Employment and businesses characterisitcs in Blackburn and Darwen Corporate research joint intelligence brief – October 2011 Background The purpose of this report is to present data on the employment and business characteristics of the towns of Blackburn and Darwen separately and the borough as a whole. The town level data have been derived from a range of data sources that are available to different geographical areas. However, the areas of Blackburn and Darwen have been consistently defined as: Blackburn - all wards to the north of the M65 motorway Darwen – the wards Earcroft, Marsh House, Sudell, Sunnyhurst and Whitehall This report focuses mainly on employment and business characteristics for the borough as a whole, but also includes data for the towns of Blackburn and Darwen. The most recent data for Blackburn with Darwen borough is from 2010 for the Business Register and Employment Survey and 2011 for the Inter Departmental Business Register. Whilst for the towns of Blackburn and Darwen data relates to 2010. Reports for Blackburn with Darwen as a whole on topics such as business births and deaths and earnings are produced separately. Summary In Blackburn with Darwen as a whole there are 60,200 people in employment (employees and sole proprietors etc) There are 8,400 people in employment in Darwen and 51,000 in Blackburn. In Blackburn with Darwen the largest employment sectors are: Health (17.8%) Education (10.0%) Manufacturing (16.6%) Retail (9.6%) Darwen’s employment base is heavily reliant on the manufacturing sector as 36% of people in employment are employed in this sector. Over the last three years there has been a decrease of 7.7% in the number of people in employment in the borough. Employment – Business Register and Employment Survey Information on employment in the borough is taken from BRES (Business Register and Employment Survey). This data is accessible down to small areas and it is from this data that figures for the towns of Darwen and Blackburn can be derived. Data is available for employees and employment. An ‘employee’ is anyone aged 16 years or over that an organisation directly pays from its payroll(s), in return for carrying out a full-time or part-time job or being on a training scheme. It excludes voluntary workers, self-employed, working owners who are not paid via PAYE. The ‘employment’ figures are calculated as the total number of employees and working proprietors. Working Proprietors are sole traders, sole proprietors, partners and directors. This does not apply to registered charities. The figures in the following section relate to ‘employment’ data. All BRES and ABI data in this report excludes farm agriculture (SIC subclass 01000). In total there were 51,000 people in employment in Blackburn and 8,400 in Darwen in 2010. For Blackburn with Darwen as a whole the total number of people in employment was 60,200 As would be expected, numerically, there are far greater levels of employment in each industry sector in Blackburn compared to Darwen. Darwen’s employment base is heavily reliant on the manufacturing sector as 36% of people in employment are employed in this sector. The next largest sectors in Darwen town are ‘health’ (9%), ‘information and communication’ (8%), ‘retail’ (8%) and ‘education’ (7%). Compared to Blackburn, Darwen has a greater proportion of people employed in ‘information and communications’ and the ‘accommodation and food services’. (See appendix for classification details). Just under a fifth (19%) of employment in Blackburn is in the ‘health’ sector, this is the largest sector in the town. ‘Manufacturing’ (15%), ‘education’ (10%) and ‘retail’ (9%) are the next largest sectors. Employment in Blackburn and Darwen – number of people in employment in each sector, 2010 A rts, entertainment, recreatio n & o ther services (R,S,T and U) Health (Q) Educatio n (P ) P ublic administratio n & defence (O) B usiness administratio n & suppo rt services (N) P ro fessio nal, scientific & technical (M ) P ro perty (L) Financial & insurance (K) Info rmatio n & co mmunicatio n (J) A cco mmo datio n & fo o d services (I) Transpo rt & sto rage (inc po stal) (H) Retail (P art G) Who lesale (P art G) M o to r trades (P art G) Co nstructio n (F) Darwen M anufacturing (C) Blackburn A griculture, fo restry & fishing and M ining, quarrying & utilities (A ,B ,D and E) 0 2,000 4,000 6,000 Number 8,000 10,000 12,000 Employment in Blackburn and Darwen - proportion of employment in each sector, 2010 Arts, entertainment, recreation & other services (R,S,T and U) Darwen Blackburn Health (Q) Education (P) Public administration & defence (O) Business administration & support services (N) Professional, scientific & technical (M) Property (L) Financial & insurance (K) Information & communication (J) Accommodation & food services (I) Transport & storage (inc postal) (H) Retail (Part G) Wholesale (Part G) Motor trades (Part G) Construction (F) Manufacturing (C) Agriculture, forestry & fishing and mining, quarrying & utilities (A,B,D and E) 0 5 10 15 20 25 30 35 Percentage Employment in Blackburn with Darwen borough - proportion and number of employment in each sector, 2010 (rounded to the nearest 100) Number Agriculture, forestry & fishing and mining, quarrying & utilities (A,B,D and E) Manufacturing (C) Construction (F) Motor trades (Part G) Wholesale (Part G) Retail (Part G) Transport & storage (inc postal) (H) Accommodation & food services (I) Information & communication (J) Financial & insurance (K) Property (L) Professional, scientific & technical (M) Business administration & support services (N) Public administration & defence (O) Education (P) Health (Q) Arts, entertainment, recreation & other services (R,S,T and U) Total 500 10000 2000 1200 2800 5800 2100 2300 2100 900 700 4100 2400 2900 6000 10700 3700 60200 Percentage 0.8 16.6 3.3 2.0 4.7 9.6 3.5 3.8 3.5 1.5 1.2 6.8 4.0 4.8 10.0 17.8 6.1 100 2009 Arts, entertainment, recreation & other services (R,S,T and U) 2009 Arts, entertainment, recreation & other services (R,S,T and U) 2008 Health (Q) Education (P) 2008 Health (Q) Education (P) 12000 Public administration & defence (O) Business administration & support services (N) Professional, scientific & technical (M) Property (L) Financial & insurance (K) Information & communication (J) Accommodation & food services (I) Transport & storage (inc postal) (H) Retail (Part G) Wholesale (Part G) Motor trades (Part G) Construction (F) Manufacturing (C) Agriculture, forestry & fishing, mining, quarrying & utilities (A,B,D and E) Number 14,000 Public administration & defence (O) Business administration & support services (N) Professional, scientific & technical (M) Property (L) Financial & insurance (K) Information & communication (J) Accommodation & food services (I) Transport & storage (inc postal) (H) Retail (Part G) Wholesale (Part G) Motor trades (Part G) Construction (F) Manufacturing (C) Agriculture, forestry & fishing, mining, quarrying & utilities (A,B,D and E) Number The BRES was introduced in 2008 and provides historical data for the last three years. This data is classified using the 2007 standard industrial classification. Over the last three years in Blackburn with Darwen as a whole, the largest numerical decreases in employment numbers have been seen in the ‘manufacturing’ and ‘business administration and support services’ sectors, which have seen decreases of -2,500 and -2,300 respectively. The sectors that have seen the largest increases are ‘health’ and ‘professional, scientific and technical sectors’ which have seen increases of 1,300 and 800 respectively. Employment in Blackburn with Darwen borough from 2008 to 2010 2010 12,000 10,000 8,000 6,000 4,000 2,000 0 Employment in Blackburn from 2008 to 2010 2010 10000 8000 6000 4000 2000 0 Employment in Darwen from 2008 to 2010 3,500 2008 2009 2010 3,000 Number 2,500 2,000 1,500 1,000 500 (R,S,T and U) Arts, entertainment, recreation & other services Health (Q) Education (P) Public administration & defence (O) Business administration & support services (N) Professional, scientific & technical (M) Property (L) Financial & insurance (K) Information & communication (J) Accommodation & food services (I) Transport & storage (inc postal) (H) Retail (Part G) Wholesale (Part G) Motor trades (Part G) Construction (F) Manufacturing (C) utilities (A,B,D and E) Agriculture, forestry & fishing, mining, quarrying & 0 Employers - Inter Departmental Business Register The Office for National Statistics holds a data set called the Inter Departmental Business Register (IDBR). Statistics from this data source are produced at borough level and down to middle layer super output areas (msoa). IDBR is made up of businesses registered to pay VAT and PAYE businesses. The following statistics present data on ‘local units’ and ‘enterprises’. ONS have provided the following definition of these terms: A group of legal units under common ownership is called an Enterprise Group. An Enterprise is the smallest combination of legal units (generally based on VAT and/or PAYE records) which has a certain degree of autonomy within an Enterprise Group. An individual site (for example a factory or shop) in an enterprise is called a local unit. Data using the 2007 SIC has been available from 2009 and data presenting PAYE and VAT (rather than just VAT) enterprises available from 2008. A small number of businesses without VAT or PAYE schemes, self employed businesses and those with a low turnover and without employees, will not be covered by the IDBR. Local Units Broad industrial groups In addition to data on employees in the borough, the IDBR allows the classification of enterprises and local units by broad industrial group. The data below presents figures for local units. Between 2009 and 2011 the number of local units in Blackburn with Darwen dropped by 4.8%, from 5,005 to 4,765. Within the North West as a whole the number of local units dropped by 4.7%. Number of local units in Blackburn with Darwen and percentage change between 2009 and 2011 for Blackburn with Darwen and North West 900 20.0 800 2009 2010 2011 BwD change NW change 15.0 10.0 600 5.0 500 0.0 400 -5.0 300 Percentage change Number of local units 700 -10.0 200 Arts, entertainment, Health Education Public administration Business administration Professional, scientific & Property Finance & insurance Information & communication Accommodation & food services Transport & storage (inc. Retail Wholesale Motor trades -20.0 Construction 0 Production -15.0 Agriculture, forestry & 100 The number of local units in the ‘health’ classification has increased over the last three years by 13.7%. This sector has also increased in the North West region, although to a lesser degree (6.7%). Some of the largest percentage decreases in local units in Blackburn with Darwen were seen in the ‘accommodation and food services’ and ‘information and communication’ sectors. Size Over the three year period, there has been a decrease in the number of enterprises and local units of almost all sizes. The graph and table below present the figures for local units. The majority of local units in Blackburn with Darwen, 61.9%, had 0 to 4 people in employment. Local unit employment size in Blackburn with Darwen 3,500 2009 3,000 2010 2011 Number 2,500 2,000 1,500 1,000 500 0 0-4 5-9 10 - 19 20 - 49 50 - 99 100 249 250 499 500 - 1,000 + 999 Local unit employment size in Blackburn with Darwen 2009 2010 2011 2009-2011 difference number 2009-2011 difference percentage Number in employment 20 50 - 100 - 250 49 99 249 499 355 125 80 15 340 115 65 15 355 120 60 20 0-4 5-9 3,115 3,030 2,950 815 770 780 10 19 490 505 480 -165 -35 -10 0 -5 -20 -5.3 -4.3 -2.0 0.0 -4.0 -25.0 500 999 5 5 0 1,000 + 5 5 0 5 -5 -5 -240 33.3 -100.0 -100.0 -4.8 TOTAL 5,005 4,850 4,765 Enterprises Between 2009 and 2011 the number of enterprises decreased by 5.3% (-205), from 3,885 to 3,680. Turnover Again over the last three years the number of enterprises with a turnover of between £0 and £49,000 has increased in the borough by around 13%. A similar trend was seen regionally, were enterprises in this category increased, although to a lesser proportion, by 6%. Likewise the number of enterprises in the borough that saw turnover of between £50,000 and £99,000 saw a substantial decrease of 18%, from 930 enterprises in 2009 and 765 in 2011. In the North West the number of enterprises in this category decreased by 12%. Enterprise turnover in Blackburn with Darwen 1,200 2009 1,000 2010 2011 Number 800 600 400 200 0 0 - 49 50 - 99 100 - 249 250 - 499 500 - 999 £ thousands 1,000 4,999 5,000 + Age Over the last three years the number of younger enterprises, three or under years old, has decreased in the borough. The number of enterprises has dropped from 1,320 in 2009 to 1,125 in 2011, a decrease of around 17%. This trend has been seen in the North West as a whole, where the number of enterprises aged three or under has dropped by 20%. Age of enterprises in Blackburn with Darwen 4,500 4,000 2009 2010 2011 3,500 Number 3,000 2,500 2,000 1,500 1,000 500 0 Less than 2 Years 2 - 3 Years 4 - 9 Years 10 or more Years TOTAL Broad Industrial Groups The industrial groups that have seen the largest percentage decreases are in: 1. Information and communication 5. Business administration and support services 2. Production 6. Construction 3. Education 7. Accommodation and food services 4. Transport and storage Enterprises by broad industrial group in Blackburn with Darwen Blackburn and Darwen towns Data is also available to middle super output area, so that comparisons between Blackburn and Darwen can be made, however data for 2011 has not yet been released. An Enterprise is the smallest combination of legal units (generally based on VAT and/or PAYE records) which has a certain degree of autonomy within an Enterprise Group. An individual site (for example a factory or shop) in an enterprise is called a local unit. Number and percentage of people in employment in local units for Blackburn and Darwen, March 2008 to March 2010 March 2010 March 2009 March 2008 Blackburn Darwen Blackburn Darwen Blackburn Darwen All VAT and/or PAYE Based Local Units 3645 865 3755 915 3745 915 All 0 to 4 Persons Employed Number % 2160 59.3 575 66.5 2215 59.0 615 67.2 2235 59.7 615 67.2 All 5 to 9 Persons Employed Number % 600 16.5 130 15.0 650 17.3 145 15.8 615 16.4 155 16.9 All 10 to 19 Persons Employed Number % 420 11.5 80 9.2 385 10.3 80 8.7 420 11.2 75 8.2 All 20 or More Persons Employed Number % 465 12.8 80 9.2 505 13.4 75 8.2 475 12.7 70 7.7 The number and proportion of businesses that were less than two years old have decreased in both Blackburn and Darwen. These figures are based on ‘enterprises’. Number and percentage of enterprises in Blackburn and Darwen by age, March 2008 to March 2010 March 2010 March 2009 March 2008 Blackburn Darwen Blackburn Darwen Blackburn Darwen All VAT and/or PAYE Based Enterprises 2710 710 2810 745 2815 765 Less than 2 Years Old Number % 485 17.9 115 16.2 525 18.7 135 18.1 565 20.1 150 19.6 2 to 3 Years Old Number % 430 15.9 100 14.1 475 16.9 100 13.4 465 16.5 110 14.4 4 to 9 Years Old Number % 750 27.7 185 26.1 745 26.5 205 27.5 730 25.9 195 25.5 10 or More Years Old Number % 1045 38.6 310 43.7 1065 37.9 305 40.9 1055 37.5 310 40.5 Although only available for 2008 and 2009, data from the IDBR is also available that classifies local units as either ‘public’ or ‘private’. However, these statistics only classify the business and do not capture the proportion of employees in each business. These figures highlight that of the local units in Blackburn 8.3% were classified as public, with 4.9% in Darwen. Copyright, sources and further information For further information please contact: Elise Carroll Research and Intelligence Advisor Corporate Research Joint Intelligence 3rd Floor Old Town Hall elise.carroll@blackburn.gov.uk 01254 585693 Contains public sector information licensed under the Open Government Licence v1.0 Sources: Business Register and Employment Survey https://www.nomisweb.co.uk/Default.asp Inter Departmental Business Register – borough level http://www.ons.gov.uk/ons/publications/all-releases.html?definition=tcm%3A77-21554 Inter Departmental Business Register – small areas http://neighbourhood.statistics.gov.uk/dissemination Definitions Local unit The local unit is an enterprise or part thereof (e.g. a workshop, factory, warehouse, office, mine or depot) situated in a geographically identified place. At or from this place economic activity is carried out for which - save for certain exceptions - one or more persons work (even if only parttime) for one and the same enterprise. Enterprise An enterprise is defined as the smallest combination of legal units that is an organisational unit producing goods or services, which benefits from a certain degree of autonomy in decisionmaking, especially for the allocation of its current resources. An enterprise carries out one or more activities at one or more locations. Appendix – Standard Industrial Classification 2007 A AGRICULTURE, FORESTRY AND FISHING 01 B C 02 03 Crop and animal production, hunting and related service activities Forestry and logging Fishing and aquaculture 05 06 07 08 09 Mining of coal and lignite Extraction of crude petroleum and natural gas Mining of metal ores Other mining and quarrying Mining support service activities 10 11 12 13 14 15 16 30 31 32 33 Manufacture of food products Manufacture of beverages Manufacture of tobacco products Manufacture of textiles Manufacture of wearing apparel Manufacture of leather and related products Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials Manufacture of paper and paper products Printing and reproduction of recorded media Manufacture of coke and refined petroleum products Manufacture of chemicals and chemical products Manufacture of basic pharmaceutical products and pharmaceutical preparations Manufacture of rubber and plastic products Manufacture of other non-metallic mineral products Manufacture of basic metals Manufacture of fabricated metal products, except machinery and equipment Manufacture of computer, electronic and optical products Manufacture of electrical equipment Manufacture of machinery and equipment n.e.c. Manufacture of motor vehicles, trailers and semitrailers Manufacture of other transport equipment Manufacture of furniture Other manufacturing Repair and installation of machinery and equipment 35 Electricity, gas, steam and air conditioning supply 36 37 38 39 Water collection, treatment and supply Sewerage Waste collection, treatment and disposal activities; materials recovery Remediation activities and other waste management services. This division includes the provision of remediation services, i.e. the cleanup of contaminated buildings and sites, soil, surface or ground water. 41 42 43 Construction of buildings Civil engineering Specialised construction activities MINING AND QUARRYING MANUFACTURING 17 18 19 20 21 22 23 24 25 26 27 28 29 D E F ELECTRICITY, GAS, STEAM AND AIR CONDITIONING SUPPLY WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES CONSTRUCTION G WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES 45 46 47 H I J TRANSPORTATION AND STORAGE 49 50 51 52 53 Land transport and transport via pipelines Water transport Air transport Warehousing and support activities for transportation Postal and courier activities 55 56 Accommodation Food and beverage service activities 58 59 Publishing activities Motion picture, video and television programme production, sound recording and music publishing activities Programming and broadcasting activities Telecommunications Computer programming, consultancy and related activities Information service activities ACCOMMODATION AND FOOD SERVICE ACTIVITIES INFORMATION AND COMMUNICATION 60 61 62 63 K FINANCIAL AND INSURANCE ACTIVITIES 64 65 66 L M 68 Real estate activities 69 70 Legal and accounting activities Activities of head offices; management consultancy activities Architectural and engineering activities; technical testing and analysis Scientific research and development Advertising and market research Other professional, scientific and technical activities Veterinary activities PROFESSIONAL, SCIENTIFIC AND TECHNICAL ACTIVITIES 72 73 74 75 ADMINISTRATIVE AND SUPPORT SERVICE ACTIVITIES 77 78 79 80 81 82 O Financial service activities, except insurance and pension funding Insurance, reinsurance and pension funding, except compulsory social security Activities auxiliary to financial services and insurance activities REAL ESTATE ACTIVITIES 71 N Wholesale and retail trade and repair of motor vehicles and motorcycles Wholesale trade, except of motor vehicles and motorcycles Retail trade, except of motor vehicles and motorcycles Rental and leasing activities Employment activities Travel agency, tour operator and other reservation service and related activities Security and investigation activities Services to buildings and landscape activities Office administrative, office support and other business support activities PUBLIC ADMINISTRATION AND DEFENCE; COMPULSORY SOCIAL SECURITY 84 Public administration and defence; compulsory social security 84.1 84.11 84.12 84.13 84.2 84.21 84.22 84.23 84.24 84.25 84.3 84.30 P EDUCATION 85 Q 92 93 95.1 95.2 Activities of membership organisations Activities of business, employers and professional membership organisations Activities of trade unions Activities of other membership organisations Repair of computers and personal and household goods Repair of computers and communication equipment Repair of personal and household goods 96 96.0 Other personal service activities Other personal service activities 94.2 94.9 95 ACTIVITIES OF HOUSEHOLDS AS EMPLOYERS; UNDIFFERENTIATED GOODS-AND SERVICESPRODUCING ACTIVITIES OF HOUSEHOLDS FOR OWN USE 97 98 U Creative, arts and entertainment activities Libraries, archives, museums and other cultural activities Gambling and betting activities Sports activities and amusement and recreation activities OTHER SERVICE ACTIVITIES 94 94.1 T Human health activities Hospital activities Medical and dental practice activities Other human health activities Residential care activities Social work activities without accommodation ARTS, ENTERTAINMENT AND RECREATION 90 91 S Education HUMAN HEALTH AND SOCIAL WORK ACTIVITIES 86 86.1 86.2 86.9 87 88 R Administration of the State and the economic and social policy of the community General public administration activities Regulation of the activities of providing health care, education, cultural services and other social services, excluding social security Regulation of and contribution to more efficient operation of businesses Provision of services to the community as a whole Foreign affairs Defence activities Justice and judicial activities Public order and safety activities Fire service activities Compulsory social security activities Compulsory social security activities Activities of households as employers of domestic personnel Undifferentiated goods- and services-producing activities of private households for own use ACTIVITIES OF EXTRATERRITORIAL ORGANISATIONS AND BODIES 99 Activities of extraterritorial organisations and bodies