The Welsh capital is often hailed as an example of successful development and adaptation to changing demographic and economic conditions. Cardiff’s history spans more than two thousand years, when the city was nothing more than a small fort built by the Romans. How has Cardiff changed since and what are the current demographic and economic trends that prevail in the Welsh capital?
Demographics
Historians believe that Cardiff’s first inhabitants arrived during the Neolithic era from the southern Mediterranean region, most likely from Spain and Portugal. During several centuries, population growth was slow, although historical records show that by the late 13th century, Cardiff was already the most populous town in Wales, with an approximate population of 2,000 people. However, Cardiff’s true demographic explosion did not take place until the 18th century, when the city docks were built and railway lines reached the city. In the three decades between 1840 and 1870, the local population grew by 80 per cent, mostly due to the arrival of English and Irish migrants. At the turn of the 20th century, Cardiff had a permanent population of 172,000.
The city’s population reached its peak during the early 1970s, although it quickly fell into decline, not being able to recover until the mid-2000s, when several urban regeneration projects turned Cardiff into one of the most desirable locations to live in. The latest demographic data (taken from the 2011 census) show that Cardiff’s current population amounts to 346,000 people.
Nowadays, Cardiff is one of the UK’s fastest-growing cities, and is also among the most densely populated urban areas in Wales. Another noteworthy characteristic of the local population is the small percentage of residents who are 65 years old and above, as they only represent 13 per cent of the population. On the other hand, approximately 20 per cent of the population is aged 15 years old and under. Migration has played a significant role in Cardiff’s transformation as a major urban centre.
Cardiff’s economy
As it is the case in the rest of Wales, Cardiff’s economic development has been historically linked to coal mining and steel manufacturing. However, following a period of generalised economic decline that lasted from the late 1970s to the early 1990s, Cardiff’s economic base was able to pick up the pace and transform itself into a modern and thriving economy.
Over the past two decades, Cardiffhas become Wales’ largest employment centre, and according to the Office for National Statistics, the city’s economy now contributes more than 20 per cent to the Welsh gross domestic product. Cardiff’s annual GDP is estimated to be in the region of £10 billion, a figure that represents an impressive 91 per cent increase since 1995.
According to recent statistics published by the Welsh National Assembly, nearly 73 per cent of the working age population is economically active. Unemployment levels have decreased significantly over the last ten years, and as of 2012 they were set at 6 per cent.
Recently, Cardiff was listed by Experian as the fourth UK city with the highest economic growth potential, especially since its inclusion in the UK Core Cities scheme. The city’s impressive levels of economic growth can also be attributed to a number of commercial property development projects, which have injected millions of pounds into the local economy. Some of the most important include the Cardiff Business Technology Centre and the remodelling of the Assembly Square and Cardiff Waterside areas.
Industry trends in Cardiff
The service sector employs nearly 80 per cent of the local workforce. Cardiff’s move towards a service-based economy is most evident in the low number of manufacturing jobs available in the city (6 per cent versus the Welsh average of 13.4 per cent). The public sector is another key industry in Cardiff. In fact, Cardiff County Council reports that this sector has been the key economic driver in Wales over the past twenty years, accounting for more than half of the city’s economic growth.
The local retail industry has been recently boosted by large investments, among which the most notable is the £675 million involved in the regeneration of St David’s Centre, a major shopping area in the city centre.
The city also has a thriving financial and business services industry, which employs nearly 55,000 people and which has been ranked among Europe’s top ten in terms of its potential for attracting foreign investment.
The extensive redevelopment of Cardiff Bay and the Millennium Centre has resulted into the spectacular growth of the local tourist industry. Currently, the revenues generated by tourism in the city account for a quarter of the total worth of the Welsh tourist industry.