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

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Area statistics

Population

  • Between 2011 and 2021 the estimated population of Eden has increased by 2,100 people (+4.1%) to 54,700.  The greatest percentage increase occurring is in the 75-84 age group (+25.9%).  The greatest percentage decrease occurring in the 15-19 age group (-12.8%).
  • The area has the lowest population density of any LA in England.
  • The district has an older age profile than nationally (26.3% over 65 compared with 18.4%) and 27.5% aged under 30 against 35.7% nationally.
  • The working age population is 32,200 (58.9% of total population), which is similar to Cumbria (59.7%) but lower than the national rate of 63.0%.

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 33,000 jobs in Eden (employed, self-employed, Govt trainees, HM Forces);
  • There is a significantly higher rate of self-employment among residents in Eden (16%) than nationally (10%);
  • 67% of employed residents are in full time employment and 33% are in part time employment.
  • The economic activity rate (those in work or seeking work) of working age residents in Eden is also broadly similar to England (both 79%).  The proportion of working age residents who are in employment/self-employment is also similar to nationally (73% v 76%)
  • The claimant rate is very low in Eden (1.9%) compared with the UK (3.6%) although there are some pockets of higher unemployment in Appleby (4.1%), Kirkby Stephen (3.1%) and South Penrith (3.5%).
  • The median gross weekly full time earnings of Eden residents in 20201 were £581 which is 91% of the UK figure (£640). For jobs at workplaces in Eden the median gross weekly full time earnings were £569 which is 90% of the UK figure.

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

Skills

  • The estimated qualification profile for Eden’s working population is lower than nationally with relatively fewer people with high level qualifications and relatively more with low level or no qualifications.  (Caution: based on a survey with high margin of error).

Qualifications of working age population (APS 2021)

  Eden No Eden (%) National (%)
Level 4 and above 10,300 33.8 43.2
Level 3 3,000 9.7 16.8
Trade Apprenticeship 2,000 6.5 2.7
Level 2 6,500 21.2 15.4
Level 1 4,500 14.7 9.6
Other 1,800 6.0 5.9
No qualifications 2,500 8.1 6.4

  • In 2021/22 there were 322 apprenticeship starts by Eden residents meaning there were 728 participating in apprenticeships during the year.  In addition 334 community learning aims and 1,630 in other education and training learning aims were started during the year.

  • 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 3,557 active job postings in Eden during 2022, 17% were in admin and support services (including those placed by recruitment agencies), 14% in accommodation and food services and 10% in retail

  • 22% of job postings were for professional occupations, 14% for elementary trades and 12% for caring services.

Conclusions: The skills profile of the economically active population is average.  However, 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 20.0% of jobs located in Eden almost three times the national average;
  • A further 13.3% of employment in Eden is in the retail sector (similar to GB);
  • Construction jobs in Eden are marginally higher than the GB average (6.7% v 5.0%);
  • The proportion of agriculture jobs in Eden is significantly higher than nationally (13.3% v 1.5%) and also higher than any other part of Cumbria;
  • The proportion of professional, scientific and technical sector, administrative and support services sector and information and communication services jobs are all significantly lower than the national average;
  • In the medium term between 2016 and 2021, total employment was static in Eden. This compares to a fall in employment in Cumbria of 1.2% and growth nationally of 3.7%.
  • Sectors which are estimated to have lost employment in Eden are: Manufacturing (-500), transport (-250), professional services (-250), education (-750), health (-250), information and communication (-125) and other services (-100).  There is estimated to have been growth in agriculture (+500), construction (+750), financial services (+200), administrative and support services (+250) and real estate (+100).

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 financial services and real estate is positive. 

Business Structure

  • There are 4,180 VAT/PAYE local units in Eden which represents 1,295 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 (seven times the national average).  However the district has a significantly lower proportion of professional/scientific enterprises (7.9% v 14.0%) and information and communications enterprises (1.8% v 6.4%).
  • Eden has a higher proportion (86.6%) of micro-units (under 10 employees) than UK (84.7%) 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 2021 (8 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 2018 were 63% compared to a national average of 58%.
  • 268 small businesses registered for their first business bank account in Eden in 2022.  21% were in real restate and professional services, 17% were in recreation, personal and community service, 18% were in construction, 13% were in accommodation and food services and 13% were in construction.

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 2022, Eden attracted 4.61 million tourism visits to Eden
  • Tourism provided employment for 6,108 full time equivalent (FTE) posts
  • Tourism income in Eden in 2022 was estimated to be £582.28 million

Conclusions: Tourism is highly 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 2021 there were 24,615 households in Eden, 31% of them with a single occupant;

  • The median house price in Eden in 2022 (CACI StreetValue) was £258,136 which is 96% of the GB average.

  • The median household income in Eden in 2021 (CACI PayCheck) was £33,631 which is 92% of the GB average giving Eden an affordability ratio of 7.7 (compared to 7.3 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.