New start-ups created a million jobs in the UK between 2014 and 2015, according to new analysis...
Data, analysed by the Enterprise Research Centre from official figures on job creation and destruction in the private sector in the 12 months to March 2015, found that in total businesses in the UK added nearly 700,000 net new jobs across the country – the highest number in the last 20 years.
In total, 2.52 million new jobs were created in the UK by businesses from start-ups to large multinationals. This was offset by enterprises contracting or going out of business altogether, which saw 1.83 million jobs lost, giving a net job creation figure of 695,500.
Of the new jobs added, a million of these were created by a record number of new start-ups, with a further 1.5 million created by existing companies expanding. This took the total number of private sector employees to a record 20.3 million.
In addition, the data shows that nearly 300,000 new businesses were created in the UK during the same period. This is the highest number of start-ups launched in a single year since records began in 1997.
“These are very encouraging employment figures from new and existing firms which show a private sector-led economic recovery taking root,” Professor Mark Hart, deputy director of the Enterprise Research Centre whose team conducted the analysis.
“Existing businesses and new start-ups appear to be taking advantage of the opportunities that have arisen in the wake of the 2008 recession, leading to record levels of job creation.”
However, he warns that this is only part of the equation. “As a country, we still fare poorly on productivity and that’s partly because we’re not doing well enough at encouraging our SMEs to grow through innovation and exporting – the two factors that research shows have the biggest influence on growth and productivity.”