1. Economic Geography, Linkages and Low Carbon Economy Economic Performance, Drivers and Comparisons John McCreadie – 6 th July 2010

2. Presentation Structure Answering the Questions: Which key sectors and sub-sectors have played the most important roles in driving employment and GVA growth in the City Region over the last decade? How does the City Region compare with other, similar city regions, in the terms of its economic specialisms? Are the high employment and GVA sectors of the recent past the ones which will drive economic change in the future?

3. Broad Economy Overview 1. Public Sector Over 200,000 FTE jobs £6.6bn GVA Strong growth driven by public admin 2. Financial & Professional Business Services Over 120,000 FTE jobs £7.2bn GVA Exceptional growth driven by other business services and financial services 3. Manufacturing Over 89,500 FTE jobs Significant employment decline – although below national average

4. Broad Economy Overview Group 1 Above average employment and GVA growth, productivity at least 90% of GB average Construction; Creative and Digital; Mining and Metals; R&D Group 2 Above average employment and GVA growth, productivity below 90% of GB average Financial & Professional Business Services; Public Services; Process Industries; Aerospace and Defence; Glass Products Group 3 Others with employment growth of 4.5% or more Transport; Tourism Group 4 Others with productivity at least 90% of GB average Health & Wellbeing; Automotive, Energy; Food and Drink; Timber and Wood; Other services; Clothes; Other manufacturing

5. Benchmarking Tyne and Wear City Region TWCR employment growth has outperformed other northern CRs since 2000 (except Sheffield) TWCR is most similar to Sheffield, Liverpool and Glasgow Much higher rates of employment growth in Tourism; Digital and Creative; Financial, Professional and Business Services; and Public Sector Employment in TWCR is more highly concentrated in Public Sector; Automotive; and Tourism

6. The Employment Gap SectorGap with CR Average Gap with GB Average Financial & Professional Business Services 21,32021,339 Wholesale & Retail8,3239,352 Creative & Digital4474,988 Transport2,9044,805 Research &Development6551,733 Other Services0526 Total33,64942,744 Over 33,500 jobs across 6 private service sectors are required to close the employment gap with the CR average Increases to around 43,000 to close the gap with the national average High levels of growth needed to achieve this e.g. Transport (+40%), Financial, Professional Business Services; and Digital and Creative (+20%)

7. Sectors Offering Opportunity Private Service Sectors Other Business Services51,294 Financial Services21,861 Creative and Digital26,189 Tourism34,903 Public Sector Regional/national headquarters/service centres 10,000 Universities18,568 Industrial Automotive11,252 Process Industries11,989 Low Carbon – Electric Vehicle / Renewable Energy N/A Identifying sectors with ability to bring money into TWCR Three groups: - Private service sectors - Public Sector: sub- sectors not dependent on local demand - Industrial: stabilising manufacturing employment based on acknowledged strengths and market opportunities including Low Carbon Account for c.20% of the total economy

8. Summary City Region catch up driven by growth in private sector service economy Further catch up required to match City Region peers Financial and Professional Business Services are the most likely source of employment and GVA opportunities Opportunities in Creative and Digital and Tourism