The economy of Birmingham 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 as a whole created UK exports in goods worth £19.6 billion, around 8.73% of the national total.[1]
The economy of Birmingham is dominated by the service sector, which accounted for 88% of the city's employment in 2012.[2] Birmingham is the largest centre in Great Britain for employment in public administration, education and health;[3] and after Leeds the second-largest centre outside London for employment in financial and other business services.[4]
The wider metropolitan economy is the second-largest in the United Kingdom with a GDP of $121.1 billion (2014 estimate, PPP).[5] 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.[6] 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.[7]
Birmingham was second only to London for the creation of new jobs between 1951 and 1961,[8] and unemployment rarely exceeded 1% between 1948 and 1966.[9] By 1961, household incomes in the West Midlands (county) were 13% above the national average,[10] exceeding even London and the South East.[11] In 2012, manufacturing accounted for 8% of the employment in Birmingham, a figure below the average for the UK as a whole.[12] Major industrial plants in the city include Jaguar Land Rover in Castle Bromwich and Cadbury in Bournville, with large local producers also supporting a supply chain of precision-based small manufacturers and craft industries.[13] More traditional industries also remain: 40% of the jewellery made in the UK is still produced by the 300 independent manufacturers of the city's Jewellery Quarter,[14] continuing a trade first recorded in Birmingham in 1308.[15]
Birmingham was also one of the founding cities for the Eurocities group and is also sitting as chair. Birmingham is considered to be a 'Beta-' global city, rated as the joint second most globally influential city in the UK after London.[16] Birmingham has the second largest city economy in the UK after London and was ranked 72nd in the world in 2008.[17] With 16,281 start-ups registered during 2013, Birmingham has the highest level of entrepreneurial activity outside London,[18] while the number of registered businesses in the city grew by 8.1% during 2016.[19] Birmingham was behind only London and Edinburgh for private sector job creation between 2010 and 2013.[20]