Select Committee on Communities and Local Government Committee Written Evidence


Supplementary memorandum by the Department for Work and Pensions (CT 60 (a))

EMPLOYMENT IN COASTAL TOWNS

Q.   The statistics provided within the DWP memorandum indicate that there is "little evidence that employment in coastal towns is particularly concentrated in temporary or self-employment". The Committee would be grateful if you could provide details of the methodology used in the collation of these statistics, including an explanation of the definition of "temporary", and the reasoning behind the choice of sample coastal towns used within this analysis.

Q.   During the evidence session it was stated that "seasonal employment is included in temporary employment in these figures" (Q353). In answer to a further question on seasonal employment it was stated that "the degree of seasonality in employment and unemployment is higher in most coastal towns" (Q362). Please provide clarification on whether the figures provided to the Committee accurately incorporate seasonal employment levels and if not an explanation of how the DWP accurately assesses the nature of employment in coastal towns

SELECTION OF COASTAL TOWNS

  The local authority district (LAD) level is the smallest level of geography for which employment data is available. The coastal towns were selected on the basis that they comprise an LAD in their own right or that they make up the majority population of one. Thanet LAD, for example, contains both Margate and Ramsgate; Scarborough LAD includes both Scarborough and Whitby. Several coastal towns in England (Newquay and Penzance in Cornwall; Littlehampton in West Sussex and Skegness in Lincolnshire, for example) have populations that comprise only a small part of the non-metropolitan LADs where they are situated.

EMPLOYMENT AND ITS MEASUREMENT

  Employment in local authority districts (including coastal towns) is measured using the Local Area Labour Force Survey (up to 2003) and the Annual Population Survey (APS—2004 onwards), both of which are self-assessed residence-based surveys looking at population, economic activity (employment and unemployment) economic inactivity and qualifications. The APS is updated quarterly.

  People aged 16 or over are classed as employed if they have done at least one hour of work (paid or unpaid) in the reference week or are temporarily away from a job (for example, if they are on holiday).

  Respondents classify themselves into one of four employment status categories (and according to their main job if they have more than one). These categories are employees, the self-employed, unpaid family workers or participants in government-supported training schemes.

    —  Employees are those who are in employment and paid a wage by an employer for the work that they do. This category may be further sub-divided into permanent and temporary employees.

    —  The self-employed are defined as those who, in their main job, work on their own account, whether or not they have employees.

    —  Unpaid family workers are those whose work contributes directly to a business, owned or operated either by themselves or by a relative, but who receive no pay or profits for this work.

    —  People on government-supported training schemes include those doing work experience with an employer and those engaged wholly in training.

  Temporary Employment covers those employees who say that their main job is not permanent in one of the following ways: fixed period contract, agency temping, casual work, seasonal work or other temporary work. This is also based on respondents' self-assessment.

  Seasonal Employment is thus a subset of Temporary Employment. Further statistics are given in charts 1 and 2.

THE TOURISM SECTOR

  Under the UK Standard Industrial Classification (SIC) system certain industries can be classed as "tourism-related". Some of these industries (such as hotels and tour coaches) are specific to tourism while others, such as restaurants and bars, cater both to tourists and local residents. Conversely, other sectors which serve the local community and not classed as tourism related also cater to tourists, such as transport (the great western main line in the South West, for example) petrol stations and financial services (foreign exchange services).

  Tourism-related industries include:

    —  Hotels (SIC group 551).

    —  Camping and short-stay accommodation (552).

    —  Restaurants (553).

    —  Bars (554).

    —  Activities of travel agencies and tour operators (633).

    —  Libraries, archives, museums and other cultural activities (925).

    —  Sporting activities (926).

    —  Other recreational activities (927).

  Data on employment by sector comes from the Annual Business Inquiry (ABI) which is a workplace-based survey of the number of jobs held by employees. Employee jobs exclude the self-employed, government-supported trainees and HM Forces. 2004 is the most recent year for which ABI data is available.

HOMES IN MULTIPLE OCCUPATION

Q.   What is the impact of the Labour Force Survey tending not to use data from "housing multiple-occupancy, which are more prevalent in coastal towns" (Q379)?

  The Labour Force Survey (LFS)/Annual Population Survey sampling frame covers 97% of private households in Great Britain. The exclusion of most communal establishments (CEs), including homes in multiple occupation (HMOs), from the LFS sampling and population weighting means that the LFS estimates of employment nationally probably omit about 150,000 people who are employed but live in CEs, and about 30,000 who are "unemployed" (although inconsistencies between the Census definition and the LFS's ILO definition make it difficult to quantify this accurately).

  One of the most important aspects of the LFS design is that it must meet Eurostat's requirements, as the LFS is conducted under Regulation. Eurostat's requirements are for results for private households only, recognising that "for technical and methodological reasons it is not possible... to include the population living in collective households" (Eurostat, EU LFS Methods and Definitions 1996, p 11).

  The LFS is not alone in excluding CEs from its sampling frame; the Expenditure and Food Survey, the Family Resources Survey, the General Household Survey and the Survey of English Housing also do not sample from CEs. The decennial Population Census is the best source of data for people living in communal establishments, including HMOs.

INCAPACITY BENEFIT IN COASTAL TOWNS

Q.   Evidence has been provided by the DWP on the large number of people claiming incapacity benefit in coastal towns. Does the department know what proportion of these people were claiming it prior to moving to a coastal town, and if so, what action is being taken to address this?

  Of the 119,550 Incapacity Benefit claimants in the coastal towns studied, 4,660 had recently moved to the coastal town. This represents 3.9% of the total Incapacity Benefit claimants in coastal towns. There is no evidence to suggest any additional movement of Incapacity Benefit claimants to coastal towns than elsewhere in the UK. As such, there is no specific policy in place to offer any additional support or intervention to these claimants.

COASTAL TOWN DATA

  The following tables and charts illustrate some aspects of the labour market in coastal towns.

    —  Table 1 looks at the employment rates in 17 coastal towns, while Table 2 shows the number of Jobcentre Plus vacancies there in the past three years.

    —  Charts 1a and 1b compare the breakdown of jobs by employment status for coastal towns and for England as a whole; Charts 2a and 2b show a breakdown of temporary employment by type of temporary work.

    —  Tables 3 and 4 show the number and per cent respectively of jobs in tourism in coastal towns, with comparison figures for England and Great Britain.

    —  Charts 3-4 look at the jobs by sector in both coastal towns and England overall, first in 1998 and later in 2004.

    —  Table 5 looks at the number of working age claimants who claimed Incapacity Benefit/Severe Disability Allowance (IB/SDA) in a non-coastal town in February 2005, who then subsequently moved to a coastal town by February 2006 and were still claiming IB/SDA.

Table 1

EMPLOYMENT RATES IN COASTAL TOWNS
1999-20002000-01 2001-022002-032003-04 APS04APS05
Worthing 82.282.4 78.274.285.1 84.781.4
Weymouth and Portland74.3 79.073.980.2 76.978.378.8
Poole 80.578.1 79.78179.5 78.577.2
Eastbourne 77.974.7 75.076.975.4 75.277.0
Isle of Wight 70.870.7 72.373.875.1 76.376.9
Scarborough 71.972.8 72.669.570.3 72.276.8
Bournemouth 74.873.8 74.476.477.2 75.276.7
Southend-on-Sea 78.1 73.074.276.1 76.376.875.3
Thanet69.774.1 74.065.762.4 74.674.9
Dover 73.969.7 77.578.073.1 73.874.8
Portsmouth 71.573.6 75.179.777.7 72.374.2
Hastings 79.673.8 69.670.369.8 72.073.1
Torbay 73.273.6 73.072.573.7 72.373.0
Brighton and Hove75.7 71.375.176.8 78.176.172.6
Plymouth 71.772.9 73.872.173.3 74.071.8
Blackpool 69.469.5 74.271.770 71.671.4
Great Yarmouth68.873.2 66.76772.5 70.769.6
Coastal Towns73.9 73.574.3 74.474.774.9 74.6
England74.6%75.2% 75.1%75.0%75.0% 75.1%75.1%
Great Britain74.2%74.7% 74.6%74.6%74.8% 75.0%74.7%

Source: Nomis; Local Area Labour Force Survey and Annual Population Survey. Labour Force Survey 4-quarter average (England and Great Britain).

Table 2

JOBCENTRE PLUS VACANCIES (000s)
20042005 2006
Blackpool 9311,204 1,057
Bournemouth 748888 1,435
Plymouth 1,2671,250 1,368
Southend-on-Sea 835 6751,241
Brighton and Hove919 9951,153
Portsmouth 958964 1,045
Torbay 794751 774
Poole 719655 713
Thanet465873 696
Scarborough 512573 622
Great Yarmouth328510 561
Dover 442419 561
Eastbourne 442368 400
Worthing 257405 348
Isle of Wight 373346 338
Hastings 217323 257
Weymouth and Portland235 282186

Source: Jobcentre Plus Vacancy Data; Nomis.

CHART 1: EMPLOYMENT BY JOB STATUS

(a)   Coastal Towns


(b)   England

CHART 2: TEMPORARY EMPLOYMENT BREAKDOWN

(a)   Coastal Towns


(b)   England

Table 3

NUMBER OF JOBS IN TOURISM
19992000 200120022003 2004
Brighton and Hove12,094 13,106 13,103 14,865 14,031 15,763
Blackpool10,105 11,171 8,951 9,534 9,884 11,250
Portsmouth 7,387 8,791 8,110 9,343 9,173 9,986
Torbay 6,730 6,601 7,793 7,342 7,513 9,253
Plymouth 6,300 6,301 6,710 6,969 7,408 8,785
Bournemouth 9,032 9,561 9,149 10,564 10,710 8,724
Isle of Wight 6,361 6,809 6,395 11,691 5,626 8,183
Scarborough 6,803 6,757 7,904 7,441 7,042 7,159
Great Yarmouth 4,489 4,582 5,413 5,344 5,513 5,404
Southend-on-Sea 5,559 7,217 5,423 4,818 5,524 4,833
Poole 4,218 4,498 4,283 5,215 5,485 4,471
Eastbourne 3,576 3,820 3,425 3,903 3,436 3,950
Thanet 2,924 3,086 4,442 4,161 4,277 3,812
Dover 2,826 2,859 3,672 3,606 3,355 3,068
Worthing 3,022 2,667 2,933 2,530 2,681 2,825
Weymouth and Portland 2,690 2,939 2,895 3,215 3,117 2,733
Hastings 1,905 2,118 1,805 2,232 2,174 2,260
Coastal Towns96,022 102,882102,407 112,773106,948112,458
England1,636,631 1,655,3911,695,262 1,767,0731,791,173 1,837,046
Great Britain1,905,491 1,932,8121,979,481 2,053,3242,080,379 2,141,824

Source: Nomis—Annual Business Inquiry Employee Analysis.

Table 4

PERCENT OF JOBS IN TOURISM
19992000 200120022003 2004
Blackpool16.718.1 14.615.317.7 19.0
Torbay15.414.8 16.216.716.6 18.8
Scarborough17.117.1 19.118.317.6 18.0
Isle of Wight15.214.4 13.322.711.2 17.4
Great Yarmouth14.214.4 15.415.415.5 15.3
Weymouth and Portland16.7 15.116.717.6 17.115.1
Brighton and Hove10.9 11.411.312.6 12.113.4
Bournemouth13.213.2 12.714.114.0 11.7
Eastbourne10.510.4 9.511.09.4 10.4
Thanet8.69.5 11.611.211.7 10.0
Portsmouth7.68.8 8.09.19.3 9.7
Plymouth6.36.4 6.46.87.2 8.4
Dover7.48.0 9.59.08.6 7.9
Hastings6.87.3 6.37.77.4 7.5
Southend-on-Sea9.210.2 8.47.28.4 7.5
Poole6.77.1 6.78.78.7 7.0
Worthing6.45.9 6.35.45.9 6.3
Coastal Towns10.5 10.910.611.7 11.211.6
England7.67.6 7.78.08.0 8.2
Great Britain7.7 7.77.88.0 8.18.2

Source: Nomis—Annual Business Inquiry Employee Analysis.

CHART 3: JOBS BY SECTOR 1998

(a)   Coastal Towns

Source: Nomis—Annual Business Inquiry Employee Analysis.

(b)   England

Source: Nomis—Annual Business Inquiry Employee Analysis.

CHART 4: JOBS BY SECTOR 2004

(a)   Coastal Towns

Source: Nomis—Annual Business Inquiry Employee Analysis.

(b)   England

Source: Nomis—Annual Business Inquiry Employee Analysis.

Table 5

INCAPACITY BENEFIT CLAIMANTS

  Number of Working Age claimants who claimed Incapacity Benefit/Severe Disability Allowance (IB/SDA) in a non-coastal town in February 2005, who then subsequently moved to the following coastal towns by February 2006 and were still claiming IB/SDA.
Coastal TownWA IB

Claimants in

Feb 2006

Claimed IB in a

non- coastal town

in Feb 2005

As a proportion of

those claiming in

Feb 2006

Blackpool11,380650 5.7%
Bournemouth8,880370 4.2%
Brighton and Hove12,520 3703.0%
Dover4,630120 2.6%
Eastbourne4,170220 5.3%
Great Yarmouth5,080 2104.1%
Hastings5,600260 4.6%
Isle of Wight6,350180 2.8%
Plymouth14,160360 2.5%
Poole4,870140 2.9%
Portsmouth7,750280 3.6%
Scarborough5,400240 4.4%
Southend-on-Sea7,210 3204.4%
Thanet6,750250 3.7%
Torbay7,580350 4.6%
Weymouth and Portland3,400 1705.0%
Worthing3,820170 4.5%
Total119,550 4,6603.9%

Source: DWP Information Directorate 100% WPLS.

Notes:

1.  Figures are rounded to the nearest 10. Totals may not sum due to rounding.





 
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