Hampshire - Economy

Economy

Hampshire is a relatively affluent county, with a Gross domestic product (GDP) of £32.3 billion in 2005 (£22.4 billion when excluding Southampton and Portsmouth). In 2006, Hampshire had a GDP per capita of £19,300, comparable with the UK as a whole and slightly below the South East England figure of £19,600.

Portsmouth and Winchester have the highest job densities in the county, and therefore there is a high level of commuting into the cities. Southampton has the highest number of total jobs and commuting both into and out of the city is high. The county has a lower level of unemployment than the national average, at 1.9% when the national rate was 3.3%, and as of March 2005 has fallen to 1.1%. 39% are employed by large firms, compared with a national average of 42%. Hampshire has a considerably higher than national average employment in high-tech industries, but average levels in knowledge-based industry. 25.21% of the population work in the public sector.

Many rural areas of Hampshire have traditionally been reliant on agriculture, though the county was less agricultural than most surrounding counties, and was mostly concentrated on dairy farming. The significance of agriculture as an employer and wealth creator has declined since the first half of the 20th century and agriculture currently employs 1.32% of the population.

The New Forest area is a National Park, and tourism is a significant economic segment in this area, with 7.5 million visitors in 1992. The South Downs and the cities of Portsmouth, Southampton and Winchester also attract tourists to the county. Southampton Boat Show is one of the biggest annual events held in the county, and attracts visitors from throughout the country. In 2003 the county had a total of 31 million day visits, and 4.2 million longer stays.

The cities of Southampton and Portsmouth are both significant ports, with Southampton handling a large proportion of the national container freight and Portsmouth housing a large Royal Navy base. The docks have traditionally been large employers in these cities, though again mechanisation has forced diversification of the economy.