Economic Realities. Lee Adams, Deputy Chief Executive Sheffield City Council
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1 Economic Realities Lee Adams, Deputy Chief Executive Sheffield City Council
2 Economic Realities Closing the persistent GVA gap The people economy Hardest hit in recession Worklessness The role of skills Business Density Rebalancing the Economy OVERVIEW OF THE ECONOMY
3 Persistent gap in Economic Growth GVA: 9.2billion, growth has matched national average but is low given the size of Sheffield s population GVA per head: 17,394 is low compared to national average 20,430 GVA per head GVA Trend Analysis Sheffield Core City Average Yorkshire and The Humber UK
4 What does this mean in terms of people? Not enough people in work Not enough businesses To many people out of work on benefits Economically Inactive 99,800 Working Age Population Economically Active 264,400 Workless Not seeking work, on benefits Choose not to work Students 35,000 Employment rate 241, % Unemployment Rate 24, % Incapacity Benefit / ESA Lone Parent 6290 Carers 1600 Other out of work benefits 6070 Employed 213,300 Self Employed 26,100 Job Seekers Allowance 14,855 Not Claiming Benefits 9745
5 Recession impact Job Seekers Allowance Sheffield fairs well against other England cities in terms of JSA claimants, and as a city we have not been disproportionately effected by recession to date in terms of unemployment 6.0 JSA Claimants - % working age population Core Cities Sheffield England Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11
6 Hardest hit in recession Young people effected most strongly by recession Increases in JSA stock by age JSA stock pre-recession New claimants 30% of new claimants aged under and under and over Low skilled occupations seen highest job losses Further risk of displacement for those in low skilled occupations. Usual Occupation of JSA stock Managers and Senior Officials Professional Occupations Associate Professional and Technical Occupations Administrative and Secretarial Occupations Skilled Trades Occupations Personal Service Occupations Sales and Customer Service occupations Process, Plant and Machine Operatives Elementary Occupations
7 PERCENTAGE CHANGE IN JSA CLAIMANTS OVER COURSE OF RECESSION
8 Tackling long term worklessness The workless cohort in Sheffield is large, complex and difficult to impact. Trapped Labour - Workless individuals can become trapped without job opportunities, which exposes them to further deskilling and periods of inactivity. Approx 46,000 claiming JSA, IB/ESA or LP
9 Overcoming mental health conditions as a barrier to work 46% of IB claims are due to mental health problems 9250 people 87% have been claiming for over 2 years Large numbers of younger people effected 3,000 2,500 Age profile of claimants with mental helath difficulties 4.5% 4.0% 3.5% 14.3% of IB claimants suffer from musculoskeletal conditions high risk of developing secondary mental health conditions 2,000 1,500 1, aged 18-24aged aged 35-44aged aged 50-54aged aged aged 65 and over number of claimants % of age cohort 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%
10 Skills are crucial to finding employment The higher the Qualification the greater chance of employment Those with no qualification, greatest level of unemployment Sheffield (% Working Age Population) Sheffield (% Employment) Level 4 Level 3 Level 2 Level 1 no quals other apprentices 0 Sheffield (% of those qualified in employment)
11 We need more businesses and more business to grow in order to provide jobs Businesses: 27,000 self employed, 2400 sole traders below VAT level, 17,000 businesses VAT or PAYE registered Start up trends in the city indicate that micro business and sole trader start ups have been increasing, however these businesses are not growing sufficiently to become VAT registered or to create employment We need to focus on business growth Buiness Density: Core City Comparison Sole Trader (not VAT registered) Core Business stock VAT or PAYE registered business per 10,000 adult population Liverpool Sheffield Newcastle Nottingham Leeds Manchester Birmingham Bristol
12 Private sector must drive growth but it s a big challenge Continued deindustrialisation depresses growth Growth to 2005 was strong led by Business and Financial Services Growth post 2005 have been driven by Public Sector What has driven growth in Sheffield? 160 Manufacturing Private sector services Public sector services All sectors
13 Evidenced priorities for economic growth Focus on Growth Businesses drive growth Need more businesses and more business growth to create a dynamic successful economy Broaden sector profile Maximise growth on our key sectors Private sector to drive growth and jobs More knowledge economy jobs and higher value sectors Skills, Skills, Skills Skills are key to employment, progression and stimulating innovation and creativity More people in Work Post recession more people out of work Large numbers of people who are not work ready Mitigate against impacts of recession Inequality, Youth unemployment Provide Infrastructure to unlock growth potential
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