Overview of the Powys Economy Sue Bolter Head of Regeneration, Property and Commissioning February 2014

People Total Population: 133,000 Working age (16- 64): 78,800 59% Percentage economically active is the same as the UK, but …..

A County of Small Businesses 16,400 people are self- employed 17.4% vs.. Wales 9% 8,600 VAT reg. business in Powys! (Turnover £79,000 12 months) vs.:- Cardiff: 8,345 Carmarthenshire: 7,220

Employment Sectors (Census 2011) 63,653 people economically active (self-employed & employees) Largest sectors: Wholesale and retail 9,593 Health and Social work 8,266 Construction 5,942 Education 5,871 Manufacturing 5,814 Agriculture 5,517

Self-employment Trends: Economist

46,200 Employees (Census 2011) Average proportion of Managers Higher than average “skilled trades” and “caring and leisure” Slightly lower “sales and customer service” and “elementary occupations” Slightly better qualified across all levels than Welsh average

Employees: Nomis 2014 Sector comparisons for self-employment: Manufacturing 6,200 (5,418 Census) Construction 2,200 (5,942 Census) Total employees 47,100 (+1,000 since 2011) Full Time: 28,600 (60.7%) Part time: 18,500 (39.3%), Wales (33.6%) UK (31.2%)

Home Working Trends

Earnings Always underperformed against Wales and UK 60% work full time: Men: £458.60, Wales £502.40, UK £558.30 Women: £359.20, Wales £421.90, UK £459.60 9% people work from home (3% Wales) Travel to work is by car (42%) or on foot (9%).

Unemployment: December 2014 1,331 claiming Job Seekers Allowance 1.7% vs. 3.3% Wales, 2.9% UK 815 unemployed for less than 6 months Young people 18 – 24 = 375 higher proportion 4% vs. 6% Wales, 4.9% UK Powys has always outperformed Wales and UK with more young people in work or training

Indices of multiple deprivation Measure not only low income, but also ease of access to services such as schools or shops. Powys does not have deep concentrations of deprivation:- all in “larger settlements” Only one Powys area is in the top 10% deprived areas - Ystradgynlais

Gross Value Added (GVA) Powys GVA per hour worked fell from 70.2% of the UK average in 2007 to 65.5% in 2011. Lowest in Wales and UK! We have jobs but ……. We need more higher-value added work! Inward Investment or grow our own? Gross value added From Wikipedia, the free encyclopaedia Jump to: navigation, search Gross value added (GVA) is a measure in economics of the value of goods and services produced in an area, industry or sector of an economy. In national accounts GVA is output minus intermediate consumption;[1] it is a balancing item of the national accounts' .[2] Relationship to gross domestic product[edit] GVA is linked as a measurement to gross domestic product (GDP), as both are measures of output. The relationship is defined as: GVA + taxes on products - subsidies on products = GDP As the total aggregates of taxes on products and subsidies on products are only available at whole economy level,[3] Gross value added is used for measuring gross regional domestic product and other measures of the output of entities smaller than a whole economy. Restated, GVA = GDP + subsidies - (direct, sales) taxes Over-simplistically, GVA is the grand total of all revenues, from final sales and (net) subsidies, which are incomes into businesses. Those incomes are then used to cover expenses (wages & salaries, dividends), savings (profits, depreciation), and (indirect) taxes. In business, the difference between the sale price and the production cost of a product is the unit profit. In economics, the sum of the unit profit, the unit depreciation cost, and the unit labour cost is the unit value added. Summing value added per unit over all units sold is total value added. Total value added is equivalent to revenue less outside purchases (of materials and services). Value added is a higher portion of revenue for integrated companies, e.g., manufacturing companies, and a lower portion of revenue for less integrated companies, e.g., retail companies.

Self-employment? SMEs Lack of other options? Using high-level vocational skills – craft, but not selling with “sufficient” margin? (GVA) Second income e.g. from small holdings Part-time working might = under-employment? Seasonal working in key sectors = tourism, agriculture Low earnings = low drawings from a business?

Powys County Council Role? Putting spend back into the local economy Manage funding streams: EU Represent & Lobby for Powys with Funders: WG Facilitate growth through regulation land use planning Environmental Health/ Trading Standards Enabling legal powers such as CPO

Thank you!