Regional Profile Leeds. Cordant People Be Integral

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1 Regional Profile Cordant People Be Integral

2 Introduction City Profile Population Employment Labour Landscape Summary About Us

3 Introduction The move from a manufacturing to a service-based economy has brought with it a number of changes in the labour market. The sectoral, occupational and geographical make-up of the labour market has changed profoundly, so too has the nature of work with increases in temporary and part time work, as well as an ageing workforce and female participation. The UK labour market is progressively more characterised by higher wage work requiring advanced qualifications at the top and low wage service sector jobs at the bottom of the earnings distribution, while jobs in the middle have been in decline. In short there has been a polarisation of employment a trend that shows no real signs of abating. Understanding the business landscape of, including employment trends, skill demands, population trends and of course future investment projects have played a pivotal role in our ability to supply a wide spectrum of workers whether temporary or permanent.

4 City Profile Overview was successful in becoming the first British city to have full broadband and digital coverage during the dot-com bubble, enabling it to become one of the key hubs in the emerging new media sector. Companies such as Freeserve, Energis, Sportal, TEAMtalk, Contactmusic.com and Ananova emerged from to dominate the UK internet industry. Now, over 33% of the UK s internet traffic passes through making it one of the most important regional internet centres in the UK. Over the last ten years, Gross Value Added (GVA) in grew by 4% similar to the number of workforce jobs in the economy. This is in contrast to the 14% GVA growth and 5% workforce jobs growth enjoyed by the UK economy over the last decade. under-performed when compared to the national average and the implications are more pronounced when population data is analysed over the same period. The city region s population grew strongly (9%) compared to the UK (7%) over the last decade. Working-age population, however, grew at twice the national average (12%: UK 6%). Such population growth, fuelled by strong growth in net in-migration, puts the need for a job creation boost into sharp focus and underlines the scale of the challenge facing policy makers in the City Region.

5 Population Yorkshire & Humber UK All ages All people 757,700 5,316,700 61,881,400 Males 371,600 2,618,000 30,420,500 Females 386,100 2,698,700 31,460,900 Yorkshire & Humber UK Number % % % Ages 16 to 64 All people aged , Males aged , Females aged ,

6 Population Projections, Bradford & Kirklees 61% Selby 22% Harrogate 5% Craven 6% Other 6% The latest population projections from ONS suggest that the 0 to 10 population in will grow by 13% over the next decade, just below the England average (16%)., Bradford and Kirklees districts lead the way in absolute terms, with projected total growth of 32,000 representing 61% of the total. In percentage terms. Selby is projected to experience the highest growth rate (22%) with Harrogate and Craven witnessing the least; 5% and 6% respectively.

7 Employment Financial and professional sector The economy of is diverse, with the service sector now dominating over the traditional manufacturing industries. It is the location of one of the largest financial centres in the United Kingdom outside London. New tertiary industries such as retail, call centres, offices and media have contributed to a high rate of economic growth. Around a quarter of a million people are employed in the financial and professional sector in the City Region with an output valued at 13 billion per year. Financial and professional services are largely based around the traditional business quarter in the city centre, as well as the newer area along the south bank of the River Aire. Companies with regional or national offices in, include KPMG, Norwich Union, First Direct, Lloyds Banking Group (Lloyds TSB), Lloyds Banking Group (HBOS), Allied Irish Bank, Royal Bank of Scotland, HSBC, Building Society, Alliance and Leicester, Yorkshire Bank, Zurich Financial Services and Direct Line. There are further financial institutions within the City Region with Yorkshire Building Society and Bradford and Bingley offices in Bradford and further HBOS offices in Halifax. The Bank of England, has their second primary office on King Street in the heart of business quarter. Despite job losses since 2008, there remains 40% more employment in financial services (banking and building societies) than the GB average.

8 Employment Manufacturing The City Region remains a key national centre for textiles and clothing employment levels are 4.5 times and 2.3 times the national average respectively in these sectors. employment has nearly 1,800 companies engaged in a diverse range of manufacturing activities, including specialised engineering, print, food and drink manufacture, chemicals and medical technology. Employing well over 30,000 people, the sector generates 10.8% of total output of over 15 billion a year. Most manufacturing companies are small to medium sized. Other manufacturing sectors in which is strong include furniture, food, drinks, non-metallic minerals, electrical and other equipment, and chemicals.

9 Employment new jobs Administrative and support services, land transport, storage and post and professional services are forecast to create the most jobs, followed by retail, accommodation and food services and finance. Employment Growth by Sector, Administrative 9,770 Land Transport, Storage & Post 7,000 Professional Services 6,860 Retail 5,460 Accommodation & Food Services 5,060 Finance 5,020 Wholesale 4,670 Specialised Construction Activities 2,440 Residential Care & Social Work 2,250 Recreation 1,790 Computing & Information Services 11,730 Utilities 1,620 Other Private Services 1,390 Real Estate 900 Civil Engineering 900 Media Activities 870 Telecoms 650 Agriculture, Forestry & Fishing 250 Health 1,920 Source: Experian s Regional Planning Service, 2013

10 Employment New jobs These new jobs constitute an expansionary demand for labour, arising due to these sectors growing bigger within the economy and requiring further human resources. The new jobs are predominantly in the service industries. It remains to be seen whether the forecast expansion in construction employment will indeed materialise given the challenges the sector faced during the recession. In terms of full time employment, administrative and support services constitute the largest sector in, according to the Regional Econometric Model. The sector employs almost 96,000 people which represents about 8.8% of the workforce. The second largest sector is retail, with just over 94,000 people (8.7% of the workforce). These two sectors are forecast to grow by 10% and 6% respectively over the next 5 years. Education, which is the third largest sector, is however forecast to shrink by 1% in the same period, due largely to the continued fiscal tightening regime pursued by the government. Public Administration and Defence which employs 5% of the workforce, is forecast to shrink by 21% over the next five years. This will largely occur within local government but also within Armed Forces recruitment. In GVA terms, Real Estate (9%), Finance (7%) and Education (7%) are the largest sectors in. Real Estate and Finance are forecast to grow by 6% and 9% respectively over the next five years. However, education is forecast to shrink by 1% for reasons outlined above. Other key sectors forecast to grow strongly are wholesale (6%), professional services (7%), retail (9%) and Administrative & Supportive Services (9%).

11 Employment By sector 2013 share change % Administrative 95, % 10% Retail 94, % 6% Education 89, % -1% Health 78, % 2% Wholesale 74, % 6% Professional Services 65, % 10% Land Transport, & Post 63, % 11% Residential Care & Social Work 62, % 4% Public Administration & Defence 52, % -21% Finance 51, % 10% Accommodation & Food Services 49, % 10% Specialised Construction Activities 30, % 8% Food, Drink & Tobacco 26, % 0% Recreation 21, % 8% Other Private Services 21, % 7% 2013 share change % Utilities 16, % 10% Metal Products 15, % 0% Non-Metallic Products 15, % 1% Computing & Information Services 14, % 12% Other Manufacturing 14, % -2% Textiles & Clothing 13, % -16% Machinery & Equipment 13, % -3% Printing and Recorded Media 12, % 0% Construction of Buildings 12, % 1% Real Estate 10, % 9% Telecoms 10, % 6% Media Activities 9, % 9% Computer & Electronic Products 9, % -7% Civil Engineering 8, % 11% Wood & Paper 7, % -11% Source: Labour Market 41 Analysis 2013/14

12 Employment Key facts City Region is one of 39 Local Enterprise Partnerships (LEP) areas in England: With 1.3m jobs, is the 3rd largest behind the London and South East LEP areas Only three LEP areas enjoyed employment growth between (Gloucestershire, Cornwall & the Isles of Scilly and Oxfordshire). s rate of job loss over the period (2.9%) was ranked 21st of the 39 areas s manufacturing employment in 2011 (138,000) was higher than any other LEP area, this represented 10.6% of total employment The 60,000 workforce in financial services placed 2nd behind only London, and 6th of the 39 LEP areas in terms of the proportion employed in that sector (4.6%) had 269,000 people working in business services as a whole (including financial services), the 3rd highest number behind London and Greater Manchester LEP areas. This represented 20.7% of total employment There were 89,000 employed in professional services in.

13 Labour Landscape Employment & unemployment (Numbers) (%) Yorks & Humber(%) UK (%) All people Economically active 435, In employment 392, Employees 342, Self employed 45, Unemployed (model-based) 41, Males Economically active 233, In employment 207, Employees 172, Self employed 32, Unemployed 25, Females Economically active 202, In employment 185, Employees 169, Self employed 13, Unemployed 16,

14 Labour Landscape Employment by occupation (Numbers) (%) Yorks & Humber(%) UK (%) Soc major group , Managers, directors 29, Professional occupations 83, Associate professional & technical 61, Soc 2010 major group , Administrative & secretarial 36, Skilled trades occupations 37, Soc 2010 major group , Caring, leisure services 32, Sales and customer service 33, Soc 2010 major group , Process plant & machine operatives 24, Elementary occupations 47,

15 Labour Landscape The UK Commission for Employment and Skills commissioned Warwick University and Cambridge Economics to produce a set of labour market forecast data for the next decade. The series is referred to as Working Futures. The output includes the most widely accepted estimates of replacement demand information in the UK. Replacement demand refers to opportunities created in the labour market as a result of retirement, incapacitation or transfers to other occupations and sectors. Every occupation is forecast to generate some replacement demand over the next decade ( ). During this period a total of 567,000 job opportunities are forecast to arise across the City Region as a result of replacement demand. This is entirely due to retirements. Administrative occupations and elementary administration and service occupations are forecast to generate almost 20% of the total replacement demand in over the next decade. Occupations like science, engineering and technology, skilled agricultural trades, protective occupations and health and social care are forecast to generate the lowest amount of replacement demand in.

16 Labour Landscape Net demand labour When expansion and replacement demand are considered together, the net effect provided a useful understanding of how the labour market is expected to perform over the next decade. According to the Working Futures series, over the same period the total demand for labour arising as a result of expansion demand is estimated to be about 50,000 in. This shows the importance of replacement demand for labour in any economy. Demand for Labour Expansion Demand 50,000 Replacement Demand 567,000 Net Demand for Labour 617,000 Every occupation is forecast to have significant vacancies over the next decade. This includes occupations like customer services, leisure, travel and related personal services, textiles, printing and other skilled trades, skilled metal, electric and electronic trades and secretarial and related occupations which are all forecast to actually shrink in overall employment terms.

17 Summary Bright horizon The economy is forecasted to create about 44,000 net new jobs in medium term. The sectors expected to create most new jobs are Administrative and Supportive Services, Land, Transport, Storage and Post, Professional Services and Retail, Public Administration and Defence is forecast to shrink by 21% in employment terms in the same period. All occupations are forecast to require significant replacement of labour over the next decade due to retirements. In the period from 2010 to 2020, a total of 567,000 job opportunities are expected to occur in due to replacement demand. When compared to the 50,000 expansion demand opportunities, the scale becomes apparent (UKCES, Working Futures, 2012). The occupational profile in is forecast to undergo significant change over the next decade. This will be characterised largely by continued growth in high human contact occupations like Sales and Customer Service and Caring as well as strong growth in high skilled occupations like Managers and Directors, Professional Occupations and Associate professionals. Lower skilled occupations like Elementary and Process Plant operatives are forecast to shrink as a share of the labour force.

18 About Us Cordant People, part of a 550m recruitment business, is recognised nationally as one of the fastest growing recruitment agencies in the UK. Since our inception in 1992, we have become firmly established as a leading player in the market for temporary, contract and permanent recruitment, particularly within the local areas we service. With over 20 years experience of working with over 350 clients across various industry sectors, we have unrivalled knowledge of the UK labour market. We understand the impact of the next generation workforce, the impending skill shortages and the necessity to operate with an effective workforce. We appreciate that if organisations are to operate efficiently within an uncertain economy, then they have to attract, engage and operate with a flexible workforce. Whether you require adhoc short term assignments or permanent vacancy we can accommodate your requirements, through our national support and localised knowledge. Equally our holistic approach to permanent recruitment enables us to attract, engage and deliver talented people aligned to an organisation s culture. We work with organisations to increase the quality and speed of recruitment by integrating best practices and resource planning to deliver an efficient and productive workforce.

19 Cordant People Supporting local businesses with their employment needs. Be Integral