Measuring Regional Economies: Visualising the data

1. Measuring Regional Economies: Visualising the data Dev Virdee Head of Regional Economic Analysis Division Office for National Statistics United Kingdom dev.virdee@ons.gov.uk

2. The Office for National Statistics – our role • To improve understanding of life in the UK & enable informed decisions through trusted, relevant and independent statistics & analysis. • Work with colleagues in policy departments to pull together data sources and statistical pictures of a wide range of areas, e.g. Labour market, Economy, Population, Health. • Used by local and national government and others to guide policy and monitor impact. • Make statistics widely accessible on paper and the internet to enable the public, communities, academia and other bodies to understand statistics about the UK.

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18. Deprivation and Ethnicity

19. Deprivation & Ethnicity: Introduction • Data Sources: • Population Census - Question on Ethnicity gives information on Ethnic Mix of an area. • Indices of Multiple Deprivation • Aim of Analysis: • - To look at variations between regions of the spread of ethnic groups across the different levels of deprivation

20. Deprivation & Ethnicity: Whole population Relative Proportions compared with baseline 500.0 England 400.0 300.0 Relative Proportion (baseline = 100) 200.0 England: deciles (10 per cent groupings) 100.0 0.0 Most Least deprived deprived Level of Deprivation

21. Relative Proportions compared with baseline 500.0 England 400.0 300.0 Relative Proportion (baseline = 100) 200.0 100.0 0.0 Most Least deprived deprived Level of Deprivation Deprivation & Ethnicity: Indian Group England: Tendency to live in more deprived areas

22. Relative Proportions compared with baseline 500.0 England 400.0 London 300.0 Relative Proportion (baseline = 100) 200.0 100.0 0.0 Most Least deprived deprived Level of Deprivation Deprivation & Ethnicity: Indian Group • Largest proportions of Indians in London. • Contrasting with national pattern - more spread across deprivation scale, most living in medium deprivation areas.

23. Relative Proportions compared with baseline 500.0 England West Midlands 400.0 London 300.0 Relative Proportion (baseline = 100) 200.0 100.0 0.0 Most Least deprived deprived Level of Deprivation Deprivation & Ethnicity: Indian Group • West Midlands: Generally lower proportions than in London, although above national average overall. • Highest proportions in more deprived areas.

24. Relative Proportions compared with baseline England 500.0 Yorkshire and Humber 400.0 West Midlands London 300.0 Relative Proportion (baseline = 100) 200.0 100.0 0.0 Most Least deprived deprived Level of Deprivation Deprivation & Ethnicity: Indian Group • Yorkshire & the Humber: Below national baseline in all areas, with higher concentrations in more deprived areas.

25. Relative Proportions compared with baseline England 500.0 Yorkshire and Humber West Midlands 400.0 London South East 300.0 Relative Proportion (baseline = 100) 200.0 100.0 0.0 Most Least deprived deprived Level of Deprivation Deprivation & Ethnicity: Indian Group • South East – Below national average proportions, concentrated in medium deprivation areas.

26. Relative Proportions compared with baseline England 2000 Yorkshire and Humber 1800 West Midlands 1600 London 1400 South East 1200 Relative Proportion (baseline = 100) 1000 800 600 400 200 0 Most Least deprived deprived Level of Deprivation Deprivation & Ethnicity: Bangladeshi Group London over 17 times England

27. Relative Proportions compared with baseline England 1000.0 900.0 Yorkshire and Humber 800.0 West Midlands 700.0 London 600.0 Relative Proporion (baseline = 100) 500.0 400.0 300.0 200.0 100.0 0.0 Most Least deprived deprived Level of Deprivation Deprivation & Ethnicity: Chinese Group

28. Summary • Differences between and within regions • Indian Group in London and South East concentrated in middle of deprivation scale • Chinese group represented evenly across all levels of deprivation • Some Ethnic Groups more likely to live in deprived areas within all regions: • Proportion of Bangladeshis 17 times higher in most deprived areas of London, and 4 times across England as a whole • Black Africans & Black Caribbeans 2.5 times as likely to live in most deprived areas across England, much higher in some regions

29. Analysing differences in Regional Economic Performance

30. Drivers of Productivity • Government has identified following drivers for Regional Productivity: • Innovation • Enterprise • Investment • Skills • Competition • The challenge is – how do we measure them, particularly at regional level?

31. Regional Economic Indicators • ONS – Regional Economic Indicators article in Economic & Labour Market Review • Main Indicators (examples): • Innovation • Regional Research & Development • Enterprise • VAT registrations • Investment • Gross Fixed Capital Formation • Skills • Qualifications • Competition • Regional Trade Statistics

32. Regional Economic Indicators – some results Innovation: • Research & Development as percentage of GVA • East of England highest at 3.5% of GVA • London, North East, Yorkshire & the Humber below 0.5%

33. Regional Economic Indicators – some results Competition: • Regional Trade in Goods: • Absolute (£ millions) distribution quite different from exports as percentage of Gross Value Added (GVA)

34. Analysis - Productivity or GVA(GDP) per capita? • The perception of relative regional performance can change depending on the measure of regional performance that is chosen • Differences within regions can be as important as differences between regions • Several factors explain the gap between regions

35. UK regional disparities in economic performance are significant… UK average GVA – Gross Value Added – measure of economic activity

36. .. but how different depends on the criteria we use to measure “performance”….. (UK average)

37. GVA per hour worked, the preferred measure of productivity, shows smaller gap between regions (UK average)

38. Explaining the differences: (UK average) UK average

39. Explanatory factors: Hours worked per job (UK average) Hours worked per job

40. Explanatory factors: Employment/Labour Force (UK average) Employment rate

41. Explanatory factors: Commuting (UK average) Commuting rate

42. Explanatory factors: Labour Force/Population (UK average) Activity rate

43. Main findings • The perception of relative regional performance can change depending on the measure of productivity that is chosen • Differences within regions can be as important as differences between regions • Several factors explain the gap between regions: in the North East, all working in one direction • East of England and South East - good exploitation of geographical location, skills, innovation, transport and infrastructure

44. Key differences in regional economic performances – GVA per head, per filled job and per hour worked

45. Key differences in regional economic performances – GVA per hour worked

46. Key differences in regional economic performances– Gross Disposable Household Income (GDHI) per head

47. Differences within/between regions • Sub-regions (NUTS2, NUTS3 areas) • City regions • Labour Market Areas/Travel to Work Areas • Urban-rural divide • Other geographical areas GVA, productivity, GDHI, labour market indicators show variation within the overall regional picture

48. Differences within/between regions – NUTS2 GVA per head

49. Differences within/between regions – NUTS3 GVA per head GVA per head …. … vs Productivity Commuter Viewer

50. Wirral