Two West Midlands Towns Named Among UK's 15 Most Efficient Local Economies
A recent analysis by CoworkingCafe has identified two West Midlands towns, Stratford-upon-Avon and Warwick, as part of the UK's top 15 most efficient local economies. This study evaluates how effectively these areas convert labor into economic output, providing insights into regional economic performance across the nation.
Key Indicators of Economic Efficiency
The ranking is based on a comprehensive assessment of five critical indicators:
- Labor productivity, measured as Gross Value Added per hour worked.
- Average weekly hours worked by employees.
- Employment rate, reflecting the percentage of the working-age population in jobs.
- Job density, which indicates the concentration of employment opportunities.
- Business density, showing the number of businesses relative to the local population.
These metrics collectively paint a detailed picture of economic health and efficiency in urban areas.
Performance of West Midlands Towns
Stratford-upon-Avon stands out with an ecosystem-led approach to efficiency, achieving high scores across multiple indicators. Its strong performance is attributed to a robust local economy that supports diverse business activities.
In contrast, Warwick demonstrates a more balanced economic profile. With an employment rate of 84.3%, it excels in job availability, though it lags slightly behind Stratford-upon-Avon in business density. However, Warwick boasts a labor productivity of £46.8 GVA per hour, nearly £3 higher per hour than some peers, which accumulates significantly over an average workweek of 38 hours.
National Context and Top Performer
Slough leads the overall ranking, recording the highest labor productivity in Britain at £68.2 GVA per hour and the longest average working week of 39.8 hours. This is driven by high-value sectors such as corporate services, logistics, and other service industries, highlighting the role of specialized economic activities in boosting efficiency.
The inclusion of Stratford-upon-Avon and Warwick in this list underscores the West Midlands' contribution to the UK's economic landscape, showcasing how regional towns can compete with larger cities in terms of economic effectiveness.
This analysis serves as a valuable tool for policymakers, businesses, and residents, offering a benchmark for economic performance and identifying areas for potential growth and investment in local economies across the country.
