Heathrow Related Employment
Draft Final
September 2011
Optimal Economics Ltd
1 St Colme Street
Edinburgh
EH3 6AA
Tel: 0131 220 8461
www.optimaleconomics.co.uk
Contents
1
1.1
1.2
2
2.1
2.2
2.3
3
3.1
3.2
3.3
3.4
3.5
3.6
4
4.1
4.2
5
5.1
5.2
6
6.1
7
Introduction
Introduction
Report Structure
Direct On-Airport Employment
Introduction
Characteristics of On-Airport Employment
Summary
Direct Off-Airport Employment
Introduction
Location
Types of Employment
Methodology
Estimates of Direct Off-Airport Employment
Summary
Indirect Employment
Introduction and Approach
Estimates of Indirect Employment
Induced Employment
1
1
1
2
2
2
6
7
7
7
7
7
9
10
11
11
11
13
Introduction and Approach
Estimates of Induced Employment
13
13
Heathrow Related Employment
14
Heathrow Related Employment
Glossary and Abbreviations
14
15
Summary
1.
Heathrow Airport is one of the largest
employment sites in London with over
76,600 people working within the
Airport boundary creating gross value
added (GVA) of almost £3.3 billion. A
further 7,700 people are employed in
the local area (Hillingdon, Hounslow,
Spelthorne, Ealing and Slough) in
activities which are directly related to
the Airport but who work outside the
Airport boundary. GVA of £0.3 billion
is supported by these jobs.
2.
There are further indirect and induced
jobs supported in the local area,
London and elsewhere in the UK
through the purchases of goods and
services and through the expenditures
of employees. Table 1 provides a
summary of the total employment and
GVA supported by the Airport.
3.
A total of 114,000 jobs and GVA of
£5.3 billion is supported in the local
area by the operation of Heathrow
Airport.
These jobs represent
approximately
22%
of
total
employment in the local area. That is,
one in five jobs in the local area is
dependent on the Airport.
4.
In London, some 136,600 jobs and
GVA of £7 billion are supported by
Heathrow.
Heathrow
related
employment and GVA accounts for
approximately 3.4% of total jobs in
London and 2.6% of GVA.
5.
Across the UK as a whole, Heathrow
supports almost 206,000 jobs and
GVA of almost £9.7 billion. That is,
Heathrow related GVA accounts for
0.8% of UK GVA.
This is a
considerable contribution to the UK
economy from a single employment
site.
Table 1: Total Heathrow Employment and GVA, 2010
Employment
Local
London
Rest of UK
Direct On-Airport
76,600
76,600
76,600
Direct Off-Airport
7,700
7,700
7,700
Indirect
11,100
20,800
44,400
Induced
18,600
31,500
77,200
Total Employment
114,000
136,600
205,900
Direct On-Airport
3.276
3.276
3.276
Direct Off-Airport
0.328
0.328
0.328
Indirect
0.656
1.358
2.462
Induced
1.065
2.059
3.616
Total GVA
5.304
7.021
9.680
GVA, £ billion
Note: Direct on-airport data relates to 2009, but is assumed to hold for 2010
Employment data rounded to the nearest 100
1
Introduction
1.1
Introduction
1.1.1
Heathrow Airport is one of the largest
employment sites in the UK with over
76,600 people working within the
Airport boundary.
However, the
Airport supports other types of
employment in the local, regional and
national economies and the purpose of
this report is to estimate the total level
of employment supported by the
Airport.
The report also provides
1
estimates of the gross value added
(GVA) supported by the Airport. The
GVA created by the Airport is a
measure of its contribution to the
economy.
1.1.2
The analysis has been undertaken for
the local, regional and national
economies which are defined as
follows:
■
1.1.3
Local: the five local authorities
which form the area covered by
the Heathrow local labour strategy
i.e.
Hillingdon,
Hounslow,
Spelthorne, Ealing and Slough;
■
Regional: Greater London; and
■
National: UK.
Using the terminology of previous
2
studies
at
Heathrow
Airport ,
Heathrow related employment has four
components which are defined as
follows:
■
Direct on-airport employment:
employees of businesses whose
activity is directly and solely
related to Heathrow, whose jobs
are based within the Airport
boundary;
■
Direct off-airport employment:
employees whose work is directly
and solely related to Heathrow but
they work for companies located
outside the Airport boundary e.g.
in businesses providing freight
services, airline services, hotels
etc. Note that it is only employees
in these businesses which are
directly and solely related to
Heathrow that are included in the
estimate of direct off-airport
employment as many of the
businesses will also be serving
other airport and non-airport
customers;
■
Indirect employment: employment
in firms supplying goods and
services to the businesses at the
Airport; and
■
Induced
employment:
employment supported by the
expenditure of those employees in
the previous three categories.
1.2
Report Structure
1.2.1
The remainder of the report is set out
as follows:
■
Section
2
considers
the
characteristics of direct on-airport
employment;
■
Section 3 provides estimates of
direct off-airport employment and
GVA;
■
Section 4 provides estimates of
indirect employment and GVA;
■
Section 5 provides estimates of
induced employment and GVA;
and
■
Section 6 sets out the total level of
Heathrow related employment in
GVA in the local area, London and
the UK.
1
GVA is the sum of income (mainly wages,
salaries and profits) earned from the
production of goods and services in an area.
2
“The Employment Impact of Heathrow
Terminal 5”, BAA
1
2
Direct On-Airport Employment
2.1
Introduction
2.1.1
Heathrow Airport Limited (HAL)
undertakes a survey of employers and
employees within the Airport boundary
approximately every five years. The
fieldwork for the latest survey was
undertaken in 2008 and 2009 and
covered companies whose employees
report for work within the boundary of
the Airport and the Waterside
Complex. The results were published
3
in February 2010 .
2.1.2
These survey results are used to
provide an estimate of direct on-airport
employment and information on the
characteristics of the employees at the
Airport
2.2
Characteristics of On-Airport
Employment
2.2.1
Total direct on-airport employment at
Heathrow was 76,640 in 2009 which
supported a passenger throughput of
65.9 million passengers per annum
(mppa).
2.2.2
Direct on-airport employment is split
across a range of activities and
employers. At the time of the 2008/9
survey, there were 320 companies
providing on-airport employment, with
the survey results based on returns
from 297 companies. The level of
employment in the remaining 23
companies
was
considered
insignificant in terms of the overall
employment total. The distribution of
employers and employees by category
of employer is shown in Table 2.1.
2.2.3
There were 81 airlines/ airline handling
agents and 79 catering and retail
companies on-airport which together
accounted for almost 54% of all
companies. However, employment is
dominated by airlines/ airline handling
agents which provide 62% of all jobs.
No other category of employers
accounts for more than 10% of onairport employees.
2.2.4
Table 2.2 provides details of the
characteristics of 2009 on-airport
employment.
This
includes
information on permanent/temporary
employees
full-time/part-time
and
males/female splits. Not all survey
respondents provided this information;
therefore the results are presented for
67,940 permanent employees and 360
temporary employees.
2.2.5
The main points to note from the Table
are:
■
99% of employees are permanent
employees
with
only
360
temporary employees.
The
majority (70%) of temporary
employees are working in the
“other public passenger services”
category;
■
82% of all employees are full-time;
■
57% of employees are male and
over 90% of these employees are
full-time; and
■
Part-time employment accounts
for
31%
of
total
female
employment.
3
SKM February 2010 “Heathrow Airport
Employment Survey 2008/9 – Summary of Survey
Results” (Draft)
2
Table 2.1: Number of Companies and Employees at Heathrow by Type 2008/9
Employers
Employees
Category
No.
%
No.
%
Airlines/Airline Handling Agents
81
27.3
47,570
62.1
Government Services
8
2.7
2,860
3.7
BAA / Heathrow Airport Limited
3
1.0
6,020
7.9
Catering and Retail
79
26.6
5,360
7.0
Other Public Passenger Services
49
16.5
7,420
9.7
Cargo/Freight/Courier Services
14
4.7
700
0.9
Building & Maintenance Contractors
38
12.8
3,140
4.1
Other Companies
25
8.4
3,580
4.7
All Companies
297
100.0
76,640
100.0
Source: 2008/9 Heathrow Employment Survey
Note: Columns may not sum due to rounding
Table 2.2: Heathrow Employment by Type
Permanent Employees
Full-Time
Part-Time
Total
Males
Females
Males
Females
Males
Females
Airlines/Airline Handling Agents
21,380
11,790
1,790
7,250
23,170
19,040
Government Services
1,070
690
110
180
1,170
870
BAA / Heathrow Airport Limited
3,430
1,920
170
510
3,600
2,420
Catering and Retail
1,560
2,240
550
660
2,110
2,900
Other Public Passenger Services
4,220
1,920
250
270
4,470
2,190
570
90
20
20
590
110
Building & Maintenance Contractors
1,450
300
10
10
1,460
310
Other Companies
2,310
970
180
90
2,490
1,070
All Companies
35,980
19,910
3,070
8,980
39,050
28,890
Cargo/Freight/Courier Services
Temporary Employees
Full-Time
Part-Time
Total
Males
Females
Males
Females
Males
Females
Airlines/Airline Handling Agents
0
10
<5
10
<5
20
Government Services
0
<5
<5
10
<5
20
BAA / Heathrow Airport Limited
0
0
0
0
0
0
Catering and Retail
0
<5
0
<5
0
<5
140
<5
<5
100
140
110
Cargo/Freight/Courier Services
0
0
0
0
0
0
Building & Maintenance Contractors
50
<5
<5
0
60
<5
Other Companies
10
10
0
0
10
10
All Companies
200
30
10
120
210
150
Other Public Passenger Services
Source: 2008/9 Heathrow Employment Survey, Note: Columns may not sum due to rounding
3
2.2.6
The survey gathered information on
the salaries of Heathrow employees.
The questions had a relatively low
response
rate
but,
even
so,
information was provided for almost
11,100 employees. Figure 2.1 shows
the distribution of these employees
across salary bands with the average
salary for these employees being
£26,200.
2.2.7
Applying this average to the total
number of on-airport employees yields
a total wages and salaries bill of £2
billion.
Figure 2.1: Distribution of LHR Employees
Across Salary Bands, %
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
2.2.8
41.6
17.0
18.3
8.4
4.6
2.2.9
The distribution of Heathrow on-airport
employment
across
occupational
groups is shown in Table 2.3. The
Airport provides employment across all
occupational groups from managerial
level
through
to
elementary
occupations, although the majority of
employment is in personal service
occupations and process, plant and
machine operatives. Personal service
occupations are dominated by air
cabin crew.
2.2.10 The Office for National Statistics
(ONS)
classifies
occupational
groupings according to their skill
specialisation and skill level.
Skill
levels are approximated by the length
of time considered necessary for a
person to become fully competent in
the performance of the tasks
associated with a job. Within the
occupational classification, there are
four skill levels which are defined as
follows:
4.1 4.7
0.2 1.1
Wages and salaries are the main
component of GVA and in 2009
4
accounted for 61% of total GVA.
Assuming wages and salaries at
Heathrow account for 61% of the GVA
associated with direct on-airport
employment yields an estimate of GVA
of almost £3.3 billion.
■
Level 1: competence associated
with a general education, usually
signalled by satisfactory school
exam
grades.
Competent
performance of jobs at this level
will involve appropriate knowledge
of health and safety regulations
and possibly short periods of work
related training e.g. hotel workers,
cleaners;
■
Level 2:
occupations which
require knowledge provided via a
good general education, but have
longer periods of work related
training or work experience e.g.
machine
operation,
retailing,
secretarial;
■
Level 3:
occupations which
normally require study (post
school), but not to degree level
e.g. skilled engineering and
construction trades; and
4
“Regional, sub-regional and local gross
value added 2009”, ONS, 2010 edition
4
■
Table 2.3: Heathrow Employment by Occupation
No.
%
Managers & Senior Officials
4,650
6.3
Professional Occupations
4,460
6.1
Associate Professional & Technical
7,290
9.9
Administrative & Secretarial
1,040
1.4
Skilled Trade Occupations
1,730
2.4
Personal Service Occupations
23,730
32.3
Sales & Customer Services
3,280
4.5
Process, Plant & Machine Operatives
15,650
21.3
Elementary Occupations
11,610
15.8
Total
73,440
100.0
Source: 2008/9 Heathrow Employment Survey, Data only available for 73,440 employees
Note: Columns may not sum due to rounding
■
Level 4:
professional and
managerial
positions
which
normally require a degree or
equivalent.
2.2.11 Table 2.4 shows the distribution of
2009 Heathrow employment across
the four skill levels defined above.
Almost 60% of employment is in skill
level 2 which includes air cabin crew
and baggage handlers.
Table 2.4: Distribution of Heathrow
Employment by Skill Level, %
2009
Level 1
15.8
Level 2
59.5
Level 3
12.3
Level 4
12.4
Total
100.0
2.2.12 Heathrow draws its labour force from a
wide geographical area with 29 local
authorities accounting for at least 0.5%
of its workforce. The authorities of
Hillingdon,
Hounslow,
Ealing,
Spelthorne and Slough are closest to
the Airport and form the area covered
by the local labour strategy.
2.2.13 These five districts closest to the
Airport account for almost 46% of
employment i.e. Hounslow, Hillingdon,
Ealing, Slough and Spelthorne.
2.2.14 Heathrow also accounts for between
7% and 9% of the labour force in four
of these five authorities – Hillingdon,
Hounslow, Slough and Spelthorne.
Details are provided in Table 2.5.
Source: 2008/9 Heathrow Employment Surveys
5
Table 2.5: Heathrow Employment Assessment Area
LA
No. Working at
Heathrow
% of Heathrow
Workforce
% of Local Authority
Workforce
Hounslow
10,760
14.6
7.2
Hillingdon
8,960
12.2
9.4
Ealing
5,760
7.8
3.6
Slough
4,090
5.6
6.8
Spelthorne
3,920
5.3
8.3
Local Labour Area
47,660
45.5
6.6
Other Areas
25,770
54.5
Total
73,430
100.0
Source: Table 16, Heathrow Airport Employment Survey, 2008/9
2.3
Summary
2.3.1
In 2009, Heathrow employed 76,640
people within its boundary who earned
wages and salaries of £2 billion and
created GVA of £3.3 billion. All direct
on-airport employment and GVA is
within the local area.
2.3.2
These people are employed in a wide
range
of
activities
across
all
occupational groups.
The Airport
draws its workforce from a wide
geographical area with the five local
authorities which are closest to the
Airport accounting for 46% of direct
on-airport employment.
6
3
Direct Off-Airport Employment
3.1
Introduction
3.2
Location
3.1.1
Direct off-airport employment covers
employees whose work is directly and
solely related to Heathrow but who
work for companies located outside
the Airport boundary. Note that it is
only employees in these businesses
which are directly and solely related to
Heathrow that are included in the
estimate
of
direct
off-airport
employment
as
many
of
the
businesses will also be serving other
airport and non-airport customers.
3.2.1
Direct off-airport employment tends to
be located in close proximity to the
airport for logistical and practical
reasons. At Heathrow, it has been
assumed
that
direct
off-airport
employment will be restricted to the
local authorities in the immediate
vicinity of the Airport i.e. Hillingdon,
Hounslow, Spelthorne, Slough and
Ealing.
3.3
Types of Employment
The level of direct off-airport
employment is influenced by a number
of factors including the size and type
of traffic through the airport and the
availability of land and premises within
the airport boundary.
3.3.1
Previous studies have identified the
following categories of direct off-airport
employment:
3.1.2
3.1.3
The “demarcation” between on-airport
and off-airport employment is not fixed
and can vary for the same airport over
time. Experience shows that activities
can move from on-airport locations to
off-airport locations. For example, an
airline might move its head office
activities from a site within the airport
boundary to one outside the airport
boundary and in that event the
employment moves from direct onairport to direct off-airport employment.
The total level of direct airport
employment is not changed, but there
is a change in the distribution between
on-airport and off-airport.
5
■
Hotels;
■
Freight agents;
■
In-flight catering activities;
■
Car parking; and
■
Airline/ aviation services .
6
3.3.2
All these categories have been
included in the analysis for Heathrow.
3.4
Methodology
3.4.1
The approach to estimating direct offairport employment was to:
■
Identify the population of offairport companies through internet
searches of appropriate business
categories (i.e. hotels, freight
agents etc) in each of the five
districts;
5
“The Employment Impact of Heathrow
Terminal 5”, BAA; “Stansted Generation 1:
Environmental Statement, Volume 6
Employment Effects”, BAA
6
Includes airline offices, aircraft services and air
charter activities
7
■
Undertake a telephone survey of
the businesses to determine the
level of employment and the
extent to which the business is
dependent on the airport; and
■
Use the survey results to provide
an estimate of direct off-airport
employment.
Identifying Off-Airport Companies
3.4.6
Table 3.1 provides a summary of the
outcome of the interview process. A
total of 290 interviews were completed
which represents 55% of the original
population, although this population
includes some companies which are
not related to Heathrow.
3.4.7
In light of the findings of the survey,
the population should be reduced as it
is
not
appropriate
to
include
companies who are based on-airport,
duplicate companies, companies not
related to Heathrow and those
assumed to be no longer trading.
Excluding these companies reduces
the population of direct off-airport
companies to 441. The distribution of
these companies by category is shown
in Table 3.2.
3.4.2
The search for direct off-airport
companies was restricted to the local
authorities of Hillingdon, Hounslow,
Spelthorne, Slough and Ealing. An
7
internet search was undertaken and
supplemented by information from
HAL. The following categories were
covered by the search – hotels,
airlines, airline support services,
shipping and forwarding agents, car
parks and freight forwarding and
storage.
3.4.3
Many of the companies identified from
this search were excluded as they
were either located within the airport
boundary (and are therefore covered
by
the
on-airport
employment
estimate) or located outside the local
authority areas which are the focus of
the analysis.
Table 3.1: Summary of Outcome of Survey
Process
This search yielded a total of 527
companies which could be considered
as the population of off-airport
companies.
3.4.4
Telephone Survey
3.4.5
The second stage of the process was
to undertake a telephone survey of
these companies to determine the
nature of their activities, the level of
employment and the extent to which
the business was dependent on
Heathrow.
No.
Interviews complete
290
Person not available
72
Refused
79
Based on-airport
6
Duplicate company
6
No longer trading
6
Not related to Heathrow
22
Number unobtainable, assumed
to be no longer trading
46
Total
527
7
Including Yell, Heathrow Airport hotel shop,
BIFA, airporthotels4less
8
Table 3.2: Population of Off-Airport Companies and Number of Completed Interviews by
Category
Airlines & Airline Support Services
Population
Completed
Interviews
No.
No
(1)
(2)
(3)
1
(1) as % (2)
21
13
61.9
Car Parks
10
6
60.0
Freight
263
166
63.1
Hotels
136
102
75.0
Other
11
3
27.3
Total
441
290
65.8
Notes: 1 – includes in-flight catering services
Estimating Current Direct OffAirport Employment
3.4.8
To calculate the level of direct offairport employment associated with
these companies, the following steps
were undertaken:
■
Calculate the total number of
employees per company for the
companies interviewed;
■
For each company, apply the
proportion of Heathrow related
business to the number of
employees to calculate Heathrow
related employment;
■
Calculate
average
Heathrow
related employment by company
type e.g. using data for all hotels
interviewed, calculate average
Heathrow related employment for
hotels;
■
Use this average to “gross up” to
the population of off-airport
companies by type e.g. Table 3.2
shows that 102 hotels were
interviewed from the population of
136.
Apply average Heathrow
related employment for hotels to
the total population of hotels; and
■
Estimate direct off-airport GVA by
applying GVA per employee from
the analysis of direct on-airport
employment to the estimate of
direct off-airport employment.
3.5
Estimates of Direct Off-Airport
Employment
3.5.1
Total employment in the companies
interviewed was almost 8,800. Across
all companies, the proportion of
business which was related to
Heathrow Airport was almost 54%,
although the proportion varied across
the direct off-airport categories.
3.5.2
For the 290 companies interviewed,
total Heathrow related direct off-airport
employment is estimated to be just
over 5,000. For the 151 companies
not interviewed during the survey, it is
assumed that average Heathrow
related employment in each category
(e.g. hotels) applies to the companies
in each category in the population.
9
3.5.3
3.5.4
Total Heathrow direct off-airport
employment is estimated to be 7,700.
Details are shown in Table 3.3 with
employment
in
freight
services
accounting for the majority of
employment.
3.6
Summary
3.6.1
In 2010 it is estimated that 7,700
people are employed in the area
around Heathrow in activities which
are directly related to the operation of
the Airport. This employment supports
GVA of £0.3 billion.
GVA associated with this employment
has been estimated by applying GVA
per employee to the estimates of direct
off-airport employment. The value of
GVA per employee in this analysis is
the same as that used in the analysis
of direct on-airport employment. This
yields an estimate of GVA associated
with direct off-airport employment of
£0.3 billion.
Table 3.3: Estimate of Direct Off-Airport Employment
No.
%
900
11.5
100
1.2
Freight
4,400
57.0
Hotels
2,100
27.7
Other
300
3.6
Total
7,700
100.0
Airlines & Airline Support Services
Car Parks
1
Note: Columns may not sum due to rounding. All estimates rounded to the nearest 100.
10
4
Indirect Employment
4.1
Introduction and Approach
4.1.1
The operation of Heathrow Airport
supports indirect employment in the
local area, London and elsewhere in
the UK through the purchases of
goods and services by the companies
providing direct employment. Indirect
employment has been estimated from
a survey of companies which was
undertaken between January and
March 2011.
4.1.2
The approach to the calculation of
indirect employment was:
■
Identify a sample of companies in
conjunction with HAL including
companies involved in all aspects
of the operation of Heathrow e.g.
airlines, building and maintenance,
retail and catering, transport
provision etc.;
■
Contact these companies to
introduce the survey and request
company participation;
■
Undertake a telephone survey to
determine:
■
the type of goods and services
these businesses purchase in the
local area, London and elsewhere
in the UK; and
■
the level of expenditure on these
purchases in the local, regional
and national economies;
■
Use the results from the survey to
estimate the total expenditure of
these companies and calculate
average
expenditure
per
employee
for
the
different
categories of companies e.g.
airlines, catering companies etc;
■
To gross up to cover all
businesses at the Airport, apply
average
expenditure
per
employee (calculated in the
previous step) to the total number
of employees at the Airport in the
different categories of companies;
■
Derive the indirect employment
estimate by applying the ratio of
output per employee for each
8
sector to the estimate of total
expenditure; and
■
Calculate GVA by applying
average regional or national GVA
per employee to the estimate of
indirect
employment
as
appropriate.
4.2
Estimates of Indirect
Employment
4.2.1
Table 4.1 sets out the indirect
employment and GVA supported by
the operation of Heathrow on the local,
regional and national economy. Within
the local economy, 11,100 indirect
jobs are supported with GVA of £0.6
billion. In London 20,800 jobs are
supported creating GVA of almost £1.4
billion.
4.2.2
Across the UK as a whole the
expenditure of businesses at the
Airport supports 44,400 indirect jobs
and GVA of almost £2.5 billion.
8
Annual business inquiry data
11
Table 4.1: Estimate of Indirect Employment and GVA
Local
London
UK
Employment
11,100
20,800
44,400
GVA, £ billion
£0.636
£1.358
£2.462
Note: All estimates rounded to the nearest 100
12
5
Induced Employment
5.1
Introduction and Approach
5.1.1
Induced employment is employment
supported by the local expenditure of
people whose jobs depend directly
and indirectly on the operation of
Heathrow. It is standard practice in
economic impact studies to estimate
induced
employment
using
an
employment multiplier. In this case,
the multiplier is the relationship
between direct (on and off-airport) and
indirect employment arising from
Heathrow
Airport
and
induced
employment.
5.1.2
The value of the multiplier is
influenced by the size and structure of
the local economy. Economies which
are relatively large in output and
employment terms are assumed to
have a greater capability to create
induced employment and so have a
larger multiplier effect than assumed
for smaller economies.
5.1.3
A value of 1.3 has been adopted as
the regional multiplier and this is
applied to the analysis for London.
For the Heathrow local area, the
multiplier has been scaled down to 1.2
to reflect the fact that it is a smaller
economy. For the analysis of the UK
induced impact, a multiplier of 1.6 has
been adopted.
GVA has been
estimated by applying data on regional
or national GVA per employee as
appropriate.
5.2
Estimates of Induced
Employment
5.2.1
Table 5.1 sets out the induced
employment and GVA supported by
the operation of Heathrow on the local
economy and London. Within the local
economy, 18,600 induced jobs are
supported with GVA of almost £1.1
billion. In London 31,500 jobs are
supported creating GVA of almost £2.1
billion.
5.2.2
Across the UK as a whole, 77,200
induced jobs are supported by
Heathrow with GVA of £3.6 billion.
Table 5.1: Estimate of Induced Employment and GVA
Local
London
UK
Employment
18,600
31,500
77,200
GVA, £ billion
£1.065
2.059
3.616
Note: All estimates rounded to the nearest 100
13
6
Heathrow Related Employment
6.1
Heathrow Related
Employment
6.1.3
Table 6.1 provides a summary of the
employment and GVA estimated to be
supported by Heathrow Airport in 2010
in the local area around the Airport,
London and the UK as a whole.
Adding
indirect
and
induced
employment takes the proportion of
total local employment which is related
to Heathrow to approximately 22% of
total local employment.
6.1.4
In London, some 136,600 jobs and
GVA of £7 billion are supported by
Heathrow.
Heathrow
related
employment and GVA accounts for
approximately 3.4% of total jobs in
London and 2.6% of GVA.
6.1.5
Across the UK as a whole, Heathrow
supports almost 206,000 jobs and
GVA of almost £9.7 billion. That is,
Heathrow related GVA accounts for
0.8% of UK GVA.
This is a
considerable contribution to the UK
economy from a single employment
site.
6.1.1
6.1.2
Heathrow is estimated to support
114,000 jobs in the local area and
GVA of £5.3 billion. The majority
(74%) of the local jobs are direct jobs
within the Airport boundary or in
activities directly related to the
operation of the Airport. In 2009,
employment in the local area was over
513,000, such that the direct jobs at
Heathrow (on-airport and off-airport)
account for 16% of total employment
in the local area.
Table 6.1: Total Heathrow Employment and GVA, 2010
Employment
GVA, £ billion
Local
London
UK
Local
London
UK
Direct On-Airport
76,600
6,600
76,600
3.276
3.276
3.276
Direct Off-Airport
7,700
7,700
7,700
0.328
0.328
0.328
Indirect
11,100
20,800
44,400
0.636
1.358
2.462
Induced
18,600
31,500
77,200
1.065
2.059
3.616
Total
114,000
136,600
205,900
5.304
7.021
9.680
Note: Direct on-airport data relates to 2009, but is assumed to hold for 2010
Employment data rounded to the nearest 100
14
7
Glossary and Abbreviations
GVA
Gross value added – income earned from the production of goods and services in
an area
HAL
Heathrow Airport Limited
Local
Area covered by the Heathrow Local Labour Strategy - Hillingdon, Hounslow,
Spelthorne, Ealing and Slough
MPPA
Million passengers per annum
National
UK
Regional
London
15