London Conference 2013:
London’s Economy
Mark Kleinman
Director, Economic and Business Policy
Greater London Authority
London’s economy –
fundamental strengths
• Vast, global city economy
• Job growth of over 800,000 between 1996
and 2011; forecast of 850,000 2011-2036
• International centre of trade and innovation
• Resilient, diverse economy
• Strong globally competitive position
London is a sought-after business location
Attractiveness of London to business
2011
2010
2009
2008
2011 Lead
Availability of qualified staff
1
1
1
1
London
Easy access to markets
1
1
1
1
London
Quality of telecommunications
1
1
1
1
London
External transport links
1
1
1
1
London
=30
29
28
29
Bucharest
Climate for doing business
3
2
4
5
Dublin
Language spoken
1
1
1
1
London
=24
26
23
24
Warsaw
Internal transport
1
1
1
1
London
Availability of office space
10
=4
2
5
Berlin
Quality of life
10
10
11
14
Barcelona
Freedom from pollution
25
=25
29
27
Stockholm
Cost of staff
Office space - value for money
Source: European Cities Monitor, Cushman & Wakfield (2008-2011)
Firms can access a large volume of people who
themselves are attracted to live and work in London.
Number of residents accessible by public transport in 45 minutes
Source: TfL
London’s deep
assets:
(1) Knowledge
Economy
London’s deep
assets:
(2) Global Hub
London’s global
assets:
(3) Infrastructure
So there is a concentration of employment in
London, particularly central London.
Number of people in employment per sq km, all sectors
Source: ONS (BRES) 2011
London’s labour productivity
140
Index UK = 100
135
130
London
125
120
115
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
GVA per hour worked index, London, 1996 – 2009, UK = 100 (Source:
ONS/BIS 2010)
London’s employment (as well as population) is
forecast to grow further
000s
7000
6000
5000
4000
3000
Historic
Projected
2000
1000
Source: GLA Economics Working Paper 52, Workforce Jobs series (ONS), GLA
Economics calculations
2036
2032
2028
2024
2020
2016
2012
2008
2004
2000
1996
1992
1988
1984
0
… particularly in the professional business services
sector.
000s
1200
Professional, Real Estate, Scientific and
Technical Activities
1000
Health
Administrative and Support Service
Activities
800
Retail
600
Financial and Insurance Activities
Information and Communication
400
Accomodation and Food Service
Activities
200
Education
Source: GLA Economics Working Paper 52, Workforce Jobs series (ONS), GLA
Economics calculations
2036
2032
2028
2024
2020
2016
2012
2008
2004
2000
1996
1992
1988
1984
0
Mayor of London’s Policy Priorities
• Mayor’s 2020 Vision and the recommendations of London
Finance Commission
• Economic diversification, especially linked to science, tech
and world-class universities
• Next round of infrastructure – Crossrail 2, housing, cycling,
airport capacity
• Expansion of Central Business District – Kings Cross,
Battersea, Canary Wharf etc
• Links to Greater South East and the UK
• Economic opportunity: 250k apprenticeships target; 200k
jobs from GLA investment; London Living Wage