Economy  

The latest statistics (for 2003) show that the Hampshire economy, worth £19.7 billion, is the third largest shire economy behind Surrey and Hertfordshire. However at £15,730 Hampshire's Gross Value Added (GVA) per head - a widely regarded indicator of general economic performance (rather than sheer size) is a little below the national average (£16,400) and well below the average for the south east  region (£17,630).

There are significant differences within the county with average earnings higher in the north and unemployment higher in the south. The overall GDP per head reflects the resident population rather than the number of jobs in the area.

Around one in nine of Hampshire’s working residents travel to work in the neighbouring cities of Portsmouth and Southampton, in turn providing the workers for one in three of the total number of jobs in the two cities. Commuting is a major feature of the Hampshire economy that affects every district.  Hart, Fareham, Eastleigh and Havant all provide jobs for less than half of their resident workers.

Hampshire also has strong links with the armed forces and the Ministry of Defence which, as well as having significant land holdings in the county, is also a major employer. This has led to pressures on education planning for service families who move frequently. Other key employment sectors include: finance and business services, advanced engineering, leisure and tourism. Addressing issues related to affordable housing, gaps in key skills and the attraction of higher paid jobs outside the county is key to ensuring the economy’s continued health.

A study of over 500 Hampshire businesses by MORI in February 2006, found that 75% rated Hampshire as being good overall as a place to run a business, compared to 86% who rated Hampshire as a good place to work. When asked 'What are the two or three most important improvements needed in Hampshire to help businesses grow?' 24% of respondents said better roads, 18% said better public transport, and 14% said better infrastructure. Lower rates and a better trained workforce were next on the list. Compared with 2001, the study concluded that businesses are now more optimistic about doing business in Hampshire, adding that: property/labour costs are less of a concern for some sectors than others; skills/education seem to be improving; infrastructure are less of a concern; there is more use and satisfaction with the Business Link service; and there is increased satisfaction with economic development and job creation.

The rural economy in Hampshire  supports around 91,000 jobs (17% of the total) and nearly 15,000 businesses (28% of all businesses in the county). Rural businesses tend to be smaller on average than those in urban areas, 90% employ ten people or less. However all of the key sectors are represented, for instance 28% of all manufacturing companies in the county are rural based.