Eden, Cumbria, The Lake District – A natural choice for business

☰

Area statistics

Population

  • Between 2015 and 2020 the estimated population of Eden has increased by 1,200 people (+2.3%) to 53,800, with the greatest percentage increase occurring in the 70-74 age group (+25.8%) and the greatest percentage decrease occurring in the 45-49 age group (-19.5%).
  • The area has the lowest population density of any LA in England.
  • The district has an older age profile than nationally (27.1% over 65 compared with 18.5%) and 27.7% aged under 30 against 36.4% nationally.
  • The working age population is 31,000 (57.6% of total population), which is similar to Cumbria (58.9%) but lower than the national rate of 62.3%.

Conclusions: The population is growing but more so among the older age groups than the younger age groups which will put pressure on services. The falling working age population will increase the tightness of the local labour market.

Employment and Pay

  • There are 34,000 jobs in Eden (employed, self-employed, Govt trainees, HM Forces);
  • ​There is a significantly higher rate of self-employment among residents in Eden (21%) than nationally (10%);
  • 80.5% residents of employed residents are in full time employment and 19.5% part time are in part time employment.
  • The economic activity rate (those in work or seeking work) of working age residents in Eden is higher than England (85.3% v 78.8%) and the proportion of working age residents who are in employment/self-employment is also higher than nationally (82.7% v 74.7%)
  • The JSA claimant rate is very low in Eden (2.1%) compared with the UK (4.6%) although there are some pockets of higher unemployment in Alston Moor (4.1%), Kirkby Stephen (4.1%) and parts of Penrith.
  • The median gross weekly full time earnings of Eden residents in 20201 were £584  which is 96% of the UK figure (£611). For jobs at workplaces in Eden the median gross weekly full time earnings were £560 which is 92% of the UK figure.

Conclusions: High rates of economic activity, a higher than average employment rate and low JSA claimant rate contribute to a tight labour market in the area which has implications for housing provision, transport and economic development. However, low pay level, levels of part time working and seasonality remain issues.

Skills

  • The qualification profile for Eden’s economically active population is broadly similar to nationally. The biggest differences are twice as many apprenticeship qualifications in Eden than nationally, a noticeably bigger percentage of level 3 qualifications in Eden, but with a lower percentage of people qualified to level 4 or higher.  

Qualifications of economically active population (APS 2020)

  Eden No Eden (%) National (%)
Level 4 and above 10,600 38.4 47.5
Level 3 5,900 21.2 17.0
Trade Apprenticeship 2,800 10.1 2.9
Level 2 2,600 9.4 14.1
Level 1 3,000 10.8 8.9
Other 2,200 8.1 5.9
No qualifications N/A N/A N/A
  • In 2019/20 there were 287 apprenticeship starts by Eden residents meaning there were 737 participating in apprenticeships during the year.  A further 294 participated in community learning and 1,880 in other education & training activity.
  • 21% of businesses surveyed in Eden reported skills gaps in 2020 (Cumbria Business Survey) this was similar to other districts, the Cumbria average was 22%.

Where skills gaps were identified, these were most likely to be technical/specialist skills to the sector, and basic and advanced IT skills. advanced IT and software skills and management skills

  • There were 2,593 job postings in Eden in 2021, 19% were in retail, 19% in health and 18% in accommodation & food services
  • 19% of job postings were for professional occupations,13% for skilled trades, 13% for elementary trades and 12% for sales occupations

Conclusions: The skills profile of the economically active population is average but the structure of employment and enterprises located in the district suggests there may be a mismatch between the supply of skills among residents and the demand from businesses.

Employment Structure

  • Accommodation and food services account for 17.2% located in Eden (not including self-employment) almost three times the national average;
  • A further 15.5% of employment in Eden is in the retail sector (similar to GB);
  • Manufacturing and construction jobs in Eden are marginally higher than the GB average (manufacturing 7.8% v 7.7%, construction 4.3% v 4.9%);
  • The proportion of agriculture jobs in Eden is significantly higher than nationally (13.8% v 1.6%) and also higher than any other part of Cumbria;
  • The proportion of financial service, IT and business service employee jobs in Eden is significantly lower than the national average (11.7% v 22.7%);
  • In the medium term between 2015 and 2020, total employment was static in Eden by 600 jobs or 2.2%. This compares to a fall in employment in Cumbria of 2.8% and growth nationally of 2.4%.
  • Sectors which are estimated to have lost employment in Eden have been education (-22%, -500), and professional, scientific & technical (-36.3%, -600) human health (-10%, -250) but there has been growth in retail (13%, 500) and professional, scientific & technical services (50%, 500).

Conclusions: The structure of the local economy is relatively healthy although there is a higher than average proportion of employment in the hospitality sector which has lower output value per job than other sectors. Some of the recent job growth has been in lower wage sectors, but growth in professional services is positive. 

Business Structure

  • There are 4,145 VAT/PAYE local units in Eden which represents 1,327 per 10,000 working age population, almost twice the national average;
  • A third of VAT/PAYE local unit in Eden are in the agriculture and forestry sector (over six times the national average), however the district has a significantly lower proportion of professional/scientific enterprises (7.8% v 14.7%) and information & communications enterprises (1.8% v 6.9%).
  • Eden has a higher proportion (86.7%) of micro-units (under 10 employees) than UK (84.8%) and a lower proportion (0.1%) of large businesses (over 250 employees) than the UK (0.4%);
  • The business “birth” rate (new registrations for VAT/PAYE) in Eden was low in 2020 (9 per 100 stock of active enterprises compared to 12 nationally) but the business “death” rate was also lower than nationally (7 v 11). 
  • Survival rates to three years for businesses first registered for VAT/PAYE in 2017 were 66% compared to a national average of 53%.
  • 261 businesses registered for their first bank account in Eden in 2020, 19% were in real restate & professional services, 18% were in construction, 13% were in wholesale & retail an 11% were in accommodation & food services

Conclusions: The stock of businesses per head of population in Eden is above average reflecting the predominance of small businesses in the area. The size structure is typical for a predominantly rural area. Low business formation rates suggest that further activity to promote start-ups may be necessary, together with assistance to help businesses survive beyond the first few years.

The Economic Development Strategy Action Plan identifies the digital media and creative sector as holding a potential to create new well paid jobs.

Tourism

  • During 2020, Eden attracted 2.52 million tourism visits to Eden
  • Tourism related activities are estimated to support 2,592 FTE jobs in Eden
  • Tourism income in Eden in 2015 was estimated to be £199.4 million

Conclusions: Tourism is significant to the Eden economy. It is a dynamic sector and needs to continue to improve and develop. Key areas for development are to extend the length of stay by developing new product and business markets.

Housing Market

  • According to Census 2011 there were 23,043 households in Eden, 30% of them with a single occupant;
  • At the time of the Census, 3,522 people who live outside Eden said they had a second home in Eden (NB more than one person may be reported at the same address), of which 53% were for holiday purposes;
  • The median house price in Eden in 2021 (CACI StreetValue) was £249,495 which is 101% of the GB average.
  • The median household income in Eden in 2021 (CACI PayCheck) was £30.586 which is 93% of the GB average giving Eden an affordability ratio of 8.2 (compared to 7.6% nationally).

Conclusions: There is pressure on the local housing market brought about by high house prices compared to local income and demand in some sectors of the market including affordable housing in excess of supply.
The lack of housing in some sectors could contribute to the tightness of the labour market and could jeopardise future growth.