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Structure of the Economy

Structure of the Economy

Latest available figures show there are 9,905 active businesses in the district (2015). Prior to the downturn, business growth in Wakefield had been strong, outperforming the whole of the Leeds City Region (LCR). All LCR local authorities saw some decrease in the number of active enterprises during the economic downturn, but the decrease in Wakefield during the latter part of this period was more marked (see graph below). Since 2012, business numbers in the District have grown faster than the LCR average, putting total growth since 2004 on a par with Selby, York, Kirklees and Bradford. Leeds continues to show the strongest growth.

Source: ONS Business Demography
[hover mouse over lines to see district names and values)

The prevailing economic conditions of the past decade have affected the chances of newly started businesses in different ways. Businesses born between 2004 and 2006 tended to fare well, with short and medium-term survival rates turning out very similar to the England average, and sometimes slightly above (see graph below). The three-year Survival rates for businesses starting in 2007 and 2008 then dropped sharply, as the economic downturn deepened. Survival rates started to improve again in 2011, and for businesses that started out in 2012 the survival rates have been slightly higher than Leeds City Region and England averages.

Health is the largest employment sector in the district, followed by manufacturing (see table below). There is a large amount of employment in retail, but the numbers fell significantly during the economic downturn and are only recovering slowly. Meanwhile, employment in manufacturing has increased between 2010 and 2015, particularly the manufacture of food (+1,200 jobs), fabricated metal products (+600), vehicles and trailers (+400), and furniture (+300). The increase in professional, scientific and technical jobs over the same period is mainly due to a large increase in legal and accounting activities (+1,600 jobs), plus smaller increases in architectural and engineering testing services (+300) and management consultancy (+300).

In 2010 there were 36,200 people in employment in the public sector in Wakefield (26% of the total in employment). In 2015 this number fell to 30,600, or 21% of the total in employment. Similar reductions have been seen across the Leeds City Region.

Employment by sector. Source: ONS BRES (open access; nomis API)
(click on column headers to sort)

Despite the changes in sector job numbers mentioned above, within the Leeds City Region (LCR), Wakefield District’s labour market remains characterised by a high degree of specialisation in logistics industries and public administration (see chart below). Jobs in knowledge intensive business services have increased by 51% over the past five years, but compared to elsewhere in the LCR, the numbers of jobs in finance, IT, professional and scientific sectors remain lower than average.

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