Creative Industries Economic Estimates

Creative Industries Economic Estimates
Northern Ireland
Experimental Statistics 2014
May 2010
DCAL Findings 3/2014-15
Celeste McCallion
DCAL Research and Statistics Branch
TYPE
Creative Industries Economic Estimates
Contents
Key economic estimates – summary
3
1. Background
4
2. Gross value added (GVA)
5
3. Creative businesses
9
4. Creative employment
13
Appendix 1 Additional data tables
14
Appendix 2 Creative intensities methodology
16
Appendix 3 Technical notes
21
References
25
Acknowledgements
DCAL Research and Statistics Branch would like to acknowledge the input from
Economic and Labour Market Statistics Branch (ELMSB) of the Northern Ireland
Statistics and Research Agency.
Further information
No hard copies of this report have been published. Requests or enquiries concerning
this publication should be directed to:
Celeste McCallion
Research and Statistics Branch
Department of Culture, Arts and Leisure
Causeway Exchange
1-7 Bedford Street
BELFAST BT2 7EG
Tel:
E-mail:
June 2014
028 9051 5024
[email protected]
2
Creative Industries Economic Estimates
Key economic estimates - summary
Gross Value Added

Gross Value Added (GVA) for the creative industries was £714 million in 2012.
This was equivalent to 3.9% of Northern Ireland’s total GVA.

GVA for the creative industries increased by 11.7% between 2011 and 2012.

IT, software and computer services was the creative industries group that
provided the greatest contributions to NI GVA (£412 million).
Businesses

The estimated number of business units in the creative industries sector was
2,415 in 2013. This represented 3.6% of all business units in Northern Ireland.

The total number of creative businesses increased by 1.3% in 2013 compared
with 2012, while the number of creative businesses as a proportion of all
businesses in Northern Ireland increased from 3.5% to 3.6% of all businesses.

Over a third (35.8%) of all creative industries in Northern Ireland in 2013 were in
the IT, software and computer services group.
Employment

The number of people in creative employment in 2012 was estimated at 40,000.
This represented 5% of total employment in Northern Ireland.
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Creative Industries Economic Estimates
1.
Background
1.1. The Department of Culture, Arts and Leisure (DCAL) is the government lead on
the creative industries in Northern Ireland. The Department works in partnership
with other departments, agencies and sectoral stakeholders to support the growth
and development of the creative industries. By supporting the culture, arts and
leisure infrastructure and initiatives across the region, DCAL also aims to nurture
an environment from which creative ideas, creative talent and creative
entrepreneurs emerge.
1.2. The creative industries are defined in the 2001 Creative Industries Mapping
Document as ‘those industries which have their origin in individual creativity, skill
and talent and which have a potential for wealth and job creation through the
generation and exploitation of intellectual property’.
1.3. In 2013, the Department for Culture, Media and Sport (DCMS) carried out a
consultation to update the UK Creative Industries classification. Following the
consultation, DCMS released an updated Creative Industries Economic Estimates
in January 2014, which presented the new methodology for determining which
occupation and industry codes are classified as ‘creative’. The methodology
comprises three steps. First, a set of occupations are identified as ‘creative’.
Then, creative intensity, that is, the proportion of the workforce in creative
occupations, is calculated for all industries in the economy. Finally, all industries
with creative intensity above a certain threshold are classified as ‘Creative
Industries’.
1.4. The statistics in this bulletin are produced following the same methodology as that
used by DCMS and therefore, comparisons with previous estimates should not be
made. In addition, the methodology to produce the employment estimates has
been revised. As a result, these statistics carry the status of ‘experimental
statistics’. They should, therefore, be treated with caution. More information on
the methodology can be found in Appendix 2.
1.5. The statistics presented in this bulletin are derived from various databases and
refer to different years. In each case, the figures are the latest available.
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Creative Industries Economic Estimates
2.
Gross value added
2.1. Overall in 2012, the creative industries contributed £714 million to approximate
Gross Value Added (GVA) in Northern Ireland (3.9% of NI GVA) (Table 2.1).
2.2. In absolute terms, GVA for the creative industries increased by 11.7% between
2011 and 2012 (£639 million to £714 million respectively), compared with a 2.8%
increase in GVA for all industries. As a result, GVA for creative industries
increased relatively (as a proportion of NI GVA) from 3.6% to 3.9%. Comparison
with 2008, shows a 2.6% increase in GVA for the creative industries, with an
annual average increase of 0.7%.
2.3. For the UK as a whole, GVA for the creative industries accounted for 5.2% of the
UK economy in 2012, with an increase of 15.6% compared to 2008. Between
2011 and 2012, creative industries GVA in the UK increased by 9.4%.
Figure 2.1
Creative industries GVA as a proportion of total GVA
Sources: Northern Ireland Annual Business Inquiry; ONS Annual Business Survey
June 2014
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Creative Industries Economic Estimates
2.4. Within the creative industries groups, IT, software and computer services provided
the greatest contribution to NI GVA (£412 million). This group also provided the
greatest increase in GVA compared with 2011 (16.5%) and the largest annual
average change 2008-2012 at 9.9%.
2.5. In contrast, there was a 64.8% drop in GVA for Music, performing and visual arts
in 2012 when compared with 2011, while Architecture showed an annual average
decrease of 22.2% for the 2008-2012 period.
Table 2.1
Gross Value Added of the creative industries (reporting unit results),
Northern Ireland
Creative Industries Group
Advertising and marketing
Architecture
Crafts
Design: product, graphic and
fashion design
Film, TV, video, radio and
photography
IT, software and computer
services
Museums, galleries and libraries
Music, performing and visual arts
Publishing
Total GVA for Creative Industries
Total NI GVA for all industries
Percentage share of total NI GVA
2008
85
147
d
Gross value added (£m)
2009
2010
2011
78
56
59
104
87
65
d
d
d
2012
59
54
d
22
19
d
19
d
d
d
d
d
d
282
361
341
354
412
d
11
124
696
17,743
3.9%
d
28
96
698
17,989
3.9%
d
17
99
622
18,158
3.4%
d
39
84
639
17,901
3.6%
d
14
87
714
18,399
3.9%
Source: Northern Ireland Annual Business Inquiry
Notes
d – Data suppressed to avoid disclosure.
1. Reporting Unit results (industry sic-code based on dominant Reporting Unit, not each local unit).
2. 2012 results are provisional, while 2008-2011 are revised.
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Creative Industries Economic Estimates
Figure 2.2
Gross Value Added of the creative industries, 2008-2012
Source: Northern Ireland Annual Business Inquiry
Notes
1. Reporting Unit results (industry sic-code based on dominant Reporting Unit, not each local unit).
2. 2012 results are provisional, while 2008-2011 are revised.
3. Results for Crafts; Film, TV, video, radio and photography; Museums, galleries and libraries; and
Design: product, graphic, and fashion design (2010, 2012) have been suppressed to avoid
disclosure.
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Creative Industries Economic Estimates
2.6. GVA for all industries in Northern Ireland increased by 3.7% over the period 20082012, with an annual average increase of 0.9%. Table 2.2 shows the percentage
change in GVA in 2012 compared with 2011 by broad industry group.
It should
be noted that Creative Industries is entirely made up of contributions from a
number of the sectors listed in the table. Construction was the only group to have
a decrease in GVA in 2012 when compared with 2011.
Table 2.2
Gross value added change 2011-2012 by industry1
Broad Industry Group & Creative Industries
2011
2012
Percentage
change
2011-2012
Agriculture(part2), forestry & fishing
Creative industries
Information & communication
Accommodation & food service activities
Others
Transport & storage
Administrative and support service activities
Real estate activities
Wholesale and retail trade; repair of motor vehicles and
motor cycles
Production
Professional, scientific & technical activities
Construction
47
639
830
611
1,095
1,392
959
484
54
714
899
657
1,171
1,469
1,003
505
15.0%
11.7%
8.3%
7.7%
6.9%
5.5%
4.6%
4.2%
5,073
5,200
2.5%
4,601
1,079
1,731
4,693
1,093
1,656
2.0%
1.3%
-4.3%
Source: Northern Ireland Annual Business Inquiry
Notes
1. Creative industries is entirely made up of contributions from a number of the sectors listed in the
table, thus the GVA included in creative industries will also be included in another sector.
2. Excludes farming.
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Creative Industries Economic Estimates
3.
Creative businesses
3.1. In 2013, there were 2,415 creative enterprises in Northern Ireland, accounting for
3.6% of all NI businesses (Table 3.1). This figure had increased by 1.3% in 2013
compared with 2012. In addition, there was a slight increase in the proportion of
creative enterprises relative to all enterprises in Northern Ireland (3.5% to 3.6%).
3.2. Comparison over the longer period of 2009-2013 shows the number of creative
enterprises increased by 3.6%, while the total number of enterprises in Northern
Ireland decreased by 5.4%. On average over the same period, the number of
creative enterprises increased by just under one per cent annually, while the total
number of enterprises in Northern Ireland decreased annually by just over one per
cent.
3.3. More than a third (35.8%) of all creative enterprises in Northern Ireland in 2013
were in the IT, software and computer services group. In addition, this group
showed the largest annual average increase over the period 2009-2013 of 3.6%,
with 2013 showing an increase of 8.1% when compared with 2012. Design and
Advertising and marketing were the only other creative industry groups with
annual average increases in their number of enterprises for 2009-2013 (2.0% and
1.5%, respectively).
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Creative Industries Economic Estimates
Figure 3.1
Creative enterprises operating in Northern Ireland, 2009-2013
Source: Inter-Departmental Business Register (March of each year)
Notes
1. These figures only include businesses (or enterprises) which are VAT registered and/or operate
a PAYE scheme. This means that many self-employed workers and some very small businesses
without employees will be excluded.
2. All enterprises operating in Northern Ireland are included even if their main (or registered) UK
address is elsewhere in the UK.
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Creative Industries Economic Estimates
Table 3.1
Creative enterprises operating in Northern Ireland
Creative Industries Group
Advertising and marketing
Architecture
Crafts
Design: product, graphic and
fashion design
Film, TV, video, radio and
photography
IT, software and computer services
Museums, galleries and libraries
Music, performing and visual arts
Publishing
All Creative Enterprises
All enterprises
Percentage share of all enterprises
2009
240
415
10
Number of creative enterprises
2010
2011
2012
250
245
255
415
410
405
10
10
10
2013
255
380
10
245
245
260
270
265
295
280
290
290
295
750
20
205
155
2,330
71,590
3.3
745
20
200
150
2,310
69,580
3.3
775
20
200
125
2,340
69,080
3.4
800
15
195
140
2,385
68,660
3.5
865
20
195
130
2,415
67,745
3.6
Source: Inter-Departmental Business Register (March of each year)
Notes
1. These figures only include businesses (or enterprises) which are VAT registered and/or operate
a PAYE scheme. This means that many self-employed workers and some very small businesses
without employees will be excluded.
2. All enterprises operating in Northern Ireland are included even if their main (or registered) UK
address is elsewhere in the UK.
3. Figures have been rounded to the nearest 5 and thus may not add to totals.
3.4. There were a total of 67,745 enterprises in Northern Ireland at March 2013, a
decrease of 1.3% on 2012. Table 3.2 shows the enterprises broken down by broad
industry group for 2012 and 2013, with the percentage change. It should be noted
that Creative Industries is entirely made up of contributions from a number of the
sectors listed in the table. The number of enterprises in many of the broad industry
groups decreased between 2012 and 2013, with the largest decrease in
Construction
(-7.4%).
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Creative Industries Economic Estimates
Table 3.2
Enterprises by Broad Industry Group and Creative enterprises, 2012 and
2013
Broad Industry Group & Creative Industries
Public administration and defence
Education
Information & communication
Agriculture, forestry & fishing
Creative industries
Professional, scientific & technical
Motor trades
Wholesale
Production
Health
Business administration and support services
Finance & insurance
Property
Arts, entertainment, recreation and other services
Transport & storage (inc. postal)
Accommodation & food services
Retail
Construction
2012
55
535
1,370
16,465
2,385
4,925
2,375
3,310
4,315
2,780
2,395
1,085
1,945
4,245
2,260
3,640
6,535
10,420
Percentage
2013
change
2012-2013
60
565
1,435
16,820
2,415
4,975
2,370
3,295
4,295
2,765
2,360
1,060
1,895
4,125
2,195
3,535
6,340
9,650
9.1%
5.6%
4.7%
2.2%
1.3%
1.0%
-0.2%
-0.5%
-0.5%
-0.5%
-1.5%
-2.3%
-2.6%
-2.8%
-2.9%
-2.9%
-3.0%
-7.4%
Source: Inter-Departmental Business Register (March of each year)
Notes
1. Creative industries is entirely made up of contributions from a number of the sectors listed in the
table, thus any enterprise included in creative industries will also be included in another sector.
2. These figures only include businesses (or enterprises) which are VAT registered and/or operate
a PAYE scheme. This means that many self-employed workers and some very small businesses
without employees will be excluded.
3. All enterprises operating in Northern Ireland are included even if their main (or registered) UK
address is elsewhere in the UK.
4. Figures have been rounded to the nearest 5.
June 2014
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Creative Industries Economic Estimates
4. Creative employment
4.1. Creative employment covers two categories:

Employment in the creative industries

Creative employment outside the creative industries
4.2. In 2012, creative employment accounted for an estimated 40,000 jobs,
representing 5% of total employment in Northern Ireland (Table 4.1). This figure
is similar to the 2011 creative employment figure.
4.3. For the UK as a whole, creative employment accounted for 2.55 million jobs in
2012, representing 8.5% of total employment in the UK.
Table 4.1
Number of people in creative employment, Northern Ireland, 2011-2012
Type of employment
Employment in the creative industries
Creative employment outside the creative industries
Total creative employment
Total employment in Northern Ireland
Creative employment as a percentage of all employment in Northern
Ireland
2011
Thousands
28
13
41
794
2012
Thousands
25
15
40
795
5%
5%
Source: Labour Force Survey Local Area Database
Notes
1. Estimates are based on small sample sizes and are subject to a relatively high degree of
sampling variability. They should, therefore, be treated with caution. For this reason, it is not
possible to disaggregate data by creative industry sectors.
2. The employment estimates have been rounded to the nearest 1,000 for publication.
3. The figures include employees and self-employed.
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Creative Industries Economic Estimates
Appendix 1
Table A1.1
Additional data tables
Percentage change in gross value added (GVA)
Annual
Percentage
average
change
change
2012 2008-2012 2008-2012
Percentage change on previous year
Creative Industries Group
Advertising and marketing
Architecture
Crafts
Design: product, graphic and
fashion design
Film, TV, video, radio and
photography
IT, software and computer services
Museums, galleries and libraries
Music, performing and visual arts
Publishing
Total GVA for Creative Industries
Total NI GVA for all industries
2009
2010
2011
-8.8%
-29.1%
d
-28.0%
-16.9%
d
5.0%
-25.2%
d
-0.6%
-17.1%
d
-31.5%
-63.4%
d
-9.0%
-22.2%
d
-15.0%
d
d
d
d
d
d
d
d
d
d
d
27.9%
d
154.8%
-22.1%
0.4%
1.4%
-5.6%
d
-41.0%
2.8%
-10.9%
0.9%
3.7%
d
132.7%
-15.4%
2.7%
-1.4%
16.5%
d
-64.8%
4.2%
11.7%
2.8%
45.9%
d
22.9%
-29.4%
2.6%
3.7%
9.9%
d
5.3%
-8.3%
0.7%
0.9%
Source: Northern Ireland Annual Business Inquiry
Notes
d – Data suppressed to avoid disclosure.
1. Reporting Unit results (industry sic-code based on dominant Reporting Unit, not each local unit).
2. 2012 results are provisional, while 2008-2011 are revised.
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14
Creative Industries Economic Estimates
Table A1.2
Percentage change in the number of creative enterprises operating in
Northern Ireland, 2009-2013
Creative Industries Group
Advertising and marketing
Architecture
Crafts
Design: product, graphic and
fashion design
Film, TV, video, radio and
photography
IT, software and computer services
Museums, galleries and libraries
Music, performing and visual arts
Publishing
All Creative Enterprises
All enterprises
2010
2011
2012
Percentage
change
2013 2008-2012
4.2%
0.0%
0.0%
-2.0%
-1.2%
0.0%
4.1%
-1.2%
0.0%
0.0%
-6.2%
0.0%
6.3%
-8.4%
0.0%
Annual
average
change
20082012
1.5%
-2.2%
0.0%
0.0%
6.1%
3.8%
-1.9%
8.2%
2.0%
-5.1%
3.6%
0.0%
1.7%
0.0%
0.0%
-0.7%
0.0%
-2.4%
-3.2%
-0.9%
-2.8%
4.0%
0.0%
0.0%
-16.7%
1.3%
-0.7%
3.2%
-25.0%
-2.5%
12.0%
1.9%
-0.6%
8.1%
33.3%
0.0%
-7.1%
1.3%
-1.3%
15.3%
0.0%
-4.9%
-16.1%
3.6%
-5.4%
3.6%
0.0%
-1.2%
-4.3%
0.9%
-1.4%
Percentage change in number of
enterprises on previous year
Source: Inter-Departmental Business Register (March of each year)
Notes
1. These figures only include businesses (or enterprises) which are VAT registered and/or operate
a PAYE scheme. This means that many self-employed workers and some very small businesses
without employees will be excluded.
2. All enterprises operating in Northern Ireland are included even if their main (or registered) UK
address is elsewhere in the UK.
3. Figures have been rounded to the nearest 5 and thus may not add to totals.
June 2014
15
Creative Industries Economic Estimates
Appendix 2
Creative intensities methodology
Defining the creative industries
The creative industries are defined in the 2001 Creative Industries Mapping Document
as ‘those industries which have their origin in individual creativity, skill and talent and
which have a potential for wealth and job creation through the generation and
exploitation of intellectual property’.
Classification of the creative industries
DCMS (2014) classifies the creative industries using a creative intensities methodology.
The methodology involves three steps.
1. Identify creative occupations
Nesta (2013) define a creative occupation as:
‘a role within the creative process that brings cognitive skills to bear to bring
about differentiation to yield either novel, or significantly enhanced products
whose final form is not fully specified in advance’
Creative Skillset (2013) developed a list of creative occupations using SOC 2010
by adding to and deleting from the list previously used by DCMS in producing
estimates. The final list used in DCMS (2014) contains five additional SOC
codes to represent occupations in the crafts sector, which were added following
the consultation (Table A2.1).
2. Calculate the creative intensities for all industries in the economy and identify
those that can be classified as creative industries
This stage involves identifying those industries which employ a relatively high
proportion of creative occupations. Creative Skillset (2013) conclude that the
threshold should be set at 30%. DCMS (2014) includes two SIC codes which do
not meet this threshold, namely, 91.01 Library and archive activities and 91.02
Museum activities, which were included following the consultation. The reason
given for these codes have a lower creative intensity was due to large numbers
employed in facilities maintenance in museums, galleries and libraries. The final
June 2014
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Creative Industries Economic Estimates
list of industries included in the estimates is given in Table A2.2, with their
respective creative intensities in Table A2.3.
3. Groups these SIC sectors into broad creative industries groups
DCMS (2014) groups the SIC codes identified into the following industry groups:

Advertising and marketing

Architecture

Crafts

Design: product, graphic and fashion design

Film, TV, video, radio and photography

IT, software and computer services

Publishing

Museums, galleries and libraries

Music, performing and visual arts
June 2014
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Creative Industries Economic Estimates
Table A2.1
Creative occupations
Creative Occupations
Group
Advertising and marketing
Architecture
Crafts
Design: product, graphic
and fashion design
Film, TV, video, radio and
photography
IT, software and computer
services
Publishing
Museums, galleries and
libraries
Music, performing and
visual arts
SOC
(2010)
1132
1134
2472
2473
3543
2431
2432
2435
3121
5211
5411
5441
5442
5449
3421
3422
3416
3417
1136
2135
2136
2137
2471
3412
2451
2452
3411
3413
3414
3415
Description
Marketing and sales directors
Advertising and public relations directors
Public relations professionals
Advertising accounts managers and creative directors
Marketing associate professionals
Architects
Town planning officers
Chartered architectural technologists
Architectural and town planning technicians
Smiths and forge workers
Weavers and knitters
Glass and ceramics makers, decorators and finishers
Furniture makers and other craft woodworkers
Other skilled trades not elsewhere classified
Graphic designers
Product, clothing and related designers
Arts officers, producers and directors
Photographers, audio-visual and broadcasting equipment
operators
Information technology and telecommunications directors
IT business analysts, architects and systems designers
Programmers and software development professionals
Web design and development professionals
Journalists, newspaper and periodical editors
Authors, writers and translators
Librarians
Archivists and curators
Artists
Actors, entertainers and presenters
Dancers and choreographers
Musicians
Source: Department for Culture, Media and Sport (2014)
Notes
1. Occupations used are 4 digit Standard Occupational Classification 2010 (SOC) codes.
June 2014
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Creative Industries Economic Estimates
Table A2.2
Creative Industries
Creative Industries
Group
Advertising and marketing
Architecture
Crafts
Design: product, graphic
and fashion design
Film, TV, video, radio and
photography
IT, software and computer
services
Publishing
Museums, galleries and
libraries
Music, performing and
visual arts
SIC
Description
70.21
73.11
73.12
71.11
32.12
Public relations and communication activities
Advertising agencies
Media representation
Architectural activities
Manufacture of jewellery and related articles
74.10
Specialised design activities
59.11
59.12
Motion picture, video and television programme production
activities
Motion picture, video and television programme post-production
59.13
59.14
60.10
60.20
74.20
58.21
58.29
62.01
62.02
58.11
58.12
58.13
58.14
58.19
74.30
91.01
91.02
59.20
85.52
90.01
90.02
90.03
90.04
Motion picture, video and television programme distribution
Motion picture projection activities
Radio broadcasting
Television programming and broadcasting activities
Photographic activities
Publishing of computer games
Other software publishing
Computer programming activities
Computer consultancy activities
Book publishing
Publishing of directories and mailing lists
Publishing of newspapers
Publishing of journals and periodicals
Other publishing activities
Translation and interpretation activities
Library and archive activities
Museum activities
Sound recording and music publishing activities
Cultural education
Performing arts
Support activities to performing arts
Artistic creation
Operation of arts facilities
Source: Department for Culture, Media and Sport (2014)
Notes
1. The ‘creative intensity’ of each 4-digit Standard Industrial Classification 2007 (SIC) code was
calculated and used to inform the identification of ‘creative’ industries from other industries in the
economy.
June 2014
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Creative Industries Economic Estimates
Table A2.3
Creative intensities
SIC
Description
90.03
74.30
90.01
74.20
60.10
74.10
71.11
70.21
58.14
90.02
59.1
32.12
62.01
59.20
60.20
73.11
58.11
58.13
73.12
58.21
58.29
90.04
58.19
85.52
62.02
58.12
91.01
91.02
Artistic creation
Translation and interpretation activities
Performing arts
Photographic activities
Radio broadcasting
Specialised design activities
Architectural activities
Public relations and communication activities
Publishing of journals and periodicals
Support activities to performing arts
Motion picture, video and television programme activities
Manufacture of jewellery and related articles
Computer programming activities
Sound recording and music publishing activities
Television programming and broadcasting activities
Advertising agencies
Book publishing
Publishing of newspapers
Media representation
Publishing of computer games
Other software publishing
Operation of arts facilities
Other publishing activities
Cultural education
Computer consultancy activities
Publishing of directories and mailing lists
Library and archive activities
Museum activities
Creative Intensity
%
91.5
82.2
78.8
77.8
62.7
62.1
61.5
59.3
58.3
56.8
56.4
56.2
55.8
54.1
53.5
50.5
49.9
48.8
48.3
43.1
40.8
38.4
37.8
34.6
32.8
31.0
23.8
22.5
Source: Department for Culture, Media and Sport (2014)
Notes
1. Creative intensity for SIC 59.1 is calculated at 3-digit level in order to capture the whole industry
as data at the 4-digit level are not statistically robust (due to low levels of employment of the 4digit codes).
2. SIC codes 91.01 and 91.02 were included after consultation, despite having creative intensities
below the 30% threshold. One reason they may have a lower creative intensity is due to large
numbers employed in facilities maintenance in museums, galleries and libraries.
3. SIC code 32.12 Manufacture of jewellery and related articles has been included after
consultation to represent the Crafts industry, although due to limitations in the underlying SIC
codes (which are agreed internationally) this clearly does not fully capture the crafts sector.
4. Industry codes proposed and the rationale for inclusion can be found in the consultation
https://www.gov.uk/government/consultations/classifying-and-measuring-the-creative-industriesconsultation-on-proposed-changes.
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Appendix 3
Technical notes
Standard Industrial Classification
The UK Standard Industrial Classification (SIC) classifies businesses by the type of
activity they engage in. It provides a framework for collecting and presenting data. It is
comparable with the Eurostat system (NACE), meaning that business data is consistent
across much of Europe.
The system works by classifying businesses in a hierarchical manner, starting at a very
basic (1 digit) level, then classifying them in more and more detail down to the lowest (5
digit) level possible. However, even at this level of detail, it is not practical to have a
code for every single individual industry, and so some industries may be put together
with others to make up a category. The SIC was last revised by the Office for National
Statistics in 2007. SIC 2007 uses 615 classes and a further 191 sub-classes to classify
businesses.
Standard Occupational Classification
The Standard Occupation Classification (SOC) is a means of classifying the occupation
of a person according to the type of work they do. Like the SIC, it provides a
framework within which data can be collected for major surveys such as the Labour
Force Survey. The SOC was last updated in 2010. However, survey results from
2009-10 used in this bulletin are still based on SOC2000.
Much like the SIC, the SOC system works by classifying someone’s occupation firstly at
a very basic (1 digit) level, and then classifying them in more and more detail down to
the lowest (4 digit) level possible.
Gross Value Added (GVA)
Gross Value Added (GVA) represents the income generated by businesses, out of
which is paid wages and salaries, the cost of capital investment and financial charges
before arriving at a figure for profit. It includes taxes on production (e.g. business
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Creative Industries Economic Estimates
rates), net of subsidies but excludes subsidies and taxes on products (e.g. VAT and
excise duty).
The source of GVA data presented in this bulletin is the Northern Ireland Annual
Business Inquiry, a statutory survey which adopts a stratified sample. All businesses
with 50 or more employees, or 20 or more employees and more than one local unit, are
fully enumerated. Smaller enterprises are selected on a random stratified basis. Since
the GVA estimates are partly based on a sample, they are subject to sampling error.
Further details on how GVA is calculated can be found in the Northern Ireland Annual
Business Inquiry 2010, published in December 20111.
Creative businesses
The source of data is the Inter-Departmental Business Register (IDBR). The IDBR is
located in the Office for National Statistics (ONS) Newport, but the Northern Ireland
element of the register is updated and maintained by Economic and Labour Market
Statistics Branch (ELMSB) within the Northern Ireland Statistics and Research Agency
(NISRA), an agency of the Department of Finance and Personnel (DFP). The IDBR
contains information on all businesses which are either VAT registered or operating a
PAYE scheme. It, therefore, excludes very small businesses which are not VAT
registered (the threshold for VAT in 2012/13 was £77,000) unless they operate a PAYE
scheme. This means that many self-employed workers will not be included on the
IDBR. The IDBR figures will inevitably also include some enterprises that were no
longer VAT and/or PAYE registered or had actually ceased trading at the time the
results were extracted. Similarly, some new business start-ups will be excluded
because of delays in notification.
A group of legal units under common ownership is called an Enterprise Group. An
Enterprise is the smallest combination of legal units (generally based on VAT and/or
PAYE records) which has a certain degree of autonomy within an Enterprise Group.
1
http://www.detini.gov.uk/web_2010_ru_statistical_press_release.pdf
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Creative Industries Economic Estimates
The information on creative businesses in this report is based on Enterprises operating
within Northern Ireland. Any business operating in Northern Ireland is included, even if
the business' registered UK address is elsewhere in the UK.
Further technical notes can be found on the IDBR webpage:
http://www.detini.gov.uk/deti-stats-index/stats-surveys/stats-inter-dept-bus-register.htm
Creative employment
Creative employment consists of those in employment within the creative industries and
those who do creative jobs in businesses outside the creative industries.
There are two components:
1. Employment in creative industries
2. Employment in creative jobs outside creative industries
Creative industries employment estimates produced are based on the Labour Force
Survey (LFS). The main advantage of the LFS is that it includes employees and selfemployed persons in both creative industries and creative occupations outside the
creative industries. The estimates can also be compared with those produced for the
UK by DCMS.
Limitations in the creative employment estimates
The main limitation of the LFS is that the sample size is such that the confidence
interval for the total creative employment estimate is relatively high (±6,000).
Consideration was given to combining LFS data for two years to increase the precision
of the estimates, however, the change in the confidence interval was minimal and when
compared with the cost and time considerations of producing combined datasets was
deemed an inefficient use of resources.
Estimates are only available for 2011 and 2012 as earlier years LFS datasets are
constructed using different SOC codes (SOC2000 rather than SOC2010), and are
therefore not comparable.
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Creative Industries Economic Estimates
In Northern Ireland, unlike in the UK, it is not possible to look at employment in the
various groups that comprise the creative industries. This analysis would require data
disaggregated by 4 digit SIC code. Given that each group within the creative industries
is quite small, the sampling error associated with the LFS at this level of analysis would
be too large to enable reliable estimates to be made.
Further limitations include the possibility that official statistics are not picking up people
who are engaged in the sector on a spare time basis.
Changes to the methodology
The methodology used in 2011 and 2013 involved combining the Census of
Employment (CoE) and the Labour Force Survey (LFS). The estimate of employees in
the Creative Industries was taken from the CoE; the ratios of employees in the Creative
Industries to the self-employed in the Creative Industries, to those employed in creative
occupations in other industries and those self-employed in creative occupations were
then used to calculate an overall figure for those employed in the Creative Industries.
There were a number of limitations to using this approach including that it was not
possible to make year-on-year comparisons and that it was difficult to calculate a
confidence interval for the estimate.
In 2014, DCAL Research and Statistics Branch undertook a review of the methodology
and developed a paper detailing options for the way forward. The Branch consulted
with key users of the data and it was agreed to use the single year of the LFS as the
methodology for this bulletin.
Alternative data sources were also considered, including the Census of Employment,
Business Register and Employment Survey, the Quarterly Employment Survey and the
NI Annual Business Inquiry. However, none of these surveys could provide the total
creative employment as they either exclude those who are self-employed or those who
work in creative occupations outside of the creative industries.
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References
Creative Skillset, 2013, Classifying and measuring the Creative Industries [online]
Available at: Classifying and Measuring the Creative Industries - Creative Blueprint
Department of Culture, Arts and Leisure, 2013, Creative Industries Economic
Estimates for Northern Ireland, Experimental Statistics 2013 [online] Available at:
Creative Industries Economic Estimates 2013
Department for Culture, Media and Sport, 2014. Creative Industries Economic
Estimates Statistical Release. [online] Available at: Creative Industries Economic
Estimates 2014
Department for Culture, Media and Sport, 2001. Creative Industries Mapping
Documents. [online] Available at: Creative Industries Mapping Documents
Deparment of Finance and Personnel, Labour Force Survey Regional Tables [online]
Available at: Labour Market Structure-Employment, Activity & Qualifications levels by
District Council
Department of Finance and Personnel, 2013. Results from the Northern Ireland
Annual Business Inquiry 2012. [online] Available at: Results from the Northern
Ireland Annual Business Inquiry 2012
Nesta, 2013, A dynamic Mapping of the UK’s Creative Industries [online] Available at
A Dynamic Mapping of the UK's Creative Industries | Nesta
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