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Regional Profile of London - Economy, June 2013

Released: 19 June 2013 Download PDF

Also in this release

Business birth and death rates, 2011

England

London had the largest gap between business births and business deaths in 2011
Source: Office for National Statistics

Notes:

  1. Birth and death rates are expressed as a percentage of active enterprises

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The gap in 2011 between new businesses being registered and businesses folding was larger in London than in any other region of England or country of the UK.

The business birth rate in London in 2011 was 14.6% and the business death rate was 10.4%. The business birth rate increased by 1.8 percentage points between 2010 and 2011, the joint highest increase with the North East. The business death rate decreased by 1.2%, more than any other English region.

The employment rate was 70.3% in Q4 2012, similar to the level in Q4 2007. The rate was lower through 2009 to 2011 and data suggest the recovery began early in 2012.

Unemployment rates across the UK increased between Q4 2007 and Q4 2012. London had the lowest increase at 1.8 percentage points, along with the South West. More recent data show a downward trend, with the rate falling from 10.0% in Q4 2011 to 8.4% in Q4 2012. Within London the highest unemployment rate for the year to December 2012 was in Newham at 13.2%.

In London the economic inactivity rate was at a record low of 23.1% in Q4 2012. The decline of the inactivity rate between Q4 2007 and Q4 2012 was the largest of all the English regions falling from 25.5% in Q4 2007.

London increased its share of UK gross value added (GVA) from 20.5% to 21.9% between 2006 and 2011. The region had the highest regional GVA at £286.6 billion in 2011.

Productivity, as measured by GVA per hour worked, was 29% above the UK average in 2011, the highest of all the regions of England and countries of the UK.

London was responsible for 47% of the total UK GVA from the financial and insurance activities sector. This sector contributed the most to London’s GVA (21% in 2010).

Gross disposable household income (GDHI) per head of London residents was the highest of all regions. At £20,500 in 2011 it had increased 17.4% since 2006, the most of any English region.

Source: Office for National Statistics

Background notes

  1. Notes and sources:

    The data section of this release (939 Kb Excel sheet) provides more Economy data. All data are published by ONS.

    Businesses
    Business Demography 2011 includes definitions of business births (creation), business deaths (closure) and active enterprises. Further releases for businesses by region are available.

    GDHI
    Gross disposable household income (GDHI) covers the income received by households and non profit-making institutions serving households and is net of tax payments. The data are unsmoothed.
    Use the GDHI per head interactive map to see how it has changed over time at regional level.

    GVA
    Gross value added (GVA) is a key measure of economic performance. The data used here are consistent with the workplace based series, which allocates the incomes of individuals to their place of work, but are unsmoothed data for individual years.
    GVA interactive charts and maps allow users to select different regions and industries and see their relative significance over the period from 1997 to the latest available year.

    Industries
    Standard Industrial Classification 2007 (SIC2007) defines the industries.

    Labour Market
    Employment, unemployment and economic inactivity rates are seasonally adjusted Labour Force Survey (LFS) headline indicators.
    Regional employment and economic inactivity rates are data for all people aged 16 to 64.
    Regional unemployment rates are data for all people aged 16 and over.
    Subregional employment data are from the Annual Population Survey (APS).
    Subregional unemployment data are from the Model-Based Estimates of ILO Unemployment for LAD/UAs, which uses APS and other data sources to calculate annual data every quarter. 
    Regional labour market statistics provides access to the latest key labour market figures.
    Nomis provides access to the most detailed and up-to-date UK labour market statistics from official sources.
    Labour market indicators are defined in the Glossary.
    Interpreting labour market statistics.
    Investigate how unemployment rates have changed over time at regional level.

    Productivity
    The Productivity handbook looks at measuring productivity at a regional level.
    Labour productivity provides access to the latest regional data.
    The Subregional productivity April 2013 article provides data at a subregional level.

  2. Further analysis:

    170 Years of Industrial change across England and Wales - 2011 Census statistics provide a rich source of information about the number, distribution and characteristics of the population in England and Wales. 2011 Census Analysis products present specific analyses on a variety of topics, including ethnicity, families, health, labour market, language, migration, and national identity, and religion. In particular, many of the analyses focus on geographical variations, changes over time, and how the census differs to other data sources.

    Regional Economic Indicators, March 2013 article discusses a selection of economic indicators in order to gain an overview of the economic performance of UK regions and countries. In this release a particular focus has been applied to how the regions/countries have fared through the economic downturn that began in 2008.

    London's economy outperforming the rest of the UK - Infographic summary

    The Spatial Distribution of Industries article investigates the patterns of spatial concentration of industries across Great Britain. Data tools and maps are provided for users to explore the data.

    Characteristics of Individual Insolvencies including Bankruptcies, England and Wales, 2011 article explores individual insolvency by region, local authority, age, gender and insolvency type. It is designed to highlight the type of analysis that can be carried out using individual insolvency data and how to use the individual insolvency data visualisation tool. Data on individual insolvency is published by the Insolvency Service.

    The Supply Side of Tourism - The Geography of Tourism Employment report details various aspects of the supply side of tourism. It includes a national level analysis of Gross Value Added (GVA), turnover and employment in the defined set of tourism industries. It also includes an estimate of employment in tourism industries for the regions and nations of the UK. The set of tourism industries used is based on international recommendations.

  3. You may use or re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk
  4. 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: media.relations@ons.gsi.gov.uk

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