Chapter 1 - Finance
                               
Table 1.11b Estimated UK Regional Direct Employment Dependent on MOD Non Equipment
                           Expenditure1,2
Tables 1.11, 1.11a & 1.11b provide estimates of the number of direct full time jobs in the Government Office Regions of England, Scotland, Wales, Northern Ireland and the UK as a whole, supported in industry and commerce by MOD direct expenditure. Table 1.11a provides estimates of the number of direct jobs in UK industry and commerce dependent on direct MOD equipment expenditure. Table 1.11b provides estimates of the number of direct jobs in UK industry and commerce dependent on direct MOD non equipment expenditure. Direct employment is that generated in those companies providing the product or service to the MOD. Equipment expenditure covers those sums spent on producing equipment for the armed forces and goods for MOD, including expenditure on Research and Development, manufacture, and equipment support. Non equipment includes expenditure on items such as utilities (gas, water and electricity) and maintaining the defence estate.
The full methodology (which includes an assessment of the quality of the underlying data used to produce these estimates) is described in DASA Defence Statistics Bulletin No.7, available on the DASA website.
The figures exclude MOD service and civilian personnel. Total direct UK employment has been rounded to the nearest 5000 to align to the national employment estimates in Table 1.10, whilst individual regional totals are shown to the nearest 1000 full time equivalent. Differences between the totals and sums of the components are caused by this rounding. Regional percentage breakdowns are based on the unrounded UK figures.
The data in this table are outside the scope of National Statistics because they do not meet all of the high professional quality assurance standards set out in the National Statistics Code of Practice.
Thousands   Percentage
  2002/03 2003/04 2004/05 2005/06 4 2006/07   2002/03 2003/04 3 2004/05 3 2005/06 4 2006/07
United Kingdom
 50 55 55 60 r 55   100 100   100   100   100
                               
England 44 51 51 52   51   90 90 r 91 r 90 r 91
                               
East of England 4 5 4 6   3   8 9   7   10   5
East Midlands 1 1 1 2   1   2 2   2   3 r 2
London 7 8 10 6   7   14 14   18   10 r 12
North East - - - -   1   0 0   0   0 r 2
North West 1 2 1 1   3   2 3   2   2   5
South East 15 16 16 17 r 16   31 28   29   29 r 29
South West 11 15 14 15   15   22 26   25   26   26
West Midlands 2 2 2 2   3   4 3   4   3   6
Yorkshire & Humber 3 3 2 3   2   6 5   4   5   4
                               
Scotland 3 3 3 4   3   6 5   5   7   5
Wales 1 2 1 1   1   2 3   2   2   2
Northern Ireland 1 1 1 1   1   2 2   2   2   2
Source: DASA(Economic Statistics)

1.    Using the average UK turnover per full time equivalent may neglect potential differences in regional turnover per head. However, regional turnover per head at the level of SIC used in the employment estimates is not currently available from the ONS: the employment estimates for a number of industries/ products use 3 digit SIC level data, and the ONS only publish (limited) regional data derived from the Annual Business Inquiry (ABI) data at 2 digit level. The impact of using national employment averages is not likely to produce a significantly different output than if regional employment averages were available.

2.    Estimates have been provided from 2002-03 onwards to reflect the available expenditure data derived from the MOD adminstrative systems that were introduced with Resource Accounting and Budgeting.

3.    The revisions prior to 2005-06 are due to the correction of some very minor rounding anomalies.

4.    The revisions to the regional employment numbers for 2005-06 reflect updated information relating to industry turnover from the Office for National Statistics, which only became available after the publication of UKDS 07.  This is turn has resulted in very minor adjustments to the percentage breakdowns.