How many jobs are there in the creative industries across the country? How much are they set to grow over the next few years? Where are these industries located? A few weeks ago, we used our new industry cluster concept to answer these sorts of questions in relation to the Visitor Economy, and in this piece we’re going to answer some of the same sorts of questions using data for the Creative industries.
The Creative industry cluster includes a total of 14 industries at the 4-digit SIC level, and covers a range of creative production activities including motion picture, television and radio, and also the development and management of media content, advertising, design, and market research.
So let’s begin with some headline figures. The graphic below shows some general insight for the Creative cluster throughout the country as a whole, including job numbers, job growth and wages:
National level data is of course hugely interesting, but things become even more revealing when we zoom down to far smaller geographies to glean insight as to which areas of the country are really driving the Creative industries.
Looking at data at the County/Unitary Authority Level, we can see where growth in the Creative industries is projected to be over the next few years. Whilst it might not come as a surprise to see that much of the growth is expected to come from Inner London, would you have guessed that Yorkshire would also feature heavily in the top 10 regions for Creative industries?
Metrics such as job numbers and job growth can tell us where industry clusters are most prominent in the country in terms of people employed, but they don’t necessarily tell us how crucial those industries are to a particular area. For example, Area A might have 2,000 people working in a particular cluster, whereas Area B only has 1,000, and so on the surface it would seem that the cluster is more important to Area A than to Area B. However, if we measured these figures against total employment in both areas and found that in Area A the 2,000 only made up 2% of the region’s entire workforce, whereas in Area B the 1,000 made up 7% of the region’s workforce, then that paints an entirely different picture. In fact, it would tell us that despite having lower employment, the cluster is actually more concentrated and therefore more crucial to Area B than to Area A.
We can measure this industry concentration through the Location Quotient (LQ) metric. To calculate this figure, we begin by measuring the number of jobs in an industry within a given area, and then work out the percentage of total jobs it accounts for. We then compare this to the percentage of jobs the sector accounts for across the nation as a whole, assigning the national level a benchmark figure of 1.0, from which the local level figure can be measured against. The resulting figure tells us how much the industry can be considered as a specialisation of the region, with any LQ figure over 1.2 typically meaning that the area being measured has a comparative advantage in that sector.
Using our online data tool, Analyst, we have run the LQ calculation for the Creative cluster across the country, this time down to the level of Local Authority. The graph below shows the Top 10, and also includes total job numbers in 2016:
Given that Hammersmith is especially renowned for broadcasting, we might well have expected it to feature towards the top of the list of Local Authorities with a high concentration of Creative industries. What we can then do, however, is lift the lid on what this concentration consists of by delving into the industries within the cluster. The following table shows job numbers, growth, Location Quotient and wages in the Hammersmith and Fulham Local Authority for the top five biggest employing Creative industries:
To find out more about industry clusters in your area, email our BDM for Economic Development, Will Cookson. You can also order a free PDF for your region by going to our Local Sector Strengthfinder page.