London's £35 billion creative industries

14 October 2015

The Mayor of London, Boris Johnson, today hailed London's creative industries, which are worth almost £35 billion to the economy and provide almost 800,000 jobs in the capital, according to a new report.

'The creative industries in London', researched and published by GLA Economics, draws on data from a range of sources[1], which have been analysed to provide a comprehensive overview of the impact that this important sector has on the economy. The report provides a wealth of analysis to illustrate the characteristics of the creative industries[2] and wider creative economy[3] including: economic value; the type of work being done; the gender of those working within it; whether employment is full or part time; qualifications; age; ethnicity; and geographic spread across the capital.

It shows that, in 2012, output (measured as GVA - Gross Value Added) of the creative industries in London was estimated at £34.6 billion, accounting for 10.7 per cent of total GVA in London. Over the post-recessionary period (2009-2012), the creative industries also showed relatively higher growth than London's economy as a whole.

In 2014, there were 795,800 jobs in the creative economy as a whole in London, equivalent to 16.3 per cent of total jobs in the capital. This is an increase of 106,300, or 15.4 per cent, in the three years from 2011 to 2014. The report shows that London's creative industries are more productive than the average for the city's economy as a whole. The productivity of the creative industries in London (estimated at £71,100 on a GVA per workforce job basis) was 25 per cent higher than the average across all sectors of the London economy (estimated at £56,700 in 2012).

The Mayor of London's support for the creative industries includes providing funding for fashion, design, film, music and visual art and plans are set to be announced to help strengthen London's reputation as a centre for the games sector. The creative and cultural sectors have also been actively encouraged to bid for City Hall funding, including through the London Enterprise Panel's Growing Places Fund and London Regeneration Fund. Next week sees the publication of a report into music venues from the Mayor's Music Venues Taskforce and City Hall is also to host a seminar bringing together planners, developers, the boroughs and cultural sector to look at how to ensure culture and creativity are recognised at the heart of London's future development and growth.

The Mayor, who, on his trade mission to the Far East today, saw first-hand the success of the global British fashion brand Burberry in Japan, commented: 'The creative industries are a great British success story, which is creating hundreds of thousands of jobs in the capital and generating billions for the UK economy. This sector, made up of many different disciplines, encapsulates what our city is about, being innovative, dynamic and adaptable. I will do all I can to ensure the creative industries and the talented and imaginative people involved in it are able to thrive to ensure London's future prosperity and success on the international stage'.

The creative industries continue to do well as compared against other sectors in London. Since 2009, GVA has increased by 16.4 per cent, compared to an increase of 15.4 per cent for the London economy as a whole. The highest annual rate of growth was registered between 2010 and 2011 (a 7.8 per cent increase). More generally, the creative industries have shown relatively high growth in the last three years and, when compared to London's economy as a whole, they have experienced slightly faster growth. The average annual rate of growth for GVA of the creative industries in London, over the 2009 to 2012 period, was 5.2 per cent, compared to an average annual growth rate of GVA for the London economy as a whole of 4.9 per cent.

 

The report also shows what proportion of jobs there are in different creative industries groups. For example, in 2014, the biggest share of jobs was taken by IT, Software and Computer services, with 23.6 per cent of the total number of creative industries jobs in London. It was followed by Film, TV, video, radio & photography (16.5 per cent); Music, performing and visual arts (15.9 per cent), and Advertising & Marketing (14.4 per cent).

It offers a snapshot of pay. Median hourly pay in the creative economy in 2014 was £18.80, compared to a median hourly pay of £15.26 in the non-creative economy. The estimates show the median pay per hour in the creative industries in 2014 was 18.8 per cent higher than in the other sectors of the economy taken altogether.

 

[1] 'The creative industries in London' Working Paper by GLA Economics draws on a range of sources, including DCMS, Office for National Statistics and Nesta.

[2] The creative industries groups are defined as follows: Advertising and Marketing; Architecture; Crafts; Design: product, graphic and fashion design; Film, TV, video, radio and photography; IT, software and computer services; Publishing; Museums, galleries and libraries; Music, performing and visual arts.

[3] The analysis contained within the report uses DCMS definitions for the creative industries and the wider creative economy. Broadly speaking, the creative economy consists of three main groups, the first two of which make up the creative industries:

1) Job and industry are both creative;

2) Industry is creative but job is not creative (or unknown);

3) Job is creative but industry is not creative (or unknown).

 

Notes to editors

The analysis contained within the report uses DCMS definitions for the creative industries and the wider creative economy. Broadly speaking, the creative economy consists of three main groups, the first two of which make up the creative industries:

  • Job and industry are both creative;
  • Industry is creative but job is not creative (or unknown);
  • Job is creative but industry is not creative (or unknown)

The creative industries groups are defined as follows: Advertising and Marketing; Architecture; Crafts; Design: product, graphic and fashion design; Film, TV, video, radio and photography; IT, software and computer services; Publishing; Museums, galleries and libraries; Music, performing and visual arts.