Walsall Economic Framework 2025 - Walsall: Our Economy

Walsall’s business base has grown steadily over the past decade, with around 8,400 active businesses in 2025, up 7% since 2020. Micro and small enterprises dominate, accounting for 98% of firms, and there is a small group of just 35 businesses that employ more than 250 people. Walsall’s entrepreneurial potential is reflected in a high business birth rate which is 16%, above regional and national averages. 15% of directors of Walsall businesses are female, which is similar to UK and West Midland proportions. 

Walsall retains a strong manufacturing base, particularly in automotive, metals, and materials supply chains and is well placed to capture emerging opportunities in sustainable construction, logistics, and the green economy. However, the economy remains heavily reliant on lower-value sectors such as retail and health care, while higher productivity businesses such as business and professional services are underrepresented. This imbalance contributes to Walsall’s persistent productivity gap: output per hour worked is £32.80, compared to £41.70 nationally, a 22% shortfall that has remained stubbornly unchanged for over a decade. Walsall’s job base has shortage of higher-level roles - 41% of the workforce are managers, professionals compared to 54% nationally. 

Innovation and growth potential exist but are concentrated in niche areas. Real-Time Industry Classification (RTIC) analysis identifies advanced manufacturing, life sciences, and net zero technologies as promising clusters, with 395 firms operating in these sectors and several flagged for high growth. Private investment into Walsall’s innovation-led sectors totals £23.6 million, primarily in life sciences and MedTech, supported by £6.9 million in Innovate UK funding. Walsall has a set of exporting businesses rooted in its manufacturing base (4% compared to 3% nationally) which provide a foundation on which to further build local training and generate growth. 

The business outlook is shaped by global megatrends such as digitalisation, automation, and decarbonisation which sit alongside local constraints around employment land and infrastructure. Brownfield sites offer a strategic opportunity for growth, particularly for logistics and advanced manufacturing, but require significant remediation and enabling investment. The Walsall Growth Corridor and Enterprise Zone/ Growth Zone are central to unlocking these assets, supported by improved connectivity through M6 Junction 10 upgrades and new rail stations at Willenhall and Darlaston.

Walsall’s 295,000 population is growing (up 8% since 2014), diverse and relatively young. Walsall experienced an 8% rise in its younger resident population while its over-65 population grew by 5% (compared to the 16% national trend). 

Deprivation levels are stark, with the borough ranked 25th most deprived in England and an east-west divide in income, health, and educational attainment. Economic inactivity stands at 24%, slightly above the national average, but rises to over 30% in some western wards, with gender disparities particularly pronounced. 

Skills remain a critical barrier to growth. Between 2022 and 2024, the proportion of adults with no qualifications rose by 10%, while those qualified to Level 4+ fell by 19%, contrary to national trends. Currently, only 36% of working-age residents hold a Level 4+ qualification, compared to 45% nationally. This limits local people’s ability to access high-wage jobs and constrains Walsall’s ability to attract knowledge-intensive businesses and holds back progression pathways into higher-skilled roles. Census data shows that qualification levels also vary across different communities requiring different approaches that recognise different and complex barriers. 

Employment trends underscore these challenges. Total jobs fell in key sectors that are vital for productivity growth and long-term competitiveness by 9% between 2017 and 2023, with losses concentrated in Business administration (-33%), Information & Communication (-32%), and Professional services (-23%). Walsall has headroom to accommodate more employment as job density is just 0.7 per working-age resident, compared to 1.0 nationally, and 36% of residents commute out of the borough for work, reflecting limited local opportunities. Median annual earnings for residents are ~£32.5k which is £5.5k below the national average, and real-terms wage growth has been eroded over time by inflation. 

Health outcomes compound these economic challenges. Life expectancy is two years below the national average, and Walsall’s rates of chronic illness, obesity, and diabetes are significantly higher than the national average. Poor health reduces economic participation and places additional pressure on public services. It requires integrated interventions across employment, skills, housing, and health that recognises economic prosperity and wellbeing are mutually reinforcing.

Walsall’s physical and digital infrastructure provides both opportunities and constraints. The borough benefits from excellent motorway connectivity via the M6, proximity to Birmingham, and planned rail enhancements. At the same time, the borough suffers from congestion and uneven public transport access, particularly in the western part of the borough. Digital connectivity is strong in terms of fixed broadband, with average speeds of 201 Mbit/s, but 5G coverage remains limited at 20%, below regional and national averages. 

Housing affordability is relatively favourable, with a median price of ~£210k and an affordability ratio of 6.4 (Calculated using median house price divided by median resident earnings), below regional and national benchmarks. However, the quality of existing housing stock is a challenge and more better quality homes will be needed to attract and retain residents. Planned developments within the Growth Corridor aim to deliver 1,600 new homes, 1.5 million sq ft of employment space, and 63 hectares of remediated land, alongside public realm improvements and green infrastructure. 

Cultural and leisure assets such as the New Art Gallery and Walsall Arboretum offer a good foundation for placemaking. However, there is evidence of town centre decline alongside negative perceptions of safety which undermine local people’s pride in their home town. The recently published Town Centre Framework provides a vision for transformational change underpinned by strategic objectives that aim for greater vibrancy, accessibility and diversification. 

Walsall has reduced its CO2 emissions per capita by 53% since 2005, outperforming regional averages, but local renewable energy generation remains low and further investment is needed to meet net zero targets. The transition to a low-carbon economy presents significant opportunities for innovation, skills development, and inward investment, particularly in terms of construction, mobility, recycling, and energy systems. The transition will also present significant threats as current technologies are superseded by low carbon alternatives, particularly in the automotive sector.