Figures show 19,000 increase in private sector job growth in Greater Birmingham

Posted by lepadmin - October 23, 2013 - Economic performance, Newsroom, Strategy For Growth - No Comments

Figures released by the Office for National Statistics have shown that the Greater Birmingham area experienced an increase in private sector employment of 19,000 between September 2011 and September 2012.

The figures from the Business Register and Employment Survey are the latest detailed breakdown of employment patterns and provide the benchmark from which the Greater Birmingham & Solihull Local Enterprise Partnership measures its progress.

The report shows that private sector employment in the LEP area increased by 19,000, an increase of 2.8% compared with the national average of 1.6%.

This increase is on top of positive private sector employment growth experienced in the LEP area in the previous year (+22,900).

Automotive contributed a large part of the increase with car manufacturing (+1,100), supply chain (+800), sale of vehicles (+1,000) and the sale of parts and accessories (+1,000).

Meanwhile, there was business and professional services experienced strong gains in employment – specifically: property (+2,100), management consulting activities (+1,800) and legal activities (+1,700) although there was a reduction in Finance and Insurance jobs (-800).

The best performing local authority area was Solihull (+7,200) while there were increases in Birmingham (+7,000), Tamworth (+3,700), Bromsgrove (+1,400), Cannock Chase (+1,200), Redditch (+400) and Wyre Forest (+200).

Steve Hollis, Deputy Chair of the GBSLEP.

Steve Hollis, Deputy Chair of the GBSLEP.

Steve Hollis, Deputy Chairman of the GBSLEP, said: “It is important that the work of the LEP and the progress of the Strategy for Growth are clearly and accurately measured.

“The figures from the Business Register and Employment Survey are the most accurate source of data, showing a snapshot of where we were 12 months ago.

“It is encouraging to see Greater Birmingham performing well in a number of key areas and it is important we can see sectors that are not performing so well in order to influence policy.

“It’s no surprise to see that the automotive sector has helped to drive much of our job creation which reflects the focus of the LEP’s activity through programmes such as the Advanced Manufacturing Supply Chain Initiative.

“The GBSLEP has set challenging targets for ourselves of creating 100,000 new jobs by 2020 and it is going to be important for us to measure the progress being made.

“With progress on a number of schemes over the last 12 months – not least the Birmingham City Centre Enterprise Zone which is on target to create 2,500 jobs by 2015 – we are confident we can continue this upward trend.

“Clearly in order to maintain this we will continue our work at the forefront of European funding, progress our bid for the Local Growth Fund due in the new year and seek new ways of accessing funding locally to drive our ideas and vision.”

Breakdown of figures

Official 2012 employment data recently published by the Office for National Statistics shows that private sector employment in the GBSLEP area has increased by 19,000 (or +2.8%) between September 2011 and September 2012. This increase is on top of positive private sector employment growth experienced in the GBS LEP area in the previous year (+22,900).

This means that from the 2010 baseline position, by 2012 the GBSLEP has seen an increase in private sector employment of 42,000 – considerable progress towards the 2020 target of growth in private sector employment totalling 100,000.

Of the 19,000 increase in private sector jobs over 2012 – this has been driven by job growth based in Solihull (+7,200), Birmingham (+7,000), Tamworth (+3,700), Bromsgrove (+1,400), Cannock Chase (+1,200), Redditch (+400) and Wyre Forest (+200).

Growth in private sector employment in the GBSLEP (+2.8%) outperformed the growth experienced nationally (Great Britain +1.6%).

The GBSLEP also outperformed private sector job growth in comparison to all the other Core City LEPs (three of which saw no growth at all); and also in comparison to our neighbouring LEPs. Selected figures are presented below:

  • Greater Manchester LEP +2.5%
  • Liverpool City Region +2.5%
  • Leeds City Region +0.0%
  • Sheffield City Region +0.0%
  • Black Country LEP +2.5%
  • Stoke on Trent and Staffordshire LEP +2.5%
  • Worcestershire LEP +1.7%
  • Coventry and Warwickshire LEP +1.6%

The main sectoral changes for private sector employment in the GBS LEP between Sep 2010 – Sep 2011 were as follows:

Automotive related sectors experienced strong growth in employment:

  • Manufacture of motor vehicles (+1,100)
  • Manufacture of parts and accessories for motor vehicles (+800);
  • Sale of motor vehicles (+1,000); and
  • Sale of motor vehicle parts and accessories (+1,000).

Wholesale (+4,800) and Retail (+3,500) experienced gains in employment – with retail recovering much of the ground lost the previous year;

Business and Professional Services experienced strong gains in employment – specifically: Property (+2,100), Management Consulting Activities (+1,800), Legal Activities (+1,700); whilst there was a reduction in Finance and Insurance jobs (-800).

Cleaning Activities (+4,700) and Combined Facilities Support Activities (+1,100) also saw strong gains.

Public sector employment in the GBSLEP area declined by 12,400 over 2012.