This is the functional economic area encompassing the 2 unitary authorities of Dorset Council and Bournemouth, Christchurch and Poole Council. In this report, the combined geography and related data is referred to as ‘pan-Dorset’.
"Dorset faces a multifaceted challenge - an ageing population, fewer young residents, and an evolving labour market. At the same time, job vacancies outpace supply, and nearly 30,000 local residents want to work but do not currently have the opportunity."
Labour market:
- 75.9% of 16 to 64 year olds were in employment (March 2025)
- female employment rate is 73.8% (March 2025)
- 15.7% of people in employment were self employed vs 12.3% for the UK
- employment rate for people with disabilities is 60.3% (Mar 2025)
- 39,000 people earning less than the Living Wage
- 94,300 (21%) economically inactive people (March 2025) driven by early retirement, long term sickness and studying
- 38% of economically active people are aged over 50, vs 32% for the UK, with implications for replacement demand
- 66% of unpaid carers are economically active
Business environment:
- £19.5 billion economic output (2019 prices), but slower than average growth
- £4.63 per hour productivity gap, equivalent to £2.68 billion a year and falling behind rest of UK
- 33,225 businesses, of which 89.4% are micros
- approx 500 scale up businesses with 43,000 employees and £4.2 billion turnover
- £792m trade surplus in 2021, driven by services in BCP
- downward trend in FDI flows with more investment leaving the region than coming in
- 343 innovation projects funded in the area since 2004, less than expected
- underpinned by the foundation economy
Skills supply and demand:
- 16% of establishments have at least one hard to fill vacancy vs 15% in England
- 42% of people aged 16 to 64 have a level 4 qualification vs 47% in the UK
- 3.4% of 16 to 17 year olds in BCP and 3.8% in DC were NEET compared to 5.2% for England
- after KS5, more young people went into employment and less into HE than nationally
- lower than average participation rate in adult education
- 22,720 students enrolled in the area’s three universities, but low graduate retention
- graduates in the area were less likely to be employed in high skilled jobs
Transport and infrastructure:
- largely rural area, but 78% of people live in urban areas
- 5 main Travel to Work areas
- issues with North/South connectivity
- congestion on the A31,35,351
- poor rail connectivity to and within the area
- inadequate infrastructure for walking and cycling and EV use
- unlikely to meet net zero targets for transport on current trajectory
- 98.8% of premises in BCP and 95.8% in DC have access to superfast broadband compared to 97% for the UK
Population and migration:
- 779,779 residents in 2021, of which 59% were working age, compared to 63% for England
- lower than average population growth expected and by 2043 only 53% of people will be aged 16 to 64
- life expectancy at birth is higher than the national average, although areas with higher levels of deprivation have a lower life expectancy
Housing:
- median house prices were £340,000 in BCP and £353,000 in DC vs £290,000 for England
- prices 10.23 times median earnings in BCP and 11.03 times more in DC, vs 8.26 for England
- 40.5% of homes in DC were under occupied and 29.9% in BCP vs 34.6% for England
- 58,000 homes do not meet the decent homes standard
Emplyment rate
According to the DWP’s Guidance on Developing local Get Britain Working Plans, the employment rate in Dorset and BCP between October 2023 and September 2024 was 76.6% (+/-2.4%), placing the area sixth out of the 7 GBW areas in the South West, just below Devon, Torbay and Plymouth (76.9% (+/-2%)) and above Cornwall and Isles of Scilly (76.4% (+/-3.7%)). Based on local data to March 2025, the employment rate for the pan Dorset area (75.9%) is down on pre-pandemic levels (79%) and appears to have stabilised following post pandemic labour market turbulence, particularly in 2022 to 2023 when the employment rate reached 79.2%.
Whilst the employment rate in the pan Dorset area has consistently exceeded the national rate over the long term, post pandemic employment rates have been lower than the national average within the BCP area. Sectors that have been particularly hit post pandemic include hospitality, tourism and retail, reflecting national trends, and with these sectors overrepresented in both BCP and Dorset Council areas, the effect has been significant for the local area.
Most recently, the labour market in Dorset and BCP has tightened during the last few months with more competition for the roles that are available, though this overview disguises the geographic and sectoral complexity of the area described previously.
Female employment rate
The female employment rate in the pan Dorset area between April 2024 and March 2025 was 73.8%, a gap of 2.1% with the overall employment rate for the area. This compares favourably with the national employment rate of women aged 18 to 66, which was 72.3% in December 2024, however the local female employment rate has fluctuated during the post pandemic years. The national rate is 7.1% lower than the employment rate of men at 79.4%.
Disability employment rate
The employment rate for people of working age (16 to 64) with disabilities in Dorset, calculated with reference to the Equality Act core or work limiting disabled statistics indicates a rate of 60.3% across the pan Dorset area, a gap of 15.6% with the overall employment rate for the area.
Employment rate gaps amongst parents
As part of its Get Britain Working programme, DWP will be measuring (a) the difference in employment rate between lone parents and parents in a couple, and (b) the proportion of coupled families where at least one parent is out of work.
Nationally, the employment rate of lone parents has been consistently lower than for that of coupled parents. Although the gap had been reducing since 2006, recent data suggest it is rising again.
National data also indicates that in July to September 2024, 24.1% of all coupled families had at least one parent out of work, and that there has been a gradual decline in this figure since 2016.
Whilst local comparative data is not yet available, an important factor in enabling parents to work is ensuring there is good availability of childcare. The Dorset Local Skills Improvement Plan (LSIP) has highlighted a lack of childcare options and high costs. In the Dorset area, availability of care is sufficient, but there is an ongoing challenge to recruit staff locally and nationally.
Economic inactivity
Economic inactivity rates have been consistently lower than the national average in the long term, but post pandemic the pan Dorset area appears to have had a steeper rise in inactivity rates. These rose to 21% in 2021 to 2022, before dropping slightly to 19% and then returning to 21% in 2024 to 2025. In March 2025, there were 94,300 economically inactive people in the pan Dorset area.
The reasons why people are inactive differ across the two local authority areas. In the Dorset Council (DC) area, (early) retirement is the most significant reason, whereas in the BCP area, long term sickness or being a student are the most significant reasons.
Economic inactivity due to health condition
In 2024 to 2025 there were 30,100 people across the pan Dorset area who were economically inactive due to being either temporarily or long term sick:
Temporary and long‑term sickness counts for BCP, Dorset and Pan‑Dorset
| Temporarily or long term sick |
BCP |
Dorset |
Pan-Dorset |
| Temporary sick |
1,000 |
800 |
1,800 |
| Long term sick |
14,600 |
13,700 |
28,300 |
| Total |
15,600 |
14,500 |
30,100 |
Of those who are long term sick, over two-thirds have been considered as having limited capability for work (LCW) or limited capability for work and work-related activity (LCWRA):
LCW and LCWRA counts for BCP, Dorset and Pan‑Dorset
| LCW and LCWRA |
BCP |
Dorset |
Pan-Dorset |
| LCW |
165 |
129 |
294 |
| LCWRA |
10,890 |
8,019 |
18,909 |
| Total |
11,055 |
8,148 |
19,203 |
There were, therefore, c.10,000 people across BCP and Dorset Council who, at the end of March 2025, were economically inactive and considered capable for work. Supporting this group into work would take Dorset and BCP over halfway towards achieving an 80% employment rate.
This group are a priority for the Integrated Care Board/Partnership for Dorset and BCP and for the Dorset and BCP Councils’ Get Britain Working Plan. With limited additional resources available, partners are committed to working collaboratively to co-ordinate support services to facilitate access for residents, support employers looking to recruit, and secure the maximum value from the time, energy and funding invested.
"Our councils share a vision: to ensure that every working age resident can access the right support to begin, sustain, or return to fulfilling employment."
Universal Credit data indicates that across the pan-Dorset area those aged between 30 and 50 who are out of work, working (including self employed or part time) but on low income, or unable to work, for example because of a health condition are most likely to be claiming benefits to help with living costs:
A targeted approach to the co-location of employment, health and employability skills services in priority neighbourhoods is being explored, informed by analysis of the ward groups in the panDorset area with high levels of economic inactivity is due to long term sickness, reflecting the impact of coastal, urban and rural deprivation on health outcomes:
A priority for the development of co-located neighbourhood services is a focus on mental health. For those in receipt of Employment and Support Allowance in Dorset and BCP, mental and behavioural disorders represent the largest medical condition, followed by diseases of the musculoskeletal system and connective tissue, and diseases of the nervous system:
Analysis of where vulnerable groups are living is also informing the location and co-ordination of health, skills and employment related services:
Young people not in education, employment or training
In 2024, there were 832 16 and 17 year olds in the pan-Dorset area who were either NEET or their destinations were unknown:
Number of young people recorded as NEET or not known across BCP, Dorset Council and Pan Dorset
| NEET status |
BCP |
Dorset Council |
Pan Dorset |
| NEET |
340 |
327 |
667 |
| Not known |
137 |
28 |
165 |
| NEET and not known |
477 |
355 |
832 |
4.1% of 16 and 17 year olds in Dorset were NEET, and 3.9% in BCP. These figures are a little higher than for England as a whole, albeit there are fewer young people locally whose destinations are unknown, particularly in Dorset.
After Key Stage 4 (ie 16 to 19), a greater proportion of young people go into employment destinations than the national average and a lower proportion go into further and higher education. A greater proportion of young people in BCP go into apprenticeships than the national average, but in Dorset a lower proportion do so.
The number of 16 to 18 year olds in jobs without training is monitored in particular in the Dorset Council area, as a feature of the rural economy.
Dorset Council area in particular is experiencing a population bulge in this age group which will place additional pressures on the services available to support young people aged 16 to 24 not in education, employment and training over the next 10 years.
DWP’s Get Britain Working measures focus on 18 to 24 year olds not in education, employment or training. Whilst the statistics for this group in the Dorset and BCP Council areas are not yet available, analysis of the national data for 16 to 24 and 18 to 24 NEETs highlights some of the key issues these young people are experiencing
The NEET rate of 16 to 24 year olds in England in 2024 was 13.6% (up 1.3% on 2023), and the rate for 18 to 24 year olds was 16.2% (up 1.7% on 2023), compared with 4.6% for 16 to 17 year olds. If these rates were applied to the populations in Dorset and BCP that would mean that c. 10,740 16 to 24 year olds and c. 9,890 18 to 24 year olds would be NEET locally. We know that in October 2024, there were 6,052 young people aged 16 to 24 claiming Universal Credit in the panDorset area.
Of the national 16 to 24 NEET population, estimates show that young men are more likely than young women to be NEET. 14.5% of all male 16 to 24 year olds were NEET, compared with 12.6% of females, both increasing in 2024. The increase in young people who are NEET has been driven by less employment. Both the proportions unemployed (5.5%) and inactive (8.1%) have increased since the end of the COVID-19 pandemic and are the highest in the period.
Analysis from the Annual Population Survey suggests that over half of those NEET had a health condition in 2024 with over 1 in 6 of those NEET currently report having a mental health condition.
Many of the 18 to 24 age group are no longer in education and are instead in the labour market. Since the start of the COVID-19 pandemic the NEET rate has fluctuated however, and there has been a notable increase in the latest year, up 1.7 percentage points. Again, this was driven by falls in proportions in employment with proportions in education and training remaining relatively stable.
In addition to these nationally identified issues, young people in Dorset face particular challenges with travel to learn and travel to work. The Accountability Statements for Weymouth and Kingston Maurward College highlight the significant investment that the College makes in subsidising bus routes, for example to enable students to travel in excess of 1.5 hours on a daily basis. The Weymouth campus is reported as the 3rd most isolated GFE College in the country.
Deprivation and inequality
Across the area, levels of deprivation vary significantly. While many neighbourhoods are among the least deprived in England, a number experience deep and persistent disadvantage. Evidence is clear that many of our social issues derive from the very fact of inequality. Almost everyone loses from living in a very unequal society – even those at or near the top, since it produces worse health outcomes, higher levels of violence and crime, and lower trust and mutual confidence.
Neighbourhoods
In Bournemouth, Christchurch and Poole, around 45,400 residents live in neighbourhoods within the 20% most deprived nationally, with concentrations in Boscombe West, Kinson, Alderney and Bourne Valley, West Howe, Somerford and parts of East Cliff and Springbourne.
Within Dorset Council, deprivation is most evident in Weymouth and Portland and parts of Bridport, where 11 of 219 neighbourhoods fall within the most deprived 20%, and areas such as Melcombe Regis, Littlemoor West and Fortuneswell North rank within the most deprived 10%.
Rurality presents additional challenges: almost half of Dorset Council residents live in rural areas, and 66 neighbourhoods are among the most deprived nationally for barriers to housing and services, reflecting both distance to essential provision and affordability pressures. These inequalities contribute to significant health gaps, with life expectancy around 6 to 7 years lower in the most deprived communities compared to the least.
Coastal deprivation is a significant issue nationally and in Dorset and BCP, in particular in the Weymouth / Portland and Boscombe areas. The Chief Medical Officer’s second annual report in 2021 drew attention to the impact of Covid-19 on coastal employment (with its reliance on tourism and hospitality), and the migration of vulnerable people to coastal areas, often with multiple and complex needs. Economic inactivity in coastal areas outstrips non-coastal areas, much of which is due to long term sickness.
According to the Dorset Integrated Care Board:
- Dorset’s coastal communities have much poorer health outcomes than other areas
- health inequality affects health and wellbeing from early years to later in life in both BCP and Dorset council areas
- coastal areas in Dorset have high levels of unemployment with seasonal work common and zero hours contracts
Coastal navigators network: Portland and Boscombe
The Integrated Care Board for Dorset and BCP is pleased to be a member of the Coastal Navigators Network, delivering one of six transformation projects designed to scale up scholarship programmes to reduce Dorset’s high social care employment turnover rates. Currently over 50% of under 25s leave jobs in the sector within a year. The project is also helping to meet the growing care needs of one of the UK’s oldest populations.
Insecure, Poor quality and low paying work
The labour market in Dorset and BCP is characterised by lower than average pay, particularly for women and part time workers, and in 2024, 39,000 people were earning less than the Living Wage. They were employed in 16.5% of employee jobs in the Dorset Council area, and 14.2% of employee jobs in BCP, compared with the South West and England averages of 15.7% and 15.9% respectively.
The area has a higher proportion of people working part time than the UK average, and women are much more likely to be working part time than men. According to the Living Wage Foundation, in 2024, part time employees were over three times more likely to be low paid than full time employees (32.2% of part time jobs being paid below the real Living Wage, vs 9.7% of full time jobs.)
The top 5 highest paid sectors across the pan Dorset area are in relatively small sectors and account for 7% of employment. Conversely, the bottom 5 lowest paid sectors account for 36% of employment. Overall, 58% of employment in Dorset and BCP in 2022 was in five sectors: health and social care, retail, accommodation and food, education and manufacturing. The distribution of employment across sectors is broadly similar to the UK, though there is some over representation locally in human health and social work, administrative and support services, and accommodation and food services.
These high employment sectors reflect the ageing demographic profile of the population (particularly in Dorset), the popularity of the whole area as a tourist destination, and BCP’s administrative and support services sector, and all have reputations for lower paid work. According to the Living Wage Foundation, in 2024, hospitality remained the industry with the highest proportion of low pay (53.6%).
"According to the Living Wage Foundation, in 2024, part time employees were over three times more likely to be low paid than fulltime employees (32.2% of part time jobs being paid below the real Living Wage, vs 9.7% of full time jobs)."