. Birmingham also had

11 bn the largest proportion of people aged 19 and under (29%); the smallest proportion in this age group was 21%, in Staffordshire Moorlands (ONS (1), 2012). In 2009 the West Midlands had an above average percentage (19.4%) of children under the age of sixteen compared to the rest of England (18.7%), and had a higher percentage of over 65% (16.9%) compared to the rest of England (16.3%) (ONS (1), 2011). A higher proportion of the West Midlands population is not of working age compared to England, and therefore not directly contributing to the regional economy. The more youthful age structure of Black and Minority Ethnic Groups relative to population also has important implications. Taken together with the aging white population, this means that Black Minority Ethnic groups will form an increasing part of the future working age population in the West Midlands, this together with the greater tendency for older people to reside outside of the urban centres contributes to the variation in the age distribution across the West Midlands. Birmingham, Coventry and Sandwell, for instance have a particularly high proportion of people aged under 30, contrasting with the older age structure of areas such as Staffordshire Moorlands, Malvern Hills, Stratford-on-Avon and Herefordshire; here the proportion of the population aged over 45 is well above both the regional and national average at more than 50% (ONS (2), 2009). 1.8 Economic Output in the West Midlands In 2010 Gross Value Added (GVA) in the West Midlands was 93.06bn, approximately 7.3% of the UK total and 83% of the UK rate per capita. The West Midlands has managed to recover and increase the GVA lost during the recession, GVA in 2008 was 92.72bn, falling to 90.17bn in the following year (See Figure 1.4). Between 2000 and 2010 the West Midlands experienced the slowest rate of GVA growth across the UK, GVA declined at above the UK average rate in both the primary, utilities and manufacturing sectors and only construction grew faster than the UK average. However, to 2020 the annual average rate of GVA is expected to undergo a substantial recovery, although it will still be less than the UK average growth rate, although the growth rate is expected to be faster than the UK average in construction and non-market services (UKCES, 2012) Figure 1.4: Regional and Country GVA Source: ONS Regional and Country Profiles - Economy 2010

12 s In 2003 GVA per employee in the West Midlands was 15,325. This placed the region seventh of the twelve regions and devolved administrations of the UK. In 2008 GVA per employee had risen to 17,143, (UK average was 20,962) (see Figure 1.5), by 2010 it had fallen to 17,060 (UK average 20,974) placing the West Midlands 9 th amongst the 12 regions and devolved administrations. 40,000 Figure 1.5: GVA per employee 35,000 30,000 25,000 20,000 15,000 10,000 5, Source: ONS Region and Country Profiles - Economy 2012 Figure 1.6 provides a breakdown of the GVA per employee for each of the West Midlands LEPs. In 2009 the Black Country had the lowest GVA ( 14,800), with Stoke on Trent and Staffordshire only slightly higher at 14,900. The strongest performance was recorded by Coventry & Warwickshire with a figure of 18,800; however this was still substantially less that the UK figure of 21,000.

13 s Figure 1.6: GVA per head for the West Mildands LEPs GVA per head 2009 Source: ONS Regional Profiles - Key Statistics - West Midlands The manufacturing sector Prior to 2003 the manufacturing sector was the largest contributor to the West Midlands GVA; however in 2003 it was overtaken by real estate, renting and other business activity. By 2007 this sector generated 20bn GVA compared to 15bn generated by manufacturing. By 2009 manufacturing GVA had dropped to 11.83bn (13.1% of the West Midlands GVA compared to 10.1% for the UK) (See Figure 1.7), however the sector re-established itself as the largest contributor to the West Midlands economy ahead of wholesale and retail at 11.5bn (ONS (3), 2012).

14 bn Figure 1.7: WestMidlands' Workplace GVA by Industrial Groups Manufacturing 12 Power Generation Construction 10 Wholesale & retail trade Transportation & storage 8 Accommodation & food ICT 6 Financial & Insurance Real Estate 4 Professional, Scentific & Technical Admin & support services 2 Public Admin & defence Education 0 Source: ONS Region and Country Profiles - Economy 2012 Health & social work 1.9 Unemployment Unemployment in the West Midlands fell from a 2010 fourth quarter high of 9.7% to 9.3% in the fourth quarter of 2011 (See Figure 1.8), the only other areas of the UK to record reductions in unemployment over the same period were the South West and Northern Ireland. Although this is encouraging it should also be noted that from the West Midlands was the only part of the UK to see a decline in employment; employment in manufacturing declined sharply, there was also a decline in trade, accommodation and transport. (UKCES, 2012). Even with the reduction in unemployment recorded between 2010 and 2011, the West Midlands 2011 level was still higher than the UK figure of 8.4% and only Yorkshire and Humber (9.9%), North East (11.2%) and London (10%) recorded higher rates of unemployment (ONS (3), 2012).

15 Rate % 12.0 Figure 1.8: UK Unemployment Levels Q Q Q Source: ONS region and Country Profiles - Economy 2012 As Figure 1.9 shows the West Midlands figures mask large variations in unemployment rates across the 6 LEPs; the Black Country recorded the highest level of unemployment at 11.2%, it also has the highest share of youth and long term unemployment of the 6 LEP areas. Stoke on Trent and Staffordshire and Greater Birmingham and Solihull are close behind Figure 1.9: LEP Unemployment Rates Unemployment Rate (16-64) Oct Sept 2011 Youth unemployment - share of claimants aged per cent Nov 2011 Long term unemployment - share of claimants claiming forover 12 months per cent Nov 2011 Economic Inactivity Rates (16-64) Oct Sept 2011 Ratio of unemployment claimants to jobcentre plus vacancies Nov 2011 Source: ONS Region and County Profiles - Economy 2012

16 Table 1.2 provides more detail about claimant rates at a local authority level and further reveals the pockets of depravation that are masked by the LEP level data in Figure 1.9. The highest rate in 2012 was for Wolverhampton (8%) and the lowest for Warwickshire (2.3%). Table 1.2: JSA Claimants by local authority areas October 2009, 2010, 2011 and Number Rate Number Rate Number Rate Number Rate Herefordshire County 2, , , , Shropshire 4, , , , Staffordshire 18, , , , Stoke-on-Trent 8, , , , Telford and Wrekin 4, , , , Warwickshire 11, , , , Birmingham 51, , , , Coventry 11, , , , Dudley 11, , , , Sandwell 13, , , , Solihull 5, , , , Walsall 11, , , , Wolverhampton 11, , , , Worcestershire 12, , , , Employment & Under-employment In terms of levels of employment (Figure 1.10) the West Midlands economy has not yet recovered to pre-recession levels of 68.9%, with the figure of 68% recorded for the fourth quarter of This was below the UK figure of 70.3% and only Northern Ireland, the North East, Yorkshire and Humberside and London recorded lower figures.

17 % % Figure 1.10: Rates of Employment Employment rate All Q Employment rate All Q Employment rate All Q Source: ONS Regional Profiles - Key Statictics - West Midlands 2012 The LEP employment figures (Figure 1.11) highlight the great variation that exists across the West Midlands; the lowest levels of employment (63.8%) were recorded in Birmingham and Solihull compared to the Marches (72.7%), Worcestershire (71.9%) LEPs that recorded figures above the UK level (70.4%) (ONS (3), 2012) Figure 1.11: LEP Employment Rates (16-64) Oct Sept 2011 Employment Rates (16-64) Oct Sept 2011 Source: ONS Regional Profiles - Key Statistics - West Midlands 2012

18 In terms of underemployment i.e. those who are employed but either wish to work more hours in their current role or who are looking for an additional job or for a replacement job which offers more hours, the rate for the West Midlands from April 2005 to June 2008 was 6.8%. From April 2009 to June 2012 the rate had increased to 9.6%. (ONS (6), 2012). Between October 2006 and September 2007 the percentage of those in part time employment because they were unable to find a full time job was 9.23%. In the 12 months to September 2010 this figure had risen to 16.5%. By the same period the following year the figure was at 18% and to the 12 months to September 2012 was at 18.8%. (ONS (2), 2012) Income levels in the West Midlands The gross disposable income across the West Midlands increased by 6.16% (See Figure 1.12) between 2008 and 2010, this increase was above the UK average of 5.52% and only Scotland (6.38%), the North East (6.38%) and the South West (6.27%) recorded larger increases. However, this improved performance can largely be put down to the West Midlands starting for a lower base than most of the rest of the UK. In 2010 the figure for the West Midlands was 14,021, below the UK figure of 15,727 and only Wales ( 13,783), Northern Ireland ( 13,554) and the North East of England ( 13,329) recorded lower figures (ONS (3), 2012). 25,000 20,000 15,000 Figure 1.12: Regional gross disposable household income per head ,000 5, ( ) 2009 ( ) 2010 ( ) Source: ONS Regional and Country Profiles - Economy Deprivation The UK Government published Indices of Deprivation (IMD) in 2007 and These are measures of deprivation for every Lower Super Output Area (LSOA) and local authority district (LAD) in England. They combine a number of indicators across seven domains into an overall deprivation score and rank at both SOA and LAD levels. The 2010 IMD (Table 1.3) shows five of the West Midlands local authorities were in the top 50 of authorities with the highest proportion of LSOAs in the 10% most deprived. There were 556 LSOAs in the West Midlands that were in the 10% most deprived nationally, up from 521 in Birmingham

19 had the 8th highest proportion nationally with 39% of its LSOAs in the 10% most deprived. There were West Midlands local authorities in the national top 50, these five were also in the top 50 in 2004 (DCLG, 2010). Table 1.3: West Midlands Local Authorities in the national top 50 for Indices of Deprivation (DCLG, 2010) Birmingham 9 th 8 th Stoke-on-Trent 14 th 15 th Sandwell 17 th 17 th Wolverhampton 33 rd 22 nd Walsall 45 th 29 th The main increases in overall deprivation came in the urban areas, with Walsall and Wolverhampton witnessing the biggest changes. There were also smaller pockets of deprivation outside big cities and towns in places such as Redditch, Shropshire, Wyre Forest, Cannock Chase and Malvern Hills. The number of LSOAs in the West Midlands falling in the most deprived 20% had increased from 27.3% to 27.9% from 2007 to 2010, this was 3 rd highest percentage changed across the English regions; the highest changes were recorded in the East (1.2%) and the South East (1.1%) (DCLG, 2010). If deprivation is considered from a LEP perspective (Table 1.4) the Black County had by far the highest percentage (43.9%) of LSOAs within the top 20% most deprived in England at 43.9%, followed by Greater Birmingham and Solihull LEP (35.8%) and Staffordshire and Stoke (22.3%); all 3 LEPs were above the English average (20%) (DCLG, 2010). Table 1.4: Number of LSOAs in the most deprived 20% of LSOAs in England on the IMD 2010, by West Midlands LEPs (DCLG, 2010) Number of LSOAs in most deprived 20% of LSOAs in England Total number of LSOAs % of LSOAs in each Region falling in most deprived 20% of LSOAs in England 2010 Black Country Coventry & Warwickshire Greater Birmingham & Solihull Staffordshire & Stoke The Marches Worcestershire England , NB Bromsgrove, Redditch and Wyre Forest Districts are included in both Worcestershire and Greater Birmingham and Solihull figures

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