Look at the East Midlands

The population of the East Midlands is approximately 4.2 million, of which 77.1 per cent of those of working age are in employment, compared to the UK average of 74.5 per cent. The region has performed well in terms of population, with levels growing by 9.2 per cent from 1981 to 2000, over 3 per cent above national trends. It is England’s fourth-largest region in terms of area (15,627 square kilometres) but only eighth in terms of population (density 267 per square kilometre).

There is no dominant regional capital. Nottingham is the largest city and the centre of public administration for a range of organisations. It is one of England’s nine core cities, but is small relative to most of the others, and Derby and Leicester, Lincoln, Northampton, Chesterfield and Mansfield are also significant population centres. Recently, Nottingham, Derby and Leicester have cooperated as a three-cities partnership.

As noted above, the region’s working-age population is similar to the national average and is forecast to remain so up to 2021. However, the region is likely to experience a greater growth in the pensionable-age population than the national average. This implies a greater dependency problem than in the UK as a whole. Almost 40 per cent of people live in communities of fewer than 10,000 people, classed as rural areas, with the national average being 20 per cent. In terms of land area, about 90 per cent of the East Midlands is classed as rural. Agriculture is still the dominant land use in the region, covering nearly 80 per cent by area compared with 72 per cent for England as a whole.

The region’s economic performance, as measured by GDP per head, improved by some 18 per cent over the latest three-year period for which comparable figures are available, compared with 8 per cent for the EU as a whole, and now stands at £15,097 per head (sixth in the UK). It has the highest rate of GDP per head outside the greater south-east of England, but lags some way behind the EU average.

Employment and unemployment performance are declining relative to the rest of the EU, reflecting improving labour market conditions overseas. The East Midlands’ employment record is underpinned by high economic activity rates among the working-age population. The region aims to claim a ‘top 20 in Europe’ place by 2010, with a strong small and medium-sized business sector employing 1.4 million of the total workforce of 2 million people. Only 3.5 per cent of the workforce works in high-technology services, and just 40 per cent in knowledge-intensive sectors. Increases in high-tech manufacturing and knowledge services compare favourably with the EU average but come from a relatively low base.

An above-average concentration of manufacturing means that the region is vulnerable to national trends towards service-sector growth. Tight labour market conditions reinforce low productivity rates in the region. Below-average earnings also contribute to qualified individuals seeking higher-paid employment elsewhere, with more businesses experiencing skill shortages. In particular, efforts to encourage new technology-based industrial growth suffer from a lack of potential recruits, although creative and cultural industries account for 10 per cent of all employment with 12 million visitors to major attractions every year.

The region needs to retain its graduate population and improve its GCSE attainment levels. It has a below-average proportion of working-age individuals with degrees or postgraduate qualifications. Managers, administrators and professional occupations are under-represented, contributing to skill deficits and hard-to-fill vacancies.

There are significant sub-regional variations, with unemployment worse towards the north of the region and in the major cities. Most relatively poorly qualified workers live in urban and semi-urban areas, while the region needs to attract new investment from overseas. Although there is less deprivation than in some UK regions, there are pockets of disadvantage. In rural areas these can be masked by prosperous areas nearby.

Employers in the region include food manufacturers – Weetabix at Burton Latimer, Thorntons at Alfreton, crisp company Walkers – and a Carlsberg brewery in Northampton. Lincolnshire and Rutland are very agricultural, with much of the UK’s arable crop grown in this area. Engineering has Rolls-Royce in Derby, Siemens in Lincoln, Triumph Motorcycles in Hinckley and a large Caterpillar factory on an old airfield near Desford. (The jet engine was first developed in the region, at Lutterworth.)

The north part of Derbyshire and Nottinghamshire used to have many coal mines, and there are two pits still producing in Nottinghamshire, near Mansfield. Retail firm Wilkinson is at Worksop, while Boots is based in Lenton in Nottingham, close to the head office of Games Workshop, the producers of Warhammer miniatures.

Many footwear companies, such as Shoe Zone and Stead & Simpson, are based in Leicester, as is the clothing company, Next. Alliance & Leicester is based in Narborough, with the Black Leisure Group (owner of Blacks and Millets) in Duston. Midland Mainline has its head office in Derby.

Skegness provides seaside entertainment for many people in the East Midlands with its Butlins resort, while Nottingham is a popular night-time destination. The former East Midlands Electricity is now owned by E.ON UK (supply) and Central Networks (distribution).