The Kent Economy

Kent generally tracks the performance of the national economy. GDP growth forecasts for the county are therefore likely to be a reflection of how the UK fares in 2009-2010, with a gradual recovery from recession.

As elsewhere, unemployment rose sharply in Kent over the past year, with an increase of 105% in the year to May 2009. A number of major redundancies have also hit the headlines recently, including the loss of over 600 jobs at GlaxoSmithKline in Dartford over the next four years and significant losses in the retail sector. However, there have also been job gains, including in the relatively hard-hit financial services and retail sectors. Unemployment in the county remains below the national average, and the rate of increase over the past year compares favourably with that of the south east.

Kent's economy is likely to benefit from its diversity and lack of dependence on any single sector. It will also be assisted by its proximity to London, as the capital is likely to return to growth more quickly than other parts of the country. In addition, major investments such as High Speed 1 will start to yield benefits in 2009-2010, increasing the county's attractiveness as a business location and impacting positively on its long term growth potential. Continued long-term increases in fuel prices are also likely to favour the development of Kent's strengths in the renewable energy sector. Development plans for the county's regeneration and growth areas in the Thames Gateway, Ashford and the coastal and principal towns are well advanced despite the current downturn in demand.

Competitiveness Indicators

Indicator	Kent	GOSE	GB/UK	Source Date
Gross Value Added (GVA) per head (£)	15,389	19,413	19,430	2006
Disposable Household Income per head (£)	14,584	16,095	14,556	2007
Gross median full-time weekly earnings (£) **	507.0	523.2	479.3	2008
No qualifications (%) - Working Age	12.1	9.6	13.1	2007
NVQ 1 (%) - Working Age	16.5	14.0	13.6	2007
NVQ 2 (%) - Working Age	17.2	16.5	15.9	2007
NVQ 3 (%) - Working Age	16.6	16.6	15.6	2007
NVQ 4 or above (%) - Working Age	25.2	30.8	28.6	2007
Employee change 1998-2007 (%)	11.8	9.0	9.2	2007
% Employees in the Knowledge Economy	14.3	21.2	18.5	2007
Annual Average Unemployment Rate (%)	1.9	1.5	2.4	2008
VAT Registrations as % of stock*	10.5	10.3	10.5	2007
Business survival rates, after 3 years (%)	66.6	66.9	65.2	2004

*England and Wales used, instead of UK/GB ** KCC area used, instead of Kent
Source: Compiled by KCC Research and Intelligence June 2009.