Luton Inclusive Growth Commission Business, Economy and Skills - - PowerPoint PPT Presentation

Laura Church Corporate Director, Place and Infrastructure

Luton Inclusive Growth Commission Business, Economy and Skills

Business in Luton

Productivity and the Local Economy

Employment

Employment

Groups 1-3 (Managers, Directors, Professionals & Technicians): Luton – 34.3% Very Low East – 46.1% GB – 45.8% Groups 4-5 (Admin, Secretarial and Skilled Trades): Luton – 22.4% A little high East – 21.5% GB – 20.6% Groups 6-7 (Carers, Leisure, Retail and Customer Service): Luton – 16.6% East – 16.2% GB – 16.7% Groups 8-9 (Process Plant, Machine Operators and Elementary Occupations): Luton – 26.7% Very high East – 16.3% GB – 16.9%

Employment

Unemployment

Luton National Regional

In Employment 70% 75% 78% Self-Employed 9.5% 10.6% 11.6% Unemployed 5.6% 4.3% 3.7% Economically Inactive 25.5% 21.6% 19.3%

Unemployment by Ward

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Claimant Count Rate

Earnings

0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 2012 2013 2014 2015 2016 2017

Gross Weekly Median Earnings

Luton Residents Luton Workplace England

Deprivation

Impact of Welfare Reform

2017 2020 Projection

Households in Crisis 0.5% 11.1% Households at Serious Financial Risk 25.1% 35% Struggling Households 8.5% 10.2% Coping Households 65.8% 43.8%

Education & Skills

Luton National Regional

GCSE A*-C Inc. English and Maths 49.5% 58.2% NVQ Level 4+ 33.9% 39% 35% NVQ Level 2+ 66.7% 75% 73% No Formal Qualifications 12.9% 7.7% 7.2% 5 Basic Digital Skills 76% 78%

Gaps in Our Knowledge

Further research is needed to inform our current understanding of some of the economic drivers of inclusive growth including:

• The underlying reasons for low productivity, and a lack of high-quality jobs

in Luton

• The reasons for unemployment and economic inactivity and the barriers

into work for many Luton residents

• The reasons for lower educational attainment and the impact this has

upon future opportunities for work and prosperity

Business, Economy and Skills Summary

• Luton’s business community is strong and growing and is becoming more like the

rest of the UK economy with more service industries and less manufacturing

• Unemployment and economic inactivity are higher in Luton than nationally with a

significantly higher proportion of inactivity among those staying at home to care for family

• Luton has a higher proportion of low-paid work and a lower share of high-quality

jobs in professional and managerial sectors

• Productivity in Luton is low and falling
• Average earnings in Luton are significantly lower than the regional level and this

contributes to growing deprivation and poverty

• An increasing number of households are set to be at serious financial risk and

more than a third of children are in poverty

• Educational attainment is lower in Luton across the board than nationally and

regionally and access to the best quality higher education is also lower