Sectors

The Milton Keynes economy is dominated by the service sector. 4 in 5 of all businesses in the area are in this sector and they, in turn, provide over 4 in 5 of the city's jobs. Only 8.4% of Milton Keynes' businesses are in the production sector, with these providing 1 in 10 (11%) of the city's jobs.

Table 4 - Establishments and Jobs by Sector

Sector	Establishments		Jobs
	July 2008		July 2008
	No	%	No	%
Agriculture	136	1.8%	417	0.3%
Construction	601	7.7%	4612	3.5%
Production	660	8.4%	14223	10.9%
Services	6437	82.2	111518	85.3%
Total	7834	100.0%	130770	100%

Source: Milton Keynes Economy and Learning Partnership 2007 Employment Survey.

Milton Keynes has seen a continuing long-term trend in the increasing employment within the service sector and a corresponding decline in the production sector:

The service sector now accounts for 85.3% of the city's jobs, compared to 82% in 2003
While the production sector accounts for 10.9% compared to 14% in 2003

Table 5 - % Jobs Increase by Sector

Sector	Jobs		Jobs		Jobs
	October 2007		October 2005		Change
	No	%	No	%	No	%
Agriculture	417	0.3%	499	0.4%	-82	-16.4%
Construction	4612	3.5%	4767	3.8%	-155	-3.3%
Production	14223	10.9%	15114	12.0%	-891	-5.9%
Services	111518	85.3%	105815	83.9%	+5703	+5.4%
Total	130770	100.0%	126195	100.0%	+4575	+3.6%

Source: Milton Keynes Economy and Learning Partnership 2007 Employment Survey.

The table above provides a detailed comparison of the city's job profile in 2005 and 2007. It reconfirms the continuing trend of increasing employment in the service sector and a decline in the production sector (and also in the agriculture and construction sectors):

Between the two years there was a 5,700 increase (over 5%) in the number of service jobs in the city - increasing from 105,800 to 111,518, accounting for just under 84% of the city's jobs in 2005 to just over 85% in 2007
The production sector lost 6% of its jobs (900) over the same period - from 15,100 to 14,223

This overall change is reflected in the number of employing establishments in the city, as shown in the table below:

Table 6 - % Establishments increase by Sector

Sector	Establishments		Establishments		Establishments
	October 2007		October 2005		Change
	No	%	No	%	No	%
Agriculture	136	1.8%	141	1.9%	-5	-4.3%
Construction	601	7.7%	598	8.0%	+3	+0.5%
Production	660	8.4%	702	9.3%	-42	-6.0%
Services	6437	82.2%	6075	80.8%	+262	+6.0%
Total	7834	100.0%	7516	100.0%	+318	+4.2%

Source: Milton Keynes Economy and Learning Partnership 2007 Employment Survey.

Between 2005 and 2007:

The production sector saw a 6% fall in the number of employing establishments, whilst;
The service sector saw a 6% increase.

This confirms the continued long-term trend of:

The increasing importance of the service sector. Between 1999 and 2007, thenumber of service sector businesses increased by a third (32%), with the number of jobs increasing by 26%.
A declining production sector. Approaching 1 in 5 (23%) of production jobs were lost between 1999 and 2007. However the number of businesses did increase by 25% therefore over this 8 year period there has been a significant shift to smaller production businesses.

The table below identifies the industrial structure of Milton Keynes as compared to the South East and to Great Britain as a whole.

Table 7 - Industrial Structure Milton Keynes, South East, GB % Split

	Milton Keynes (July 2007)	South East (June 2005)	GB (June 2005)
Agriculture	0.3	1.2	0.9
Construction	3.5	4.6	4.9
Production	10.9	9.0	11.3
Services	85.3	85.3	83.0
Total	100	100	100

Source: Milton Keynes Employment Survey 2007, SE and GB Annual Business Inquiry 2007.

The table above shows the industrial profile of Milton Keynes is broadly comparable to that of both the South East and Great Britain.

Agricultural employment is less previlant in Milton Keynes, as is construction
Compared to the South East, production employment is significantly higher in Milton Keynes
Compared to the South East the same proportion of Milton Keynes' jobs are in the service sector, which is higher than the proportion that are for Great Britain as a whole
Over 45% of businesses have been established since 2000
10% of business were established before 1980, 40% of which were established before 1970
10% of Milton Keynes business have relocated from elsewhere, and a further 18% are a branch of an existing business
75% of existing establishments in Milton Keynes consider the city to be their UK headquarters
55% of people in employment in Milton Keynes were in managerial, professional or skilled occupations
72% of all businesses in Milton Keynes started up in the city
37% of Milton Keynes businesses are owned by a UK parent company
Over 200 companies are overseas owned, representing 5% of the total companies in the city and 10% of jobs