Economy of Edinburgh
Edinburgh, the capital city of Scotland, is a powerhouse of the Scottish economy, as well as the wider UK economy. Edinburgh has been consistently one of the most prosperous parts of the country and has the strongest economy of any city in the UK outside London.[1] Financial Times FDi Magazine has named Edinburgh as the "Best Large European City of the Future" and "Best Foreign Direct Investment Strategy (Large City)" for 2012/13.[2]
Edinburgh was ranked the 13th largest financial centre internationally and the 4th largest in Europe in 2020.[3]
Economic profile
- In 2011, the population of Edinburgh was estimated at 476,600, which was an increase of 28,000 on the figure from 2001 which stood at 448,600.[4]
- The city has the second-highest gross value added (GVA) per resident (behind London) in major UK cities, with the average being £34,178 per resident.[5]
- The employment rate for the city stood at 73.6% for Q1 of 2013, which was higher than the rate for Scotland as a whole, which stood at 71.8%.[6]
- The city has the lowest percentage of total working age residents claiming Jobseeker's Allowance of major UK cities at 3.2% as of December 2012.[7]
- Edinburgh is second only to London in average gross annual earnings per resident in major UK cities, with an average salary of £27,800.[8]
Top employers
The table below shows the top employers in terms of employee numbers in the City of Edinburgh:
Employer | Number of employees | ||||||
---|---|---|---|---|---|---|---|
NHS Lothian | 19,890 | ||||||
City of Edinburgh Council | 18,617 | ||||||
University of Edinburgh | 13,372 | ||||||
NatWest Group | 8,368 | ||||||
Lloyds Banking Group | 7,500 | ||||||
Standard Life | 5,259 | ||||||
The Scottish Government | 3,913 | ||||||
Lothian and Borders Police | 2,439 | ||||||
Tesco (inc Tesco Bank) | 2,400 | ||||||
Royal Mail | 2,257 | ||||||
[7]| Source: Edinburgh by Numbers 2013/14 |
This next table highlights the number of people in employment in the City of Edinburgh by industrial sector:
Sector | Number of employees | ||||||
---|---|---|---|---|---|---|---|
Human health and social work | 45,300 | ||||||
Wholesale, retail and repair | 36,400 | ||||||
Financial Services | 34,600 | ||||||
Education | 29,200 | ||||||
Accommodation and food services | 26,800 | ||||||
Professional, scientific and technical activities | 27,100 | ||||||
Administrative and support services activities | 21,000 | ||||||
Public administration, defence and social security | 18,700 | ||||||
Information and communication | 12,400 | ||||||
Transportation and storage | 10,200 | ||||||
Arts, entertainment and recreation | 10,000 | ||||||
Construction | 9,000 | ||||||
Manufacturing | 7,300 | ||||||
Other service activities | 5,500 | ||||||
Primary industries and utilities | 3,200 | ||||||
Real estate | 5,200 | ||||||
[7]| Source: Edinburgh by Numbers 2013/14 |
Key sectors
Financial services
Edinburgh is the second largest financial centre in the United Kingdom, after the City of London, and the fourth in Europe by equity assets.[9]
Edinburgh has been a centre of banking for over 300 years; the
In insurance terms, indigenous Edinburgh companies such as Standard Life and Scottish Widows form a large part of the European insurance sector as well as being major employers in the city. Scottish Widows was founded in 1815, managing £145.79 billion worth of funds at June 2013[12] with a workforce of around 3,500.
The New Town and city centre has traditionally been home to many companies, in the banking, finance and legal professions, but modern needs have caused many to relocate. Immediately to the west of the city centre is the Terry Farrell master-planned Exchange business district, which now houses major employers such as Scottish Widows, Standard Life, the Clydesdale Bank, and Baillie Gifford.
Technology and software
Edinburgh has an estimated 17,136
A large number of technology companies are based in the area around the University of Edinburgh.
Retail
Edinburgh has not had as large or as significant a retail sector compared to
Tourism
Tourism is another important mainstay of the economy of Edinburgh, supporting 30,000 jobs in the city worth £1.6 billion to the city economy.
Tourist attraction | Number of visitors | ||||||
---|---|---|---|---|---|---|---|
National Museum of Scotland | 1,893,500 | ||||||
Edinburgh Castle | 1,230,200 | ||||||
Scottish National Gallery | 961,300 | ||||||
St Giles' Cathedral | 904,400 | ||||||
Edinburgh Zoo | 810,900 | ||||||
Royal Botanic Garden Edinburgh | 704,600 | ||||||
Edinburgh Bus Tours | 511,400 | ||||||
National War Museum | 492,700 | ||||||
Scottish Parliament Visitor Centre | 345,100 | ||||||
Our Dynamic Earth
|
331,800 | ||||||
Scottish National Portrait Gallery | 328,000 | ||||||
Scottish National Gallery of Modern Art | 314,800 | ||||||
Royal Yacht Britannia
|
300,700 | ||||||
Scottish Whisky Heritage Centre | 270,600 | ||||||
Museum of Childhood | 237,500 | ||||||
Source: Moffat Centre Visitor Attraction Monitor 2012 [3] |
Public sector
Edinburgh is the centre of Scotland's government and
Education
Edinburgh is a major centre of education in the United Kingdom, and has been since the establishment of the University of Edinburgh in 1583, with another three major higher education institutions in the city developing later. Education and academic research (including medical research) plays a significant role in the economy of the city. The presence of these educational institutions also attracts many overseas students (27,005) and those from the rest of the UK (15,270). For the 2021-22 academic year, there is a student population of 74,710 enrolled across the four universities in the city.[24]
Institution | Number of students | International Students | Rest of the UK Students | ||||
---|---|---|---|---|---|---|---|
University of Edinburgh | 41,250 | 18,050 | 11,900 | ||||
Edinburgh Napier University | 15,530 | 3,635 | 1,005 | ||||
Heriot-Watt University | 11,680 | 4,135 | 1,615 | ||||
6,250 | 1,185 | 750 | |||||
[24]| Source: Higher Education Statistics Agency 2021/22 |
The city is also home to a number of
Infrastructure
The city is linked internationally by Edinburgh Airport (EDI) which in 2018 saw 14.3 million passengers throughout the year,[26] which makes Edinburgh Airport the busiest Scottish Airport and sixth busiest in the UK.
In terms of rail connections, Edinburgh Waverley railway station is the principal mainline station in the city serving over 22.5 million passenger journeys over 2011–12.[27]
The city is also well served by its bus service, with Lothian Buses having its headquarters in Edinburgh. Over 70 services run throughout the city, which includes a direct link to the airport and open top buses for city tours.[28]
The first phase of the Edinburgh Trams was completed in May 2014, consisting of 16 tram stops along the single 14 km (8.7 mi) line. The route linked Edinburgh Airport in the West, to York Place in the East.[29] The second phase of the Edinburgh Tram development was competed in June 2023 and added a further 8 stops from Picardy Place, which replaced the former York Place stop, to Newhaven in Leith, extending the line to 18.5 km (11.5 mi). There are plans to build new lines to Granton, the Royal Infirmary of Edinburgh, and Musselburgh but nothing is certain at the moment.
Challenges
Regeneration
Derelict land and areas on the waterfront of Edinburgh at places like Granton and Leith are in the process of being regenerated to make way for mixed commercial, residential and industrial developments to further provide for the forecast growth of the city.
Urban growth
In an economic sense Edinburgh is constrained by its relatively small size,
See also
- Economy of Scotland
- Economy of the United Kingdom
- Economy of the European Union
- Politics of Edinburgh
- Transport in Edinburgh
References
- ^ Why Invest in Edinburgh "Invest in Edinburgh | Investment and Doing Business in Edinburgh Scotland". Archived from the original on 15 October 2013. Retrieved 27 October 2013. Edinburgh City Council Capital Review
- ^ ""FDi European Cities & Regions of the Future 2013"". Archived from the original on 24 March 2016. Retrieved 28 November 2013.
- ^ "Edinburgh 4th in Europe in new Financial Centres index – Scottish Financial Review".
- ^ "Scotland's Census - 2011 Census: First Results on Population and Household Estimates for Scotland - Release 1B" "2011 Census: First Results on Population and Household Estimates for Scotland - Release 1B". Archived from the original on 3 December 2013. Retrieved 27 October 2013.
- ^ "ONS - Regional Gross Value Added (Income Approach), December 2012"
- ^ "Edinburgh Economy Watch - October 2013" Archived 3 December 2013 at the Wayback Machine
- ^ a b c "Edinburgh by Numbers 13/14" Archived 16 October 2013 at the Wayback Machine
- ^ "Scotsman 2013 - Only London beats Edinburgh on productivity in UK"
- ^ Edinburgh Brand Website Edinburgh's Financial Services Sector Archived 5 May 2010 at the Wayback Machine
- ^ The ScotsmanJobs Boost as Tesco to base finance arm in Capital
- ^ The Scotsman Virgin Money provides jobs boost for the city
- ^ "Scottish Widows Partnership". Archived from the original on 29 November 2013. Retrieved 28 November 2013.
- ^ Edinburgh Park Edinburgh Park Overview Archived 28 June 2006 at the Wayback Machine
- ^ "Tech Nation - Tech City UK". Archived from the original on 1 May 2015. Retrieved 5 May 2015.
- ^ "Tech companies in Edinburgh | Invest Edinburgh". Archived from the original on 23 September 2015. Retrieved 5 May 2015.
- ^ "Award-Winning Video Game Developer Based in Edinburgh, Scotland". Rockstar North. Retrieved 9 February 2013.
- ^ "REF 2014 results".
- ^ Valuation Office Agency VOA Property Market reports
- ^ Capital Review[1] Archived 29 May 2008 at the Wayback Machine, Capital Review: Issue 20: String of Pearls
- ^ a b Edinburgh Convention Bureau "Press & PR fast facts". Archived from the original on 18 June 2006. Retrieved 16 June 2006. Edinburgh Convention Bureau - Fast Facts
- ^ "Business opportunities: Tourism in Edinburgh – key figures" (PDF). Edinburgh Tourism Action Group. 2013.
- ^ "Archived copy" (PDF). Archived from the original (PDF) on 16 October 2013. Retrieved 27 October 2013.
{{cite web}}
: CS1 maint: archived copy as title (link) - ^ The Scotsman From nuclear physics to boob jobs - Edinburgh conferences worth £74m
- ^ a b "Where do HE students study?: Students by HE provider". HESA. HE student enrolments by HE provider. Retrieved 8 February 2023.
- ^ Edinburgh by Numbers 2010/2011 - City of Edinburgh Council [dead link]
- ^ "Facts and figures | Edinburgh Airport".
- ^ "Waverley station overhaul to create city 'piazza'". The Scotsman. 19 May 2013. Retrieved 28 November 2013.
- ^ "Our company". Lothian Buses. Retrieved 28 November 2013.
- ^ "Tram Route Map and Stops". Edinburgh Trams. Retrieved 16 April 2015.
- ^ Scottish Enterprise, 2006 [2] Archived 21 October 2006 at the Wayback Machine Capital Catching up with International Competitors
- ^ Glasgow Economic Facts 2005 Glasgow Economic Analysis and Benchmark Report Archived 7 May 2006 at the Wayback Machine
External links
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