Banking Finance and insurance – In 2008 there were nearly 49000 people employed in this sector in Gloucestershire which represents about 19% of the population. The other subsectors in this area is represented by legal, accounting, tax consultancy, auditing activities and this grew by 2% in 2008. Gloucestershire is served by large financial institutions like Ecclesiastical Insurance, St James plc who employ almost 1000 people between them.
Tourism- Tourism is a key sector in Gloucestershires economy. This sector is also divided into sub sectors such as hotels, bars, restaurants, libraries, camping sites, sporting activities etc. Nearly 19000 people were employed in tourism during 2008. This represents about 8% of the working population.
Agriculture- Around 4500 people are employed in this sector in Gloucestershire, there has been a decline in this sector by about 5% since 2009 due to seasonal workers and casual labour market used by famers to pick their crops.
What are the levels of unemployment, income and growth?
The latest unemployment rate for Gloucestershire is 5.5% of the economically active 16+ population (South West 6.0%, England 7.6%). The unemployment rate for people aged 16 and over for the UK was 7.9 per cent for the period June to August 2012. South Gloucestershire has an exceptionally high employment rate of 87% of the working age population (compared with 78% nationally). Reasons for such a high level of employment include the key business sectors (such as aerospace, engineering, other manufacturing sectors, defence, environmental technologies, high technology, financial services and creative industries, and the rural economy) and new business start ups. In order to sustain the economic vibrancy of South Gloucestershire and the provision of local jobs, both existing and new employers need to be supported.
The region with the highest rate was the North East at 9.9 per cent followed by Yorkshire and The Humber at 9.3 per cent and London at 8.9 per cent. The region with the lowest rate was the South West at 5.8 per cent, followed by the South East at 6.3 per cent and the East of England at 6.6 per cent.
Median gross full-time annual pay among Gloucestershire residents is £25,539, an increase of 1.4% on 2010. This is higher than the median for South West (£24,922), but lower than England (£26,615).
The equivalent pay figure for all those working in Gloucestershire is £24,918, illustrating a tendency for residents to commute to other areas for higher paid work.
Median gross full-time annual pay for Gloucestershire resident men is 27% higher than women. In the South West men’s pay is 29% higher and in England 25% higher.
Economic projections by the ( LEFM ) Local economic forecasting model predict a future economic growth and potential changes in employment. Between 2009 and 2020 employment in Gloucestershire is expected to increase by 2.8% about 8500 jobs. The sectors seeing growth is predicted in Banking, finance, insurance, care and tourism sector. Manufacturing and public sector is set to decline. The labour force is expected to increase by 2020 to nearly 337000 an increase of 21000 people. The demand for labour is predicted to increase, In 2009 there were 301000 jobs this is set to slowly decline until 2016 and gradually increase by 2020. The overall increase of 8500 jobs, a growth of about 2.8%.
Growth sectors are those activities that offer growth opportunities for the future, these include the future nuclear technology in energy supply, high tech engineering in aerospace, precision and medical instruments. Other growth sectors are the creative industries in the future improved broadband technologies. Environmental technologies and care activities due to response to an ageing population also predicted for future growth. Businesses are expected to remain competitive to potentially develop, export and sell overseas.
Is Gloucestershire prosperous or in decline?
Gloucestershire is prosperous due to the fact it is a young city with nearly 38% of the population is under 30, economic activity is 4% above the national average. Gloucesters employment rate is above the national average and 47 languages are spoken in the city, reaching out to markets across the globe.
Over the past 18 months over 140 businesses have either chosen to start up or expand in the city, the list is impressive it boasts hotels, creative sector, sport, financial services, regeneration, electronics, retail, food outlets and many more. The evidence shows many companies are choosing Gloucester as an investment location. There are many more multi million pound investments on the way too with the development of the railway triangle to include retail, supermarkets and leisure facilities. There is a £1bn regeneration programme in Gloucester to include the Gloucester quays which has attracted nearly 2 million people, a £7m linkage scheme to connect the vibrant city centre and Gloucester quays.
Businesses in Gloucestershire.
In 2010 there were 25815 registered businesses this represents a small fall of 0.6% registered businesses, the 3 year survival rate of businesses that started in Gloucestershire is 67% this represents a small decline in the survival rates of new businesses. Gloucestershire had 2300 new businesses in 2010 an increase of 2.4% from the previous year.
Figures for business closure during 2009 show 2630 closures a closure rate of just above 10%. This has been the highest since 2004 due to the credit crunch and the double dip recession. Across the uk the highest number of closures was seen in the construction followed by professional scientific and technical activities.
Gloucestershire with 94% of businesses surviving after one year is in line with the national average. In terms of business survival after 5 years Gloucestershire fares better at 51% just above the national average.
Locally businesses have closed to name Millets, Blacks, Oswald Bailey, more recently the national Comet chain has also closed in Gloucester with the loss of jobs.
Walmsley a furniture shop in Gloucester has announce it has gone into administration with the possible loss of 3 jobs. The company blames the recession for their decline.
On a positive note new businesses have started in the Gloucestershire region Whole Foods Market has opened a new store creating 150 new jobs, they source locally produced foodstuff.
Auntie Annes a pretzel and drinks store has recently opened up in the city centre. Patiserie Valerie which specialize in exotic cakes and patisserie has opened in the old Millets space, so businesses close and new businesses arise in Gloucester.
Legal Issues that affect Business
Legal issues include licencing and permits, employees, insurance requirements, tarrifs, taxes payroll witholdings and record keeping. Health and safety at work is also a legal requirement at work for any business.
The business name is one of the legal issues that affect the business environment. Some names are restricted because they are already in use. The business structures, business licenses, are the other legal issues.
In the modern age environment concerns, is a huge cost and legal issues to companies to consider. Key environmental issues affecting business include industrial waste, sustainable development of raw materials and water and air emissions. These issues affect business because laws require businesses to change equipment and procedures to meet imposed standards, which costs businesses money.
Waste is a huge issue for businesses to contend with, businesses that manufacture products in the process create waste, environmental laws prohibit the dumping of manufactured waste, so business have to decide how best to dispose it. Many implement recycling programs, others sell what they can of the waste to other manufacturers who use it in their own manufacturing processes as raw material. Either way, the effect is additional cost to the business in man hours, procedures, equipment and handling all specific to moving the waste products out of the business.
At GE Healthcare where I am employed we have to manage all our waste in a strict manner, all waste is catalogued and differentiated into different waste cages, these are disposed off by specialized waste removal companies.
All product waste is bonded in waste safe cages, records kept off what is discarded, only trained personnel are allowed to remove waste. Recycling is a big cost to the business as well, all paper, cardboard, glass, plastic, is segregated in individual waste safes to be removed by approved companies.
This all add cost to the businesses and lowers profit margins.