Long-term trends and strategic challenges
Improving economic performance across the region
Headline figures may show that the region has been a strong performer over the long term, but growth has slowed recently. However, between counties and local areas there are real differences and continued divergence in performance.
On aggregate, the region performs well in terms of the proportion of its working-age population in employment or actively seeking work. However, when a local view is taken, areas of high and persistent unemployment and economic inactivity remain around the region's northern and eastern periphery, especially North and West Norfolk, Waveney in Suffolk and Tendring and Thurrock in Essex. Figure 3 illustrates this by presenting economic activity rates for 2006.
Income distribution is similarly varied throughout the region. In 2007, average gross workplace earnings for employees in the East of England reached £24,400, just above the UK average. Workers in Hertfordshire earned the most at £29,100 per annum. Within the region, Peterborough and Norfolk have the lowest annual earnings. This is also reflected in divergent outcomes for GVA per capita (see Figure 4). The causes of this divergence are complex, such as industrial restructuring, access to large markets and differences in employment rates and skills.
The uneven pattern of growth across the region has emerged through the complex and place-specific interactions of people, businesses and institutions. Different solutions will be required to raise growth rates in different areas. This involves building on the specific assets, market opportunities, sector and technology strengths of each area. The strong growth of Hertfordshire and Cambridgeshire is not assured, and requires continued investment to nurture their long-term competitiveness. Other places in the north and east of region, such as Norfolk, Suffolk and parts of Essex require new strategies and concerted action to stimulate higher growth rates and prosperity. The economies of these areas are particularly hampered by a weak skills base and poor road and rail connectivity to key national markets such as London.
