Contents Blackburn with Darwen Economic Trends Date completed: March 2012 This report was prepared by Saeed Patel Corporate Research Policy and Communications Department 01254 585106 Saeed.Patel@blackburn.gov.uk The Economic Indicators research paper is published at intervals throughout the year and aims to pull together information on the economy of Blackburn with Darwen. The paper presents an overview of the current economic situation in Blackburn with Darwen and provides a reference source of some of the main economic statistics used. People Working age population Structure of the Blackburn with Darwen labour market Jobs – supply side Employment rate Unemployment rate Claimant count Self employment rate Economically inactive Out of work benefits Adult qualifications Jobs – demand side Notified vacancies Live unfilled vacancies Claimants per jobcentre vacancy Business Business births and deaths Personal insolvencies, debt orders and IVAs Employment by sector Earnings Gross weekly earnings Housing House price and sales Mortgage repossessions orders Landlord repossession orders Crime All crime Burglary Auto crime Criminal damage Violent crime Health Page 3 4 5 5 6 6 7 7 8 10 10 10 11 11 12 13 14 14 15 16 16 16 16 16 17 Business Earnings Housing There has been a decrease in the employment rate over the last four quarters from 64.6% in Sept 2010 to 61.2 in June 2011. 53,800 were in employment at the end of June 2011 down from 54,200 at the end of March 2011, 54,800 in December 2010 and 56,900 in June 2010. Unemployment has risen by 200 over the year but has remained at the same level for the last two time periods. The self employment rate is lower than regional and national levels. The self employment rate has been decreasing over time, In June 2009 self employment rates were 7.9%, since then the self employment rate has fallen to 6.7% in June 2010 and to 6.3% in June 2011. The rate however increased from 6.0% in March 2011 to 6.3% at the end of June 2011 Inactivity rates have risen by 3.5% points (annually) in Blackburn with Darwen, but fallen by 0.2% points over the last quarter. The claimant rate is higher than the regional and national levels. The claimant rate has increase by 13% over the year and by 0.9% on the previous month. The claimant rate of 5.0% is the 2nd highest of any Pennine Lancashire district. 19,870 people were claiming benefits in Blackburn with Darwen for month end August 2011, 22.6% of the working age population, higher than both the regional (18.0%) and national rates (14.8%). 1,094 job vacancies were advertised at the end of June 2011. Vacancy notifications are down by a quarter on the previous year and 7% on the previous month. There were 756 live unfilled vacancies at month end September 2011. Claimants per live unfilled vacancy shows there to be 5.9 claimants per vacancy, up from 5.6 the previous month. Crime Demand side JOBS Supply side Summary For the 2nd year running business deaths exceeded business births. There were 585 business deaths in 2010 and 445 business births, giving a net loss of 140 jobs. Business births decreased by 4.2% points from 14.4% in 2004 to 10.2% in 2010 in contrast, business deaths increased by 1 percentage point from 12.4% in 2004 to 13.4% in 2010 Average weekly earnings for BwD residents (£412.8) are lower than regional and national levels. Male resident based earnings decreased by 10% and for females by 20%. The overall decrease in resident based earnings was 5.8%. Average house prices have been consistently lower than the North West and Lancashire average. House sales are a quarter down on December 2011 levels. The overall price of a property is £77,978 There have been a total of 70 court actions on mortgage arrears in Blackburn with Darwen. An decrease of 7% on the same quarter of the previous year There have been a total of 95 court actions on landlord mortgage arrears in Blackburn with Darwen. No change on the same quarter of the previous year The broad trend for crime has been downward, decreasing from 1,248 in April 2008 to 832 in February 2012. the average number of crimes is 979. All crime has decreased by 0.55 over the year and 7.8% over the month. Over the last 12 months there are on average of 37.5 burglaries per month. Burglaries have increased by a 3.1% over the year and by a quarter over the month. Auto crime – month on month variation, interspersed with decreases followed by sharp increases. 76% annual increase. Criminal damage – overall downward trend 2% annual increase. Violent crime – shows month on month decrease since June 2011 , overall shows a shallow downward trend, with a 13.9% annual decrease and 4.4% monthly decrease. 2 People Working age population Population change by age group 2010 to 2030 The current population of Blackburn with Darwen is 140,000, 62.9% of whom are aged 16-64 (i.e. of working age). The working age population has over the years increased in Blackburn with Darwen but is still lower than the regional or national levels. 2010-based population projections 90+ 2030 Female % 85-89 2030 Male % 80-84 2010 Female % 75-79 2010 Male % 70-74 65-69 60-64 55-59 Working age population (16-64) Blackburn with Darwen 63.5 50-54 45-49 40-44 35-39 30-34 63 25-29 20-24 62.5 % 15-19 10-14 62 5-9 0-4 61.5 -10.0% 61 -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Notable points for Blackburn with Darwen are: 60.5 60 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 59.5 Source: ONS mid year population estimates By 2030 the population of Blackburn with Darwen is projected to increase to 156,000, a 10.4% increase. Males are projected to increase by 12.7% from 71,000 to 80,000, females are projected to increased but by a smaller percentage 8.2%, an increase from 71,000 to 77,000 in 2030. These long term changes are not immediately critical to the local economy, what is more relevant is the change in age distribution of the population which accompanies the changes in total numbers. Those aged 0-14 are projected to increase by 8.2%, 15-64 by 6.1% and 65+ by 38.9% For the 15-64 age groups the projections give shifting patterns between the groups. With the exception of 55-59 and 60-64 age group which is projected to increase. A projected increase in all age groups over 65 can be seen for 2030, projected to increase by 38.9%, this largely results from projected increase in life expectancy. One consequence of an increasing workforce and increasing younger and older population are changes in the dependency ratio Dependency ratios for those aged less than 16 are projected to remain fairly stable over the next 20 years, with an slight increase from 2014 onwards. The old age dependency ratio is set to increase such that in 2030 the old age dependency ratio will be 26.4%, up from 19.6% rate recorded in 2010. 3 Structure of the Blackburn with Darwen labour market The diagram below shows the structure of the Blackburn with Darwen labour market. Please note percentages for each category have been calculated as a percentage of the total working age population (88,000) Total Population Working Age (16-64) 88,000 - 100% Working age Economically active, In employment Employees 48,700 (54.7%) Working age, Economically active Working age Economically inactive 60,600 (67.7%) 28,400 (32.3%) Working age Economically active – Working age Economically active In employment 54,800 (61.2%) - Unemployed* Working Age Economically active, In employment Self-employed 5,800 (6.3%) 5,600 (9.3%) Working age, Economically active, In employment – Family workers and those on Gov. Training schemes 300 (0.3%) Working age Economically inactive - Working age, Economically inactive - Wants a job 7,100 (24.8%) Does not want a job 21,400 (75.2%) Working age, Economically inactive, Wanting a job - reason for not looking incl those who are: Long term sick Looking after family Seeking work but unavailable F/T students Discouraged workers Other Retired Looking after family Full-time students Permanently sick Just over two thirds (60,600) of the working age population (88,000) are economically active. Of the economically active population of 61.2% are in employment and 9.3% are unemployed. Of those in employment 54.7% are employees and 6.3% are self – employed. Of the 88,000 working age population, 28,400 or just under one third (32.3%) are economically inactive, 7,100 of these or 24.8% want a job, a large proportion of the economically inactive population 21,400 or 75.2% of the working age population do not want a job. 4 Jobs – supply side Key indicators for the local labour market include: Employment rate Unemployment rate JSA claimant figures Self employment Economic inactivity rate Out of work benefits Local Authority Labour Market Statistics Statistics regarding labour market employment, unemployment and inactivity on a local authority basis are estimated using the Annual Population Survey. Employment rate Unemployment rate (ILO) The ILO unemployment rate is the number of ILO unemployed persons as a percentage of the economically active population aged 16-64. It is a more encompassing measure of unemployment than the claimant count and enables international comparison of unemployment rates. This is the proportion of the working age population (16-64) who are in employment according to the International Labour Organisation (ILO) definition. 8.0 6.0 4.0 Blackburn with Darwen North West Great Britain 2.0 Jun-11 Sep-10 Dec-10 Mar-11 Mar-10 Jun-10 Jun-09 Sep-09 Dec-09 Dec-08 Mar-09 Mar-08 Jun-08 Sep-08 Sep-07 Dec-07 Mar-07 Jun-07 Jun-06 Sep-06 Dec-06 Dec-05 Mar-06 Dec-04 Historically employment rates in Blackburn with Darwen have been lower than regionally or nationally. 0.0 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Blackburn with Darwen North West Great Britain Source: ONS Annual population survey via Nomis Unemployment rate 16-64 Blackburn with Darwen 10.0 % Mar-05 Jun-05 Sep-05 % 12.0 Blackburn with Darwen 16-64 Employment Rate 74.0 72.0 70.0 68.0 66.0 64.0 62.0 60.0 58.0 56.0 54.0 The employment rate in Blackburn with Darwen for the 12 months ending June 2011 is 3.7% points lower than the rate achieved for the 12 months ending June 2010. There has been a decrease in the employment rate over the last four quarters from 64.6% in Sept 2010 to 61.2% in June 2011. Source: ONS Annual population survey via Nomis The graph above shows the ILO unemployment rate for Blackburn with Darwen for the year ending June 2011. In contrast to the employment rate, the unemployment rate has historically been higher than the regional and national levels. The unemployment rate has increased by 0.7% points when compared to same period the previous year and has stabilised at the 9.6% rate for the last two 12 months periods. 5 Claimant Count The majority of claimants, over a half (53.0%) are aged 25-49. Claimants aged 25-49 increased by 6.8% over the year. Just under two thirds (62.8%) of claimants have been receiving the benefit for 6 months or less. The claimant count measures only those people who are claiming Jobseeker's Allowance. It is always lower than the Labour Force Survey (LFS) official measure of unemployment, because some unemployed people are not entitled to claim benefits, or choose not to do so. The claimant count comes from the administrative records of Jobcentre Plus. There are currently 1,510 young claimants aged 18-24 in Blackburn with Darwen (a third of all claimants). The claimant rate for 18-24 year olds historically has been higher than the regional and national average and shows an increase of 22.8%. Three quarters of claimants aged 18-24 were claiming for six months or less. 18-24 year olds claiming for six months or less increased by 1.4% or 15 over the year while those claiming for 6-12 months increased by 180, an increase of 150%. Those claiming for 12 months plus increased from 5 to 85. In February 2012, 5.1% of the working population in Blackburn with Darwen were claiming Job Seekers Allowance (JSA), this is higher than the North West rate of 4.1% and the national rate of 4.7%. The rate equates to a total of 4,481people claiming JSA in the borough, this being made up of 3,122 males and 1,359 females. Approximately seven out of ten claimants are male. The claimant rate of 7.0% for males is higher than the claimant rate for females (3.1%). Self employment rate The February 2012 claimant rate shows an increase in the number of claimants by 13% compared to the same month of the previous year. The annual change shows approximately 20.6% MORE female claimants, male claimants increased by a 10.0% during the same period. The overall number of JSA claimants increased by a 13.0%. Blackburn with Darwen claimant count 6 The self-employment rate in Blackburn with Darwen has consistently been below regional and national levels. Self employment rates in Blackburn with Darwen show a downward trend since June 2009. In June 2009 self employment rates were 7.9%, this fell to 6.7% in June 2010 and to 6.3% in June 2011. NB. The rate however increased from 6.0% in March 2011 to 6.3% at the end of June 2011. Rate as a % of 16-64 population 5 12 4 10 3 8 2 % 6 Blackburn with Darwen North West Great Britain 1 Feb-06 May-06 Aug-06 Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 0 Source: Claimant count, Nomisweb Self employment rate 4 Blackburn with Darwen North West Great Britain 2 0 Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar-11 Jun 11 % This self employment rate can be used as a measure of the level of entrepreneurship in a particular area Source: ONS Annual population survey via Nomis 6 7 Out of work benefits DWP statistics show that there were 19,870 people (up by 370 on the previous month) claiming benefits in Blackburn with Darwen, 22.6% of the working age population, this is higher than both the regional and national rates of 18% and 14.8% respectively. Working age people in receipt of out of work benefits N 21,000 20,500 20,000 19,500 19,000 18,500 18,000 17,500 17,000 16,500 16,000 % 24 20 12 North W est Great Britain Total=18.0 1.2 1.4 1.7 Total=14.8 Total =22.6 1.5 2 2 15 11.2 1.1 1.2 1.5 8.6 6.6 5 4.9 4.3 3.8 0 Job seekers Lone parents Others on income related benefits Bereaved ESA and incapacity benefits Carers Disabled Source: DWP benefit claimants –working age client group (Aug 2011) Inactivity rate, 16-64 Blackburn with Darwen 34 32 30 28 4 % 26 24 0 22 20 Blackburn with Darwen North West Great Britain 18 16 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Aug-11 Aug-10 Aug-09 Aug-08 Aug-07 Aug-06 Aug-05 Aug-04 Aug-03 Aug-02 Aug-01 Aug-00 Aug-99 Out of work benefit claimants Out of work benefit rate Blackburn with Darwen 10 Those aged 16-64 who are neither in employment nor unemployed. This includes those who want a job but have not been seeking work in the last four weeks, those who want a job and are seeking work but not available to start work, and those who do not want a job. 8 16,540 of these claim key out of work benefits. The highest claimants are for ESA or incapacity benefits. 9,900 or 11.2% of the working age population claim this benefit compared to 8.6% in the North West and 6.6% nationally. 20 Economically Inactive 16 Source: DWP benefit claimants –working age client group 25 Of the 2,890 ESA claimants at August 2011, 1,290 were at the assessment phase, 1,050 were in the work related activity group and 360 in the support group. Hence, in addition to JSA claimants an additional 1,050 people are being assisted into work. Source: ONS Annual population survey via Nomis Inactivity rates have risen by 3.5% points (annually) in Blackburn with Darwen and by 0.2% points nationally, in contrast activity rates across the North West fell by 0.2% points. Economically inactive groups Two of the three groups classified as inactive have increased their percentage share over time. Inactive students increased from 18.6% to 20.5% in March 2011 and to 21.2% in June 2011, and those classified as temporary sick increased from 2.5% to 4.3% and has now fallen to 3.2% for the 12 months ending June 2011. Those who were retired decreased by 1.4% points from 13.9% to 12.5% but increased from 12.5% in March 2011 to 13.6% at the end of June 2011. 8 Adult qualifications Data on educational attainment is available through two key sources, the 2001 census and the Annual Population Survey. The Annual Population survey data is the most up-to date source. This indicator concerns adult qualifications; and can affect both employers and employees, a strong supply of people educated to a high level is required by employers to grow their businesses. Where a local labour market can not supply people to meet employer needs it can damage business productivity. On the other hand a workforce with little or no qualifications is more at risk of not being in paid work and of receiving low rates of pay. Furthermore, individuals with no or very low qualifications have seen their earnings increase less rapidly in comparison to other groups in the workforce. A quarter of the working age population in Blackburn with Darwen are qualified to NVQ level 4 (degree and higher degree level qualification) this compares poorly with North West (28.7%) and the national average (31.3%). No qualifications In 2010 18.1% of the working age population held no recognised qualifications. This was 12.1% for the North West and 11.3% nationally. In absolute terms, there are an estimated 15,900 people in Blackburn with Darwen with no qualification Not in Employment, Education or Training (NEET) The number of 16-18 year olds not in employment, education or training in Blackburn with Darwen varies on a monthly basis, and is also subject to seasonal variation. Data for April 2011 to March 2012 shows that on average there were 540 young people aged 16 to 18 classified as NEET compared to 679 the previous year, the percentage of young people who are NEET in Blackburn with Darwen is 8.8% compared to 6.8% in the subregion. Those who are NEET have fallen by 8.8% from 570 in March 2011 to 520 in March 2012. The monthly change show a 2.6% decrease. 2010 Adult working age qualifications Blackburn with Darwen NEETs 2010-12 100.0 800 70.0 700 60.0 600 50.0 500 40.0 30.0 23.6 31.3 28.7 400 300 200 0.0 100 Over time this proportion has been increasing such that between December 2004 and December 2010 the proportion of working age adults qualified to NVQ level 4+ has increased by 5% points. Mar-12 Jan-12 Feb-12 Nov-11 Dec-11 Sep-11 Oct-11 Jul-11 Aug-11 May-11 Jun-11 Mar-11 Apr-11 Source: ONS Annual population survey via Nomis 0 Jan-11 Feb-11 Great Britain Nov-10 Dec-10 North West Sep-10 Oct-10 Blackburn with Darwen Apr-10 10.0 51.0 49.6 43.1 20.0 67.3 66.8 59.6 Jul-10 Aug-10 80.0 May-10 Jun-10 90.0 % with NVQ4+ % with NVQ3+ % with NVQ2+ Source: CXL MI Team 9 Jobs: Demand side Notified vacancies 1,250 1,000 750 500 250 2007-2011 2,000 1,750 1,250 1,000 750 500 250 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 0 Dec-11 Aug-11 Apr-11 Dec-10 Aug-10 Source: Job Centre Plus via NOMIS 1,500 Apr-10 Jobcentre Plus Notified Job Vacanies in Blackburn with Darwen Dec-09 0 Aug-09 1,500 Apr-09 1,750 Dec-08 Live unfilled vacancies in Blackburn with Darwen 2007-2011 Aug-08 In September 2011, 962 job vacancies were advertised with Blackburn with Darwen Jobcentre Plus offices, down from 1,094 in June 2011, a decrease of 12.1%. the data shows a decrease of 3.2% over the last month and 15.7% over the year. Vacancy notifications are down 3.2% over the last month and 15.7% over the year. Top three occupations (increases)for notified vacancies were: o Personal service occupations o Professional occupations o Manager and senior officials Top three occupations for decreases: o Skilled Trades o Elementary occupations o Sales and Customers service Unfilled vacancy numbers are indicative of job availability Apr-08 Live unfilled vacancies Dec-07 Newly notified vacancies measure the extent to which vacancies are being created by the local economy or at least notified to Jobcentre Plus. In December 2011, there were 762 unfilled job centre vacancies, up by 303 the previous year. The number of unfilled vacancies available through Jobcentre Plus decreased by 13% on the previous month. Claimants per Jobcentre Plus vacancy Data on the number of claimants per live unfilled vacancy provides a further, if rough measure of the level of competition for jobs or the difficulty that people will have getting back into work. In September 2011 there were 5.9 claimants per unfilled vacancy in Blackburn with Darwen, up from 5.6 in August 2011. Figures have varied on a monthly basis increasing to a high of 7.8 claimants per unfilled vacancy, this has recently fallen to 7.3 in February and to 5.9 in March 2012. Source: JCP vacancy data via NOMIS 10 Business Business births and deaths Blackburn with Darwen Business births & deaths 700 Births Deaths Net gain/loss 600 500 400 N Personal insolvencies, debt orders and Individual Voluntary Arrangements (IVAs) Data on personal insolvencies from the ONS show that more people have been declared insolvent over the past year in Blackburn with Darwen. Personal insolvencies rose to 388 in 2009, an increase of a third on 2008 levels. Over time debt orders and IVAs have also increased. There has also been an increase in the number setting up informal arrangements with creditors – such as debt management plans. IVAs have increased by nearly a half over the last year from 84 in 2008 to 124 in 2009. 300 200 100 0 -100 Personal Insolvancies and debt orders -200 2004 2005 2006 2007 2008 2009 2010 Source: Business demography (ONS) Blackburn with Darwen contained more than 4,365 active businesses. A quarter of the Pennine Lancashire total. Over time business births have exceeded business deaths in Blackburn with Darwen, the exception being in 2009 and 2010 when deaths exceeded births resulting in a net loss of 40 and 140 businesses respectively. There was a net loss of 470 businesses in Pennine Lancashire with the largest losses registered in the Blackburn with Darwen and Burnley. Blackburn with Darwen’s share of Pennine Lancashire business deaths was 27.8%. Business births as a percentage of active businesses have decreased by 4.2% points from 14.4% in 2004 to 10.2% in 2009 Business deaths as a percentage of active businesses have increased by 1 percentage points from 12.4% in 2004 to 13.4% in 2009 45 40 35 in Blackburn with Darwen 2000-2009 Personal insolvancies Bankruptcy orders IVA's 30 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Rates per 10,000 Source: Neighbourhood statistics (ONS) 11 Employment by sector The table below shows the new SIC 2007 codes breakdown of employment for Blackburn with Darwen. Health and Manufacturing represents the largest sectors for employment with 18.3% and 17.0%. Between 2008-and 2010 the proportion of total employment accounted for by manufacturing has fallen from 19.7% to 18.3% to 17.0%, a fall of 1.4% point on average while that for health has increased by 3% points between 2008 and 2009 but by 0.6% points between 2009 and 2010 The proportion of jobs accounted for business administration and support services has fallen from 7.4% to 4.0%, a reduction of 3.5% points over the two years. Sector 2008 2009 0.7% 2010 0.9% % point change 2009-2010 0.2% Over the year employment levels in nine sectors fell, the largest reduction being in property, as indicated earlier the share of total employment accounted for by this sector fell by 0.3% points from 1.2% to 0.9%. The percentage change over the year saw a reduction of over a quarter in employment levels from 700 to 500. Business administration and support services experienced employment levels fall by 15% and public administration and defence employment shed one in eight jobs. Total Employment by sector Manufacturing 19.7% 18.3% 17.0% -1.3% Construction 3.5% 3.0% 3.0% 0.0% Business administration & support services Motor trades 1.3% 1.5% 1.9% 0.4% Professional, scientific & technical Property 4.7% 4.5% -0.1% Retail 9.0% 8.8% 9.2% 0.4% Transport & storage (inc postal) 3.5% 3.5% 3.5% 0.0% Accommodation & food services Accommodation & food services 3.5% 3.5% 3.8% 0.3% Transport & storage (inc postal) Information & communication 3.4% 3.3% 3.5% 0.1% Retail Wholesale 1.3% 1.5% 1.6% 0.1% Property Professional, scientific & technical Business administration & support services 1.0% 1.2% 0.9% -0.3% 4.5% 6.0% 6.4% 0.4% 7.4% 4.5% 4.0% -0.5% Public administration & defence 5.8% 5.5% 5.0% -0.5% Education 9.6% 10.0% 10.4% 0.4% Health 14.7% 17.7% 18.3% 0.6% Arts entertainment 5.6% 6.3% 6.3% -0.1% 100.0% 60,000 57,500 -4.0% 0.0% 2900 Public administration & defence 5.4% -0.9% 6000 Education Wholesale Total 10500 Health 0.6% Financial & insurance -5.3% 3600 Arts entertainment Agriculture mining etc % change 2009 to 2010 2009 2010 -12.1% 2300 -14.8% 2.8% 3700 500 -28.6% 900 Financial & insurance 0.0% 2000 Information & communication 0.0% 2200 4.8% 2000 -4.8% 5300 0.0% 2600 -7.1% 1100 Motor trades 22.2% 1700 Construction -5.6% 9800 Manufacturing 500 Agriculture mining etc 0 -10.9% 25.0% 2000 4000 6000 8000 10000 12000 14000 Source: Business Register & Employment Survey/ABI via NOMIS Source: Business Register & Employment Survey/ABI via NOMIS 12 Earnings Wages and salaries are the major components of household income. Therefore analysis of the current changes in wages and salaries plays an important part in understanding changes in total household income. Percentage change in gross weekly earnings of employees, annual percentage change 6.0% Data from ASHE provides information on earnings at Local Authority level, the figures shows median gross weekly earnings for all full time resident employees in Blackburn with Darwen from 2002 to 2010 4.0% 4.1%4.3% 2.0% % change Gross weekly pay - All full time workers 600 500 3.2% 1.9%2.2% 2.1%2.4%2.3% 2009 2010 0.3% 0.0% 2008 -2.0% 2011 -2.3% 400 -2.4% -4.0% £ 300 -6.0% 200 Blackburn with Darwen North West Great Britain 100 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 0 Blackburn with Darwen North West Great Britain -5.8% -8.0% Source: Annual Survey of Hours and earnings (ASHE) via NOMIS Resident and workplace based earnings: Median Gross Weekly Earnings by Place of Residence and Place of Work, April 2010 Source: Annual Survey of Hours and earnings (ASHE) via NOMIS Median weekly earnings for full-time residents in Blackburn with Darwen (£412.8) were £90.3 or 17.9% lower than the national average of £503.1 and 10.3% (£47.2) lower than the North West average. Gross average weekly earnings for Blackburn with Darwen residents decreased by £25.40 or 5.8% on 2010 levels, BwD is only Pennine Lancashire district to experience a decrease in resident earnings. Male resident based earnings decreased by 9.7% and that for females by 19.3%, overall resident based earnings decreased by 5.8% and workplace earnings increased by 0.5%. (See table opposite) Full-time males Part-time males All males Residence -based Workplace-based Weekly % change Weekly % change pay (£) 2010-2011 pay (£) 2010-2011 -9.7% 1.8% 421.6 458.9 5.9% 150.6 185.8 -2.0% 2.5% 388.2 417.5 % Resident/ Workplace -8.1% -18.9% -7.0% Full-time females Part-time females All females 339.5 167.7 277.9 -19.3% 5.5% -1.3% 400.9 153.6 328.9 -9.2% -1.4% -15.3% 9.2% -15.5% All full-time employees 412.8 -5.8% 446.2 0.5% -7.5% Figures are for all employees on adult rates of pay not affected by absence. Source ONS: Annual Survey of Hours and Earnings 13 Housing market From January 2002, average house prices in Blackburn with Darwen increased consistently in line with national trends from £40,000 to almost £100,000 in June 2008. The average house price in August 2011 is £74,337 up 0.5% from the previous month but down by 10.4% from the August 2010 level of £82,924. The graphs suggests an inverse relationship between house prices and sales volume such that at times when house prices were low sales volume was high the opposite is now true. House sales and volumes 120,000 450 Blackburn with Darwen Average price (£) 350 80,000 300 250 60,000 200 40,000 150 Average price £ Sales Volume 50 Feb-12 Feb-11 Feb-10 Feb-09 Feb-08 Feb-07 Feb-06 Feb-05 Feb-04 Feb-03 Feb-02 Feb-01 Feb-00 Feb-99 Feb-98 Feb-97 0 Feb-96 0 Feb-95 SemiDetached Terraced Maisonette/Flat All Feb-12 170,975 95,251 49,729 51,578 77,978 House sales were 25% lower in December 2011 compared with December 2010 Mortgage repossession It is typical for the number of residential mortgage possession actions to increase during a recession as unemployment rises and monthly payments become harder to meet. Court actions for mortgage possession 3.50 100 20,000 Detached 400 100,000 Sales volume Month Blackburn with Darwen UA North West England and Wales 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Month Index Feb-2012 158.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Source: HM Land registry Average price (£) 77,978 Monthly change % 0.7% Annual change % -4.4% Sales volume - Average house prices locally have been consistently lower than the North West and Lancashire averages. The average house price in Blackburn with Darwen is 30% lower than the North West average. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Ministry of justice The quarterly rate 1.30 (per thousand households) for Blackburn with Darwen is higher than the regional 1.0 and national rate 0.8. There have been a total of 70 court actions on mortgage arrears in Blackburn with Darwen for quarter 4 and 275 in total for the year. Quarter four shows 7% decrease on the same quarter of the previous year, while the yearly decrease in repossessions is down by 5.2% 14 negative impact on healthy eating but may help with smoking cessation 2. There is further limited evidence to suggest adverse impacts on mental health3. Landlord repossession Court actions for mortgage possession - Landlords 4.50 4.00 Information on heath conditions suffered by out of work benefit claimants are available from the Incapacity Benefit/Severe Disablement Allowance (IB/SDA) and Employment Support Allowance (ESA) claimant data. Blackburn with Darwen UA North West England and Wales 3.50 3.00 From 31st January 2011 people were no-longer able to make new IB claims as ESA was introduced. SDA was withdrawn to new claimants in April 2001. 2.50 2.00 1.50 1.00 0.50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Ministry of justice There have been a total of 95 court actions on mortgage arrears for landlords in Blackburn with Darwen, no change on the same quarter of the previous year. The quarterly court actions figures show Blackburn with Darwen’s court actions for mortgage possession of 1.76 (per thousand households) to be on a higher than the regional (1.44) and national trends and national rate (1.5). Of the 6,390 IB/SDA claimants in the borough at November 2011, almost half (48.7%) were claiming because of mental and behavioural disorders. A greater proportion than the England average (44.1%). Diseases of the musculoskeletal system and connective tissue formed the second greatest proportion of claimants (16.7%) and symptoms not elsewhere classified he third largest group (9.9%). The latter categories were on a par with the national averages 16.7% and 11.3% respectively. Of the 3,570 ESA claimants in the borough in November 2011, mental and behavioural disorders again comprises the greatest proportion (44.8%) compared to 41.4% in England. As with the figures for IB/SDA, diseases of the musculoskeletal system was again the second categories.- (Blackburn with Darwen 14.8% compared to 14.6% England). Health There is no evidence to suggest specific impacts of the recession on health and ill-health locally. Research evidence indicates that there is a strong link between long term impacts of economic cycles and mortality rates resulting from a widening social divide1. General research indicates 2 1 Colledge M, Economic cycles and health. Towards a sociological understanding of the impact of the recession on health and illness, 1982 European Public Health Alliance, Recession affects healthy eating options, http://www.epha.org/a/3468, 2009 3 Nursing Times.net, Public health in a recession, November 2008 15 Recorded crime Recorded crime is taken from CORA (available via the MADE database). Cora is a monthly snapshot of data downloaded on the 1 st of the month and isn't refreshed with audited data. Recorded crime in Blackburn with Darwen All crime 2008-11 1400 1200 1000 800 600 400 200 0 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 The broad trend for crime has been downward, decreasing from 1,248 in April 2008 to 753 in December 2010. Since December 2010 all crime has increased reaching a peak of 1076 in July 2011, since then the trend has been downwards. There are on average of 38.4 burglaries per month, (over the last 12 months). Burglaries have increased by over a 3.1% over the year and by 26.9% over the month. Auto crime – month on month variation, interspersed with decreases followed by sharp increases, 76% annual increase Criminal damage – overall downward trend, sharp increase between July 2011-October 2011. Violent crime – shows month on month variation, overall shows a shallow downward trend, 13.9% annual decrease and 4.4% monthly decrease. Source: Multi Agency Data Exchange -MADE Recorded crime in Blackburn with Darwen Recorded crime in Blackburn with Darwen 70 60 50 40 30 20 10 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 0 Auto crime 2008-11 160 140 120 100 80 60 40 20 0 Annual change -13.9% Monthly change -4.4% Average =219.8 per month Recorded crime in Blackburn with Darwen 400 Recorded crime in Blackburn with Darwen Criminal damage 2008-11 350 350 Violent crime 2008-11 300 300 250 250 200 200 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Burglary dwelling 2008-11 Annual change +2.0% Monthly change -14.8% Average =195.6 per month 150 150 100 100 50 50 0 0 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Annual change +76.0% Monthly change -19.3% Average =96.3 per month Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Annual change +3.1 Monthly change +26.9% Average =37.5 per month 16