Economic Sustainability Facts and Figures Update April – June 2017 National News
UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.2% between Quarter 4 (Oct to Dec) 2016 and Quarter 1 (Jan to Mar) 2017, a slower level of growth compared to the previous quarter (0.6%).1 Nationally, in March 2017 there were 31.95 million people in work, 122,000 more than for October to December 2016 and 381,000 more than for a year earlier.2 The number of people in work is nearly 75%, the best since records began in 1971.3 ONS announced that June’s 2017 inflation rate is 2.6%, which is above the Bank of England’s target of 2%4. With prices rising faster than wages, Visa’s survey found that this has led to household spending dropping for the first time in four years last month5.
Chart 1: UK Inflation Rate
Source: Trading Economics, 2017
Local News
Berkshire has a higher employment rate, and lower unemployment and economic activity than both the national and regional averages. Wokingham and Bracknell have the lowest unemployment rate in Berkshire (3.1%). Source: LEP, Berkshire Labour Market Update, Q1 2017
1 https://www.ons.gov.uk/economy/grossdomesticproductgdp 2 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/may2017 3 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/latest 4 https://www.ons.gov.uk/economy/inflationandpriceindices 5 https://www.ft.com/content/62d7fddc-4eb8-11e7-bfb8-997009366969
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Business in Berkshire 2017, Thames Valley LEP
The Business in Berkshire document stated that the number of registered businesses in Berkshire has increased substantially over the last two years. However, LEP stated business confidence in Berkshire dropped considerably during 2016, LEP believes this is likely due to the uncertainty created by Brexit.
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Headlines
All claimants
In May 2017 there were 615 people claiming Job Seekers Allowance (JSA) in Wokingham Borough (0.6%). The number of claimants is the: Same as April 2016 up 10 from December 2016 The JSA unemployment rate for the South East currently stands at 1.2% and for the UK stands at 2%.
18-24 year old claimants
In May 2017 there were 75 18-24 years olds claiming JSA in Wokingham Borough. The number of claimants is: down 15 from April 2016 same as December 2016 The JSA unemployment rate for 18-24 year olds across the South East currently stands at 1.6% and for Great Britain stands at 2.8%.
50+ claimants
In May 2017 there were 205 50+ year olds claiming JSA in Wokingham Borough. The overall number of 50+ year old claimants is: up 35 from April 2016 up 25 from December 2016 The JSA unemployment rate for the over 50s across the South East currently stands at 1.1% and for Great Britain stands at 1.7%.
NEET (not in employment, education or training): years 12 and 13
The NEET percentage in May 2017 was 1.8%, with 60 people being classed as NEETs. This is 0.8% higher than September 2016.
Average house price
In April 2017 the average house price in Wokingham Borough was £422,119. This is: up £16,068 from April 2016 up £5,070 from December 2016 The average house price for the South East is £315,334 and for England is £236,519.
Source: NOMIS, Land Registry, NCCIS, June 2017
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1. Employment
1.1 JSA Claimants as a percentage of the population
Unemployment has risen slightly in this quarter to 0.6%; the rate is slightly higher than the same time last year. As of May 2017, Wokingham Borough had the lowest amount of claimants followed by West Berkshire (0.7%). The highest claimant rate for a Berkshire local authority was Reading with 1.7%.
Chart 2: Claimants as a proportion of residents aged 16-64
Claimants as a proportion of residents aged 16-64 4.0 3.5 3.0 Bracknell Forest 2.5 Reading 2.0 Slough 1.5 West Berkshire 1.0 Windsor and Maidenhead 0.5 Wokingham Borough 0.0 Percentage ofpeople claiming JSA South East Great Britain
Source: NOMIS, 2017
Chart 3: Wokingham Borough 50+ claimants
Claimant Count 50+ 2.5 2 1.5 Wokingham Borough 1 South East
age 0.5 Great Britain
0
Jul-13 Jul-14 Jul-15 Jul-16
Jan-14 Jan-15 Jan-16 Jan-17
Oct-15 Oct-13 Oct-14 Oct-16
Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 the populatrionthe ofthe same Claimant Claimant Count as 50+ of% a
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In May 2017 there were 205 people over the age of 50 claiming Jobseekers Allowance in Wokingham Borough (0.7%). The rate of unemployment among the 50+ population is falling at a slower rate than the rate of unemployment for 18-24 year olds. Due to an aging population, there is more than likely going to be an increasing number of older people who find themselves without a job, and wanting one.
For all age groups, the issue of hidden unemployment remains significant in the borough of Wokingham Borough. There are thought to be a considerable number of unemployed residents who for a number of reasons; distance from a jobcentre, relative wealth, ability to rely on family for financial support, do not claim or are not eligible for JSA and so go undetected in the figures. However these people may still be seeking employment. Source: NOMIS, 2017
1.2 NEETs years 12- 13 (not in employment, education or training)
Table 1: Wokingham Borough NEET trend
NEET stands for ‘not in education, employment or training’. The table above shows the NEET % for authorities in Berkshire, this shows that NEETs for the Wokingham borough was at 1.8%. Source: NCCIS, 2017
1.3 Elevate Wokingham performance data
Elevate Wokingham is a skills and employment centre which helps young NEET people find training and employment. The results below show number of NEET young people who have been supported by Elevate Wokingham and other Berkshire authorities to become EET (In education, employment or training).
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Table 1: EU Statistics
Partner Results as of Target (November % of target Outputs numbers end of Mar 17 15 – Mar 17. achieved to date required to meet submitted (submitted with for the period programme target with Claim 5 Claim 5 in May) Nov 15 – Mar 17 Reading 29 132 22% 300 Bracknell 22 155 14% 257 Wokingham 13 55 24% 105 West Berkshire 36 119 30% 215 RBWM 26 82 32% 151
Source: Elevate Berkshire, 2017
1.4 Qualification levels
Wokingham Borough’s residents are highly skilled compared to other areas. Only 4.1% of the population do not hold any qualifications and 50% have a NVQ Level 4 or above.
Chart 5: Qualification levels in Wokingham Borough Qualifications Jan 2016 - Dec 2016 100 90 80 70 60 Wokingham (%) 50 40 South East (%) Percentage 30 Great Britain (%) 20 10 0 NVQ4 and NVQ3 and NVQ2 and NVQ1 and Other No above above above above qualifications qualifications
Source: Nomis 2017
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1.5 Employment by occupation
63.6 % of Wokingham Borough’s population are employed in managerial, senior official, professional and associate professional and technical roles. This is 18.1% higher than the GB average; indicating that Wokingham Borough residents are well employed in professional and well paid roles. Less people in Wokingham Borough are employed in Elementary Occupations; door-to-door sales, cleaning, caretakers, delivery staff, refuse collectors, and as Plant and machine operatives.
Chart 6: Occupations in Wokingham Borough
Employment by occupation (Jan 2016 - Dec 2016
30 25 20 15 10
5 Wokingham (%) 0 South East (%) Great Britain (%)
Source: Nomis 2017
1.6 Earnings This highly qualified population transfers to high wages. Wokingham Borough’s residents earn more than across the UK. The gross weekly pay for full-time workers in Wokingham Borough (2016) was £741; for the South East the earnings were £582; and for Great Britain £541. The graph below shows average gross annual pay for all employee jobs from 2002- 2016 across Wokingham Borough, the South East and Great Britain, separated by gender.
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Chart 7: Earnings in Wokingham Borough – gross weekly pay Full-time male and female gross weekly pay 900.0 800.0 700.0 600.0 500.0 Wokingham 400.0 South East
Weekly Weekly Pay £ 300.0 200.0 Great Britain 100.0 0.0 20022004200620082010201220142016 20022004200620082010201220142016
Male Female
Source: Nomis 2017
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2. Businesses
2.1 Business specialisms
For Wokingham Borough, the below sectors are the most common.
Professional, scientific and technical activities Information and communication Construction Business administration & support services
2.2 Business size
90.7% of Wokingham Borough based enterprises are classed as ‘Micro’ – with between 0-9 employees. According to the UK Business Count, there are 7,445 micro businesses in Wokingham Borough.
2.3 Number of firms by size and type in Berkshire
Table 1: Number of firms by size and type in Berkshire
2012 2013 2014 2015 2016 Scale -ups 186 n/a 217 213 n/a
Start-ups 5,000 6,100 6,300 7,000 n/a Mid-market (£1m - £50m turnover)
n/a n/a n/a 3,820 3,950 Large (Over 250 employees)
235 225 230 240 240
Source: LEP
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Chart 8: Contribution to Berkshire GVA by industry 1997- 2014
3. Housing
3.1 Average House Price in Wokingham Borough
The average house price in Wokingham Borough as of April 2017 was £422,119, this is nearly double the average house price for England and Wales which currently stands at £231,269. House prices are also rising faster in Wokingham Borough than in England and Wales as a whole.
Chart 9: Average house price in Wokingham Borough, 2012 - 2017
Source: House Price Index, 2017
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3.2 Average Rents in Wokingham Borough
The table below shows average monthly rents for different property types in Wokingham Borough.
Table 2: Rent prices in Wokingham Borough
Property Type Average Monthly Min Monthly Rent (£) Max Monthly Rent Rent (£) (£)
Shared 544 350 725
Studio 657 400 850
1 Bed 791 477 965
2 Bed 1,074 795 1,750
3 Bed 1,330 825 2,450
4 Bed 1,780 1,350 2,500
Source: Rightmove, 2017
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