Investing in Devon's economic recovery

Devon’s economic recovery

Supporting the county’s hardest-hit sectors is paramount if Devon’s economy is to recover successfully. This includes tourism, retail, construction, agriculture and food and drink, which provide significant employment across the county and underpin the economy of many local communities.

We are similarly determined to ensure that no individual is left behind, with a clear focus on supporting the county’s young people to learn and work; assist employees who have lost their job or wish to do more to find a new opportunity; and support businesses to retain staff, apprentices and suppliers.

There is an opportunity to build on Devon’s dynamic and entrepreneurial culture, coupled with the county’s world-class environment, global expertise in climate science and green technologies, and a talented workforce, to create a stronger, more inclusive and sustainable economy.

Why is this a priority?

The economy of Devon is diverse, with health, retail and tourism accounting for 43.1% of employment. Agriculture, education, manufacturing, construction and real estate employment are also over-represented in Devon compared with nationally.

Devon has proportionately fewer working age people compared to England, particularly in those aged 16 to 49 years. Employment rates are high, but wages are low and many jobs are part time. Devon has one of the highest incidences of self-employment in the country at 15.8%.

Averages mask some important differences between districts. Exeter has grown relatively quickly in recent years, with a good skills base and the highest workplace earnings. East Devon has seen earnings drop considerably over the past few years, following sharp rises previously.

Performance in the other five districts is more mixed, and notably poorer in the north of the county. Torridge and North Devon are among the most deprived districts and this correlates with other indicators such as wages, education levels and social mobility.

How has the COVID-19 pandemic affected Devon’s economy?

• The pandemic has caused an economic decline not witnessed in the UK since the 1930s. Prior to the start of the pandemic, the economy appeared to be slowing down and the claimant count was rising in Devon. However, the impact of successive lockdowns and restrictions on businesses that started in March 2020 has caused a decline in output of around 11-12% in 2020, with a further decline of 3% expected in 2021.
• Sectors that are traditionally important to the Devon economy, such as retail and hospitality, have been hit significantly, while others such as manufacturing and construction appear to be holding up. Economic modelling suggests a long-drawn-out recovery in much of Devon, especially in Mid and West Devon, with only Exeter and Plymouth performing better.
• The pandemic has further stretched local government finances as well as revealing the deeper roots of the funding crisis in local government