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Guidance documents - Expert

TAG Unit 3.5: The Economy Objective

There are fourteen modules within this section:

3.5.1: The Public Accounts Sub-Objective

3.5.2: The Transport Economic Efficiency Sub-Objective

3.5.3: Transport Benefit Computation

3.5.4: Cost Benefit Analysis

3.5.5: Impacts on Pedestrians, Cyclists and Others

3.5.6: Values of Time and Operating Costs

3.5.7: The Reliability Sub-Objective

3.5.8: Regeneration Impacts

3.5.9: The Treatment of Costs

3.5.10: Worksheet for the Appraisal of Regeneration Impacts

3.5.11: Measuring Accessibility for the Appraisal of Regeneration Impacts

3.5.12: Questionnaires for Business Interviews for the Appraisal of Regeneration Impacts

3.5.13: Data Sources for the Appraisal of Regeneration Impacts

3.5.14: The Wider Impacts Sub-Objective


TAG Unit 3.5.13: Data Sources for the Appraisal of Regeneration Impacts

April 2011

pdf iconUnit 3.5.13 (Adobe Acrobat - 58KB)

1. Data Sources
   1.1 Introduction
   1.2 Transport Network
   1.3 Employers and Jobs
   1.4 The Workforce
   1.5 Tourism
   1.6 Footnote: Definitions
   1.7 Abbreviations

2. Document Provenance


1. Data Sources

1.1 Introduction

1.1.1 This TAG Unit provides advice on data sources that may be useful when preparing a Regeneration Report (RR)*. It is not intended to be an exhaustive survey of sources, but reflects the experience gained during two case studies in which the Guidance was applied to real schemes.

(* Previously Economic Impact Report (EIR).)

1.1.2 Each of these is discussed separately below.

1.2 Transport Network

1.2.1 The requirement is to calculate travel times and costs between zones in the RA and:

  • Other zones in the RA;
  • The same zone, ie travel within each zone; and
  • Other zones in the RA hinterland.
  • These will be required for car, public transport and walk.

1.2.2 For larger schemes, it is likely that a transport model will already have been built, and this should be capable of providing the information required for mechanised modes fairly readily, although such models do not always allow for travel within zones and suitable times and costs may have to be estimated separately.

1.2.3 Even if a model has not been built, it is worth considering using network-building software to generate the information required for the RR. This is because the procedures for setting up these models are well established, and the software is designed to produce exactly the information required quite efficiently.

1.2.4 However, in the absence of such a model the possibilities include the following.

Private car: Maps and ruler

1.2.5 This has its place, but is unlikely to be practical for any but the smallest schemes.

Private car: Route-finding software

1.2.6 Products such as Drivetime and Autoroute can be used to calculate expected free-flow drive times between given OD pairs. They are readily available and inexpensive. They do not include congestion effects, but provide a standardised basis for measuring times and costs.

Public transport: timetables

1.2.7 These are feasible, but rapidly become time consuming as the network density builds up.

Transport Direct

1.2.8 Work is under way to provide public transport information nationally in a common format via the Internet. While still in the development phase at the time of writing, this is likely to become a valuable asset in the near future.

Walk

1.2.9 Walk times may be relevant, since this mode often accounts for a significant proportion of journeys to work, and therefore affects access to a workforce. However the range of walk is, obviously enough, fairly limited, and to represent it will require small zones.

1.2.10 Road network models, or tools like Drivetime, can be used to provide distances and times if it is acceptable to ignore routes other than on highways.

1.3 Employers and jobs

1.3.1 The Annual Business Inquiry (ABI) can be used to provide estimates of the number of jobs by Ward or Postcode, split by Standard Industrial Classification (SIC). At the time of writing this was for the year 2000.

1.3.2 The ABI can be accessed via a portal service called NOMIS. However, users must be registered and must apply for a licence to use the data in the way described here. The central issue is that the data can only be reported in a sufficiently aggregated form that no individual employer can be identified.

1.3.3 The system for mapping SIC to skill levels will be required. Tables E1 and E2 illustrate how this might be done (they were used in case studies while preparing this guidance). The first maps SIC to SEG group, and the second maps SEG to each of four skill levels.

1.3.4 Information about vacancies is typically only available at District level, based on reports from Job Centres. Such estimates of vacancies will be skewed towards some sectors more than others, and do not provide a complete picture of the range of vacancies. They will have to be supplemented with information from elsewhere, including any businesses surveys carried out in the RA audit.

Table 1: Mapping between SIC and SEG

Table 1: Mapping between SIC and SEG

Table 2: Mapping between SEG and Skill Levels

Table 2: Mapping between SEG and Skill Levels

1.4 The Workforce

1.4.1 These are people who are either in work, or who are available for work. The 2001 Census will provide a valuable source of information here, but at the time of writing it is not available. The procedure described below was used in one of the case studies in preparing this guidance, and is offered as an intermediate measure.

1.4.2 First, the 1991 Census was interrogated to provide population counts within each Ward classified by Head of Household SEG. Lookup table E2 was used to map SEG to skill levels. For each Ward, the proportional splits between skill levels were calculated.

1.4.3 These splits were then applied to the 1998 Census updates, to provide estimates of the workforce, split by skill. Figures for the 1998 population aged between 17.5 and 65 years were used, and then scaled by 0.71, the 'Economic activity rate' for the area under study. This is the proportion of people who are economically active (ie, in the Workforce) as estimated in the Local Area Labour Force Survey.

1.5 Tourism

1.5.1 Two useful sources to aid the measurement of tourism and its impact in a region are the Cambridge Economic Model and the Scarborough Tourism Economic Activity Model (STEAM). One or other of these models is often commissioned by local authorities or tourist boards and can be obtained from them. Both are concerned with estimating the 'size' of the tourism market, in terms of visitors and employment, although they vary in their data collection method for tourism volume - 'top down' (disaggregating national data) for the former and 'bottom up' (local supply-side led) for the latter.

1.5.2 Key outputs include estimates of tourism numbers, expenditure and employment. In STEAM these are subdivided into serviced and non-serviced accommodation, visiting friends and relatives, and day visitors, but are not divided geographically. From these figures indicative relationships between visitors and employment can be derived. Where possible such relationships should also be supported by empirical research however since, as noted above, the models are intended for trend purposes and not absolute measurements. It was found in the case studies, for example, that if the changes in visitor numbers were small, businesses were likely to accommodate the change by working longer hours, rather than taking on new staff.

1.6 Footnote: Definitions

1.6.1 The following are definitions used by the ONS which may be found helpful.

Employment

1.6.2 There are two main ways of looking at employment: the number of people with jobs or the number of jobs. These two concepts represent different things as one person can have more than one job. People aged 16 or over are classed as in employment (as an employee or self-employed) by the LFS, if they have done at least one hour of paid work in the week prior to their LFS interview or if they have a job that they are temporarily away from. People who do unpaid work in a family business and people on Government-supported training and employment programmes are also included according to the International Labour Organisation (ILO) convention.

Workforce Jobs

1.6.3 Information on the number of jobs is mainly collected through postal employer surveys. This gives the number of employee jobs (formerly known as employees in employment). The total number of workforce jobs (formerly known as workforce in employment) is calculated by summing employee jobs, self-employment jobs from the LFS, those in HM Forces and Government-supported trainees. Vacant jobs are not included.

Civilian Workforce Jobs

1.6.4 Workforce jobs excluding those in HM Forces.

ILO Unemployment

1.6.5 The ILO definition of unemployment covers people who are: not in employment, want a job, have actively sought work in the previous 4 weeks and are available to start work within the next fortnight, or, out of work and have accepted a job which they are waiting to start in the next fortnight.

Claimant Count

1.6.6 The claimant count records the number of people claiming unemployment-related benefits. These are currently the Jobseeker's Allowance (JSA) and National Insurance credits, claimed at Employment Service local offices. People claiming JSA must declare that they are out of work, capable of, available for and actively seeking work during the week in which the claim is made. They enter into a Jobseeker's agreement setting out the action they will take to find work and to improve their prospects of finding employment.

Economically Active

1.6.7 The economically active population are those who are either in employment or ILO unemployed.

Economically Inactive

1.6.8 Economically inactive people are not in employment, but do not satisfy all the criteria for ILO unemployment. This group comprises those who want a job but who have not been seeking work in the last 4 weeks, those who want a job and are seeking work but not available to start and those who do not want a job. For example, students not working or seeking work and those in retirement are classed as economically inactive. It can be useful for some purposes to consider only those who are both economically inactive and of working age.

Labour Market Attachment

1.6.9 A concept relating to a person's proximity to the labour force. It covers a spectrum from fully attached workers (e.g. those in employment or ILO unemployment) at the one extreme, to those who do not want a job at the other extreme. The latter group, which includes economically inactive retired people, might be considered completely detached from the labour market.

Discouraged Workers

1.6.10 A subgroup of the economically inactive population who said that they would like a job and whose main reason for not seeking work was because they believed there were no jobs available.

Rates

1.6.11 Rates represent the proportion of the population or subgroup of the population with a certain characteristic. They allow changes in the labour market to be interpreted in a wider context, allowing for changes in the overall population or the number of people who are economically active. Rates can be calculated for different age groups. For employment, economic activity and economic inactivity, the most widely quoted rates are those for the working age population i.e. men aged 16-64 and women aged 16-59. For ILO unemployment, headline rates are expressed as a percentage of the economically active population aged 16 and over. Those over retirement age who continue to be economically active will therefore be included in the base while those who are economically inactive will not.

Employment Rate

1.6.12 The number of people in employment expressed as a percentage of the relevant population.

ILO Unemployment Rate

1.6.13 The number of ILO unemployed people expressed as a percentage of the relevant economically active population.

Claimant Count Rate

1.6.14 The number of claimants resident in an area expressed as a percentage of the sum of claimants and workforce jobs.

Economic Activity Rate

1.6.15 The number of people who are in employment or unemployed expressed as a percentage of the relevant population.

Economic Inactivity Rate

1.6.16 The number of economically inactive people expressed as a percentage of the relevant population.

Earnings

1.6.17 Measure of the money people receive in return for work done gross of tax. It includes salaries and bonuses but does not include non-monetary perks such as benefits in kind. This differs from income, which is the amount of money received from all sources. Income includes interest from building society and bank accounts, dividends from shares, benefit receipts, trust funds, etc.

Jobcentre Vacancies

1.6.18 A job opportunity notified by an employer to a Jobcentre (including 'self-employed' opportunities created by employers) which remained unfilled on the count day (the reference day for each month's statistics - normally confined to the first Friday in the month).

1.7 Abbreviations

  • ABI Annual Business Inquiry
  • AES Annual Employment Survey
  • ES Employment Service
  • GOR Government Office Region
  • IDBR Inter Departmental Business Register
  • ILO International Labour Organisation
  • JSA Job Seekers Allowance
  • LADB Labour Force Survey Annual Local Area Database
  • LEA Local Education Authorities
  • LEC Local Enterprise Companies
  • LFS Labour Force Survey
  • LLP Lifelong Learning Partnerships
  • LMT Labour Market Trends
  • NES New Earnings Survey
  • NUTS Nomenclature of Units for Territorial Statistics
  • OECD Organisation for Economic Co-operation and Development
  • PC Parliamentary Constituency
  • QS Labour Force Survey Quarterly Supplement
  • RFR Regional First Releases
  • SIC Standard Industrial Classification
  • SOC Standard Occupational Classification
  • SSR Standard Statistical Regions
  • STES Short Term Employer Surveys
  • TEC Training and Enterprise Councils
  • TTWA Travel-to-Work Areas


2. Document Provenance

This Transport Analysis Guidance (TAG) Unit is based on Appendix D of Guidance on Preparing an Economic Impact Report (DfT, 2003).

Technical queries and comments on this TAG Unit should be referred to:

Transport Appraisal and Strategic Modelling (TASM) Division
Department for Transport
Zone 2/25 Great Minster House
33 Horseferry Road
London SW1P 4DR

Email: tasm@dft.gsi.gov.uk
Tel: 020 7944 6176
Fax: 020 7944 2198

Updated: April 2011