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Creative Industries Economic EstimatesJanuary 2015Statistical ReleaseDate: 13/01/2015

The Creative Industries Economic Estimates areOfficial Statistics and have been produced to thestandards set out in the Code of Practice for OfficialStatistics.

Department for Culture, Media and SportCreative Industries Economic Estimates - January 20153ContentsChapter 1: Introduction . 4Chapter 2: Key Findings . 7Chapter 3: Employment(1997 – 2013) . 9Employment in the Creative Economy . 9Employment in the Creative Industries . 14Chapter 4: Gross Value Added(1997 – 2013) . 18Chapter 5: Exports of Services(1997 – 2012). 26Annex A: Creative Occupations . 32Annex B: Creative Industries. 33Annex C: Computer Games . 35Annex D: Data limitations & further development . 36Annex E: Technical Annex on ONS ‘backcasting’ . 40Background Information . 43Glossary . 45

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Chapter 1: IntroductionThese Creative Industries Economic Estimates are Official Statistics used tomeasure the direct economic contribution of the Creative Industries to the UKeconomy. An analysis of the contribution made by the Creative Industries to UKEmployment, Gross Value Added (GVA) and Exports of Services has beenprovided in this release. The estimates have been produced using ONS NationalStatistics sources.The Creative Industries were defined in the Government’s 2001 CreativeIndustries Mapping Document as “those industries which have their origin inindividual creativity, skill and talent and which have a potential for wealth and jobcreation through the generation and exploitation of intellectual property”.This release retains that definition, but uses a methodology introduced in 2014for determining which occupation and industry codes are classified as “creative”(see Annex A and B). This methodology makes use of a robust finding fromresearch that having high levels of “creative intensity” – that is, the proportion ofthe workforce in creative occupations – separates the Creative Industries fromother industries1. Therefore these estimates should not be compared withestimates published prior to 2014.The methodology comprises three steps. First, a set of occupations are identifiedas creative2. Second, creative intensity is calculated for all industries in theeconomy. Third, all industries with a creative intensity above a certain “threshold”are classified as Creative Industries.Uncertainties in the data mean that it is particularly important to review industrieswith creative intensities around the threshold level, so the final classification hasalso drawn on feedback gathered from stakeholders through consultation.The consultation process in 2013, from which the final classification was agreed,was supported by a cross-industry collaboration overseen by the CreativeIndustries Council, Creative Skillset, Creative and Cultural Skills, Nesta, DCMSand a range of industry bodies3.Bakhshi, H., Freeman, A., and Higgs, P. (2013) ‘A Dynamic Mapping of the UK’sCreative Industries’, Nesta: London12Bakhshi et al (2013) propose criteria which can be used to assess which occupationcodes should be considered creative for measurement purposes3Classifying and Measuring the Creative h/activity/classifications/article 9067 1.aspClassifying and Measuring the Creative ystem/uploads/attachment data/file/203296/Classifying and Measuring the Creative Industries Consultation Paper April 2013-final.pdf4

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Data sourcesThis release has been based on ONS data sources which use the latestoccupational classification (SOC 2010) and the latest industrial classification(SIC 2007). Since the last release, DCMS has worked with ONS to developlonger time series which span periods that use earlier classifications, which hasenabled estimates to be calculated back to 1997 (See Annex E).1. Employment data analysed by DCMS are taken from the Annual PopulationSurvey (APS). The latest occupational coding standard (SOC 2010) wasintroduced in the 2011 data.2. GVA data analysed by DCMS are taken from the Annual Business Survey(ABS). The latest industrial classification (SIC 2007) was introduced in the2008 data.3. Exports of Services data analysed by DCMS are from the International Tradein Services (ITIS) survey. The latest industrial classification (SIC 2007) wasintroduced in the 2009 data.4. Analysis has been carried out by the ONS Methodology Advisory Service toproduce comparable data for Creative Employment, GVA, and Exports ofServices to overcome changing industrial and occupational coding in theunderlying data. This has, for the first time, allowed series to be constructedbetween 1997 and the most recent data available.TerminologyThroughout the report symbols have been used to indicate whether the analysisrefers to:1. The Creative Economy, which includes the contribution of those who are increative occupations outside the creative industries as well as all thoseemployed in the Creative Industries.2. The Creative Industries, a subset of the Creative Economy which includesonly those working in the Creative Industries themselves (and who mayeither be in creative occupations or in other roles e.g. finance).Creative Economy:Creative Industries:5

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Statistics on Employment are provided on both bases as the data source (APS)allows this. GVA and Exports of Services are provided on a Creative Industriesbasis only as sources for these data are collected on an industry basis only.GroupsTo provide more detail, this release breaks down the creative sector is alsobroken down by: 1. by industries (SIC 2007); 2. by occupations (SOC 2010);and 3. by industry and occupations.Advertising and marketing is used as an example:1. Creative Industries groups (Annex A) consider related industries, insofar asthis is permitted by the industrial ndmarketingSIC200770.2173.1173.12DescriptionPublic relations and communication activitiesAdvertising agenciesMedia representation2. Creative Occupations groups (Annex B) consider related occupations,insofar as this is permitted by the occupational classification.CreativeOccupations 33543DescriptionMarketing and sales directorsAdvertising and public relations directorsPublic relations professionalsAdvertising accounts managers and creative directorsMarketing associate professionals3. Creative Economy groups combine both of the above classifications underthe same headings so that the contribution of a creative sector across thewhole economy can be measured (i.e. across all elements of the “CreativeTrident” described in Chapter 3).CreativeEconomy group:Advertising roupgroupSIC 2007SOC 201070.21113273.11113473.122472247335436

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Chapter 2: Key FindingsCreative Economy Employment (1997 – 2013) 2.62m jobs were in the Creative Economy in 2013, 1 in 12 UK jobs.Employment within the Creative Economy grew by 66 thousand jobs(2.6%) between 2012 and 2013, a higher rate than for the UK Economyas a whole (1.6%).Between 1997 and 2013, employment in the Creative Economy hasincreased from 1.81m jobs to 2.62m jobs. This was equivalent to a riseof 2.3 per cent each year, around four times greater than the 0.6 percent increase each year in the number of jobs in the UK Economy.Creative Industries Employment (1997 – 2013) The Creative Industries accounted for 1.71m jobs in 2013, 5.6 per centof total UK jobs; and a 1.4 per cent increase on 2012.Over the longer term, the number of jobs within the Creative Industriesincreased by 3.9 per cent each year between 1997 and 2013, comparedto 0.6 per cent in the UK economy.Gross Value Added (GVA) (1997 – 2013) - measured in current prices(i.e. not adjusted for inflation). GVA of the Creative Industries was 76.9bn in 2013 and accounted for5.0 per cent of the UK Economy. For the third year running, the CreativeIndustries proportion of total UK GVA was higher than the year before,and at 5.0 per cent is now as high as has been recorded.GVA of the Creative Industries increased by 9.9 per cent between 2012and 2013. This was higher than any individual Blue Book sector.Between 1997 and 2013, GVA of the Creative Industries increased by5.8 per cent each year compared to 4.2 per cent in the UK economy.The GVA of the Creative Industries was 4.0 per cent of total UK GVA in1997, but had increased to 5.0 per cent in 2013.Exports of Services (1997 – 2012) - measured in current prices (i.e. notadjusted for inflation). The value of services exported by the Creative Industries was 17.3bnin 2012, 8.8 per cent of total UK service exports.Between 2011 and 2012 the value of service exports from the CreativeIndustries increased by 11.3 per cent. This compares with an increase of2.8 per cent for total UK service exports.Between 2004 and 2012 the proportion of total UK service exports whichwere from the Creative Industries increased from 7.9 to 8.8 per cent.The value of services exported by the Creative Industries increased byan average of 8.5 per cent each year between 2004 and 2012,compared to 6.9 percent for the UK economy.7

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Summary of headline estimates for the past 5 yearsTable 1: Levels of Employment, GVA and Exports of services in the CreativeIndustries from 2009 to 001,551,0001,684,0001,708,000GVA ( m)57,61859,75365,18070,01276,909Exports ofServices ( m)13,30314,71915,50317,258Notes:1. Source, ONS Annual Population Survey, Annual Business Survey, and InternationalTrade in Services Survey2. Employment data for 2009 and 2010 are taken from ONS Methodology Advisory ServiceestimatesTable 2: Year on year percentage change in Employment, GVA and Exports ofservices in the Creative Industries from 2010 to 2013Percentage change on previous year2010201120122013-0.3%8.9%8.6%1.4%UK Economy0.8%3.8%0.7%1.6%Gross ValueAddedCreative Industries3.7%9.1%7.4%9.9%UK Economy4.1%2.9%2.4%3.3%Exports ofServicesCreative Industries10.6%5.3%11.3%-4.0%6.8%2.8%-Number of JobsCreative IndustriesUK EconomyNotes:1. Source, ONS Annual Population Survey, Annual Business Survey, and InternationalTrade in Services Survey2. Percentage change in employment data between 2009 and 2011 use ONS MethodologyAdvisory Service estimates8

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Chapter 3: Employment(1997 – 2013)Employment refers to the number of jobs in the Creative Industries andCreative Economy. Main jobs and second jobs are treated equally, asare full and part time jobs (each count as a single job in the figures).Employment, therefore, refers to the number of jobs rather than thenumber of people in work or the number of FTEs.Following a project commissioned by DCMS and carried out by theOffice for National Statistics (ONS) Methodology Advisory Service, atime series from 1997 onwards is now available. Data for 1997 to 2010are constructed using different Standard Occupational Classification(SOC) and Industry (SIC) codes and data were converted to allowcomparisons. Employment data were taken from the Annual PopulationSurvey (APS) for 2006 to 2013, and the Labour Force Survey (LFS) for1997 to 2005.A more comprehensive analysis of employment in the Creative Economyby gender, region, ethnicity, and level of qualifications is presented in the‘Creative Industries: Focus on Employment’ publication.Employment in the Creative EconomyEmployment in the Creative Economy is measured on the “CreativeTrident”4 basis using data from the Annual Population Survey (APS). TheTrident basis classifies jobs into:1. Jobs in the Creative Industries not classified as creative2. Creative Jobs in the Creative Industries3. Creative Jobs outside the Creative Industries (“embedded” jobs)Creative Economy 1 2 3Creative Industries 1 2Figure 1: The Creative Economy, 2013907,000 jobs818,000 jobs123890,000 jobsHiggs, Cunningham and Bakhshi (2008), “Beyond the Creative Industries:Mapping the Creative Economy in the UK”, Nesta, London49

Department for Culture, Media and SportCreative Industries Economic Estimates - January 201510Key findings (2011 – 2013)In 2013, there were 2.62m jobs in the Creative Economy. This meansthat the Creative Economy accounted for 1 in every 12 UK jobs.1.71m jobs were in the Creative Industries themselves (a full list ofCreative Industries can be found in Annex B), with the remaining 0.91mjobs in creative roles outside the Creative Industries.These 0.91m creative jobs outside of the Creative Industries include, forexample, someone working in an advertising role in a financial firm.Employment within the Creative Economy grew by 66 thousand jobs(2.6%) between 2012 and 2013, a higher rate than for the UK Economyas a whole (1.6%).Table 3: Employment in the Creative Economy in 2013"Support"jobs in theCreativeIndustriesCreativeJobs inCreativeIndustriesCreativeJobsoutside oftheCreativeIndustriesEmploymentin theCreativeEconomyAdvertising and : product, graphic and fashion design47,00075,00055,000177,000Film, TV, video, radio and 0Museums, galleries and libraries68,00017,00025,000110,000Music, performing and visual 02,616,000---30,643,000Creative Economy GroupCraftsIT, software and computer servicesTotal JobsUK Economy TotalPercentage Share of UK TotalNotes1. Source, ONS Annual Population Survey 20132. Figures have been rounded to the nearest thousand, and therefore estimates may notsum across rows or columns to equal totals8.5%

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Total employment in the Creative Economy (employment within theCreative Industries plus creative jobs in other industries) was 2.62m in2013. This included 1.71m jobs in the Creative Industries as well as0.91m creative jobs in other industries.The increase in the number of jobs in the Creative Economy between2012 and 2013 has been driven by an increase of 42 thousand creativejobs outside of the Creative Industries.Estimates by Creative Economy Group‘IT, software and computer services’ was the largest group, with creativeemployment of 825 thousand in 2013. Since 2011, there has been anincrease of 117 thousand jobs (16.4%) in this group. Of the 825thousand jobs in this group, 576 thousand were within the CreativeIndustries, with the remaining 249 thousand being in ‘IT, software andcomputer services’ occupations outside of the Creative Industries.‘Music, performing and visual arts’ had the highest proportion of selfemployed jobs. More than 7 in 10 jobs in this group were self-employed.In total (self-employed and employees), there were 300 thousand jobs inthis group in 2013, of which 243 thousand were in the CreativeIndustries.‘Advertising and marketing’ had the largest number of creative workersemployed outside of the Creative Industries in 2013 (329,000). Twothirds (68.2%) of all creative jobs in ‘Advertising and marketing’ wasoutside of the Creative Industries.‘Design and designer fashion’ was the group which had the largestpercentage increase in employment in the Creative Economy between2011 and 2013 (17.7% or 27,000 jobs). While there have been nosignificant decreases in employment between 2011 and 2013 for anyCreative Economy group, there was a significant decrease inemployment in the ‘Publishing’ group between 2012 and 2013 (9.4% or24,000 jobs).11

Department for Culture, Media and SportCreative Industries Economic Estimates - January 201512Table 4: Employment in the Creative Economy (2011 – 2013)*Changes in bold indicate a statistically significant change between 2011 and 2013.5Employment Employment Employmentin thein thein e(2011-2013)Advertising and re121,000120,000136,00015,00012.3%CraftsDesign: product, graphicand fashion designFilm, TV, video, radio andphotographyIT, software and hingMuseums, galleries andlibrariesMusic, performing and 09.2%2,407,0002,550,0002,616,000209,0008.7%Total CreativeUK Total centage Share of UKTotal8.0%8.5%8.5%Notes1. Source, ONS Annual Population Survey (2011, 2012 & 2013)2. Figures have been rounded to the nearest thousand, and therefore estimates may notsum across rows or columns to equal totalsThe increase in employment in the Creative Economy between 2011 and2013 was driven by increases in the: ‘IT, software and computerservices’; ‘Design and designer fashion’; and ‘Film, TV, video, radio andphotography’ groups.5Statistical significance tests have been run at the 95% level. A significant change at the95% level means that there is less than a 5% (1 in 20) chance that the differenceobserved within the sampled respondents is not also true for the population as a whole.2.4%-

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Figure 2: Employment in the Creative Economy (2011 – 2013)Notes:1. Source, ONS Annual Population Survey (2011, 2012 & 2013)2. 95% Confidence intervals are shown by the error bars. Where confidenceintervals overlap data cannot be reliably compared.13

Department for Culture, Media and SportCreative Industries Economic Estimates - January 201514Employment in the Creative IndustriesEmployment within the Creative Industries (i.e. excluding people workingin creative jobs outside the Creative Industries) was 1.71m in 2013 andaccounted for 1 in 18 UK jobs. The number of jobs in the CreativeIndustries increased by 1.4 per cent between 2012 and 2013.Table 5: Employment in the Creative Industries*Figures in bold represent statistically significant changesCreative IndustriesGroupAdvertising andmarketingArchitectureCraftsDesign: product,graphic and fashiondesignFilm, TV, video, radioand photographyIT, software andcomputer servicesPublishingMuseums, galleries andlibrariesMusic, performingand visual artsCreative 4,0001,708,000157,00010.1%UK Total centage Share ofUK Total5.2%5.6%5.6%Notes:1. Source, ONS Annual Population Survey (2011, 2012 & 2013)2. Figures have been rounded to the nearest thousand, and therefore totals may notsum3. Due to limitations in the industry coding, the employment for crafts on an industrybasis does not fully cover the crafts sector.2.4%

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Estimates by Creative Industries GroupThe Creative Industries group which had the largest percentageincrease in employment between 2011 and 2013 was ‘Design: product,graphic and fashion design’, where the number of jobs increased by22.0 per cent from 100 thousand to 122 thousand.Between 2011 and 2013, there have also been significant increases inthe number of jobs in the ‘IT, software and computer services’ (19.4%increase) and ‘Music, performing and visual arts’ (14.4% increase)groups.Figure 3: Employment in the Creative Industries (2011 – 2013)Notes:1. Source, ONS Annual Population Survey (2011, 2012 & 2013)2. 95% Confidence intervals are shown by the error bars, where confidence intervals overlapdata cannot be reliably compared3. Due to limitations in the industry coding, the employment for crafts on an industry basisdoes not fully cover the crafts sector.15

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Employment in the Creative Economy: A Time Series(1997 – 2013)New data developed by ONS for this release (see Annex E) allows us to seehow employment in the Creative Economy has changed since 1997.Between 1997 and 2013 the Creative Economy increased by 0.81m jobs,from 1.81m to 2.62m. This was equivalent to a rise of 44.8 per cent, overfour times greater than the 10.6 per cent increase in the number of jobs inthe UK Economy over the same period. This is equivalent to a compoundaverage growth rate (CAGR) of 2.3 per cent each year compared to 0.6 percent in the UK Economy.Within the Creative Industries employment has risen by an average of 3.9per cent each year from 0.93m to 1.71m since 1997. This increase has beendriven by an increase in the number of creative jobs in the CreativeIndustries which rose by 138.4 per cent since 1997, an increase overthirteen times larger than the increase in total UK employment (Table 6).Figure 4: Creative Economy share of all jobs in the UK10.0%Creative IndustriesCreative %0.0%1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Notes:1. Source, ONS Methodology Estimates and ONS Annual Population Survey2. See notes under Figure 5In 1997 the Creative Economy accounted for 6.5 per cent of total UK jobs.Within this, the Creative Industries comprised 3.4 per cent of total UKemployment. In 2013, employment in the Creative Economy had risen to 8.5per cent of total UK employment, largely influenced by an increase to 5.6 percent in the Creative Industries.Table 6: Employment in the Creative Economy from 1997 to 2013Employment Employmentin thein 9972013UK Total Employment27,706,00030,643,00010.6%Creative Economy1,806,0002,616,00044.8%Creative Industries931,0001,708,00083.5%Creative Jobs in the Creative Industries373,000890,000138.4%Notes:1. Source, ONS Methodology Estimates and ONS Annual Population Survey2. Figures have been rounded to the nearest thousand, and therefore totals may not sum16

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Figure 5: Change in creative employment indexed to 1997 100300250Employment as a % of 1997 level238.4200183.5150100144.8110.6100.0Creative Jobs in the Creative Industries50Employment in the Creative IndustriesEmployment in the Creative EconomyTotal UK Employment01997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Notes:1. Source, ONS Methodology Estimates and ONS Annual Population Survey2. Employment shown as a percentage of employment in 19973. The dotted lines indicate data from ONS Methodology Estimates while solid lines represent datacalculated by DCMS4. The vertical, broken lines indicate major breaks in the data series: the large increase between2000 and 2001 is likely to be due to the change from SOC90 to SOC2000 codes in 2001. Valuesprior to 2001 have been adjusted to account for this change but this has not completely removed theeffect from the data; the large increase between 2008 and 2009 is likely due to significant increasesin employment in both the ‘Architecture’ and ‘Design: product, graphic and fashion design’ groups.These are possibly caused by the change from SIC03 to SIC07 codes in 2009. There was also a fallin the total number of UK jobs between 2008 and 2009 which may account for some of the rise in theproportion of jobs.Figure 5 shows employment from 1997-2013 indexed against employment in 1997.This allows for comparison between the number of creative jobs in the CreativeIndustries, total employment in the Creative Industries, total employment in theCreative Economy and employment in the UK economy. The data have beenindexed to 1997 as this was the lowest value for all four data series’ in the timeperiod covered (1997 – 2013).17

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Chapter 4: Gross Value Added(1997 – 2013)Gross Value Added (GVA), calculated in current prices (i.e. not adjusted forinflation) has been estimated for businesses within the Creative Industries usingapproximate GVA (aGVA) from the Annual Business Survey (ABS)6. This refersto GVA which is directly attributable to the Creative Industries. To note: A GVAestimate for the wider Creative Economy has not been included, as theseeconomic estimates do not currently attempt to calculate the GVA contribution ofcreative jobs outside of the Creative Industries. See Annex D for moreinformation on further developments.The implementation by the ONS of the new international statistics manualsEuropean System of Accounts (ESA 2010) for Blue Book 2014 has resulted insubstantial upwards revisions eg UK GVA for 2012 was revised up by 93bn. This has resulted in the share of the Creative Industries as a proportionof the UK economy being revised downwards eg GVA in 2012 was previouslypublished as 5.2 per cent, but is now 4.7 per cent using new Blue Book data.7Key findings (2008 – 2013)GVA of the Creative Industries was 76.9bn in 2013 and accounted for 5.0 percent of the UK Economy. In 2008, GVA of the Creative Industries was 61.1bn,and accounted for 4.5 per cent of the UK economy.GVA of the Creative Industries has increased by 25.8 per cent since 2008,compared to an increase of 11.4 per cent for the UK Economy as a whole.Creative Industries GVA increased by 9.9 per cent between 2012 and 2013, ahigher rate than for any Blue Book sector. Between 2008 and 2013, only GVA ofReal Estate Activities increased by more than that of the Creative Industries(28.8% and 25.8% respectively).As a proportion of UK GVA, the Creative Industries fell from 4.5 per cent to 4.3per cent between 2008 and 2010 and then increased to 5.0 per cent in 2013.This reflects the fact that the GVA for the Creative Industries decreased at ahigher rate than GVA for the UK as a whole between 2008 and 2009, had aslightly slower recovery than the UK Economy between 2009 and 2010 and thenexperienced much stronger growth than the Economy UK between 2010 and2013.6Approximate GVA (aGVA) and GVA are not identical measures. Aggregate aGVA is thebest source of GVA for the Creative Industries as it provides the required granularity ofdetail. A full description of the differences between aGVA and GVA can be found 7Revisions ferencetables.html?edition Articles18

Department for Culture, Media and SportCreative Industries Economic Estimates - January 2015Table 7: GVA of the UK Creative Industries 2008 – 2013GVA ( m)CreativeIndustries Group200820092010201120122013Advertising 5,3044.47%4.28%4.27%4.52%4.74%5.04%CraftsDesign: product,graphic andfashion designFilm, TV, video,radio andphotographyIT, software andcomputerservicesPublishingMuseums,galleries andlibrariesMusic, performingand visual artsTotalUK Total (ONSBlue Book code:ABML)Percentageshare of UKTotalNotes:1. Source, ONS Annual Business Survey2. Figures are expressed in current prices (i.e. not adjusted for inflation)3. The ABS does not fully account for GVA of ‘Museums, galleries and libraries’ (see Annex D) so these dataare not shown in this table4. The ABS does not include data for micro-business so may underestimate GVA, particularly for groupsincluding ‘Music’ and ‘Crafts’ where self-employment is substantial5. GVA for ‘Crafts’ has been calculated on a single SIC 07 code, and therefore changes over a sin

Creative Industries Economic Estimates - January 2015 7 Chapter 2: Key Findings Creative Economy Employment (1997 - 2013) 2.62m jobs were in the Creative Economy in 2013, 1 in 12 UK jobs. Employment within the Creative Economy grew by 66 thousand jobs (2.6%) between 2012 and 2013, a higher rate than for the UK Economy as a whole (1.6%).

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