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First Annual
BRITISH TALENT ATTRACTION INDEX
B R I T I S H T A L E N T A T T R A C T I O N I N D E X2
3 Foreword
4 Introduction
6 Talent Attraction Index Top 20
7 Top 10s: City Areas, and Town and Rural Areas
8 Job Growth
10 Skilled Job Growth
12 Skilled Job Competitive Effect
14 Job Openings Per Capita
16 Net Migration
18 Highly Qualified Worker Growth
20 Five Tips for Developing, Attracting, and Retaining Talent in Your Area
22 Terminology and Methodology
23 Emsi Data
CONTENTS
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 3
This report from Emsi is a really insightful contribution to understanding what’s going on in the labour market in Britain. On one level we know that the jobs market is performing incredibly well and very favourably against international bench marks. We have record employment, with more than 32.7 million people employed in the period November 2018 – January 2019. Unemployment at its lowest since 1975, with the percentage of those out of work dipping below 4% for the first time in 44 years – well below the EU average of 6.5%. And more vacancies than at any time in 20 years.1
FOREWORD
However, these conditions are creating a very tight labour market with some claiming we are at full employment. What is certain, is that employers are struggling to fill the roles they currently have available, with shortages in labour, skill and talent all at play at the same time.
This means that businesses are having to enhance their employee proposition, increase pay and invest in training their staff to cope with this challenging situation. And with the reduction in immigration over the next few years as a result of Brexit, it is a situation that is likely to become even more acute.
The overriding value of this report is that it uniquely looks at what’s happening in local labour markets. For the first time, employers, recruiters and policy makers can see where jobs growth is occurring and in what sectors. This will enable those responsible for employment and job creation to think about where they can find the skills for the roles they have available.
It will also allow those setting up new enterprises or seeking new locations for their business to think about the sorts of things that are crucial in deciding where they should establish themselves to take advantage of local labour supply.
This report is timely, important and very much required. It also demonstrates Emsi’s capabilities as as a leading provider of Labour Market Insight.
I hope you enjoy reading it and using the content.
Kevin GreenFounder and CEOWhat’s Next Consultancy(Ex CEO of Recruitment and Employment Confederation)
1 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/march2019
B R I T I S H T A L E N T A T T R A C T I O N I N D E X4
As Kevin Green notes in the Foreword, the labour market in Britain is currently very tight, with job creation outstripping the number of available workers. For employers, this means having to compete harder to attract the right talent to sustain and grow their business. For economic developers, it means doing more to ensure that the businesses in their area are getting the workers they need through targeted skills strategies, by working closely with local education providers and employers, and in seeking to make their area a more attractive place to live and work to attract talent from outside the area.
However, although we often talk about the “national” economy or “Britain’s” labour market, we need to recognise that these are in reality aggregates of multiple local economies. Furthermore, each of these local labour markets will have its own unique mix of industries, businesses, occupations and skills, plus a variety of different factors that might make it a good location for business to locate or relocate, and an attractive place for people to live and work.
Part of the role of economic developers is to find out what their area’s Unique Selling Points are, and to use them to attract investment and talent into the area. Localised data can play a big part in this, since it can be used firstly to identify how well a local economy is currently doing in terms of attracting talent, and secondly in giving a better understanding of the economic and labour market factors that make the area special.
INTRODUCTION
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 5
What we have attempted to do in this short report is to demonstrate some of the factors that localised data can identify, by creating a Talent Attraction Index of Local Authorities throughout the country. This uses a number of demand and supply metrics to rank areas in terms of job creation, drawing in new residents, and attracting a greater share of skilled workers than other regions, during a five-year period, from 2012-2017. Specifically, we have used the following six categories:
• Job Growth
• Skilled Job Growth
• Skilled Job Competitive Effect
• Job Openings Per Capita
• Net Migration
• Highly Qualified Worker Growth
As you work your way through this analysis, you’ll find the following:
P6. The overall Talent Attraction Index Winners, including a heat map of Britain and the Top 20 areas.
P7. The Top 10 city areas, and the Top 10 town and rural areas, with their change in ranking over a three-year period from 2015 to 2017.
P.8 – 19. On the even numbered pages, there are heat maps and Top 10s for each of the six categories. On the odd numbered pages, we focus on the winning areas in those categories, giving a number of industry and occupation insights related to their growth and prosperity.
P20 – 21. You’ll find some ideas of how data can be used to improve talent attraction, retention and development in your area.
P22. A rundown of the terminology and methodology that we have used throughout this report.
P23. Details of Emsi data, including how it is produced and what it can be used for.
Perhaps the most interesting aspect of the data in this report is just how many areas outside London and the South East are represented in the various categories. Whilst it is true that the City of London remains dominant, there are a number of surprising locations in each of the Top 10s, and it does give rise to the question of whether some sort of rebalancing of the workforce has been occurring, perhaps as things like the cost of commuting, together with opportunities for working remotely have meant that jobs are being brought to the people, rather than people to the jobs.
Above all, this report shows the value of local data, and the crucial part it can play in helping to understand local strengths. We hope that you’ll find it of interest, and that it might inspire you as you seek to attract businesses and talent into your area.
B R I T I S H T A L E N T A T T R A C T I O N I N D E X6
TALENT ATTRACTION INDEX TOP 20The runaway winner of this year’s Talent Attraction Index is the City of London, mainly on account of the huge number of job openings it has compared to its tiny population. For this reason it will probably always be the overall winner, but what is really interesting is to see many areas outside London and the South East, such as Bromsgrove, Corby and Blaby, all making it into the Top 20.
Area
City of London
Bromsgrove
Hackney
Tower Hamlets
Camden
Watford
Manchester
Welwyn Hatfield
South Cambridgeshire
Coventry
Greenwich
Southwark
Newham
Glasgow City
North West Leicestershire
Milton Keynes
Corby
North Warwickshire
Bristol
Blaby
Talent Attraction Score
244
169
155
152
145
140
140
137
134
134
131
131
131
130
130
126
126
125
125
121
Rank
123456789
1011121314151617181920
TALENT ATTRACTION INDEX: TOP 20 AREAS
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 7
TOP 10s: CITY AREAS, AND TOWN AND RURAL AREAS
2017 2016 2015
10 Newham9 Southwark8 Greenwich7 Coventry6 Manchester
5 Watford
4 Camden
3 Tower Hamlets
2 Hackney
1 City of London
27
12
10
9
7
5
4
3
2
1
23
17
13
10
7
6
5
3
2
1
CITY AREAS
10 South Northamptonshire9 Uttlesford8 East Hertfordshire7 Central Bedfordshire
6 North Warwickshire
5 Corby
4 North West Leicestershire
3 South Cambridgeshire
2 Welwyn Hatfield
1 Bromsgrove
57
39
38
27
11
7
5
3
2
1
104
92
79
71
60
32
20
12
8
7
TOWN AND RURAL AREAS
JOB GROWTHBeginning by looking at total job growth from 2012-2017, we can see that the clear, if somewhat surprising winner is Bromsgrove in Worcestershire. Whilst the City of London and Hackney added more actual jobs (around 99,000 and 29,000 respectively), Bromsgrove saw a rise of almost 26,000 new jobs over the five-year period, equating to an increase of 77%.
B R I T I S H T A L E N T A T T R A C T I O N I N D E X8
TOP 10 LOCAL AUTHORITIES IN TERMS OF JOB GROWTH, 2012-2017
Data: Emsi 2019.1 Occupation; numbers are jobs added
Percentage job growth, 2012–2017
Bromsgrove 25,790
Watford 17,120
Hackney 29,110
Sevenoaks 11,560
City of London 99,180
Newham 20,890
Peterborough 20,880
20% 40% 60% 80%
21,590Welwyn Hatfield
10,710North Warwickshire
18,470South Cambridgeshire
0%
BROMSGROVE, WORCESTERSHIRE
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 9
Focus on Job Growth Winner: BromsgroveBromsgrove is probably not the place that most of us would have named had we been asked which area of the country has seen the biggest job growth over the last few years. Yet not only has the area seen huge job growth (25,790 new jobs, equating to 77% growth), but it is also second only to Watford in the growth of skilled jobs (8,700 jobs, equating to 49% growth). Where has this come from? As the industry data below shows, there has been huge growth in Logistics and ecommerce, with an extra 11,900 jobs (2,079%), as well as Business Services, which has grown by 4,300 jobs (516%). It is also worth noting just how much this growth has given Bromsgrove a huge comparative advantage in these sectors, as demonstrated by the rise in LQ (Location Quotient – see page 22 for more details about this metric, how it is calculated and what it means).
Job growth
Skilled job growth
Skilled job competitive effect
Job openings per capita
Net migration
Qualified workers growth
77%49%
7,000
26%
14%4,300
INDUSTRY CLUSTER FOCUS
2,079%
Growth
11,900
Extra Jobs
0.8 to 7.9
LQ change
BUSINESS SERVICES
516%
Growth
4,300
Extra Jobs
1.7 to 4.6
LQ change
LOGISTICS AND ECOMMERCE BUILDING SERVICES
131%
Growth
1,900
Extra Jobs
1.2 to 1.6
LQ change
Elementary storage occupations
Fork -lift truck drivers
Managers and directors in storage and warehousing
Large goods vehicle drivers
Stock control clerks and assistants
393%
513%
633%
820%
332%
TOP 5 HIGHEST GROWTH JOBS IN BROMSGROVE
Data: Emsi 2019.1 Occupation
SKILLED JOB GROWTH
B R I T I S H T A L E N T A T T R A C T I O N I N D E X10
Watford and Bromsgrove are clear winners in terms of the proportionate rise in skilled jobs, with almost 50% and 49% growth respectively. Perhaps unsurprisingly, City of London has seen the biggest absolute growth, adding over 80,000 jobs. Interestingly, skilled job growth is not confined to London and the South East. Rather, there is a decent spread across the country, with the East of England, West Midlands, East Midlands, and North East all being represented in the Top 10. It is also worth noting that Hackney and South Cambridgeshire have also seen high growth, much of which is down to their high concentration and growth in STEM occupations, which you can read more about in our Focus on the Demand for STEM Jobs and Skills Report.1
TOP 10 LOCAL AUTHORITIES IN TERMS OF SKILLED JOB GROWTH, 2012-2017
Data: Emsi 2019.1 Occupation; numbers are jobs added
Percentage growth in skilled jobs
Watford
Bromsgrove
Hackney
Greenwich
Blaby
Welwyn Hatfield
North Tyneside
South Cambridgeshire
North Warwickshire
15,960
8,730
22,710
9,560
6,490
8,760
8,960
14,470
4,340
80,460City of London
0% 10% 20% 30% 40% 50%
1 https://www.economicmodelling.co.uk/wp-content/uploads/2018/12/STEM-Report_vWEB.pdf
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 11
Focus on Skilled Job Growth Winner: WatfordIn terms of numbers, much of Watford’s skilled job growth has come through the expansion in Commercial Services, which has added almost 20,000 new jobs between 2012 and 2017, including a doubling of jobs within the Accounting, bookkeeping and auditing activities; tax consultancy, sector. Professional Services have also grown significantly, especially in the Activities of head offices sector (Watford is home to a large number of head offices of prominent companies), which has doubled over the period. Also noteworthy is the job growth in the Creative cluster, which has nearly tripled in size, being driven in part by the development of the 80-hectare Warner Brothers studio complex at Leavesden.
WATFORD, HERTFORDSHIRE
INDUSTRY CLUSTER FOCUS
Job growth
Skilled job growth
Skilled job competitive effect
Job openings per capita
Net migration
Qualified workers growth
34%50%
12,700
9%
18%900
CREATIVE
161%
Growth
900
Extra Jobs
0.6 to 1.1
LQ change
127%
Growth
3,400
Extra Jobs
1.5 to 2
LQ change
PROFESSIONAL SERVICES COMMERCIAL SERVICES
78%
Growth
19,700
Extra Jobs
4.5 to 5.6
LQ change
Advertising accounts managers and creative directors
Advertising and public relations directors
Taxation experts
Air-conditioning and refridgeration engineers
Chartered and certified accountants
120%132%
162%
163% 108%
TOP 5 HIGHEST SKILLED GROWTH JOBS IN WATFORD
Data: Emsi 2019.1 Occupation
SKILLED JOB COMPETITIVE EFFECT
B R I T I S H T A L E N T A T T R A C T I O N I N D E X12
As we mentioned on page 6, the City of London is in many ways in a league of its own, and you can see that amply demonstrated here, where it has a skilled job competitive effect of about two-and-a-half times as much as the second and third placed areas, Camden and Tower Hamlets. What the figure means, is that between 2012 and 2017, 53,000 more skilled jobs were created in the area than can be explained by national growth trends and the existing mix of occupations. Or to put that another way, the area has added 53,000 skilled jobs that are the result of competitive factors specific to the locality.
TOP 10 LOCAL AUTHORITIES IN TERMS OF SKILLED JOB COMPETITIVE EFFECT, 2012-2017
Data: Emsi 2019.1 Occupation
Skilled job competitive effect, 2012–2017
City of London
Camden
Tower Hamlets
Watford
Milton Keynes
South Cambridgeshire
Bristol
20,000 40,000
Hackney
Manchester
53,000
20,240
19,990
12,750
10,610
10,510
8,560
17,390
14,300
17,190Southwark
0
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 13
CITY OF LONDON
Focus on Skilled Job Competitive Effect Winner: City of LondonWith a population of just over 5,000, the City of London can feel a bit like a ghost town at the weekend. Yet come Monday morning, over 460,000 people come into the area to work, making it one of the most remarkable places in the country. In fact, it is one of only four areas of the country where there are more jobs than residents (Westminster, Camden and Watford being the others). The last few years have seen huge job growth in the area, with almost 100,000 new jobs, including 80,400 skilled jobs being added between 2012 and 2017. Much of this growth has come from four particular industry clusters, with Financial and Legal Services (20,900 extra jobs); Professional Services (19,800); Digital (17,500) and Business Services (15,000) all seeing large gains.
Job growth
Skilled job growth
Skilled job competitive effect
Job openings per capita
Net migration
Qualified workers growth
27%29%
53,000
10%
943%827
INDUSTRY CLUSTER FOCUS
PROFESSIONAL SERVICES
63%
Growth
19,800
Extra Jobs
3.1 to 3.2
LQ change
85%
Growth
17,500
Extra Jobs
1.9 to 2.2
LQ change
DIGITALBUSINESS SERVICES
178%
Growth
15,100
Extra Jobs
1.5 to 2.5
LQ change
Marketing and sales directors
IT and telecommunications professionals
Programmers and software development professionals
Management consultants and business analysts
Sales accounts and business development managers
38%44%
46%
49%
37%
TOP 5 SKILLED COMPETITIVE EFFECT JOBS IN THE CITY OF LONDON
Data: Emsi 2019.1 Occupation
JOB OPENINGS PER CAPITA
B R I T I S H T A L E N T A T T R A C T I O N I N D E X14
Technically, the real winner of this category is the City of London. However, because its job openings per capita are so astronomical (942% compared to a national average of 10%), we have left it off the map and the chart, treating it as a bit of a law unto itself. The next placed area, Westminster, also has more jobs than residents, as do Camden and Watford, but what is really interesting here is to see the likes of North Warwickshire, Shetland Islands, and Craven – Britain’s happiest place according to a 2017 ONS survey1 – all making it into the Top 10.
TOP 10 LOCAL AUTHORITIES IN TERMS OF JOB OPENINGS PER CAPITA, 2012-2017
Data: Emsi 2019.1 Occupation; City of London censored
Average job openings per capita, 2012–2017
Westminster 45,530
Camden 30,580
Watford 12,040
Welwyn Hatfield 16,470
Islington 13,730
Tower Hamlets 29,640
Craven 4,010
10% 20% 30%
8,510North Warwickshire
1,370Shetland Islands
15,740Bromsgrove
0
1 https://www.theguardian.com/uk-news/2017/sep/26/yorkshire-dales-craven-happiest-uk-ons-hertsmere-london
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 15
WESTMINSTER, LONDON
Focus on Job Openings Per Capita Winner: WestminsterThink Westminster and the word Government will automatically come to mind. But is it growing or shrinking? According to our data, the period 2012-2017 saw an extra 9,500 jobs created in the Government industry cluster, making a rise of 17%. But there has also been strong growth in a number of other clusters. For example, Health and Care has added 6,900 jobs (33% growth). And in terms of absolute job growth, Professional Services has seen the biggest rise, with an increase of 14,500 jobs (26% growth), largely driven by growth in sectors such as Business and other management consultancy activities (42% growth); Activities of head offices (38%); and Public relations and communication activities (13%).
Job growth
Skilled job growth
Skilled job competitive effect
Job openings per capita
Net migration
Qualified workers growth
10%10%
-1340
13%
31%13,214
INDUSTRY CLUSTER FOCUS
GOVERNMENT
17%
Growth
9,500
Extra Jobs
1.7 to 2.2
LQ change
26%
Growth
14,500
Extra Jobs
3.3 to 3.1
LQ change
PROFESSIONAL SERVICESHEALTH AND CARE
33%
Growth
6,900
Extra Jobs
0.3 to 0.4
LQ change
Sales and retail assistants
Property, housing and estate managers
Management consultants and business analysts
Cleaners and domestics
Kitchen and catering assistants
5,730
6,020
6,020
8,420 5,450
TOP 5 JOB OPENINGS FOR WESTMINSTER
Data: Emsi 2019.1 Occupation
NET MIGRATION
B R I T I S H T A L E N T A T T R A C T I O N I N D E X16
How many people would have placed Coventry at the top of the table on net migration in Britain? Probably not many, and yet according to the data, Coventry is indeed the number one place in the country for net migration between 2012 and 2017, with growth of nearly 29,000. The presence of a number of other areas may also come as a surprise. For example, Central Bedfordshire and Aylesbury Vale have both seen around 14,000 new people coming into their areas. Herein lies the beauty of data to challenge our preconceived ideas and assumptions, replacing them with solid evidence.
TOP 10 LOCAL AUTHORITIES IN TERMS OF NET MIGRATION
Data: ONS Local Area Migration Indicators; 5-year net flows
Net migration, 2012–2017
Coventry 28,650
Tower Hamlets 26,500
Cornwall 25,480
Islington 14,600
Liverpool 14,210
Central Bedfordshire 14,080
Aylesbury Vale 13,860
10,000 20,000 30,000
25,300Edinburgh
20,440Camden
21,680Glasgow
0
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 17
COVENTRY, WEST MIDLANDS
Focus on Net Migration Winner: CoventryBeing sent to Coventry is one of those strange English idioms that no-one is quite sure of the origins. What we can be certain of, however, is that in recent years lots of people have gone to Coventry, which has seen phenomenal growth of around 11% between 2012-2017, compared to 3.7% for the nation as a whole. In terms of age breakdown, the data shows that the highest growth has been in the 25-29 years category (36% growth) followed by 30-34 years (24%), 19-24 years (22%) and 5-9 year (22%), likely indicating that there are a lot of young families going there. In terms of ethnicity, growth in White British has been 7% (compared to 2% for the rest of the country), whilst growth in White Non-British or Irish has been 27% and Black African 28%.
Job growth
Skilled job growth
Skilled job competitive effect
Job openings per capita
Net migration
Qualified workers growth
11%13%
2,400
33%
6%28,600
INDUSTRY FOCUS
161%
Growth
3,800
Extra Jobs
0.6 to 1.2
LQ change
CIVIL ENGINEERING
107%
Growth
1,800
Extra Jobs
0.5 to 0.9
LQ change
PROFESSIONAL SERVICES BUILDING SERVICES
51%
Growth
1,600
Extra Jobs
0.7 to 0.9
LQ change
CHANGE IN POPULATION DEMOGRAPHICS IN COVENTRY FROM 2012 TO 2017
Data: Emsi 2019.1 DemographicsFemale Male
2012
0 025,000 25,00025,000 25,000
2017
80+
70-79
60-69
50-59
40-49
30-39
19-29
10-18
0-9
HIGHLY QUALIFIED WORKER GROWTH
B R I T I S H T A L E N T A T T R A C T I O N I N D E X18
Again the data may well surprise us, this time showing Corby in Northamptonshire as being the top area in terms of proportionate growth in people with a higher education qualification. Just to put this in perspective, whereas the country as a whole has seen a rise of 17% over the five-year period, the rise in Corby was around 66%. Another interesting aspect of the data is that growth has not been confined to any particular area, but has been seen in places as far apart and as disparate as Barnsley, Teignbridge, Dover and Liverpool.
TOP 10 LOCAL AUTHORITIES IN TERMS OF HIGHLY QUALIFIED WORKER GROWTH
Data: Emsi analysis of ONS Annual Population Survey via Norris
Percentage growth of higher educated working age, 2012–2017
Corby 5,060
North West Leicestershire 9,250
Dover 7,560
Liverpool 32,020
Barnsley 12,430
Teignbridge 8,390
Cannock Chase 4,390
20% 40% 60%
8,250Dartford
6,280Shepway
13,820Havering
0
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 19
CORBY, NORTHAMPTONSHIRE
Focus on Highly Qualified Worker Growth Winner: CorbyOnce known as “Little Scotland”, due to the influx of workers coming from Scotland to find work at the town’s British Steel plant, Corby has in recent times seen a huge influx of migrant workers from the EU, and London commuters. Not only has this swelled the population of Corby by about 10%, but it has also served to rapidly change the qualification demographics of the area. As you can see from the chart, which shows change between 2003-2017, the number of people in the area with no or low qualifications has fallen during that time, whilst the number of people with a higher education qualification has increased significantly. Whereas the number of people in the town with a higher education qualification was around 14% in 2003, by 2017 it had grown to around 29%.
Job growth
Skilled job growth
Skilled job competitive effect
Job openings per capita
Net migration
Qualified workers growth
11%18%
940
66%
8%4,360
INDUSTRY FOCUS
PLASTICS & VULCANISED PRODUCTS
73%
Growth
400
Extra Jobs
3.3 to 4.9
LQ change
COMMERCIAL SERVICES
65%
Growth
1,200
Extra Jobs
0.8 to 1.1
LQ change
74%
Growth
900
Extra Jobs
0.4 to 0.6
LQ change
HEALTH & CARE
2018
Data: Emsi analysis of Annual Population Survey
Popu
latio
n
Any higher education Intermediate qualifications No or low qualifications
201420102006
40,000
30,000
20,000
10,000
0
CHANGE IN CORBY’S QUALIFICATIONS PER WORKING AGE POPULATION FROM 2003-2017
B R I T I S H T A L E N T A T T R A C T I O N I N D E X20
Using Data to Develop, Attract and Retain TalentWe mentioned in the introduction that the high employment/low unemployment economy we are experiencing right now means that employers and economic developers are having to work harder to develop, attract and retain skilled talent in their area. Workforce development is a dynamic, complex process at the best of times, requiring good short and long-term planning, as well as constant fine-tuning. But in our current tight labour market it is even more crucial that it is properly thought through, with the involvement of all local stakeholders, including economic developers, skills agencies, the business community, and education providers.
To help navigate this, here are five simple ideas for economic developers, about how you can use the kind of data we have shown throughout this report to develop, attract and retain new talent in your area.
1 Become more familiar with your area’s industrial mix
Many economic development strategies tend to focus on developing and growing industries that have a high-profile nationally, rather than on those that necessarily define the area’s economy. Digital, for instance, is important, but it is not equally vital in all areas, and it may be that there are more significant sectors in your region that you would do well to concentrate on. In the first instance, become more familiar with your area’s mix of different industries and how they are projected to grow, as this will give you more of a steer on where your focus and your interventions should be.
FIVE TIPS FOR DEVELOPING, ATTRACTING, AND RETAINING TALENT IN YOUR AREA
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 21
2 Identify your area’s particular strengths
On the focus pages throughout this report, you will see that we have included data on the top industry clusters in the area, including the LQ figure, which is a metric denoting the comparative advantage an area has in that industry over other regions (see the Terminology and Methodology page for further details). By identifying the industries that really make your area unique, you will be far better placed to understand which employers you should be talking to, which sectors should be prioritised in your planning, and what the most pressing needs are in your community.
3 Understand local industry workforce requirements
Having identified the industrial mix in your community, and particularly its niche sectors, you can now work to understand their workforce requirements. Emsi data not only enables you to focus on occupations in your area – including current job numbers, job growth, and projected growth – but it can also do this for each industry. For instance, you might find that your area has a particularly significant logistics and ecommerce sector. But what are its skills needs over the coming years? Our data can help you identify this, giving you the lowdown on projected growth for each occupation category, so that you can better understand and work with employers in that industry to ensure that there is a ready supply of talent.
4 Use the data to work with local education providers
In an ideal world, the supply of people with certain skills would equal the demand for people with those skills. In reality, however, this often doesn’t happen, and we are left with what is known as the skills gap. One of the main causes of this is the sheer challenge of employers communicating to education providers what it is they need. Yet if you have used data to better understand what it is employers in your area are demanding, you then have a powerful way of starting a conversation with local education providers about what these skills needs are, and how they can help fill the gaps through their training, apprenticeships and upskilling.
5 Use the data to promote your area
The more you know about the sectors and skills that define your area, the better placed you will be to promote it as a place to live and work. In our focus on Coventry, for instance, we saw that the Civil Engineering industry cluster has grown by 1,800 jobs (107%) between 2012 and 2017. Our projections show that growth in the cluster is set to continue over the next few years, albeit at the slower rate of 8.3%. This gives a great opportunity for the Local Authority and the LEP to promote the area, for example to universities that specialise in the kinds of occupations that are employed in the sector, which include Design and development engineers, Production managers and directors in manufacturing, and Chartered surveyors.
B R I T I S H T A L E N T A T T R A C T I O N I N D E X22
How have we calculated the Talent Attraction Index?
The six categories we’ve explored were each measured, as set out below. To construct the index, we standardised each measure, and then added them together for each area. Once complete, we rescaled so that an average score is 100 and a score one standard deviation above or below the mean is 15 points away.
How have we measured the six categories?
Job growth: The percentage job change for all workers in an area from 2012-2017 (note: we have excluded Temporary employment agency activities (SOC 7820) from our calculations, as employment agencies often include jobs that are in other areas of the country).
Skilled job growth: The percentage change in skilled jobs in an area between 2012-2017, with skilled jobs being defined as occupations that typically require a Level 3 or above qualification.
Skilled job competitive effect: An indication of how much change in skilled jobs in an area cannot be explained by national trends, but is down to a unique competitive advantage the area has. It is calculated by comparing the total regional growth in skilled jobs between 2012-2017, and subtracting national growth for the same occupations over the same period.
Job openings per capita: The number of new jobs created by industry growth and by the need to replace workers exiting the workforce; this measure takes the number of job openings in an area from 2012-2017, and divides it by the working age population.
Net Migration: The contribution of net migration to an area’s population growth from 2012-2017, including domestic and international migrants. Sourced from ONS Local Area Migration Indicators.
Highly qualified worker growth: The percentage change in the number of working age residents with a higher education qualification. This measure was constructed by Emsi analysis and modelling of the ONS Annual Population Survey, sourced via Nomis.
Other terms
Industry Clusters: To make analysis of the 586 4-digit Standard Industry Classifications (SIC) much easier, we have grouped them into 49 coherent economic clusters, based on a number of shared characteristics, such as industries that tend to co-locate in the same areas; which have a similar workforce; and which have supply chain connections.
Location Quotient (LQ): The proportion that an occupation or industry makes up within a local or regional labour market, compared with the proportion the same occupation or industry makes up in the national economy. The nation is given a benchmark of 1.0, and so any occupation or industry with an LQ over about 1.2 can be seen as a regional specialism.
TERMINOLOGY AND METHODOLOGY
B R I T I S H T A L E N T A T T R A C T I O N I N D E X 23
EMSI DATA
Emsi provides the most detailed and localised labour market intelligence available in the UK, which in turn creates a robust base upon which to create uniquely localised and detailed employment projections. We bring together different data sources to create a robust composite dataset that provides detailed labour market intelligence on hundreds of industries and occupations at the lowest geographic levels. By joining together these datasets, we can provide unique insights into the relationship between industry trends and associated occupational requirements.
We build the data from 9 different government data sources, each describing different aspects of the labour market that in isolation only tell part of the story or contain inherent weaknesses, but when modelled together provide a more holistic and robust view of the labour market. This combination – some 20 million data points added each year – provides the platform for employment projections to be created that describe locally-specific employment trends, and which are updated annually as more up-to-date data is made available through the government sources.
Combining data from these sources creates something entirely unique, allowing gaps in individual sources to be filled in, providing employment projections at a level of detail that makes labour market data useful to a broad range of local, regional, and national organisations.
Linking this with skills and competency intelligence helps to understand shifts in training priorities associated with a changing labour force. Emsi data together delivers not only depth in terms of local detail, industry detail, and occupational detail, but applications in a range of different directions, with data on demographics, age, educational attainment, competency, earnings and staffing patterns. All data are reported in current (SIC 2007 / SOC 2010) classifications.
Our data includes consistent series back to 2003 and projected forward to 2027 and are updated annually. We deploy them through our online data tool, Analyst, as well as through custom consulting, to help economic strategists, workforce planners, and further and higher education institutions to investigate the current and projected labour market.
While we have the knowledge and capability to tackle any of the leading labour market intelligence sources – such as those produced by the ONS and UKCES – our own data’s power lies not only in its granularity, but in its accessibility. Because of the work we do to process, prepare and validate our data, Emsi can answer complex labour market queries from our data in high volume and at high speed.
Contact us now
Developing, Attracting and Retaining Talent
Successfully attracting talent to your community requires a good understanding of your area, businesses, and people.
Our aim is to give you the insight that will help you understand your area better, so that you can establish a better strategy for developing,
attracting and retaining the talent you need.
[email protected] 01256 614 885
www.economicmodelling.co.uk
