In general, the East Midlands has a strong and diverse economy with good transport links and a good standard of living, although there are a few areas of deprivation within the region. In the Indices of Deprivation 2000, for example, 11 districts in the region, including Nottingham and Leicester, fell within the 100 most deprived areas in England. However, the looks bright and the East Midlands is well placed to offer an attractive and practical alternative to the prosperous southern regions of the country, as physical constraints begin to hinder their development.

Economy:
The East Midlands has a healthy economy with a GDP of approximately £49 billion. According to a report carried out by DTZ on behalf of the East Midlands Development Authority, growth in real output in the region exceeded both EU and England averages during 1982-2000. Furthermore, unemployment in the region has been falling steadily over the last few years. Figures from the Office for National Statistics show that, between 1996 and 2001, the ILO unemployment rate fell from 7.5 per cent to 4.9 per cent, while the claimant count fell from 6.8 per cent to 3.2 per cent during the same period.

The vast majority of new employment has been in the service sector, with growth most pronounced in IT, finance and distribution. At the same time there has been significant reductions in the manufacturing sector. However, manufacturing still accounts for just under a third of employment in the region, which is the highest level of any region in the UK. Sectors that have been identified as of particular importance to the future development of the region's economy include added value engineering, the automotive industry, electronics, food and drink, healthcare, logistics, financial and business services and e-business, ICT and environmental technology.

The East Midland also has just under 1.3 million hectares of agricultural land, 41 per cent of which is located in the county of Lincolnshire to the north east of the region.

Local Infrastructure:
In general, the East Midlands benefits from good transport links that make it an excellent location for reaching international markets. However, there are several rural areas in the east of the region that are relatively inaccessible.

According to figures published by the Department for Transport, the East Midlands handles just over 2 per cent of all aircraft traffic in Great Britain catering for approximately 2.2 million passengers and approximately 178.8 thousand tonnes of freight in 2000. East Midlands Airport is the region's primary passenger airport and is easily accessible, being located just 2 miles from the M1 motorway. It is also the largest freight hub outside London and has been developing its cargo facilities for destinations within the UK, Europe and the USA. DHL, TNT, UPS and the Royal Mail all have bases at the airport.

The region is well connected nationally by both road and rail. The M1 and A1 roads, which are a significant element of the north-south national road network, both pass through the region. The East Coast main railway line also passes through the East Midlands and the Midland Main Line links a number of the region's major towns and cities. In addition, the railfreight facilities already developed and under consideration, such as the Daventry International Railfreight Terminal and Corby Eurohub, will improve the rail freight opportunities to continental Europe.

Local Workforce:
According to figures published by the Office for National Statistics for 2000-2001, the East Midlands has a labour force of just over 2 million people and a relatively high employment rate of 75.8 per cent. Nottingham and Leicester unitary authorities have the lowest levels of employment within the region at 63.7 per cent and 64.7 per cent respectively.

Just over 48 per cent of the working population are educated to at least A level standard, including 24 per cent who are educated to degree standard. This compares to an average of 28 per cent in England and 21 per cent in the EU who are educated to degree standard. Just under 13.5 per cent of the workforce in the East Midlands have no qualifications at all.

Business Costs:
The cost of office space in the East Midlands is relatively low when compared with the rest of the UK. For example, in a survey conducted by City University Business School and Actium Consult in 2001, the average combined office rental and rate cost in Nottingham stood at just £215.39 per metre squared per annum, compared with £858.99 for the city of London, £439.92 for Edinburgh and £257.06 for Cardiff.

Wage costs in the region are also competitive. In the New Earnings Survey 2001 published by the Office for National Statistics, average gross earnings in the East Midlands were £394.3 per week, approximately 11 per cent below the national average.

As part of the strategy to nurture economic growth and innovation in the region, a range of grants and tax incentives are available for companies investing in the East Midlands, details of which are available from the region's development agency.