The LQ is an analytical statistic that measures the size of a particular industry in a region. This means that while employment in some industries is broadly similar everywhere in the country, employment in other industries is only in localised parts of the country.įigure 2 provides an overview of the geographical distribution of the 10 HTEC industry groups, for which location quotient (LQ) values have been calculated at travel to work area (TTWA) level (see Glossary). For some industries, factors related to local labour market skills or knowledge spillovers can also influence business location.Īs a result, some industries are widely spread across the country other industries are clustered. Patterns of spatial distribution at industry level often result from the need for businesses to be either close to their customers, their suppliers or their distribution channels. The geographic distribution of industries The way industries are spatially distributed across the country differ from industry to industry, resulting in different industry structures existing in different areas of the country. The employment distribution across industries at local level is not always the same as that at national level. Another 8% work in manufacturing (5% in medium and high-tech manufacturing industries and 3% in low-tech manufacturing). A further 29% work in other knowledge-intensive services with 20% working in high-tech or knowledge-intensive financial and market services. Over a third (35%) of people in employment in Great Britain work in less knowledge-intensive service industries. See Glossary for detailed breakdown of the HTEC industry groups.ĭownload this chart Figure 1: Less knowledge-intensive market services have the highest share of total employment, at 34.7% Image “Other” category includes construction and real estate activities. “Other knowledge intensive services” category combines services including arts, entertainment, human health, social work, education and public administration. Percentages may not sum to 100 because of rounding. Examples of individual towns are discussed throughout and a case study on the towns and cities within the Oxford travel to work area can be found in Section 6. The different industry structures of individual towns can be explored in the article using its interactive maps and the accompanying dataset. It provides analysis showing whether each town has a similar industrial structure to Great Britain as a whole, or whether it has a structure that greatly differs. It helps to show whether a town has a focus on high-tech or knowledge-intensive industries, or whether the focus is on providing localised services. It allows investigation of questions such as whether a town has a high share of manufacturing employment, or whether it focuses mostly on services. This article provides a range of data to explore the industry structure of towns in Great Britain. Understanding the industry structure of a town, and the wider travel to work area that it sits within, are therefore important factors for policymakers interested in better understanding towns economic health and potential. Local productivity, local skills demand and local employment growth can all be linked to the type of industries that exist in a town. Data on industry structures at town level can give important insight into a town's local labour market and its local economy.
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