Creative Industries in the Regions
An analysis of data from the Inter Departmental Business Register:
2006-2008
Andy Botterill
ONS Regional Analyst in the East Midlands
Regional Statisticians in the East Midlands
1
Introduction
This paper presents an analysis of local uniti and employment data from the Inter
Departmental Business Registerii (IDBR). It uses the five digit Standard Industry Codes
(SIC) for the creative industries as used by Frontier Economics in their ‘Analysis of the
Creative Industriesiii’ for the Department of Culture Media and Sportiv in 2007. The IDBR
contains businesses that are either registered for Value Added Tax or operate Pay as You
Earn: these are the businesses whose outputs make a contribution to economic measures
such as Gross Value Added (GVA).
This analysis presents data for the years 2006-2008 based on SIC 2003 codes. Although
2009 data are available these were collected based on the current SIC 2007 classification
and conversion tables between the two industrial classifications would have to be used to get
time series data. However, this is not exact and any variations in 2009 data compared to
earlier years might be because of differences in the methodology and not actual changes in
the business composition.
The SIC codes used here are from layer one of the Frontier Economics model:
36509 Manufacture of other games and toys not elsewhere classified
7221 Publishing of software
7222 Other software consultancy and supply
74201 Architectural activities
74202 Urban planning and landscape architectural activities
74205 Engineering design activities for industrial process and
production
74402 Planning creation and placement of advertising activities
74813 Other specialist photography
Regional Statisticians in the East Midlands
74819 Other photographic activities not elsewhere
classified
74872 Speciality design activities
9240 News agency activities
92111 Motion picture production on film or video
tape
92119 Other motion picture and video production
activities
92201 Radio activities
92202 Television activities
92311 Live theatrical presentations
92319 Other artistic and literary creation and
interpretation
2
Summary – Creative Industries in England
In 2008:
 There were an estimated 149,100 local units designated as creative industries - 6.6 per
cent of all local units
 The total count of employment in the local units designated as creative industries was
around 683,600, 2.9 per cent of employment in all local units
 On average local units in these creative industries employed fewer people than in other
local units: the average number in employment was 4.5, compared to 10.5 in all local
units
 A higher percentage of creative local units are located in urban areas: 80 per cent of the
local units in this creative sector were located in urban areas, compared with the average
of 75 per cent of all local units
 These creative industries formed 7.1 per cent of local units in urban areas, but only 5.2
per cent in rural areas.
Between 2006 and 2008:
 There was an increase of 13.1 per cent in local units designated as creative industries
compared to 4.5 per cent for all local units
 Employment within these creative industries increased by 10.7 per cent compared to 2.4
per cent for all local units
Regional Analysisv
Counts of creative industries and levels of employment
As with all local units the distribution of the creative industries and those employed within
them was not even throughout the English regions. Chart 1 shows the number of the local
units that have been categorised as being creative and their levels of employment for each of
the nine government office regions in England in 2008. London had both the largest count of
local units (43,900) and level of employment (235,100), conversely the North East had the
lowest at 2,800 and 15,600 respectively.
In general the number of local units that are designated as creative increased between 2006
and 2008; however, the North East showed little change while the North West experienced a
slight decline over this time period from 11,900 in 2006 to 11,700 in 2008. Of all the English
regions London had the largest numerical increase up from 42,200 in 2006 to 49,300 in 2008
(Chart 2).
Regional Statisticians in the East Midlands
3
Chart 1
Count of local unit and employment in the creative industry categories, by GOR; 2008
250,000
200,000
150,000
100,000
50,000
0
North East
North West
Yorkshire
and The
Humber
East
Midlands
West
Midlands
Count of local units
East of
England
London
South East
South West
Count of employment
Chart 2
Count of local units in the creative industry categories, by GOR; 2006-2008
60,000
50,000
40,000
30,000
20,000
10,000
0
North East
North West
Yorkshire and East Midlands
The Humber
2006
West
Midlands
2007
East of
England
London
South East
South West
2008
When the growth in creative industries is compared to growth across all local units there are
obvious differences, however these are not consistent across the regions. Chart 3 shows
the percentage growth in the number of creative industries compared to all local units
between 2006 and 2008. The largest increase in creative industries over the time period was
in the West Midlands at over 16 per cent. Every other region showed an increase apart from
the North West were there was a decline of almost 2 per cent in the count of creative
industries. In most regions the percentage increase in local units categorised as creative
industries was larger than for all local units: the exceptions were the North East and North
West.
These inconsistencies are also evident in the changes seen in employment levels. Chart 4
shows the percentage growth in employment within these creative industries compared to all
local units for all regions between 2006 and 2008. All regions showed larger increases in
creative industry employment compared to all local unit employment: the largest was in the
North West at around 23 per cent while the smallest increase was in the South East at just
over 6 per cent.
Regional Statisticians in the East Midlands
4
Chart 3
Percentage increase in creative industry local units compared to growth in all local units:
2006-2008 English regions
18
16
14
Percentage
12
10
8
6
4
2
0
-2
-4
England
North East North West
Yorkshire
and The
Humber
East
Midlands
Percentage of creative industry local units
West
Midlands
East of
England
London
South East South West
Percentage change all local units
Chart 4
Percentage increase in employment within the creative industry local units compared to
employment growth in all local units: 2006-2008 English regions
25
Percentage
20
15
10
5
0
England
North East North West Yorkshire
and The
Humber
East
Midlands
Percentage change in creative industry local unit employment
West
Midlands
East of
England
London
South East South West
Percentage change in all local unit employment
In the North West, there was increase in employment in the creative industries of 23 per cent
between 2006 and 2008 despite there being a fall in the number of local units of nearly 2 per
cent. This can be explained by structural changes affecting the distribution of the region’s
industries. For example the largest category ‘other software consultancy and supply’ which
includes ‘analysis, design and programming of systems ready to use’vi formed 59 per cent of
all units in these categories in 2006, but only 48 per cent in 2008. In this category there was
a substantial fall in the number of local unit whilst there was an increase in employment. This
may be the result of mergers, opening of larger local units or reclassification. As this is by far
the largest category it has a substantial effect on the total number of units and employment in
the region. In some of the other smaller SIC categories there were increases in both
employment and the number of local units, but these do not have as much influence on the
overall figures. This is discussed further as part of the components of creative industries
section
Regional Statisticians in the East Midlands
5
Size of creative industries
The relative difference between the creative local industries and all local units indicates that
there are very few creative industries with large numbers in employment. The creative local
units in the North East were the largest in terms of employment with an average of 6
employees per local unit. The East of England had the smallest with the average level of
employment for each local unit in these creative categories being less than 4.
Chart 5
Average employment levels, by GOR; 2008
16.0
14.0
Average employment
12.0
10.0
8.0
6.0
4.0
2.0
0.0
England
North East
North
West
Yorkshire
and The
Humber
East
Midlands
West
Midlands
employment in the creative industry local units
Regional Statisticians in the East Midlands
East of
England
London
South
East
South
West
employment in all local units
6
Creative industries by rural and urban split
Chart 6 compares the percentage of all local units which are in the SIC code categories
described above together with the percentages in rural and urban areasvii for all regions and
England. In all regions except the East Midlands and London the percentage of local units in
the creative categories in urban areas was the same or slightly higher than the percentage in
rural areas. The difference between rural and urban areas in London is a consequence of
there being very few areas with a rural classification.
Chart 6
Percentage of all local units in creative catergories, by GOR and rural and urban
classification; 2008
14
12
Percentage
10
8
6
4
2
0
England
North
East
North
West
Yorkshire
East
West
East of
and The Midlands Midlands England
Humber
Rural local units
Urban local units
London
South
East
South
West
All local units
Chart 7 shows that the percentage of local units in these categories was considerably higher
than the percentage of employment for all regions and nationally, reflecting the generally
smaller size of the local units with respect to employment. While 6.6 per cent of all local
units in England were in the creative sector, the percentage varied from 3.5 per cent in the
North East to 12.4 per cent in London. Employment in the creative sector varied between
1.5 per cent of employment within all local units in the North East to 5.7 per cent in London,
compared to 2.3 per cent in England.
Regional Statisticians in the East Midlands
7
Chart 7
Percentage of all local units and employment in the creative catergories by GOR;
2008
14
12
Percentage
10
8
6
4
2
0
England
North East
North West
Yorkshire
and The
Humber
East
Midlands
All local units
West
Midlands
East of
England
London
South East
South West
Employment
Components of Creative Industries - 2008
There is considerable variation in the number of local units in each of the 2003 SIC codes
that make up layer one of the creative industries model. Overall the numbers are dominated
by ‘Other software consultancy and supply’ with over 46 per cent of local units in the creative
categories in England and regional variation between 40 per cent in the North East and 55
per cent in the South East. This means that any change in local units or employment in this
specific category will have a much larger effect on overall numbers than changes in other
categories.
The next six categories which have the highest proportions of local units are ‘Other Artistic
and literary creation and interpretation, ‘Speciality design activities ’, ‘Urban planning and
landscape architectural activities’, ‘Architectural activities’, ‘Other photographic activities not
classified elsewhere’ and ‘Live theatrical presentations’. These six account for a further 38
per cent of local units in the creative categories in England and between 32 per cent (South
East) and 44 per cent (London) in the regions.
Regional Statisticians in the East Midlands
8
Chart 8
Percentage of total creative industry local units in the each of the eight 2003 SIC
categories: 2008
100
90
80
Percentage
70
60
50
40
30
20
10
0
England
North East
North
West
Other categories
Yorkshire
and The
Humber
East
Midlands
West
Midlands
East of
England
London
South
East
South
West
Live theatrical presentations
Other photographic activities not elsewhere classified
Architectural activities
Planning creation and placement of advertising activities
Speciality design activities
Other artistic and literary creation and interpretation
Other software consultancy and supply
Regional Statisticians in the East Midlands
9
Employment in Creative Industries
There are limitations of the use of specific SIC codes to measure employment in creative
occupations:
How many of those employed in industries defined as creative are actually in creative
roles rather than process/output jobs?
The Nestaviii report suggests that only 55 per cent of those employed in the creative sectors
were in “creative” jobs, with others being process or output orientated. Although these
results are based on different a classification of the creative sector, the analysis shows that
those employed in specific sectors should not all be assumed to be in creative jobs.
How many of those in other industrial classifications actually work in creative roles?
The same Nesta report also analysed data from the 2006 Labour Force Survey which
showed that, of SIC classifications outside those designated as creative, the proportion of
“creative” jobs within industries not designated as creative was largest in the Advertising and
Marketing sector.
The conclusion from these two analyses is that the number of “creative” jobs from industries
not designated as creative was at least as large as the number of “creative” jobs from within
those designated as creative.
Why not use occupation codes for analysis?
The main reason for not looking at occupations (SOC) rather than specific industrial SIC
codes is that there is no detailed source of data that can produce a useful comparison over
time.
Regional Statisticians in the East Midlands
10
Regional Information
North East
In 2008:
 There were an estimated 2,800 local units designated as creative industries – 3.5 per cent of all
local units
 The total count of employment in the local units designated as creative industries was around
15,600, 1.5 per cent of all employment in local units in the area
 On average local units in these creative industries employed fewer people: the average number in
employment is 5.7, this compares to 13.6 in all local units
 A higher percentage of creative industries were located in urban areas: 79 per cent of the local
units in this creative sector were in urban areas, compared with the average of 76 per cent of all
local units
 The creative industries formed 4.5 per cent of local units in urban areas, but only 3.0 per cent in
rural areas.
Between 2006 and 2008:
 There was an increase of 3.8 per cent in local units designated as creative industries compared to
5.1 per cent for all local units
 Employment within these creative industries increased by 8.9 per cent compared to 3.0 per cent
for all local units
North West
In 2008:
 There were about 11,700 local units designated as creative industries – 4.4 per cent of all local
units
 The total count of employment in the local units designated as creative industries was around
62,500, 2.1 per cent of all employment in local units in the area
 On average local units in these creative industries employed fewer people: the average number in
employment is 5.3, this compares to 11.4 in all local units
 A higher percentage of creative industries were located in urban areas: 83 per cent were in urban
areas, compared with the average of 81 per cent of all local units
 The creative industries formed 4.5 per cent of local units in urban areas, but 3.9 per cent in rural
areas
Between 2006 and 2008:
 There was a decrease of 1.6 per cent in local units designated as creative industries compared to
3.8 per cent for all local units
 Employment within these creative industries increased by 22.9 per cent compared to 1.7 per cent
for all local units
Yorkshire and the Humber
In 2008:
 There were about 7,600 local units designated as creative industries – about 3.9 per cent of all
local units
 The total count of employment in the local units designated as creative industries was around
36,400, 1.6 per cent of all employment in local units in the area
 On average local units in these creative industries employed fewer people: the average number in
employment is 4.8, this compares to 11.9 in all local units
 A higher percentage of creative industries were located in urban areas: 74 per cent were in urban
areas, compared with the average of 73 per cent of all local units
 The creative industries formed 4.0 per cent of local units in urban areas, but 3.7 per cent in rural
areas
Between 2006 and 2008:
 There was an increase of 10.6 per cent in local units designated as creative industries compared
to 2.9 per cent for all local units
 Employment within these creative industries increased by 7.9 per cent compared to 2.0 per cent
for all local units
Regional Statisticians in the East Midlands
11
East Midlands
In 2008:
 There were about 7,500 local units designated as creative industries – 4.2 per cent of all local
units
 The total count of employment in the local units designated as creative industries was around
31,700, 1.7 per cent of all employment in local units in the area
 On average local units in these creative industries employed fewer people: the average number in
employment is 4.2, this compares to 10.7 in all local units
 Sixty three per cent of the creative industries were located in urban areas, this is the same
percentage for all local units in urban areas
 The creative industries formed 4.1 per cent of local units in urban areas, but 4.2 per cent in rural
areas
Between 2006 and 2008:
 There was an increase of 14.5 per cent in local units designated as creative industries compared
to 5.3 per cent for all local units
 Employment within these creative industries increased by 11.1 per cent compared to 3.5 per cent
for all local units
West Midlands
In 2008:
 There were about 9,700 local units designated as creative industries – 4.4 per cent of all local
units
 The total count of employment in the local units designated as creative industries was around
54,400, 2.1 per cent of all employment in local units in the area
 On average local units in these creative industries employed fewer people: the average number in
employment is 5.3, this compares to 11.1 in all local units
 A higher percentage of creative industries were located in urban areas: 75 per cent were in urban
areas, compared with the average of 74 per cent of all local units
 The creative industries formed 4.8 per cent of local units in urban areas, but 4.9 per cent in rural
areas
Between 2006 and 2008:
 There was an increase of 16.2 per cent in local units designated as creative industries compared
to 3.9 per cent for all local units
 Employment within these creative industries increased by 19.5 per cent compared to 1.4 per cent
for all local units
East of England
In 2008:
 There were about 16,100 local units designated as creative industries – 6.2 per cent of all local
units
 The total count of employment in the local units designated as creative industries was around
55,800, 2.3 per cent of all employment in local units in the area
 On average local units in these creative industries employed fewer people: the average number in
employment is 3.5, this compares to 9.5 in all local units
 A higher percentage of creative industries were located in urban areas: 66 per cent were in urban
areas, compared with the average of 63 per cent of all local units
 The creative industries formed 6.5 per cent of local units in urban areas compared with 5.8 per
cent in rural areas
Between 2006 and 2008:
 There was an increase of 14.9 per cent in local units designated as creative industries compared
to 4.9 per cent for all local units
 Employment within these creative industries increased by 8.1 per cent compared to 3.0 per cent
for all local units
Regional Statisticians in the East Midlands
12
London
In 2008:
 There were about 49,300 local units designated as creative industries – 12.4 per cent of all local
units
 The total count of employment in the local units designated as creative industries was around
235,100, 5.7 per cent of all employment in local units in the area
 On average local units in these creative industries employed fewer people: the average number in
employment is 4.8, this compares to 10.4 in all local units
 The number of local units in rural areas was too small for sensible comparison to be made with
urban areas
Between 2006 and 2008:
 There was an increase of 14.5 per cent in local units designated as creative industries compared
to 5.0 per cent for all local units
 Employment within these creative industries increased by 9.3 per cent compared to 2.6 per cent
for all local units
South East
In 2008:
 There were about 32,000 local units designated as creative industries – about 7.9 per cent of all
local units
 The total count of employment in the local units designated as creative industries was around
145,600, 3.8 per cent of all employment in local units in the area
 On average local units in these creative industries employed fewer people: the average number in
employment is 4.5, this compares to 9.4 in all local units
 A higher percentage of creative industries were located in urban areas: 71 per cent were in urban
areas, compared with the average of 70 per cent of all local units
 The creative industries formed 8.0 per cent of local units in urban areas compared with 7.7 per
cent in rural areas
Between 2006 and 2008:
 There was an increase of 15.1 per cent in local units designated as creative industries compared
to 4.5 per cent for all local units
 Employment within these creative industries increased by 6.5 per cent compared to 1.8 per cent
for all local units
South West
In 2008:
 There were about 12,400 local units designated as creative industries – about 5.0 per cent of all
local units
 The total count of employment in the local units designated as creative industries was around
49,300, 2.1 per cent of all employment in local units in the area
 On average local units in these creative industries employed fewer people: the average number in
employment is 4.0, this compares to 9.5 in all local units
 A higher percentage of creative industries were located in urban areas: 61 per cent were in urban
areas, compared with the average of 57 per cent of all local units
 The creative industries formed 5.4 per cent of local units in urban areas compared with 4.9 per
cent in rural areas
Between 2006 and 2008:
 There was an increase of 14.3 per cent in local units designated as creative industries compared
to 5.4 per cent for all local units
 Employment within these creative industries increased by 14.0 per cent compared to 3.6 per cent
for all local units
Regional Statisticians in the East Midlands
13
2008 analysis of Local Units
Count of Local Units from the IDBR
Rural
Urban
Total
England
2,006
26,135
2,007
27,425
2,008
29,550
2,006
103,405
2,007
108,995
2,008
119,525
2,006
129,540
2,007
136,420
2,008
149,075
Percentage
change 20062008
13.1
Percetage in
urban areas
2008
80.2
North East
530
590
575
2,115
2,250
2,175
2,645
2,840
2,750
3.8
79.1
North West
2,110
2,185
1,995
9,780
10,125
9,705
11,890
12,310
11,700
-1.6
82.9
Yorkshire and The Humber
1,760
1,870
1,975
5,045
5,210
5,640
6,805
7,080
7,615
10.6
74.1
East Midlands
2,440
2,580
2,805
4,000
4,315
4,730
6,440
6,895
7,535
14.5
62.8
West Midlands
2,150
2,255
2,470
5,965
6,515
7,210
8,115
8,770
9,680
16.2
74.5
East of England
4,860
5,005
5,555
8,850
9,230
10,550
13,710
14,235
16,105
14.9
65.5
London
50
55
50
42,120
44,105
49,275
42,170
44,160
49,325
14.5
99.9
South East
8,085
8,480
9,325
19,110
20,345
22,705
27,195
28,825
32,030
15.1
70.9
South West
4,150
4,405
4,800
6,420
6,900
7,535
10,570
11,305
12,335
14.3
61.1
Percetage in
urban areas
2008
85.8
Employment in Local Units from the IDBR
Rural
Urban
Total
England
2,006
81,888
2,007
86,214
2,008
97,001
2,006
535,605
2,007
553,579
2,008
586,610
2,006
617,493
2,007
639,793
2,008
683,611
Percentage
change 20062008
10.7
North East
2,463
2,696
2,878
11,829
12,405
12,686
14,292
15,101
15,564
8.9
81.5
North West
6,089
6,285
11,888
44,787
45,570
50,625
50,876
51,855
62,513
22.9
81.0
Yorkshire and The Humber
5,969
6,278
6,379
27,785
28,213
30,045
33,754
34,491
36,424
7.9
82.5
East Midlands
6,626
6,787
7,448
22,059
28,177
24,414
28,685
34,964
31,862
11.1
76.6
West Midlands
6,690
9,023
9,954
36,315
37,558
41,427
43,005
46,581
51,381
19.5
80.6
East of England
14,202
13,901
14,275
37,436
36,986
41,543
51,638
50,887
55,818
8.1
74.4
London
188
202
194
215,024
221,347
234,953
215,212
221,549
235,147
9.3
99.9
South East
27,735
29,252
30,271
109,050
111,734
115,352
136,785
140,986
145,623
6.5
79.2
South West
11,926
11,790
13,714
31,320
31,589
35,565
43,246
43,379
49,279
14.0
72.2
Regional Statisticians in the East Midlands
14
Percentage of local units that are
creative
Percentage of Employment that is creative
Urban local Rural local
Local units units
units
Urban
employment
Rural
employment Employment
England
6.6
7.1
5.2
3.0
2.6
2.9
North East
3.5
3.7
3.0
1.4
1.8
1.5
North West
4.4
4.5
3.9
1.9
3.1
2.1
Yorkshire and The Humber
3.9
4.0
3.7
1.5
1.8
1.6
East Midlands
4.2
4.1
4.2
1.6
1.7
1.7
West Midlands
4.4
4.4
4.4
2.0
2.8
2.1
East of England
6.2
6.5
5.8
2.3
2.3
2.3
London
12.4
12.4
4.8
5.7
1.8
5.7
South East
7.9
8.0
7.7
3.8
4.1
3.8
South West
5.0
5.4
4.5
2.1
2.1
2.1
Summary of SIC codes; percentage of all local units in each category
England
North East
North West Yorkshire and
The Humber
48
46
East
Midlands
51
West Midlands East of
England
53
54
London
South East
South West
7222 Other software consultancy and supply
46
40
37
55
45
92319 Other artistic and literary creation and interpretation
12
8
7
9
8
8
10
17
11
13
74872 Speciality design activities
8
10
8
10
10
8
8
8
7
8
74402 Planning creation and placement of advertising activities
6
7
7
7
6
6
5
5
5
6
74201 Architectural activities
5
8
6
7
6
6
5
4
4
6
74819 Other photographic activities not elsewhere classified
4
4
4
4
4
3
3
5
3
4
92311 Live theatrical presentations
4
3
3
3
2
2
2
6
3
3
Others
16
20
16
14
13
14
12
19
13
15
Total
100
100
100
100
100
100
100
100
100
100
Regional Statisticians in the East Midlands
15
i
The IDBR has two levels of data: enterprises and local units. Enterprises are the head offices; local
units are branches of the enterprises. For small businesses such as sole traders, the enterprise and
local unit are the same.
ii The IDBR data used are not necessarily directly comparable with data published as National
Statistics, for example in the UK Business Monitor.
iii http://www.culture.gov.uk/images/publications/analysisfirm_levelgrowth_creative-industries.pdf
iv DCMS, CEP Evidence publication September 2007 - Statistical analysis of the Creative Industries
v All data have been rounded to the nearest 100
vi
72.22 Other software consultancy and supply
This class includes:
Analysis, design and programming of systems ready to use:

■ analysis of the user’s needs and problems, consultancy on the best solution

development, production, supply and documentation of made-to-order software based on orders from specific
users

■ writing of programs following directives of the user

■ web page design
This class excludes:

reproduction of non-customised software cf. 22.33
 software consultancy related to hardware consultancy cf. 72.10
vii
The Rural and Urban Area Classification 2004 is the result of a project, jointly sponsored by several
government departments, to create a harmonised classification of both urban and rural areas for
England and Wales. The IDBR assigns a local unit to the rural or urban classification of the Output
Area in which the local unit can be found.
viii Beyond the Creative Industries, Feb 2008
http://www.nesta.org.uk/publications/reports/assets/features/beyond_the_creative_industries
Regional Statisticians in the East Midlands
16