Chapter 1 - Finance
                         
Table 1.10 Estimated UK Employment Dependent on MOD Expenditure and Defence Exports
This table provides estimates of the number of full-time jobs supported in the UK by MOD expenditure and defence exports. The methodology is described in Defence Statistics Bulletin No.5, available on the DASA website. "Direct" employment is that generated in those companies providing the product or service directly to MOD, or that within the exporter. "Indirect" employment is that provided through "the supply chain" by sub-contractors or suppliers to the "direct" contractor. The figures reflect average full time equivalent in year. The figures exclude MOD service and civilian personnel, and are shown rounded to the nearest five thousand. Differences between the totals and sums of the components are caused by this rounding.

From 2002/03 onwards the numbers have been calculated using expenditure data derived from the MOD administrative systems that were introduced with Resource Accounting and Budgeting. The resulting changes to the methodology are described in Addendum No 5a to Defence Statistics Bulletin.

This table is outside the scope of National Statistics because the Defence exports data do not meet all of the high professional quality assurance standards set out in the Code of Practice for Official Statistics.

Please see the note in the Industry and Employment Introduction about the cessation of National and Regional Employment Estimates.
Thousands
  1997/98     2002/03 2003/04 2004/05   2005/06   2006/07 2007/08
Total Employment1 340 ||   305 315 310   310   305 300
Direct
 160 ||   165 170 170   165   160 155
Indirect
 180 ||   140 145 140   145   145 145
Employment from MOD Expenditure
 230 ||   245 250 240   260   255 235
Direct 115 ||   135 140 135   145   135 125
Indirect 115 ||   110 110 105   120   115 110
                         
Split by:
                      
 
Equipment Expenditure
                      
 
Direct
 70 ||   85 85 80   85   80 75
 
Indirect
 75 ||   75 70 70   75   75 75
                         
 
Non-Equipment Expenditure
                      
  Direct 50 ||   50 55 55   60   55 50
  Indirect 45 ||   35 40 35   40   40 40
Employment from Defence Exports1,2,3 110 ||   60 65 70   50   55 65
  Direct 45 ||   30 30 35   25   25 30
  Indirect 65 ||   30 30 35   30   30 35
Source: DASA (Defence Expenditure Analysis)
1. The estimates of UK employment dependent on defence exports are based on estimates of those exports which are not of sufficient quality to be badged as
    National Statistics.
2. Figures calculated for "Exports" are not derived directly from the financial figures for exports contained in Table 1.14 of UKDS 2008. Adjustments are made
    for international collaborations, electronics and vehicle exports. Please refer to Defence Statistics Bulletin No.5 for further discussion. In aggregate the
    adjustments to the total export figures were £114 million in 1997, £859 million in 1998, £499 million in 1999, £49 million in 2000, -£143 million in 2001, £74
    million in 2002, £48 million in 2003, £115 million in 2004, -£134 million in 2005, £22 million in 2006 and -£149 million in 2007.
3. The increase in employment dependent on defence exports in 2004/05 reflects an increase in defence export sales, orders and deliveries identified
    predominantly in the aerospace, electronics and shipbuilding sectors during 2004. The methodology used to derive the defence export figures, which are then
    in turn used to produce the employment estimates, is described in Defence Statistics Bulletin No.5, available on the DASA website.