Overview
Luton, a significant urban centre, demonstrates a diverse economic landscape. With 146,601 employees and a notable 11.61% employee growth, the city shows signs of robust economic health. Key sectors include wholesale/retail trade, construction, and administrative support, reflecting a balanced mix of service and industrial activities. However, gender diversity in founding and director roles remains a challenge, with low percentages of female founders and directors.
Employment and Business Growth
- Total Employees: Luton employs 146,601 individuals across various sectors. The city has experienced a healthy growth in employment, with an 11.61% increase in employee numbers, indicating strong job market dynamics.
- Sectors with Highest Employment Growth: The sectors that have shown significant growth include consumer estate agency services, other business and professional services, software-as-a-service (SaaS), and restaurants and cafes. This diversification suggests adaptability and resilience in the local economy.
Sector Analysis
- Dominant Sectors: The dominant sectors in Luton are wholesale and retail trade (17.49%), construction (14.05%), and administrative support (11.25%). These sectors form the backbone of Luton’s economy, providing substantial employment opportunities.
- Emerging Sectors: Emerging sectors like SaaS and consumer estate agency services highlight a trend towards digitalisation and a shift in consumer preferences.
Business Continuity
- Company Cessations: Luton has seen a considerable number of company cessations, totaling 27,14. This figure points to challenges in business sustainability, possibly influenced by market dynamics or economic shifts.
Innovation and Entrepreneurship
- Scaleups and New Companies: The city has 46 scaleups and 4,394 new companies established in the last two years. This indicates a vibrant entrepreneurial ecosystem and a conducive environment for business growth.
- Innovation Indicators: With 195 patent owners and 3 grantees, Luton shows moderate innovation activity. However, there’s room for growth in this area to further bolster the city’s economic dynamism.
Diversity and Leadership
- Gender Diversity in Leadership: The percentage of female founders (4%) and directors (22.78%) is relatively low, suggesting a gender gap in leadership roles within the business community.
- Age Distribution of Directors: The distribution skews towards more experienced directors, with the highest concentration in the 40-50 age bracket (28.66%).
Conclusion
Luton’s economy is characterised by strong employment growth, sectoral diversity, and a burgeoning entrepreneurial scene. However, challenges in gender diversity and business continuity need to be addressed. Efforts to foster innovation and support emerging sectors could further strengthen the city’s economic resilience.