Economy of Birmingham

The economy of Birmingham, England, is an important manufacturing and engineering centre, employing over 100,000 people in the industry and contributing billions of pounds to the national economy. During 2013, the West Midlands region exported goods worth £19.6 billion, around 8.73% of the national total.

The economy of Birmingham is dominated by the service sector, which accounted for 88% of the city's employment in 2012. In 2023, the median salary for full-time employees in Birmingham was £34,037, with an unemployment rate of 7.7%.

Birmingham is the largest centre in Great Britain for employment in public administration, education and health; and after Leeds the second-largest centre outside London for employment in financial and other business services. The wider metropolitan economy is the second-largest in the United Kingdom with a GDP of $121.1 billion (2014 estimate, PPP). Major companies headquartered in Birmingham include the engineering company IMI plc, Mobico Group, Patisserie Valerie, Claire's, and Mitchells & Butlers; including the wider metropolitan area, the city has the largest concentration of major companies outside London and the South East, hosting headquarters for Gymshark and Severn Trent Water. With major facilities such as the National Exhibition Centre and International Convention Centre, Birmingham attracts 42% of the UK's total conference and exhibition trade.

Economic indices

Birmingham is a significant city in the UK for business and quality of life. In 2013, it ranked 10th in the UK for quality of life among the largest cities. In 2010, it was named the 52nd-most liveable city in the world.

A survey of European businesses in 2010 placed Birmingham 18th in Europe and 3rd in the UK for being a great place to start a business. It also ranked well for access to markets, skilled workers, and office space. The city is known for its value for money in office costs and has good transport links both within the city and to other places.

GVA

In 2013, Birmingham's GVA was £24.1bn. This made up 21.8% of the GVA of the West Midlands (region), and 1.6% of the GVA of the UK. Only London and Greater Manchester South had higher GVA among city areas.

The growth in GVA in 2013 was especially strong compared to earlier years, with an increase of 2.2% from 2011 to 2012 for Birmingham.

Productivity

GVA per employee in Birmingham was estimated to be £42,800 in 2012. This placed it 6th among the major cities in the UK and 3rd among the Core Cities, after London, Edinburgh, and Leeds.

²excluding Birmingham, included Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield

GVA by sector

GDP

According to the 2012 Eurostat figures, the GDP per capita of Greater Manchester is €27,500, just ahead of the West-Midlands with €26,600. This is only half the GDP per capita of Dublin at €57,200 or London at €54,200.

Greater Manchester has a total GDP of €74.398 bn, while the West Midlands has a total GDP of €73.538 bn. These amounts are less than the €85.700 bn in Greater Dublin and much less than the €450.379 bn in Greater London.

Employment, welfare and education

The population of Birmingham was about 1,085,400 in 2012, growing at a rate of 1.04%. This growth rate was the fourth highest among major cities, after Nottingham (1.59%), Manchester (1.56%) and Newcastle (1.2%).

¹Median earnings in pounds for employees living in Birmingham

²Median earnings in pounds for employees working in Birmingham.

Business activity

As the UK economy recovered from a downturn between 2008 and 2010, Birmingham did not grow as quickly as other big cities. In those cities, the number of new businesses grew by 3.6%, while in Birmingham it grew by 1.6%. Even so, Birmingham had many new businesses starting up, though it also saw many businesses closing.

³excluding Birmingham, included Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield

Jewellery Quarter

The Jewellery Quarter is the biggest place in Europe for making jewellery. About one-third of all jewellery made in the UK comes from just one mile around Birmingham's city centre. Until 2003, coins used in shops were made here at the Birmingham Mint, the oldest mint in the world. The mint still makes special commemorative coins and medals.

From manufacturing to service and research

Like most of Britain, Birmingham has seen a shift from making things to providing services since the 1970s. Today, jobs in services, shopping, learning, and visiting the city are more common than factory jobs.

Birmingham still makes many things, such as fancy motor vehicles, car parts, weapons, electrical tools, plastics, machines, chemicals, food, jewellery, and glass. The city has big car factories like MG Rover in Longbridge and Jaguar in Castle Bromwich, with Land Rovers made nearby in Solihull. Smaller factories, such as one at Autodesk, also play an important role.

service industries, retailing, knowledge, tourism

Retail

Birmingham is a very popular place for shopping. It has one of the biggest shopping centers in the UK and Europe, called the Bullring. It was the busiest shopping place in the UK in its first year, with 36.5 million visitors.

The city has three main shopping centers: the Bullring, Mailbox, and Grand Central. There are also smaller shopping areas and four big department stores. In 2015, a very large store opened in the city’s New Street station. Designer shops are mostly found in the Mailbox area and around Colmore Row. The Bullring now has many famous brands like Hugo Boss and Armani Exchange.

Tourism

Birmingham is a popular place for visitors. It has big places like the International Convention Centre, the National Exhibition Centre, and Symphony Hall. These help make Birmingham the 4th most visited city in the UK. The city’s sports and cultural spots, such as the library of Birmingham—the largest public library in Europe—bring in many tourists.

Research

Birmingham is home to five universities: Aston University, University of Birmingham, Birmingham City University, University College Birmingham and Newman University. It also has major campuses of the University of Law, BPP University, and the Open University's West Midlands regional base. In 2011, Birmingham had more full-time students than any other city in the United Kingdom outside London.

The Birmingham Business School, founded in 1902, is the oldest graduate-level business school in the United Kingdom. Other top business schools include Aston Business School and Birmingham City Business School. The Royal Birmingham Conservatoire offers professional training in music and acting.

Birmingham is also an important place for religious education, with institutions serving different faiths. The city has large colleges that offer further education, including special programs for students with visual impairments or disabilities.

Research at the University of Birmingham has had a big impact worldwide for over a century. The university is ranked as high as 10th in the UK and continues to explore new areas of science, which may help shape the city's future.

Transport

Birmingham has many ways for people to get around. In 2015, 63% of people who traveled to the city in the morning used public transport, while 37% drove private cars. The most popular way to travel was by train, followed by buses and the Metro.

The main train station in Birmingham is Birmingham New Street, the busiest station in the UK outside of London. It is a key stop for many train services, including long-distance trains and services from London, Glasgow, and Edinburgh. Other train stations in the city, like Birmingham Moor Street and Birmingham Snow Hill, also serve important routes. There are many train stations in the area, and millions of people use them each year.

Birmingham used to have trams, but they stopped running in 1953. Trams returned in 1999 with the West Midlands Metro, and they now run in the city center again. There are also many bus routes throughout the city. You can also rent bikes in central Birmingham to explore the area.

The city has many canals, more than Venice, though they are mainly used for leisure and tourism today. Places like Brindleyplace have turned the canals into popular spots for visitors.

Banking, insurance and law

In 2011, Birmingham's banking, finance, and insurance services were worth £2.46 billion, making it the 4th largest in the United Kingdom after London, Edinburgh, and Manchester. Over 111,500 people worked in these fields, which was 23% of all jobs in the city.

Birmingham is home to important law centers, with the two largest groups of law workers in the country. It also has many property companies and one of Europe’s biggest insurance markets. Two major UK companies, PwC and Ernst & Young, have offices in the city center. The city draws more than 40% of the UK’s conference business. Two of the UK’s biggest banks started in Birmingham: Lloyds Bank in 1765 and The Midland Bank in 1836.

Renewable resources

Birmingham has a big plant called the Tyseley Energy from Waste Plant. This plant makes electricity for the National Grid by burning waste. The plant was built in 1996 by Veolia.

Famous brands

Birmingham, called the "city of a thousand trades", is known for many famous brands. These include Bird's Custard, Typhoo Tea, the Birmingham Wire Gauge, Brylcreem, Chad Valley Toys, BSA, Bakelite, Cadburys chocolate, HP Sauce, The Elite Performance Sports Company (Epic), and the MG Rover Group. Even though Rover cars won’t be made anymore, the focus will now be on making MG cars with help from the Nanjing Automobile Group.