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Economy of Southampton

Area selected: Southampton
  • England and Wales
  • England
  • South East
  • Southampton
Pie Chart
GDP per capita
£32,400

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People
Unemployment rate
3.5%

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Business
Major Industry
Health

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GDP per capita
Unemployment rate
GDP growth per capita
Area type
Unitary Authority
Population
247,256
GDP
£8 billion
Average salary
£40,846
Labour force
170,918
Job Density
0.75

Economy of Southampton

The Gross Domestic Product (GDP) in Southampton was worth an estimated £8 billion in 2020, according to figures published by the ONS. Southampton's GDP growth between 2019 and 2020 was -7.8% per year. Compare GDP by area.

The Health industry is the largest in Southampton based on the number of jobs, accounting for 21.9% of roles in the area.

2020 ONS figures suggest that there are 129,000 jobs in Southampton, which has a working-age (aged 16-65) population of 170,918. The 2020 job density in Southampton is 0.75, meaning there are 0.75 jobs per member of the Southampton working-age population.

Southampton had a mean average salary for full-time employees of £40,846 in 2022. Southampton's unemployment rate is 3.5% as of 2022. Compare unemployment rate by area.

Compared to England's figures

  • The GDP value of Southampton represents 0.4% of the English economy. Southampton is the 24th unitary authority in England (of 59 total) when ordered by GDP, and the 21st unitary authority in England (of 59 total) when ordered by GDP per capita.
  • The 129,000 jobs in Southampton represents 0.4% of the 30,055,000 reported jobs in England. Southampton is the 24th unitary authority in England (of 59 total) when ordered by total jobs, and the 48th unitary authority in England (of 59 total) when ordered by job density.
  • Southampton's unemployment rate of 3.5% is 0.4% lower than the unemployment rate for England (3.9%).

Labour Market in Southampton

The 2020 labour force or working-age population in Southampton is 170,918 or 69.1% of the total population.

In 2022, 96.5% of the labour market was recorded as employed, above the 94.8% average rate for England. Of those employed, 10.3% are self-employed, and 89.7% are employees.

Qualifications

The Annual Population Survey for 2021 published by the ONS reports the percentage of the Southampton working-age (aged 16-64) population who have a degree or higher is 43.5%, which is above the 42.8% degree qualification rate for England.

Over 64% of the Southampton working-age population have at least 2 A-levels (or equivalent), and 5% have no qualifications.

Qualifications classifications

  • NVQ 4: Degree or equivalent.
  • NVQ 3: 2 or more A levels or equivalent
  • NVQ 2: 5 or more GCSEs at grades A-C or equivalent
  • NVQ 1: fewer than 5 GCSEs at grades A-C or equivalent
  • NVQ Other: includes foreign qualifications and some professional qualifications.

Salaries in Southampton

Main page: Southampton Salary

The average salary in Southampton as of 2022 is £40,846. Between 2021 and 2022, average salaries grew by £2,274. Compare average salaries by area.

Southampton's salary growth rate is 5.90% per year based on changes in average salary between 2021 and 2022, which is 5.90% higher than the average salary growth rate in Southampton over the past 8 years.

Average Salary
Salary Growth

Jobs in Southampton

Business data published by the ONS in 2021 show the most common job group in Southampton is Administrative Occupations, accounting for 10% of all roles in the area. In England as a whole, the largest job group is Business & Public Service Assoc. Professionals.

The fastest-growing type of job in Southampton is Skilled Metal, Electrical And Electronic Trades, with roles increasing 258% between July 2021 and July 2022. In England, the fastest-growing type of role is Corporate Managers And Directors.

Occupation
Number
Percentage
CHANGE
Administrative Occupations 13,200 9.6% 20.0%
Elementary Administration & Service Occs 12,900 9.3% 5.7%
Science, Research, Engineering And Technology Profs 10,800 7.8% -17.6%
Business, Media And Public Service Professionals 10,700 7.8% 57.4%
Teaching And Educational Professionals 8,000 5.8% 0.0%
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Industries in Southampton

There was a 3% increase in roles between 2020 and 2021. In England as a whole, there was a 3% decrease.

Based on the total number of jobs, the largest industry in Southampton is Health. Other major industries include Retail, Education, which represents over 10% of roles in Southampton.

Financial & Insurance companies make up 3% of the Southampton economy that's higher than the average for England as a whole (~3%).

3% of the total jobs in Southampton are in Information and Communication, one of the key sectors for the future, below the 5% of jobs in England as a whole.

Industry
Number
Percentage
Health 25,000 21.9%
Retail 12,000 10.5%
Education 12,000 10.5%
Business Administration & Support Services 10,000 8.8%
Transport & Storage 9,000 7.9%
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Industry growth in Southampton

The fastest-growing industry in Southampton is Mining, Quarrying & Utilities, with jobs in the sector increasing 43% between 2020 and 2021 from 700 to 1,000. In England more broadly the fastest-growing industry is Healthcare.

The industry with the biggest decline in Southampton between 2020 and 2021 was Arts, entertainment, recreation & other services, which saw an 20% decrease in roles, going from 5,000 to 4,000. In England more broadly the industry with the biggest year on year decline was Arts, entertainment & recreation, with roles decreasing by 8%.

The Information and communication industry includes many of the top companies of the future. In Southampton, the number of roles in this sector has fallen by 0% over the past year, below the 1% annual increase seen in England.

Person
Average age
35

Southampton Demographics Arrow Forward

Stats Chart
Crime rate (per 1,000 people)
14,149

Southampton Crime Arrow Forward

Home
Average rent
£877

Rental Market of Southampton Arrow Forward

Number of Businesses in Southampton

2022 UK Business Count data published by the ONS show there are 35 large businesses in Southampton, making up 0.4% of total businesses - in England, 0.4% of businesses are large. A large business is defined as having over 250 employees.

There are 90 medium-sized businesses based in Southampton, making up 1.1% of total businesses - in England, 1.5% of businesses are medium-sized. A medium-sized business is defined as having between 50 and 249 employees.

There are 630 small businesses based in Southampton, making up 8.0% of total businesses - in England, 8.3% of businesses are small. A small business is defined as having between 10 and 49 employees.

Reasons for unemployment in Southampton

Southampton's unemployment rate is 3.5% that's 2% lower than the average unemployment rate for England as a whole. Unemployment rates are the number of unemployed people as a percentage of the working-age population.

The main group within the unemployment population is Student, representing 35.4% of the unemployed population.

Secondary classifications include groups: looking after family, long-term sick, other, all of which represent over 10% of the unemployed population.

In England as a whole, students are the main group within the unemployed population, accounting for 28.9% of the unemployed population.

  • Student 35.4%
  • Looking After Family 21.6%
  • Temporary Sick 3.7%
  • Long-term Sick 20.4%
  • Retired 7.8%
  • Other 11.2%

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Areas near Southampton

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Bracknell Forest
GDP per capita £42,033
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Brighton and Hove
GDP per capita £33,153
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Hampshire
GDP per capita £33,924
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Isle of Wight
GDP per capita £21,729
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Medway
GDP per capita £24,124
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County
Kent
GDP per capita £27,395
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County
Surrey
GDP per capita £41,389
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County
East Sussex
GDP per capita £19,694
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Local Authority
Buckinghamshire
GDP per capita £31,777
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County
West Sussex
GDP per capita £29,529
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Local Authority
Milton Keynes
GDP per capita £55,270
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Local Authority
West Berkshire
GDP per capita £56,738
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Local Authority
Windsor and Maidenhead
GDP per capita £50,227
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County
Oxfordshire
GDP per capita £36,820
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Local Authority
Wokingham
GDP per capita £53,758
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Local Authority
Reading
GDP per capita £50,993
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Local Authority
Slough
GDP per capita £63,599
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Local Authority
Portsmouth
GDP per capita £31,976
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Source: Office for National Statistics licensed under the Open Government Licence v.3.0. Contains OS data © Crown copyright and database right 2022. Data sources: ONS Local statistics

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