General Information » Economy » London Overview

London has Europe’s largest city economy and, along with New York and Tokyo, is a major global powerhouse. Domestically, it accounts for about one-fifth of the country’s GDP. On the international stage, London has many advantages that give it the edge over other economic centres, including Britain’s friendly relationship with the US, the widespread use of the English language and law throughout the business world, and the capital’s positioning as a major aviation hub. London’s multiculturalism – one of its main selling points – is another attraction for international businesses.



Employment

At present, the British economy is buoyant, growing by approximately 2% every year – and London plays a major part in this success. The city has a workforce of 3.4 million and with wages about 20% higher than in the rest of the country, it is no surprise that so many people are attracted to the capital. Salaries range from an average of £20,000 for manual jobs to six-figure pay packets for some City workers. The inflated wages of those in the financial sector skew the average salary for non-manual occupations, which is £37,000. The downside for London earners is the high cost of living; rental and housing costs, which, in an already overinflated national market, can be up to twice as much as elsewhere in the country. The knock-on effect is that 750,000 people commute to work from outside the capital each day.



Leading Industries

Finance is London’s largest industry. Over half of the UK’s top 100 listed companies (the FTSE 100) and more than 100 of Europe’s 500 largest companies are based in the capital, most within the City of London. The modern development of Canary Wharf now acts as a second finance centre, and includes the worldwide headquarters of companies such as HSBC, Reuters and Barclays. Finance may be the largest industry, but London’s booming creative sector is one of the most significant, especially when compared with other countries; it generates more than £14 billion in annual sales and employees over 400,000. It’s a highly competitive area and there is a scrabble for jobs in advertising, architecture, design, fashion, film, music, publishing, radio and TV. The BBC is the largest media employer, but other broadcasters also have headquarters around town. Most national newspapers are edited in London, even if the printing presses are now scattered around the country.

Tourism is the other big business in London, with more than 350,000 workers employed full-time thanks to the regular stream of visitors who spend £9 billion in the city annually. Around 3 million of Greater London’s population work in ser...