An economy is successful if it can provide high income jobs and keep people in work. Increasing the proportion of higher value jobs in our economy entails encouraging our talented people to remain here for employment and to progress up the skills ladder, and attracting others to Jersey who can help businesses grow, become more productive and help create better employment opportunities for Islanders.
There are four indicators to measure progress for this outcome.
Each has been given a long-term ambition for the future, based on where Jersey is today and Islanders comments in the ‘My Jersey’ survey.
The recent Future Jersey consultation asked Islanders whether they agreed with the proposed ambitions and their feedback is being taken into consideration as the final vision takes shape.
Measures: the total value of Jersey’s economy divided by population. Indexing against 2013 (value -100) allows comparison between years.
The facts: careful interpretation of this headline indicator is required. Cyclical fluctuation between periods of growth and contraction should be expected and it is also important to understand changes within different economic sectors. If, for example, the impact of low interest rates on financial services profits is taken into account, Jersey’s GVA is now above its 2006 level.
Long-term ambition: TRANSFORM
Sustained economic growth is essential if Jersey is to meet the cost of future challenges and meet Islanders’ expectations for higher incomes, greater job opportunities, low tax rates and quality services.
Measures: Jersey’s productivity by dividing economic output by the number of employees (full-time equivalent). It is indexed against 2013 (value = 100) to allow comparison between years.
The facts: the Island’s independent Fiscal Policy Panel has highlighted that Jersey’s productivity performance has shown no real increase for a sustained period. Falling profitability as a result of low interest rates in the banking sector is a factor but, outside of finance, productivity in the rest of the economy has only increased marginally since 1998.
Long-term ambition: TRANSFORM
Jersey is a small island with limited land availability and capacity for population growth. Improving productivity by making the best possible use our existing resources will be key to achieving sustainable economic growth and our standard of living.
Measures: the estimated number of unemployed plus those not registered but still seeking work as a % of the entire workforce.
The facts: Jersey’s unemployment rate between April 2014 and May 2015 was estimated at 4%. Between March and May 2015, the rate in the UK was 5.6%. Monitoring the number of people actively seeking work provides some insight into the likely trend. In December 2016, this figure was at its lowest for six years.
Long-term ambition: CONTINUE
This recognises the impact of the global recession and focuses on the more recent trend. Progress will benefit economic participation, productivity, affordable living and other wellbeing indicators.
Measures: the change in the value of average earnings allowing for the effect of inflation. It is indexed against 2013 (value =100) to allow comparison between years.
The facts: real earnings have now returned to the same level as before the global financial crisis and increased faster than inflation for four out of the last five years. This recovery is not, however, consistent across all sectors of the economy.
Long-term ambition: IMPROVE
Productivity-led growth will be key to improving average earnings. Progress benefits economic participation, productivity and other affordable living and wellbeing indicators.
We will be an Island where people can afford a decent standard of living.Read more > >
We will be an attractive place to do businessRead more > >
Crime, education, discrimination, mental health and sport - find out more about the long-term ambitions being proposed for these areas of community life in Jersey.Read more > >
Interested in the long-term ambitions being proposed to improve traffic congestion in Jersey? How about water quality, the protection of green space and energy use?Read more > >