Building a framework for local area LMS

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Building a framework for local area LMS

• Barry Werner
• Office for National Statistics

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Overview

• Setting the scene
• Filling the framework with data
• Describing the framework
• Accessing the data
• The Nomis Local area labour market profiles

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Setting the scene

• Review of the Framework for Labour Market
  Statistics
• Should present LMS in a structured way which
  follows a Labour accounting system
• Present sub-national data in the same way

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Basic framework structure

• Labour supply Population
• Working age employment rate
• Activity rate / Inactivity rate
• Unemployment rate
• Labour Demand Jobs / jobs density
• Vacancies / vacancies density
• Benefit claimants Claimant count / CC proportions
• Other working age benefits
• Earnings Average weekly pay

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Sources for filling the framework

• Labour supply
• Population Census
• Labour Force Survey
• Modelled unemployment estimates
• Labour demand
• Workforce Jobs
• Vacancy Survey / Notified Vacancies
• Benefit Claimants
• Administrative systems
• Earnings
• New Earnings Survey

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Describing the local area framework

• Comprehensive Manual for labour market statistics
• The experimental manual
• The fully comprehensive manual
• The local area blue print
• Subset of the manual
• Data availability
• Documentation for each geography

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Accessing the local area framework

• Monthly Regional First Releases
• Annual framework tables
• Population (Control)
• Employment, Unemployment, Inactivity (Supply)
• Claimant Count (Benefits)
• Jobs (Demand)
• by
• Unitary and Local Authority
• Parliamentary Constituency
• NUTS3
• TTWAs

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Accessing the local area framework

• NOMIS
• Free electronic access to local data
• Detailed series held back to 1970
• New Local Area Labour Market Profiles
  demonstration of these to follow
• Plan to build Nomis functionality into future
  version of Neighbourhood Statistics System

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Summary

• Local area labour markets
• The foundations of the framework are in place.
• The local area route map has been started
• The databases are now being populated
• Further contacts
• Nick.Maine_at_ons.gov.uk
• David.Blunt_at_ons.gov.uk

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Building a framework for local area LMS

• Barry Werner ONS

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Re-designing the ONSs Annual Structural
Earnings Survey

• Derek Bird
• Office for National Statistics

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From the New Earnings Survey (NES) to the Annual
Survey of Hours and Earnings (ASHE)

• Recommendations in the distribution of earnings
  review (DOER)
• Changes in methodology
• Changes in survey design
• New survey will replace the New Earnings Survey
• Annual survey of hours and earnings
• ASHE

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The New Earnings Survey (NES)

• Recommendations in the distribution of earnings
  review (DOER)
• Changes in methodology
• Changes in survey design
• New survey will replace the NES
• Annual survey of hours and earnings
• ASHE

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Uses of outputs with a regional dimension

• Pay reviews
• National minimum wage evaluation
• Resource allocation
• Labour market analysis
• European union regulations

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Shortcomings

• Coverage
• About 1.6 million (low paid) employee jobs
  missing from the frame
• Questionnaire outdated
• Non-response
• Response rate varies by occupation
• Employees changing employer missed
• No imputation for non-response
• No weighting

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Response

• VAT-only businesses
• off-PAYE employees
• Questionnaire redesign project
• Intensive Follow Up Pilot
• EC3 follow up
• Imputation for item non-response
• weighting

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The 2004 Survey

• No stratification
• Calibration
• Occupation
• Age
• Sex
• Region (London/SE or elsewhere)

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Impact of Changes

• Discontinuities
• New data e.g. hourly pay rates, pensions, bik
• Weighting for non-response
• Gender pay gap
• Regional pay
• Public/private sector comparisons
• Coverage (including VAT-only businesses)
• Low pay, especially at or near national minimum
  wage

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Any Questions?