Employment of London residents: by occupation, 2008
London is by far the largest contributor to the economy among the countries and regions of the UK and makes its greatest contribution from real estate, renting and business activities and financial intermediation.
In 2007 London’s gross value added (GVA) − a key measure of the economic performance of a region − was £251 billion. It represented 21 per cent, the largest regional share, of the UK total. Inner London contributed 67 per cent to London’s GVA in 2006 and 14 per cent to the UK’s total GVA.
Between 2006 and 2007 GVA in London increased by 6.7 per cent, the strongest regional increase compared with the UK increase of 6.0 per cent (excluding off-shore activities that cannot be assigned to a region). Productivity, as measured by GVA per hour worked, was 30 per cent above the UK average in 2007, the highest for all regions within England and the UK.
The real estate, renting and business activities sector contributed the most to London’s GVA in 2006 (30 per cent) followed by financial intermediation which contributed 17 per cent. This compares with 24 per cent and 8 per cent, respectively, for the UK. London was responsible for almost 40 per cent of the total UK GVA from the financial intermediation sector.
London houses a major world financial centre and a range of business specialisms which in turn attract a highly skilled workforce. Working-age residents in London are more likely to be employed in managerial, professional or associate professional and technical occupations, compared with the UK (54 per cent in 2008 compared with 44 per cent).
Gross disposable household income (GDHI) per head of London residents was the highest of all regions. At £17,931 in 2007 it was 25 per cent higher than the UK average. GDHI per head in Inner London was £20,163 and in Outer London it was £16,461.
London’s working-age employment rate was the second lowest among English regions at 68.5 per cent in the period May to July 2009, behind the North East at 67.7 per cent. The unemployment rate in London (for those aged 16 plus) was 9.2 per cent compared with 7.9 per cent for the UK.
Notes:
GVA is on a workplace basis, which allocates the incomes of individuals to their place of work. Employment and unemployment rates are seasonally adjusted Labour Force Survey headline indicators. Employment by occupation data from Annual Population Survey, January – December 2008.
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Regional Trends 41