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Employment (Labour Market, State of the South West 2011)

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3.4.44 Data from the Annual Population Survey (APS) indicates that between July 2009 and June 2010, 2.4 million people were employed in the South West. This represents 73.4% of the working age population in the region. At that time the South West had the third highest employment rate of all the English regions and devolved administrations, 2.9 percentage points higher than the English average rate (see Figure 3.4.14). APS data provides an annual average employment figure, providing a longer term picture than the quarterly employment data considered below.   

3.4.45
Employment rates are calculated using the working age population and therefore exclude those who are working but are over retirement age. Employment figures include the self-employed, those carrying out unpaid work in a family business, and people on Government-support training and employment programmes.

Figure 3.4.14 Employment Rate by Region: Working Age Population July 2009 - June 2010

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Employment Rate by Region: Working Age Population July 2009 - June 2010 (Fig 3.4.14)
Employment Rate by Region: Working Age Population July 2009 - June 2010 (Fig 3.4.14). Source: Annual Population Survey (NOMIS).
3.4.46 The employment rate is higher in South West England than nationally across all age groups and genders. The largest differentials in employment rate are in the two youngest age categories (16-19 and 20-24) where the rates regionally are 6.3 and 4.9 percentage points (respectively) higher than nationally. While the confidence limits around this data are wide, it does give an indication that, over a longer time period, the regional labour market has provided suitable opportunities for younger people - such as part-time working and employment-based training.

3.4.47
Looking to quarterly employment rates from Labour Market Statistics (ONS), the impact of the economic downturn is more evident (Figure 3.4.15). The employment rate remained fairly steady in the South West and for the English average between Q1 2000 and Q1 2009. The South West rate in this period fluctuated between 75.6% and 77.5%, higher than the national rate which ranged from 71.9% to 73.5%. In early 2009, the impact of the downturn began to feed through to the labour market and employment rates started to fall. The region saw a 2.6 percentage point decline in its employment rate from Q1 2009 to Q1 2010, 1.3 percentage points more than the English average over the same period. The employment rate began to rise in the second quarter of 2010 for both England and the South West.

Figure 3.4.15 Employment Rate: Working Age Q1 2000 to Q3 2010

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Employment Rate: Working Age Q1 2000 to Q3 2010 (Fig 3.4.15)
Employment Rate: Working Age Q1 2000 to Q3 2010 (Fig 3.4.15). Source: Labour Market Statistics (ONS).
3.4.48 Sub-regional employment: Sub-regionally, Torbay (67.4%), Cornwall (68.7%), Bournemouth (69.2%) and Plymouth (70.1) have the lowest employment rates in the region (year to June 2010). The employment rate in all other sub-regions is higher than the UK average (70.2%). South Gloucestershire (79.7%), Wiltshire (77.9%) and North Somerset (77.3%) recorded the highest rates, supported by commuting into nearby urban centres. Sub-regional employment rates are shown in Figure 3.4.15.

3.4.49
The difference between male and female employment is most prominent in Cornwall and Wiltshire where male employment rates are 14.8 and 14.3 percentage points (respectively) higher than for females. The smallest differences are recorded in Bath and North East Somerset and Torbay - 4.7 and 6.3 percentage points respectively.

Figure 3.4.16 Employment Rate by County and Unitary Authority: Working Age, July 2009 - June 2010

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Employment Rate by County and Unitary Authority: Working Age, July 2009 - June 2010 (Fig 3.4.16)
Employment Rate by County and Unitary Authority: Working Age, July 2009 - June 2010 (Fig 3.4.16). Source: Annual Population Survey (NOMIS).
3.4.50 Nationally and regionally, employment rates for white workers are higher than for non-white workers (see Figure 3.4.17). However, the region out performs the English average employment rate across all ethnic groups and nationalities (UK national vs non-UK national). The relatively high levels of employment for non-white workers in the South West is likely, to some extent, to be attributed to the relatively low levels of regional unemployment, which drives up labour demand for all groups in society.

Figure 3.4.17 Employment Rate by Ethnic Group and Nationality: Working Age July 2009 - June 2010

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Employment Rate by Ethnic Group and Nationality: Working Age July 2009 - June 2010 (Fig 3.4.7)
Employment Rate by Ethnic Group and Nationality: Working Age July 2009 - June 2010 (Fig 3.4.7). Source: Annual Population Survey (NOMIS).
3.4.51 Those with a disability are generally less likely to be in employment than those without. The working age employment rate for those with a disability in the South West was 52.2% in the year up to June 2010 compared to 49.1% for England as a whole. In addition, the working age employment rate for those with a work limiting disability in the region was 66.1%, the third highest of the English regions and 2.6 percentage points above the national average.
Hours Worked

3.4.52
Although there is not a great deal of variation in hours worked across the regions, employees in South West England worked the shortest average (mean) week of any English region in 2010 - 32.8 hours a week compared to the English average of 33.4. This, however, is a reflection of the relatively large numbers of people working part-time in the region. For full-time workers, the mean hours worked by South West employees was 39.4, slightly more than the English average of 39.2 hours (see Figure 3.4.18). Part-time workers in the South West work the same number of hours a week as their counterparts elsewhere in the country - 18.1 hours for both the South West and English mean value.

Fig 3.4.18 Mean Total Hours Worked by Gender and Employment Type: April 2010 (workplace based estimate)

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Mean Total Hours Worked by Gender and Employment Type: April 2010 (workplace based estimate) (Fig 3.4.18)
Mean Total Hours Worked by Gender and Employment Type: April 2010 (workplace based estimate) (Fig 3.4.18). Source: Annual Survey of Hours and Earnings (ASHE).
3.4.53 Figures for hours worked have shown some slight variation since 2000. However, between April 2009 and April 2010, the mean number of hours rose across the South West and the United Kingdom, following a fall from April 2008 to April 2009. For full-time workers, male paid hours rose by 0.3 hours and female hours by 0.1 hours a week. Combining full-time and part-time workers, the mean hours worked in the South West rose by 0.1 hours whilst the English average remained the same. Following a decline in the amount of overtime worked between 2008 and 2009, overtime rates picked up between 2009 and 2010. The reduction in working hours and overtime during the recession implies that employers may have been adapting to the downturn by reducing working hours and overtime of employees to avoid making redundancies. The recent increase in hours and overtime may suggest that employers are feeling more confident as a result of the recovery.

Part-time working


3.4.54 The South West region has the highest part-time working rate in the country. Between July 2009 and June 2010, 693,600 people worked part-time in the region – 28.8% of all of those in employment - compared to an English average of 25.6%. As Figure 3.4.19 shows, women are almost four times more likely to work part-time than men in South West England - a pattern that is reflected across the country. Many women choose to work flexibly to enable them to balance work with child (or other) care responsibilities.

3.4.55
Boddy at al (2006) reported that increasing the proportion of full-time to part-time employment would result in raised labour productivity levels. This is, however, more a reflection of the additional hours worked by full-time workers rather than full-time workers being more productive per hour worked than part-timers.

Figure 3.4.19 Part-time Employment Rate by Gender: Working Age July 2009 - June 2010

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Part-time Employment Rate by Gender: Working Age July 2009 - June 2010 (Fig 3.4.19)
Part-time Employment Rate by Gender: Working Age July 2009 - June 2010 (Fig 3.4.19). Source: Annual Population Survey (NOMIS).
3.4.56 Part-time working patterns vary considerably across the sub-regions, for example 24.4% of those in employment work part-time in Swindon compared to 32.7% in Dorset. Bath and North East Somerset has the highest rate of male part-time working (17.2%), while the highest rate for females is experienced in Devon (53.0%).

Self-employment

3.4.57
There were 337,100 self-employed people in the South West in the year up to June 2010. This represents 14.0% of those in employment in the region - the second highest rate among the English regions after London and 0.9 percentage points above the English average.

3.4.58 A high level of self-employment can be a mixed blessing. On one hand, it can represent a strong culture of entrepreneurship. On the other, elevated levels of self-employment can be an indicator of economic stress, representing a lack of other employment opportunities. It is likely that high rates of self-employment represent stress in some parts of the SW region, while in others it indicates a strong sense of enterprise.

3.4.59 Male self-employment rates are higher than for females across all English regions. Although the male self-employment rate in the South West is around twice that of the female rate (see Figure 3.4.20), the South West region has the second highest percentage female self-employment rate (6.6% behind London’s 6.8%).

Figure 3.4.20 Self-Employment rate by Gender: Working Age July 2009 - June 2010

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Self-Employment rate by Gender: Working Age July 2009 - June 2010 (Fig 3.4.20)
Self-Employment rate by Gender: Working Age July 2009 - June 2010 (Fig 3.4.20). Source: Annual Population Survey (ONS).
3.4.60 Sub-regional self-employment:  Cornwall, Dorset and Devon have the highest rates of self-employment in the region, each recording rates of over 17% of those in employment. Self-employment rates tend to be higher in rural areas than urban areas due to the types of sectors, business sizes and employment opportunities present. Swindon, Plymouth and South Gloucestershire have the lowest rates of self-employment, in part reflecting the dominance of large firms in these areas.

3.4.61 The proportion of self-employed individuals as a percentage of the 16+ population is higher than the equivalent working age rate, indicating that retired people have a relatively high rate of self-employment since it can provide a flexible employment opportunity for those wanting to continue working.