Economy

More detail on topics connected to Herefordshire's economy are available from the topic pages below.

Key economic findings as identified in the 2011 State of Herefordshire Report and Joint Strategic Needs Assessment:

Strength

  • Herefordshire has a lower rate of new business start-ups than England as a whole, but start-ups are surviving longer than regionally and nationally. In 2009 the rate of new business formation had slowed.
  • The rate of self-employment in Herefordshire is higher than in the West Midlands and England as a whole.
  • Herefordshire has a relatively high employment rate, 76% in 09-10, compared to 69% in the West Midlands and 71% nationally.

Weakness

  • Herefordshire's economic output is low compared to regionally and nationally
  • Herefordshire's weekly work based earnings are low compared to regionally and nationally and the gap between Herefordshire's earnings and those of the West Midlands region and England as a whole is getting wider.
  • Although still low compared with the West Midlands region and England, unemployment is decreasing slowly and remains much higher than prior to the recession
  • Pockets of deprivation are concentrated in urban areas of Herefordshire, but smaller pockets also occur in more rural areas.
  • Qualification rates in Herefordshire were lower than across England in 2010

Opportunity

  • The issues rated as most important for employers in Herefordshire in May 2010 were suitability of premises for business, access by road, and environment for staff and customers
  • The rateable value of commercial property is low in Herefordshire compared to the West Midlands and England
  • Businesses and residents identify congestion (in Hereford City) as in need of improvement, although in 2010 the picture for congestion in Hereford City was not clear

Threat or Challenge

  • The age profile of the potential resident workforce is changing
  • Despite the increase in unemployment due to the recession, more people in Herefordshire claim an out-of-work benefit because they are unable to work for health reasons than because they are unemployed and actively seeking work.
  • Skilled trade occupations account for a relatively large proportion of those in employment; employers find skilled trade vacancies hard-to-fill; and skilled trade vacancies account for the highest proportion of skill shortage vacancies
  • Employers report that there are skills gaps in managerial and skilled trade occupations and that some young people are poorly prepared for work
  • There is still demand for migrant labour in Herefordshire that employers report would be difficult to fill from other sources
  • Based on past trends total employment in Herefordshire is projected to decrease
  • Access to broadband, mobile phone services and other infrastructure is an issue for some residents and businesses in rural areas
  • Emissions of CO2 from the industry and commerce have decreased, but both climate change and volatility in energy prices will pose challenges for both businesses and residents in future
  • Herefordshire loses approximately 5% of its working age population who travel to work outside the county


Links to individual topic pages

Economic performance

Business

People and the labour market 



 

Related resources

Other resources relevant to this theme

 

Last updated: 30 January 2012