An analysis of the ten broad industrial groups shows that in 2011, the government, health and education industries provided the largest contribution to gross value added at current basic prices, at £259 billion out of a total of £1,361 billion (19.0%). The distribution, transport, hotel and restaurant industries contributed 18.2%; the production industries accounted for 15.1%; and the professional and support activity industries 11.7%.
In 2011, just under half (46.5%) of all goods and services entering into final demand were purchased by households, 16.4% were consumed by government, both central and local and 24.0% were exported. Gross capital formation by all sectors of the economy amounted to 11.2% of the total. Non-profit institutions serving households (NPISH) consumed 1.9% of goods and services entering final demand.
The government, health and education industries showed the highest level of compensation of employees in 2011 at £223.2 billion (27.2%). The second largest industry in terms of its contribution to total compensation of employees was the distribution, transport, hotel and restaurant industries at £172.8 billion (21.1%).
The annual estimates prepared for the United Kingdom National Accounts: The Blue Book incorporate the results of annual inquiries which become available in the first part of the year, although latest year estimates are still largely based on quarterly information. Any newly collected data are shown as revisions. In order to reassess these estimates Supply and Use tables are prepared using all the available information on inputs, outputs, gross value added, income and expenditure. Production of the consolidated sector and financial accounts requires preparation of ‘top-to-bottom’ sector and sub-sector accounts to identify discrepancies in the estimates relating to each sector.
The latest annual Supply and Use tables provide estimates for the years 1997 to 2011, with data for 2011 being balanced for the first time and 2008 to 2010 being fully re-balanced. Data from 1997 to 2007 have also been revised following a number of improvements, including a remapping of all historical data to Standard Industry Classification 2007 (SIC 2007) and Classification of Product by Activity 2008 (CPA 2008), plus updated methods for gross fixed capital formation, the imputed rental of owner-occupiers and banking services. For full details, see ‘Commentary on Supply and Use balanced estimates of annual GDP, 1997-2011’ (Wild, ONS, 2013).
Further general information regarding the Supply and Use framework and the balancing process can be found in guidance and methodology.
The analyses of gross value added and other variables by industry shown in tables 2.1, 2.2 and 2.3 (179.1 Kb Pdf) reflect estimates based on SIC 2007. These tables are based on current price data reconciled through the Input-Output Supply and Use framework from 1997 to 2011.
Estimates of total output and gross value added are valued at basic prices, the method recommended by European System of Accounts 1995 (ESA95). Thus the only taxes and subsidies included in the price will be those paid or received as part of the production process (such as business rates) rather than those associated with the production of a unit of output (such as VAT).
Table 2.4 (179.1 Kb Pdf) shows chained volume estimates of gross value at basic prices by industry. The output approach provides the lead indicator of economic change in the short-term. In the longer-term it is required to follow the annual path indicated by the expenditure measure of real GDP (usually to within 0.2 per cent of the average annual gross value added growth). To achieve this, balancing adjustments are sometimes applied to the output-based gross value added estimates.
ONS has developed an automatic function for assigning the annual adjustments to gross value added. This is designed to be as faithful as possible to the quarterly paths whilst adjusting the overall annual growth rate. For technical and other reasons the adjustments are not, at present, made to retail or the non-service industries for any years.
Workforce Jobs (WFJ) is the preferred measure of the change in jobs by industry. A person can have more than one job; therefore the number of jobs is not the same as the number of people employed.
The main component of WFJ are employee jobs and these are obtained mainly from surveys of businesses selected from the Inter-Departmental Business Register (IDBR). All other business surveys collecting economic data also use this register.
The Labour Force Survey (LFS) is used to collect self-employment jobs. This is a household survey which codes respondents according to their own view of the industry in which they work and therefore the industry breakdown is less reliable than the business surveys.
WFJ also includes Her Majesty’s Forces (contained within industry section O) and government supported trainees from administrative sources (split by industry using the LFS).
Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: email@example.com
These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.
Excel versions of Chapter 02 tables