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Local area labour markets:

Statistical indicators
April 2011

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Contents

INTRODUCTION 3

CONTENT OF THE REPORT 6

TOPIC ANALYSES 7

EMPLOYMENT ALL PERSONS 7


EMPLOYMENT - MALES AND FEMALES 8
EMPLOYMENT - DISABLED PERSONS 9
UNEMPLOYMENT 10
ECONOMIC INACTIVITY ALL PERSONS 11
ECONOMIC INACTIVITY MALES AND FEMALES 12
ETHNIC GROUPS - DEMOGRAPHICS 13
ETHNIC GROUPS EMPLOYMENT 14
ETHNIC GROUPS ECONOMIC INACTIVITY 14
CLAIMANT COUNT 16
JOBS DENSITY 17
EARNINGS BY AREA OF WORKPLACE 18
EARNINGS BY AREA OF RESIDENCE 19

SOURCES OF LOCAL AREA LABOUR MARKET STATISTICS 20

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Local area labour markets: Statistical indicators

Introduction
In order to understand the labour market of an area a number of different indicators
are needed. ONS has developed a framework for presenting the overall picture
painted by these indicators, which is based on the concepts of labour supply, labour
demand and labour costs. The following is a summary of the broad types of indicator
so far available within this framework.

Labour Supply
Active and inactive resident population
Population aged from 16 to 64
Employment rate for people aged from 16 to 64
Activity rate
Inactivity rate
Unemployment rate

Benefit dependency of resident population


Claimant count as proportion of population
Incapacity benefit proportion
Other benefits proportions
Total working age benefit proportion

Labour demand
Jobs and vacancies at workplaces in area
Jobs density ratio of jobs to population
Percentages of jobs in specific industries
Percentages of jobs in public and private sector
Vacancies rate Jobcentre Plus vacancies

Labour Costs
Earnings from employment
Median earnings of population working in area
Median earnings of population resident in area

Statistics relating to the employment, unemployment and benefit dependency of the


resident population of the area provide indicators of labour supply. Statistics relating
to jobs and vacancies at workplaces in the area provide indicators of labour demand.
Earnings statistics provide indicators of labour costs relating both to labour supply
and labour demand. The median earnings of the resident population of the area are a
characteristic of the labour supply provided by people living in that area. And the
median earnings of people with a workplace in the area are an indicator of the nature
of the labour demand arising from employers in the area.

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All ONSs dissemination of local area labour market data now follows the format of
this framework. The most comprehensive presentation of these data is from the local
area Labour Market profiles on Nomis (http://www.nomisweb.co.uk). There are
profiles for local authorities, parliamentary constituencies and wards. Because of their
small size, the ward profiles contain only data from the 2001 population census. The
local authority and parliamentary constituency profiles present data from the best
available source for the indicator and geographical area. Official population estimates
are available for local authorities and these are used in the local authority profiles. For
parliamentary constituencies experimental population estimates have been used.

Labour supply data are mainly from the annual Labour Force Survey (LFS) and the
Annual Population Survey (APS). These surveys have been derived from the quarterly
LFS, but also include extra respondents, specifically to provide better estimates for
local areas. In addition a statistical model has been developed to provide the best
possible estimates of unemployment for local authority areas. The model uses annual
LFS and APS data but also uses other information (claimant count and socio-
economic cluster) on the areas. The model-based estimates are the best available
estimates of unemployment and are used in the local authority profiles rather than the
direct survey estimates (for more information see the Sources of local area labour
market statistics section).

Data on benefits received are included in the profiles, and these are from the
administrative sources of the Department for Work and Pensions. Finally, labour
demand data are included from the Annual Business Inquiry, the jobs density
indicator and earnings data from the Annual Survey of Hours and Earnings.

Through the profiles users can also see time series of indicators and see comparisons
with other areas. The profiles can also be downloaded as a PDF in order to produce a
neat printed report.

The profiles can be accessed via the Nomis home page, or directly from the links in
the table below:

Profile Link
Local Authority http://www.nomisweb.co.uk/reports/lmp/la/contents.aspx

2005 Parliamentary http://www.nomisweb.co.uk/reports/lmp/pca/contents.aspx


Constituency

Ward http://www.nomisweb.co.uk/reports/lmp/ward/contents.aspx

The profiles take data from the main Nomis datasets (also available via the Nomis
homepage: http://www.nomisweb.co.uk). A comprehensive range of labour market
data is available from these datasets for many different types of local geography. The
datasets of labour supply data include quarterly and annual Labour Force Survey and
population censuses for 1991 and 2001. Datasets on labour demand include the

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Annual Business Inquiry, and quarterly Workforce Jobs. Also available are
comprehensive and very detailed data on claimants of Jobseekers Allowance.
Information on other benefits is also available. Some of these benefits data are from a
5% sample of benefit recipients, but other data containing information on all benefit
recipients, from DWPs longitudinal database, are also available.

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Content of the Report

This report presents local area labour market data from the APS and other sources.
The APS is a survey of individuals, and is described in more detail in the section on
Sources of local area labour market statistics. Although the APS is an annual survey,
the results from the survey will be published quarterly, but with every publication
covering a years data. This report will be updated quarterly as APS results become
available. The APS covers all areas of the UK except for the Isles of Scilly.

The use of APS data for UK and regional labour market statistics means that these
figures will be inconsistent with headline indicators published in Labour Market
Statistical Bulletins. However, they are consistent with the local area data.

As well as summary data from the APS, available here and on Nomis, the APS
microdata are available to users through the Data Archive at Essex University. Access
to these data is through a Special Licence scheme, which allows access to detailed
data provided that their intended use is fully described and strict conditions of access
are adhered too. More detail is available on the Data Archive website
(http://www.data-archive.ac.uk).

The next section of the report is Topic Analyses, which look at pre-2009 local
authorities within Regions. The topics include employment, unemployment, economic
inactivity, ethnicity, claimant count, jobs density and earnings.

Sources of local area labour market statistics describes the data sources from where
the indicators presented here are obtained.

Accompanying Regional Framework Tables are downloadable as an Excel file from


the National Statistics website. Data are presented in the format of the supply and
demand framework for local authority areas and parliamentary constituencies, within
Regions.

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Topic analyses

Employment all persons


The employment rate for people aged from 16 to 64 for the UK was 70.2 per cent for
the 12 months ending September 2010. The total number of persons aged from 16 to
64 in employment was 28.8 million with a further 784,000 people above this age in
employment.

The areas with the highest rates were the Shetland Islands (86.3 per cent) and
Brentwood, Essex (82.3 per cent). These were followed by Test Valley, Hampshire
and East Cambridgeshire (both at 82.2 per cent). Twenty two areas had a rate of 80
per cent or more.

The area with the lowest rate was Nottingham (54.3 per cent) followed by Easington
in County Durham (57.3 per cent) and Sandwell in the West Midlands (58.3 per cent).

Table 1, below, shows the employment rate for people aged from 16 to 64 for
countries and Regions, and the local authorities with highest and lowest rates within
country and region.

No reliable estimates are available for the Isles of Scilly and City of London.

Table 1: Employment rates for people aged from 16 to 64 by English region and country and by
highest and lowest unitary authorities/local authority districts for October 2009 to September
2010
Per cent
English region and UA/LAD
country
Highest Lowest

North East 66.6 Alnwick 76.3 Easington 57.3


North West 68.5 Ribble Valley 78.3 Manchester 59.1
Yorkshire and The 68.4 Ryedale/ Hambleton 80.0 Kingston upon Hull 62.3
Humber
East Midlands 71.2 Wellingborough 81.8 Nottingham 54.3
West Midlands 68.0 Stratford-on-Avon 81.6 Sandwell 58.3
East 73.5 Brentwood 82.3 Epping Forest 64.3
London 68.1 Sutton 76.6 Newham 58.5
South East 74.5 Test Valley 82.2 Isle of Wight 63.3
South West 73.8 Salisbury 81.5 Sedgemoor 62.5
Wales 66.7 Wrexham 73.1 Blaenau Gwent 58.8
Scotland 71.0 Shetland Islands 86.3 Glasgow City 60.5
Northern Ireland 65.4 Not available Not available
Source: Annual Population Survey

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Employment - males and females
The UK employment rate for people aged from 16 to 64 is higher for males than for
females. The rate for males is 75.2 per cent compared with 65.3 per cent for females
for the 12 months ending September 2010.

The estimate of the employment rate of females aged from 16 to 64 is lower than the
corresponding rate for males in most UA/LADs. Only 17 areas show a higher estimate
for females than males.

Males

The area with the highest rate of male employment was Adur in West Sussex (91.3
per cent), followed by East Cambridgeshire (90.3 per cent) and Staffordshire
Moorlands (90.2 per cent).

The areas with the lowest rates were Nottingham (55.4 per cent), followed by
Wansbeck in Northumberland (62.3 per cent) and Wolverhampton (62.5 per cent).

Note that the Isles of Scilly and the City of London are excluded as the sample sizes
are too small to provide an estimate.

Females

The highest rates of female employment were the Shetland Islands (82.9 per cent),
Oswestry in Shropshire (79.8 per cent) and Craven in North Yorkshire (79.5 per cent).

The areas with lowest female employment rates were the London boroughs of
Newham (47.7 per cent) and Tower Hamlets (48.9 per cent). These were followed by
Easington in County Durham (52.1 per cent).

Note that the City of London and the Isles of Scilly are excluded as the sample sizes
are too small to provide an estimate.

Source: Annual Population Survey.

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Employment - Disabled persons
The UK employment rate for disabled persons aged from 16 to 64, for the 12 months
ending September 2010, is 48.2 per cent.

The highest rates were Forest Heath, Suffolk (86.4 per cent), East Cambridgeshire
(81.3 per cent) and North West Leicestershire (78.0 per cent).

The lowest rates were in Copeland, Cumbria (19.6 per cent), Tower Hamlets (27.2 per
cent) and Glasgow City (29.7 per cent). Just under 50 per cent of all UA/LADs have a
rate below 50 per cent.

Note that the City of London, and the Isles of Scilly are excluded as the sample sizes
are too small to provide an estimate.

Source: Annual Population Survey.

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Unemployment
ONS has developed a statistical model which takes unemployment estimates from the
Annual Population Survey together with the claimant count to determine estimates
which are more precise than the direct survey estimates for all local authority areas
(for more information see the Sources of local area labour market statistics section).
For UA/LADs, therefore, model-based estimates are the best available estimates of
total unemployment.

A total of 2.4 million people, aged 16 and over, were unemployed in the 12 months
ending September 2010 based on the International Labour Organisation definition.
This was 7.6 per cent of the economically active population.

The area with the lowest rate was the Orkney Islands (3.1 per cent). This was
followed by the South Lakeland in Cumbria and Ribble Valley in Lancashire (both at
3.3 per cent).

Thirty eight areas had rates over 10 per cent in the October 2009 to September 2010
period the same number as in the previous period (July 2009 to June 2010). The
highest rates were in Nottingham (14.0 per cent) and Sandwell, West Midlands (13.8
per cent). These were followed by Middlesbrough and Kingston upon Hull (both at
13.6 per cent)

Table 2, below, shows the unemployment rate for countries and Regions, and the local
authorities with highest and lowest rates within each area.

Table 2: Unemployment rates by country and English region and by highest and lowest unitary
authorities/local authority districts for October 2009 to September 2010
Per cent
English region and UA/LAD
country Highest Lowest
North East 9.7 Middlesbrough 13.6 Berwick-upon- 5.0
Tweed
North West 8.2 Liverpool 12.6 Ribble Valley/ South 3.3
Lakeland
Yorkshire and The 8.6 Kingston upon Hull 13.6 Hambleton 4.0
Humber
East Midlands 7.5 Nottingham 14.0 Rutland 4.1
West Midlands 8.9 Sandwell 13.8 Stratford-on-Avon 4.0
East 6.6 Peterborough 9.7 South 4.3
Cambridgeshire
London 8.9 Tower Hamlets/ 12.9 Richmond upon 5.6
Barking and Thames
Dagenham
South East 6.0 Hastings 9.9 Hart 3.8
South West 5.9 Torbay 8.9 North Dorset 4.0
Wales 8.2 Blaenau Gwent 13.4 Ceredigion 5.1
Scotland 7.5 North Ayrshire 11.6 Orkney Islands 3.1
Northern Ireland 6.9 Not available Not available
Source: Annual Population Survey and ONS model-based estimates of unemployment
Note: Model-based estimates are not available for the City of London or the Isles of
Scilly.

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Economic inactivity all persons
Economically active persons are those, who are either in employment or unemployed.
The remainder of the population are economically inactive.

The UK inactivity rate for people aged from 16 to 64 was 23.8 per cent in the 12
months ending September 2010, a total of 9.5 million people.

The three areas with the lowest rates were the Shetland Islands (10.3 per cent),
Wellingborough, Nottinghamshire (12.9 per cent) and Tandridge, Surrey (13.3 per
cent).

The three areas with the highest rates were the City of London (44.0 per cent),
followed by Nottingham (36.0 per cent) and Westminster (34.2 per cent). Twenty five
areas had a rate of 30 per cent or more.

Table 3, below, shows the economic inactivity rate for people aged from 16 to 64 for
countries and Regions, and the local authorities with highest and lowest rates within
country and region.

Table 3: Economic inactivity rates for people aged from 16 to 64 by English region and country
and by highest and lowest unitary authorities/local authority districts for October 2009 to
September 2010
Per cent
English region and UA/LAD
country
Highest Lowest
North East 26.1 Easington 33.7 North Tyneside 18.8
North West 25.3 Manchester 32.5 Ribble Valley 17.7
Yorkshire and The 25.0 Bradford 30.5 Hambleton 14.7
Humber
East Midlands 22.9 Nottingham 36.0 Wellingborough 12.9
West Midlands 25.2 Wolverhampton 31.1 Oswestry 13.6
East 21.1 North Norfolk 29.5 East Cambridgeshire 14.2
London 25.3 City of London 44.0 Sutton 18.0
South East 20.7 Isle of Wight 30.1 Tandridge 13.3
South West 21.4 Weymouth and 33.6 Kennet 14.4
Portland
Wales 27.2 Neath Port Talbot 32.6 Wrexham 21.9
Scotland 23.1 Glasgow City 31.4 Shetland Islands 10.3
Northern Ireland 29.7 Not available Not available
Source: Annual Population Survey

Note that the Isles of Scilly are excluded as the sample size is too small to provide an
estimate.

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Economic inactivity males and females

Overall, the economic inactivity rate for people aged from 16 to 64 is 12.6 percentage
points lower for males than for females. The UK rate for males is 17.5 per cent
compared with 30.1 per cent for females for the 12 months ending September 2010.

The estimate of the male inactivity rate was higher than the corresponding female
inactivity rate in five areas.

Males

The UA/LADs with the lowest rates for males were East Cambridgeshire (4.0 per
cent), Wellingborough (5.1 per cent) and the Shetland Islands (5.6 per cent).

The three areas with the highest rates for males were Nottingham (34.4 per cent),
Oxford (29.9 per cent) and Stafford (27.5 per cent).

Note that the City of London and Isles of Scilly are excluded as the sample size is too
small to provide an estimate.

Females

The UA/LADs with the lowest rates for females were the Shetland Islands (15.4 per
cent), Craven in Cumbria (16.2 per cent) and Tandridge in Surrey (16.9 per cent).

The three areas with the highest rates for females were the London boroughs of
Newham (46.2 per cent) and Tower Hamlets (44.2 per cent), followed by Weymouth
and Portland in Dorset (43.9 per cent).

Note that the City of London and the Isles of Scilly are excluded as the sample sizes
are too small to provide an estimate.

Source: Annual Population Survey.

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Ethnic groups - demographics
Estimates, for the 12 months ending in September 2010, indicate that 88.8 per cent of
the UK population was white with the remaining 11.2 per cent being from other
ethnic groups.

London has the highest concentration of people from other ethnic groups in the
country - over one in three (37.0 per cent). In Inner London, this rises to over two in
every five (40.3 per cent).

Apart from Inner and Outer London, there are three other sub-regions whose resident
proportion of people from other ethnicities was greater than 10 per cent - West
Midlands Metropolitan County (26.1 per cent), West Yorkshire (15.7 per cent) and
Greater Manchester (15.3 per cent).

Of the 15 unitary authorities and local authority districts (UA/LADs) where the
proportion of people from other ethnic groups exceeds 40 per cent, all but three are in
London. In five London boroughs - Newham, Tower Hamlets, Brent, Redbridge and
Ealing the proportion is greater than 50 per cent. Slough, Luton and Leicester are the
only areas outside London with a proportion over 40 per cent. Almost two in five
(37.7 per cent) of all UA/LADs have an estimate over 5 per cent.

Table 4, below shows the percentage of people from the other ethnic groups in the
resident population for countries, Regions and sub-regions.

Table 4: Proportion of residents of people from other ethnic groups for countries, regions and
sub-regions, October 2009 to September 2010
Per cent

Proportion of Proportion of
people from people from
other ethnic other ethnic
groups groups

UNITED KINGDOM 11.2 West Midlands 14.8


West Midlands Metropolitan County 26.1
GREAT BRITAIN 11.5 Rest of West Midlands 4.2

ENGLAND 12.8 East 8.0

North East 4.3 London 37.0


Tyne and Wear 6.1 Inner London 40.3
Rest of North East 3.0 Outer London 34.9

North West 8.7 South East 7.6


Greater Manchester 15.3
Merseyside 4.0 South West 3.4
Rest of North West 5.1
WALES 3.7
Yorkshire and The Humber 9.6
South Yorkshire 8.2 SCOTLAND 3.3
West Yorkshire 15.7 Strathclyde 4.1
Rest of Yorkshire and The 2.8 Rest of Scotland 2.8
Humber

East Midlands 9.3 NORTHERN IRELAND 1.5


Source: Annual Population Survey

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Ethnic groups employment

The UK employment rate for white persons aged from 16 to 64, for the 12 months
ending September 2010, was 71.9 per cent. For other ethnic groups this was 59.0 per
cent or 2.7 million people.

Of the 30 areas with the highest proportion of residents from other ethnic groups, all
but seven are in London. These areas contain just under half (49.2 per cent) of all
persons from these ethnicities in employment.

Twenty nine of these 30 areas have a higher employment rate for white persons than
for other ethnic groups. The only exception is Leicester where 60.9 per cent of the
white population are employed compared to 62.7 for other ethnic groups.

The employment rate for whites aged from 16 to 64 across these 30 areas is 70.5 per
cent, 13.3 percentage points higher than the rate for the other ethnic groups (57.2 per
cent).

Table 5 overleaf, shows employment rates of the other ethnic groups for the 30 areas
with the highest percentages of people from other ethnic groups.

Ethnic groups economic inactivity


The UK inactivity rate for white persons aged from 16 to 64, for the 12 months
ending September 2010, was 22.5 per cent compared with the corresponding rate of
32.1 per cent (a total of 1.5 million people) for other ethnic groups.

The 30 areas with the highest proportion of residents from other ethnic groups contain
52.3 per cent of the total number of economically inactive people from these groups.

The economic inactivity rate for whites across these 30 areas, at 23.8 per cent, is 9.3
percentage points lower than the rate of 33.1 per cent for other ethnic groups.

Table 5, overleaf, shows the economic inactivity rates of the other ethnic groups for
the 30 areas with the highest percentages of people from other ethnic groups.

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Table 5: Employment and inactivity rates of people aged from 16 to 64 from other ethnic groups
for the 30 areas with the highest proportions of people from other ethnic groups; October 2009 to
September 2010
Per cent

Proportion of
people from Employment Inactivity Rate
other ethnic Rate for other for other ethnic
UA/LAD groups ethnic groups groups
Newham 69.1 54.3 35.6
Tower Hamlets 61.6 48.7 39.7
Brent 55.8 65.0 27.7
Ealing 54.4 58.1 31.3
Redbridge 53.6 62.7 31.1
Slough 49.1 60.2 30.5
Harrow 47.1 71.7 21.1
Lewisham 46.1 59.2 28.0
Hounslow 45.5 65.6 23.5
Leicester 44.8 62.7 28.7
Luton 44.8 56.6 34.2
Hackney 43.8 63.4 28.6
Waltham Forest 43.3 56.3 31.2
Haringey 42.1 50.1 41.8
Southwark 40.9 61.9 24.8
Barking and Dagenham 38.4 61.7 28.1
Birmingham 37.7 50.8 38.8
Croydon 37.7 66.6 24.9
Enfield 37.7 55.0 34.1
Lambeth 36.2 61.6 23.8
Westminster 35.1 47.6 44.7
Hillingdon 34.8 61.4 29.8
Manchester 33.6 50.4 38.6
Barnet 33.3 56.9 36.6
Merton 33.0 67.8 23.7
Bradford 31.4 41.3 48.0
Greenwich 31.4 56.2 33.0
Islington 30.6 51.4 38.2
Kensington and Chelsea 30.3 48.1 46.1
Blackburn with Darwen 30.3 55.8 36.3
Source: Annual Population Survey

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Claimant Count

The proportion of claimants of Jobseekers Allowance (JSA) as a percentage of the


resident population aged from 16 to 64 was 3.8 per cent for the United Kingdom for
October 2009 to September 2010.

The areas with the highest proportion were Kingston-upon-Hull at 7.9 per cent and
Wolverhampton at 7.5 per cent, followed by Middlesbrough and Birmingham, both at
7.3 per cent. Sixty one areas had a proportion of five per cent or more compared with
seventy in the previous period (July 2009 to June 2010).

The Isles of Scilly had the lowest proportion at 0.4 per cent, followed by the City of
London at 1.0 per cent and the Orkney Islands, Eden and South Lakeland all at 1.3 per
cent.

Table 6, below, shows the claimant count as a percentage of the resident population
aged from 16 to 64 for countries and Regions, and the local authorities with highest
and lowest percentages within country and region.

Table 6: Claimants of Jobseekers Allowance as a proportion of the resident population aged from
16 to 64; English region and country and by highest and lowest unitary authorities/local
authority districts; October 2009 to September 2010
Per cent
English region and UA/LAD
country
Highest Lowest

North East 4.9 Middlesbrough 7.3 Tynedale 2.4


North West 4.3 Liverpool 6.8 South Lakeland/ Eden 1.3
Yorkshire and The 4.4 Kingston upon Hull 7.9 Richmondshire 1.6
Humber
East Midlands 3.7 Leicester City 6.0 Rutland 1.5
West Midlands 4.9 Wolverhampton 7.5 Stratford-on-Avon 1.9
East 3.1 Great Yarmouth 5.6 South Cambridgeshire 1.5
London 4.1 Hackney 6.5 City of London 1.0

South East 2.7 Hastings 5.9 West Oxfordshire 1.4


South West 2.7 Torbay 4.0 Isles of Scilly 0.4
Wales 4.0 Blaenau Gwent 7.2 Ceredigion 1.9
Scotland 4.0 North Ayrshire 6.2 Orkney Islands 1.3
Northern Ireland 4.8 Derry 7.1 Castlereagh 3.0
Source: Jobcentre Plus administrative system

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Jobs density

The latest available estimates of jobs density indicate that there were 0.79 jobs per
resident aged from 16 to 64 in the United Kingdom for 2009.

London is the region with the highest jobs density at 0.90 jobs per resident aged from
16 to 64 compared to North East which has a jobs density of 0.68.

The four local areas with the highest jobs densities are all in London, being the City
of London (37.55), Westminster (3.36), Camden (1.77) and Islington (1.48). The
highest density outside of London was in Belfast (1.29).

The areas with the lowest estimates of jobs densities are Carrickfergus in Northern
Ireland (0.38), East Renfrewshire in Scotland (0.40) and Ards in Northern Ireland
(0.41).

Table 7, below, shows the jobs densities for countries and Regions, and the local
authorities with highest and lowest densities within country and region.

Table 7: Estimates of jobs density; English region and country and by highest and lowest unitary
authorities/local authority districts; 2009
Per cent
English region and country UA/LAD
Highest Lowest

North East 0.68 Newcastle upon 0.96 Wansbeck/ Chester- 0.44


Tyne le-Street
North West 0.76 Preston 1.08 Tameside 0.55
Yorkshire and The 0.74 Craven 1.02 Barnsley 0.55
Humber
East Midlands 0.74 Lincoln 1.04 North East 0.46
Derbyshire
West Midlands 0.78 North Warwickshire 1.09 South Staffordshire 0.53
East 0.76 Cambridge 1.12 Castle 0.46
Point/Rochford
London 0.90 City of London 37.55 Lewisham 0.42
South East 0.82 Crawley 1.16 Gosport 0.48
South West 0.81 Exeter 1.09 Forest of Dean/ 0.57
Weymouth and
Portland
Wales 0.72 Cardiff 0.92 Blaenau Gwent 0.48
Scotland 0.79 Aberdeen City 1.27 East Renfrewshire 0.40
Northern Ireland 0.76 Belfast 1.29 Carrickfergus 0.38
Sources: Population estimates: Office for National Statistics; General Register Office for Scotland.
Employee jobs: Business Register and Employment Survey; Department for the Environment, Farming
and Rural Affairs; Scottish Executive (SE); National Assembly for Wales (NAW). Self-employed:
Annual Population Survey. Government-supported trainees: Department for Innovation, Universities
and Skills; Department for Work and Pensions; SE, NAW. HM Armed Forces: Ministry of Defence.
Northern Ireland data: Department for Enterprise, Trade and Investment; Northern Ireland Statistics
and Research Agency.

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Earnings by area of workplace (updated annually)

The latest available estimates of earnings from the 2010 Annual Survey of Hours and
Earnings indicate that the median gross weekly pay for full-time employees in the
United Kingdom was 498.80, a 2.1% increase on 2009 figures. The median earnings
of people with a workplace in the area are an indicator of the nature of the labour
demand arising from employers in the area.

Twenty two areas had a median gross weekly pay over 600, twelve of which were
over 650. Of those over 650, nine were in London the highest of which were the
City of London (928.20), Tower Hamlets (816.80) and Westminster (698.80).
The three areas outside London over 650 were Copeland (699.30), Wokingham
(664.40) and Mole Valley (659.30).

The three areas with the lowest median gross weekly pay were Caradon in Cornwall
(349.60), West Devon (351.40) and Torridge in Devon (352.40).

Table 8, below, shows the median weekly pay for full-time employees, employed in
the area, for countries and Regions, and the local authorities with highest and lowest
median earnings within country and region.

Table 8: Median gross weekly pay; full-time employees; English region and country and by
highest and lowest unitary authorities/local authority districts of workplace; 2010
per week
English region and UA/LAD
country
Highest Lowest

North East 442.30 Redcar and 492.30 Berwick-upon-Tweed 377.90


Cleveland
North West 467.10 Copeland 699.30 Wyre 361.60
Yorkshire and The 460.20 Selby 539.10 Richmondshire 357.40
Humber
East Midlands 465.20 Derby 624.90 Mansfield 390.80
West Midlands 465.70 Rugby 526.40 Herefordshire 380.70
East 488.70 Three Rivers 630.30 North Norfolk 377.50
London 642.30 City of London 928.20 Harrow 515.80
South East 523.70 Wokingham 664.40 Thanet 368.90
South West 460.00 West Somerset 596.30 Caradon 349.60
Wales 451.10 Neath Port Talbot 540.30 Ceredigion/ Blaenau 375.20
Gwent
Scotland 488.20 Aberdeen City 576.90 Scottish Borders 418.00
Northern Ireland 440.80 Not available Not available
Source: Annual Survey of Hours and Earnings

Note that no reliable estimates available for the Isles of Scilly and the Orkney Islands.

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Earnings by area of residence (updated annually)

The latest available estimates of earnings from the 2010 Annual Survey of Hours and
Earnings indicate that the median gross weekly pay for full-time employees in the
United Kingdom was 498.80, a 2.1% increase on 2009 figures. The median earnings
of the resident population of the area are a characteristic of the labour supply provided
by people living in that area.

Forty four areas have an estimated median gross weekly pay, for resident full-time
employees, of over 600, seventeen of which were over 650. Of those over 650,
seven are in London, eight in the South East and the remaining two in the East of
England. The highest areas are Kensington and Chelsea (909.50), Westminster
(811.90) and Richmond upon Thames (747.20).

The three areas with the lowest estimates were Eden in Cumbria (361.00), Penwith,
Cornwall (361.10) and Torbay (369.90).

Table 9, below, shows the median weekly pay for full-time employees, resident in the
area, for countries and Regions, and the local authorities with highest and lowest
median earnings within country and region.

Table 9: Median gross weekly pay; full-time employees; English region and country and by
highest and lowest unitary authorities/local authority districts of residence; 2010
per week
English region and UA/LAD
country
Highest Lowest

North East 443.10 Tynedale 616.10 Berwick-upon-Tweed 412.00


North West 471.20 Copeland 622.20 Eden 361.00
Yorkshire and The 463.00 Selby 529.90 Ryedale 416.30
Humber
East Midlands 470.30 Rushcliffe 611.40 Boston 396.70
West Midlands 469.20 Bromsgrove 556.70 Herefordshire 417.70
East 523.30 St. Albans 724.40 Forest Heath 397.90
London 606.80 Kensington and 909.50 Barking and Dagenham 500.60
Chelsea
South East 547.80 Elmbridge 690.10 Thanet 401.50
South West 468.30 North Somerset 535.60 Penwith 361.10
Wales 456.90 The Vale of 542.60 Blaenau Gwent 372.90
Glamorgan
Scotland 486.90 East Renfrewshire 619.10 Moray 429.80
Northern Ireland 442.20 Not available Not available
Source: Annual Survey of Hours and Earnings

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Sources of local area labour market statistics

Annual Local Area Labour Force Survey and Annual Population Survey

The Labour Force Survey is a quarterly survey of households in the UK, designed to provide
timely information on the UKs labour market. It is a panel survey, in which respondents are
interviewed in five consecutive quarters. A single LFS quarter collates data from around
53,000 households in the UK. This provides good estimates of the labour market in the UK as
a whole, but for small areas or small population groups this does not provide a large enough
sample to give reliable results.

In order to provide more reliable information, for local areas, the annual local area database
(LADB) was developed, based on 96,000 households. The LADB combined data from four
quarters of the quarterly LFS, such that one response only, from every respondent from the
four quarters, was included in the annual database. The LADB covered the annual period
June to February. Since 2000/01 the LADB has been augmented by a sample boosts, which
are not included in the quarterly LFS. These boosts were designed to provide a minimum
number of economically active persons, in the sample, in each Local Education Authority in
England, and in each Unitary Authority in Wales and Scotland. The boosted survey was
called the Annual Local Area Labour Force Survey (ALALFS).

In 2004, a further improvement, the Annual Population Survey (APS), was introduced. The
APS included all the data of the ALALFS, but also included a further sample boost (the
APS(B)) aimed at achieving a minimum number of economically active respondents, in the
sample, in each Local Authority District in England. The first APS covered the calendar year
2004, rather than the ALALFS period of June to February. Also, the ALALFS data were
published only once a year, but the APS data are published quarterly, but with each
publication including a year's data. In April 2006, the APS(B) was withdrawn. The APS
covers all areas of the UK except for the Isles of Scilly.

A further major advantage of the APS over the ALALFS is that APS microdata are available
to users through the Data Archive at Essex University. Access to these data is through a
Special Licence scheme, which allows access to detailed data provided that the research use
is fully described and strict conditions of access are adhered too. More detail is available on
the Data Archive website (http://www.data-archive.ac.uk).

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Model-Based Estimates of Unemployment

For small areas, for example local authorities, even the annual LFS or APS has small
samples. This means that estimates from the LFS/APS for these areas are likely to be
less reliable than those for larger areas since the sampling variability is high. In
particular, this will affect estimates of events which are not common.

An example of this is unemployment. A statistical model was developed to provide


reliable unemployment estimates for all local authorities. The model is a multilevel
model that uses annual LFS/APS data, by age and sex, but also uses counts of
claimants of Jobseeker's Allowance (claimant count) to calculate the estimates. The
claimant count is an administrative measure, and so is known accurately for all areas.
Also it is highly correlated with unemployment. The model is said, therefore, to
borrow strength from the claimant count. The model also includes a socio-economic
area indicator and a random area effect.

The relationship between claimant count and the number of unemployed may be
different in two areas in spite of them sharing the same factors in the model. The
random area effect is included in order to model these random local differences. The
inclusion of the random effect gives the model-based estimates the property that,
under sufficiently large sample conditions, they will coincide with the direct survey
estimates.

APS data are published quarterly (but with each publication covering a years data).
The model-based estimates, using APS data and claimant count data referring to the
same period, will similarly be produced quarterly.

For further information, and detailed user guidance on the model-based estimates,
please see the links on the National Statistics website at:
http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14160

On 30 July 2009 model based estimates of unemployment were released for


parliamentary constituencies. These experimental statistics will be released in
conjunction with the local authority estimates on a quarterly basis. For further
information see:
http://www.statistics.gov.uk//downloads/theme_labour/PC_Model_estimates_User_G
uide.pdf

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The Claimant Count

The claimant count is a count of the number of people claiming Jobseekers Allowance. It is
an administrative count rather than an estimate based on survey responses.

The data on which the count is based are derived from the Jobcentre Plus administrative
system for paying JSA. They relate to all JSA claimants, including people who do not receive
any benefit payment but who sign on for National Insurance credits only, to preserve their
eligibility for state pension. Claimants must declare that they are out of work, capable of,
available for and actively seeking work during the week in which their claim is made. They
enter a jobseekers agreement setting out the action they will take to find work and improve
their prospects of finding employment.

Various analyses of the claimant count are available: by sex, by age, by duration of claims
and by occupation. As the claimant count is an administrative count it is available at all
geographical levels.

For local areas the main claimant count indicators are the count itself (by sex) and as the
percentage of the population aged from 16 to 64.

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Jobs Densities

Jobs density is the total number of filled jobs in an area divided by the resident population
aged from 16 to 64 in that area. The total number of jobs is a workplace-based measure of
jobs and comprises employees, self-employment jobs, government-supported trainees and
HM Forces.

The number of jobs in an area is composed of jobs done by residents (of any age) and jobs
done by workers (of any age) who commute into the area. The population comprises residents
of who work in the area plus workers who commute out of the area to work in other areas and
those who are unemployed or economically inactive of working age.

The Components of jobs densities are:

1. Employee jobs

By far the largest component, employee jobs accounts for 87 per cent of the total number of
jobs at a Great Britain level, although it varies between local authorities from just over 50 per
cent to over 95 per cent. Estimates of employee jobs are from the Business Registre and
Employment Survey (BRES). Data are for March of each year and are published a year later.

2. Agricultural employees

Estimates are obtained separately from the Department for Environment, Food and Rural
Affairs, the Scottish Executive (SE) and the National Assembly for Wales (NAW) from June
Agricultural Censuses.

3. Self-employment jobs

The second largest component accounting for about 12 per cent of the Great Britain total
although it can account for up to 30 per cent in individual local authorities. Self-employment
data are from the annual local area LFS/APS. The LFS/APS is a household survey and thus
estimates are subject to sampling variability. Information on the local authority of workplace
(main and second job), rather than the local authority where the person lives, is available only
from June 2000, and hence the time series for local area job densities goes back only to 2000

4. Government-supported trainees

Data are provided by the Department for Innovation, Universities and Skills and the
Department for Work and Pensions, SE and NAW as at 30 June of each year.

5. HM Forces

Accounts for less than 1 per cent of the Great Britain total, but in a few areas constitutes a
significant part of the total number of jobs (e.g. Richmondshire, where a quarter of the jobs
are HM Forces). Estimates of armed forces personnel are produced by the Ministry of
Defence as at 1 July of each year. Adjustments are made for military personnel serving
overseas or whose location is unknown.

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The above components are included in the estimate of total jobs. The denominator for the
jobs density of an area comes from:

6. Population estimates

Official mid-year population estimates, for persons aged from 16 to 64, produced by ONS,
for England and Wales and the General Register Office for Scotland.

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The Annual Survey of Hours and Earnings (ASHE)

The Annual Survey of Hours and Earnings (ASHE) is a new survey that has been developed
to replace the New Earnings Survey (NES). The ASHE includes improvements to the
coverage of employees and to the weighting of earnings estimates. The data variables
collected remain broadly the same, although an improved questionnaire was introduced for
the 2005 survey. The change in methodology means that statistics on pay and hours published
from the ASHE, including the calculation of ONS's low pay statistics, and are discontinuous
with previous NES surveys. ASHE data are available from the Nomis local area profiles.

The detailed NES volumes A to F will no longer be published as the ASHE volumes have
replaced these. The ASHE volumes contain UK data on earnings for employees by sex and
full-time/part-time workers. Further breakdowns are by region; occupation; industry; region
by occupation; and age-groups, for the following variables: gross weekly pay, gross hourly
pay, gross annual pay, weekly pay excluding overtime, hourly pay excluding overtime,
overtime pay, shift pay, gross hours worked and overtime hours worked.

To improve coverage and make the survey more representative, supplementary information
was collected for the 2004 ASHE survey on businesses not registered for VAT and for people
who changed or started new jobs between sample selection and the survey reference period.
The 2004 ASHE results are therefore discontinuous with the results for 2003, for which no
supplementary information was collected. However, for 2004 two sets of results are
available; the headline results that include supplementary information and results that exclude
this information. These second set of results are given solely for comparison to earlier results.

For more information and detailed results of the 2008 ASHE see the National Statistics
website:
http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=13101

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