Employees in the Knowledge Economy

Transcription

1 Research & Evaluation statistical bulletin October 2015 Employees in the Knowledge Economy Related documents Employment and workforce provides information on the Kent workforce and employment patterns of Kent residents Defining the Knowledge Economy Report from Lancaster University looking at methods of defining the Knowledge Economy The Knowledge Economy comprises those industries whose main purpose centres on knowledge or information, from highly technical industries and knowledge intensive services to creative industries. This includes such industries as Publishing, Scientific Research and Development and Higher Education. This bulletin presents data on employees from the Business Register and Employment Survey (BRES) who are engaged in related to the Knowledge Economy. This bulletin presents the latest data for 2014 which was released by the Office for National Statistics in October It contains revisions to previously published data. NOTE: within this bulletin Kent refers to the Kent County Council (KCC) area which excludes Medway. Further information As at 2014, there are 96,700 knowledge economy employees in Kent (16.5% of all employees), compared to 19.7% in Great Britain and 22.3% in the South East The Knowledge Economy has grown faster in Kent (+22.1%) than in the South East region (+13.6%) and Great Britain (+9.7%) Research & Evaluation Strategic Business Development & Intelligence, Kent County Council Sessions House Maidstone Kent ME14 1XX Tel: Gravesham district has the lowest proportion of knowledge economy employees in Kent (8.8% of all employees) Tunbridge Wells district has the highest proportion of knowledge economy employees accounting for almost a third of all employees in the district (32.1%). Tunbridge Wells district has seen the biggest growth in the knowledge economy with 8,200 more employees over the last four years (+76.6%) largely from the Financial services sector Dover has seen the biggest decline with 1,000 fewer knowledge economy employees than in 2008 (-21.7%).

2 Introduction The knowledge economy is of particular interest as it is seen as a key driver for economic growth in the UK. The industries that fall within this sub-set of the economy are the ones that deal extensively with the processing, exchange and communication of information and knowledge. They are likely to have a high dependency on technology and provide highly skilled and technical jobs. They are also likely to contribute a higher level of value added to the economy (a higher level of output per head). Defining the knowledge economy There is no single official definition of the Knowledge Economy therefore many different definitions are in use. The definition preferred by Research & Evaluation is: a group of specific sectors within the economy that are knowledge intensive in their activity. They deal extensively with information/information technology and their business is all about the distribution or exchange of the information that they hold. This is considered a pure knowledge economy definition. Other definitions may include a broader group of industries. For example they may include industries such as Agriculture which, while using much more technically advanced processes, its purpose is not the processing, exchange and communication of information and knowledge. Further information about the complexity of defining the Knowledge Economy can be found in Defining The Knowledge Economy, produced by The Work Foundation at Lancaster University. Research & Evaluation have grouped those industries whose main purpose centres on knowledge or information to present a picture of the Knowledge Economy in Kent. The definition used is based on the new 2007 Standard Industrial Classification (2007 SIC), which is only available for data from To provide an historic time series of data for years up to and including 2008 have been based on the 2003 Standard Industrial Classification (2003 SIC). Due to differences in the way some industries are defined in the 2003 SIC and the 2007 SIC this has been done on a best fit basis. Further information about the 2007 Standard Industrial Classification can be found on the Office for National Statistics Standard Classifications webpages. Page 1

3 The following table shows the industries that have been included in the Knowledge Economy in this bulletin. It shows the detailed industry headings that have been included in both the new 2007SIC definition and the equivalent 2003SIC definition. Table 1 Knowledge Economy SIC definition and equivalent 2003 SIC definition 2007 SIC group 2007 SIC definition 2003 SIC equivalent Description 2003 SIC group Description Computing Computing 62 Computer programming, consultancy and related 72 Computer and related (inc. data processing) 631 Data processing 262 Manufacture of computers and peripheral equipment 3002 Manufacture of computers and other information processing equipment Telecommunications Telecommunications 61 Telecommunications 642 Telecommunications Media Media 18 Printing and reproduction of recorded media 22 Publishing, printing and reproduction of recorded media 58 Publishing 263 Manufacture of communication equipment 322 Manufacture of television and radio transmitters etc. 323 Manufacture of television and radio receivers etc. 591 Motion picture, video and television programme 921 Motion picture and video 60 Programming and broadcasting 922 Radio and television 639 Other information service 924 News agency Research & Development Research & Development 72 Scientific research and development 73 Research and development Business Services Business Services 64 Financial service, except insurance and 65 Financial intermediation, except insurance and pension funding pension funding 65 Insurance, reinsurance and pension funding, except 66 Insurance and pension funding, except compulsory compulsory social security social security 66 Activities auxiliary to financial services and insurance 67 Activities auxiliary to financial intermediation 69 Legal and accounting 741 Legal, accounting, book-keeping etc. 70 Activities of head offices; management consultancy 732 Market research and public opinion polling 711 Architectural and engineering and related 742 Architectural and engineering and related technical consultancy technical consultancy 712 Technical testing and analysis 743 Technical testing and analysis 731 Advertising 744 Advertising 74 Other professional, scientific and technical 748 Miscellaneous business 82 Office administrative, office support and other business support Higher Education Higher Education 854 Higher education 803 Higher education Public Services 91 Libraries, archives, museums and other cultural 925 Library, archives, museums and other cultural Page 2

4 Analysis Note that it is not possible to present data for the individual industries presented in table 1, due to confidentiality restrictions imposed on the data by the Office for National Statistics (ONS). The following tables present employees in the Knowledge Economy in Kent local authority districts, Kent as a whole and shows comparisons to the South East Region and Great Britain as a whole. Table 2 sets out the number of employees in the Knowledge Economy since It provides an overlap at 2008, which is available on both industrial classifications. This overlap shows the extent of the difference between the two Standard Industrial Classifications. The table shows that overall Kent has seen an increase of 17,500 employees in the knowledge economy since Tunbridge Wells district has the biggest increase in the number of people employed in the knowledge economy since 2008 of all local authority districts within Kent. This is equivalent to a 76.6% increase in six years largely driven by the increase in employees working in the financial services sector. Dover district has seen the biggest decline with 1,000 fewer knowledge economy employees, a reduction of 21.7%. This decline reflects the gradual closure of the Pfizer site based in Sandwich. Table 3 shows those employees in the knowledge economy as a percentage of all employees since Table 3 shows that the percentages employed in the knowledge economy are currently higher in the region and nationally, than they are in Kent. When looking at local authority district level it shows a big variation in the proportion of knowledge economy employees across the county, with the latest data showing that Gravesham (8.8%), Thanet (9.4%), Dover (10.8%) and Dartford (10.9%) have the lowest proportions. The Kent local authority districts with the highest proportions are Tunbridge Wells (32.1%), Canterbury (25.2%) and Sevenoaks (20.1%), all of which are above the national (19.7%) average. However, Kent as a whole, at 16.5%, is below both the national and regional averages. Knowledge economy workers account for a bigger share of the local authority district jobs than was seen in 2008 in all areas except Dartford, Dover, Thanet and Sevenoaks. Page 3

5 Table 2 Employees in the Knowledge Economy Source: Annual Business Inquiry (ABI 2008 onwards Business Register of Employment (BRES) Number Change 1998 to 2008 Change No. % No. % Kent 2003SIC definition 65,300 72,300 68,200 73,500 79,800 73,600 80,500 88,300 81,600 83,700 81,400 16, % 2007SIC definition 79,200 84,400 83,000 83,500 87,000 83,900 96,700 17, % Medway 2003SIC definition 11,900 11,500 12,200 10,500 11,100 11,500 12,300 13,100 11,700 10,600 10,100-1, % 2007SIC definition 9,800 9,900 9,600 9,500 10,700 11,000 12,200 2, % Ashford 2003SIC definition 4,800 5,500 5,300 6,000 6,100 5,500 5,500 6,100 6,400 6,100 5, % 2007SIC definition 5,400 6,000 5,900 6,000 6,400 7,200 7,300 1, % Canterbury 2003SIC definition 9,400 9,700 9,100 9,100 10,000 10,700 11,500 12,700 12,300 12,000 10,800 1, % 2007SIC definition 10,800 12,400 12,900 12,400 13,000 13,800 16,000 5, % Dartford 2003SIC definition 3,500 3,900 3,500 3,500 4,600 4,000 4,500 5,000 5,100 5,800 6,100 2, % 2007SIC definition 6,200 5,800 5,300 6,000 6,800 6,000 6, % Dover 2003SIC definition 3,800 4,100 3,900 4,300 4,800 4,200 4,500 4,700 4,500 4,700 4, % 2007SIC definition 4,600 5,100 4,700 3,800 3,200 3,200 3,600-1, % Gravesham 2003SIC definition 1,800 2,300 2,300 2,400 2,600 2,400 2,400 2,700 2,400 2,500 2, % 2007SIC definition 2,200 2,300 2,000 2,300 2,400 2,200 2, % Maidstone 2003SIC definition 9,300 10,200 9,600 10,300 10,600 10,300 11,300 11,700 10,100 9,900 9, % 2007SIC definition 9,100 9,400 9,500 9,200 9,800 9,100 9, % Sevenoaks 2003SIC definition 6,700 7,600 6,600 7,000 7,600 7,500 8,300 8,800 8,500 9,300 9,300 2, % 2007SIC definition 8,900 9,100 7,900 8,300 9,000 9,100 9, % Shepway 2003SIC definition 4,100 4,300 4,200 4,800 4,500 4,500 4,900 5,300 5,000 4,600 4, % 2007SIC definition 4,000 4,500 5,200 6,700 6,400 4,500 4, % Swale 2003SIC definition 2,900 2,900 2,600 3,300 3,600 3,600 4,200 5,100 3,900 4,000 4,100 1, % 2007SIC definition 4,000 4,500 4,600 4,600 4,900 4,500 5,100 1, % Thanet 2003SIC definition 2,700 3,000 3,100 3,000 3,500 2,900 3,500 4,000 3,800 3,800 3,900 1, % 2007SIC definition 3,800 3,900 3,800 4,200 4,600 3,700 3, % Tonbridge and Malling 2003SIC definition 6,500 8,000 7,300 8,100 9,700 9,100 11,100 11,300 9,600 9,500 9,800 3, % 2007SIC definition 9,500 11,100 10,100 9,800 10,100 9,600 10, % Tunbridge Wells 2003SIC definition 9,800 10,900 10,600 11,700 12,100 9,100 8,800 10,800 10,000 10,500 11,300 1, % 2007SIC definition 10,700 10,500 11,100 10,200 10,500 11,000 18,900 8, % Great Britain 2003SIC definition 4,145,600 4,378,100 4,553,200 4,609,400 4,581,000 4,610,000 4,666,600 4,845,800 4,948,700 5,038,800 4,935, , % 2007SIC definition 5,009,600 4,954,800 4,939,100 5,024,600 5,028,800 5,195,800 5,493, , % South East 2003SIC definition 663, , , , , , , , , , , , % 2007SIC definition 766, , , , , , , , % Notes. Two manual corrections have been made to this table: A reduction of 2,000 employees in Dartford, in 2007, due to the miscoding of a company, which caused a spike in the data. A corresponding reduction of 2,000 employees has also been made to the Kent figure for Page 4

6 Table 3 Percentage Employees in the Knowledge Economy Source: Annual Business Inquiry (ABI 2008 onwards Business Register of Employment (BRES) Percentages Kent 2003SIC definition 13.5% 14.1% 14.0% 14.0% 14.9% 14.0% 15.1% 15.6% 15.2% 15.2% 14.6% 2007SIC definition 14.2% 14.9% 14.4% 14.6% 15.5% 14.8% 16.5% Medway 2003SIC definition 14.3% 13.8% 15.1% 12.4% 12.3% 13.6% 14.5% 14.3% 13.7% 12.7% 12.0% 2007SIC definition 11.6% 11.8% 11.5% 11.8% 12.4% 13.1% 14.4% Ashford 2003SIC definition 12.4% 13.8% 14.4% 13.6% 13.7% 12.6% 12.3% 12.9% 13.4% 12.8% 11.3% 2007SIC definition 11.0% 11.7% 11.3% 11.3% 12.7% 13.9% 13.6% Canterbury 2003SIC definition 17.5% 17.5% 18.5% 16.5% 18.2% 19.4% 20.4% 20.9% 20.9% 20.1% 17.2% 2007SIC definition 17.7% 20.2% 20.7% 20.5% 21.7% 22.8% 25.2% Dartford 2003SIC definition 9.4% 10.3% 8.9% 7.9% 9.8% 8.4% 9.8% 9.8% 10.5% 11.3% 11.8% 2007SIC definition 11.9% 11.6% 10.6% 11.5% 12.1% 10.7% 10.9% Dover 2003SIC definition 10.7% 10.7% 10.9% 11.1% 12.0% 10.7% 11.6% 11.7% 12.2% 12.5% 12.8% 2007SIC definition 12.9% 14.1% 13.2% 11.4% 10.3% 9.8% 10.8% Gravesham 2003SIC definition 6.8% 7.8% 8.3% 8.5% 9.2% 9.1% 9.0% 9.4% 8.9% 9.1% 8.0% 2007SIC definition 8.1% 8.4% 7.4% 8.8% 9.2% 8.4% 8.8% Maidstone 2003SIC definition 14.2% 14.6% 14.6% 15.2% 15.3% 14.5% 15.8% 15.6% 13.8% 13.3% 12.9% 2007SIC definition 12.8% 13.0% 13.3% 13.1% 13.9% 13.1% 13.2% Sevenoaks 2003SIC definition 18.2% 18.2% 16.9% 17.2% 18.4% 18.5% 20.0% 20.1% 21.3% 22.6% 21.5% 2007SIC definition 20.7% 21.6% 17.7% 18.4% 20.5% 19.8% 20.1% Shepway 2003SIC definition 12.5% 12.4% 13.0% 13.6% 13.2% 13.4% 14.7% 15.2% 14.6% 13.1% 11.7% 2007SIC definition 11.2% 12.0% 13.2% 16.5% 17.4% 12.5% 13.3% Swale 2003SIC definition 7.5% 7.0% 6.7% 7.9% 8.2% 8.5% 9.5% 10.9% 9.0% 9.1% 9.6% 2007SIC definition 9.5% 10.1% 9.9% 10.2% 10.9% 9.9% 10.7% Thanet 2003SIC definition 7.9% 8.8% 9.5% 7.9% 9.4% 7.9% 9.1% 9.9% 9.8% 9.6% 9.7% 2007SIC definition 9.5% 9.9% 9.3% 10.6% 11.7% 9.5% 9.4% Tonbridge and Malling 2003SIC definition 13.9% 15.7% 14.7% 16.0% 18.4% 18.3% 20.9% 20.1% 17.9% 17.2% 17.6% 2007SIC definition 17.3% 20.0% 18.0% 17.0% 18.7% 17.1% 18.7% Tunbridge Wells 2003SIC definition 20.1% 22.1% 21.9% 23.4% 23.1% 18.9% 18.4% 21.6% 21.6% 22.5% 23.4% 2007SIC definition 22.5% 21.8% 22.4% 20.5% 21.4% 22.7% 32.1% Great Britain 2003SIC definition 17.0% 17.6% 18.1% 18.1% 17.9% 17.9% 17.9% 18.3% 18.8% 18.9% 18.5% 2007SIC definition 18.6% 18.6% 18.6% 18.9% 18.8% 19.2% 19.7% South East 2003SIC definition 19.4% 20.5% 20.9% 21.1% 20.9% 20.6% 20.9% 21.0% 21.8% 21.7% 21.1% 2007SIC definition 20.3% 21.3% 20.6% 20.7% 21.2% 21.5% 22.3% Page 5

7 While Kent has a lower proportion of knowledge economy employees than the national and regional averages, the rate of growth in Kent has been faster. This shows that Kent has performed much better during the recent recession period than the South East region or Great Britain as a whole. Chart 1 shows the index of change since 1998 in knowledge economy employees in Kent, compared with the regional and national data. Chart Knowledge Economy Employees, Index: 1998= Index: 1998= Kent Great Britain South East Source: ABI; BRES Presented by: Research & Evaluation, Kent County Council Overall employee numbers were hit hard by the recession however the number of employees in the Knowledge Economy has increased. Kent experienced a 22.1% increase between 2008 and 2014, significantly higher than the growth in the South East region (+13.6%) and Great Britain (+9.7%). This is shown in table 4. Table 4 % change in Knowledge Economy % change in all Employees Kent 22.1% 5.1% South East 13.6% 3.8% Great Britain 9.7% 3.6% Compared to overall employee change, in Kent the knowledge economy has performed well. The change in knowledge employees has been greater than the overall change in employees, (+22.1% and 5.1% respectively). Page 6