Southampton - Economy

Economy

There are 120,305 jobs in Southampton, and 3,570 people claiming job seeker's allowance, approximately 2.4 per cent of the city's population, as at March 2007. This compares with an average of 2.5 per cent for England as a whole.

As of June 2006, 74.7 per cent of the city's population are classed as economically active.

Just over a quarter of the jobs available in the city are in the health and education sector. A further 19 per cent are property and other business and the third largest sector is wholesale and retail, which accounts for 16.2 percent. Between 1995 and 2004, the number of jobs in Southampton has increased by 18.5 per cent.

As of January 2007, the average annual salary in the city was £22,267. This was £1,700 lower than the national average and £3,800 less than the average for the South East.

Southampton has always been a port, and the docks have long been a major employer in the city. In particular, it is a port for cruise ships; its heyday was the first half of the 20th century, and in particular the inter-war years, when it handled almost half the passenger traffic of the UK. Today it remains home to luxury cruise ships, as well as being the largest freight port on the Channel coast and fourth largest UK port by tonnage, with several container terminals. Unlike some other ports, such as Liverpool, London, and Bristol, where industry and docks have largely moved out of the city centres leaving room for redevelopment, Southampton retains much of its inner-city industry. Despite the still active and expanding docklands to the west of the city centre, further enhanced with the opening of a fourth cruise terminal in 2009, parts of the eastern docks have been redeveloped; the Ocean Village development, which included a local marina and entertainment complex, is a good example. Southampton is home to the headquarters of both the Maritime and Coastguard Agency and the Marine Accident Investigation Branch of the Department for Transport in addition to cruise operator Carnival UK.

During the latter half of the 20th century, a more diverse range of industry also came to the city, including aircraft and car manufacture, cables, electrical engineering products, and petrochemicals. These now exist alongside the city's older industries of the docks, grain milling, and tobacco processing.

University Hospital Southampton NHS Foundation Trust is one of the city's largest employers. It provides local hospital services to 500,000 people in the Southampton area and specialist regional services to more than 3 million people across the South of England. The Trust owns and manages Southampton General Hospital, the Princess Anne Hospital and a palliative care service at Countess Mountbatten House, part of the Moorgreen Hospital site in the village of West End, just outside the city.

Other major employers in the city include Ordnance Survey, the UK's national mapping agency, whose headquarters is located in a new building on the outskirts of the city, opened in February 2011. The Lloyd's Register Group has announced plans to move its London marine operations to a specially developed site at the University of Southampton. The area of Swaythling is home to Ford's Southampton Assembly Plant, where the majority of their Transit models are manufactured.

Southampton's largest retail centre is the WestQuay Shopping Centre. Opened in September 2000 and hosting major high street stores including John Lewis and Marks and Spencer, it is one of the largest in the country. The centre was Phase Two of the West Quay development of the former Pirelli undersea cables factory; the first phase of this was the West Quay Retail Park, while the third phase (Watermark Westquay) has yet to begin. The plans for this third stage include shops, housing, an hotel and a public piazza alongside the Town Walls on Western Esplanade. Southampton has also been granted a licence for a large casino. A further part of the redevelopment of the West Quay site resulted in a new store, opened on 12 February 2009, for Swedish home products retailer IKEA. Other major shopping areas in the city centre include Marlands Shopping Centre and the Bargate Centre, both linking onto the main shopping street of Above Bar Street. There is also the East Street area which has been designated for speciality shopping, with the aim of promoting smaller retailers, alongside the chain store Debenhams. In 2007, Southampton was ranked 13th for shopping in the UK.

Southampton's strong economy is promoting redevelopment, and major projects are proposed, including the city's first skyscrapers on the waterfront. The three towers proposed will stand 23 storeys high and will be surrounded by smaller apartment blocks, office blocks and shops. There are also plans for a 15-storey hotel at the Ocean Village marina, and a 21-storey hotel on the north eastern corner of the city centre, as part of a £100m development.

According to 2004 figures, Southampton contributes around £4.2 bn to the regional economy annually. The vast majority of this is from the service sector, with the remainder coming from industry in the city. This figure has almost doubled since 1995.