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Employment and Self-Employment
from the Annual Population Survey

February 2008


National Performance Indicator NI 151: Overall Employment Rate

Central Government has set 198 priority measures for local government. The Overall Employment Rate is indicator number 151 (see Table 1) and measures a local area's contribution towards the aspiration to achieve full employment. It is the proportion of the working age (16-59 females and 16-64 males) who are in employment according to the International Labour Organisation definition. The figures are derived from the Annual Population Survey.

Introduction

The following article uses results from the Annual Population Survey (APS). The APS was introduced in 2004 to replace the Labour Force Survey (LFS). It initially comprised the annual LFS supplemented by an extra boost designed to obtain a sample of 500 economically active adults in each local authority district. As a cost saving measure, the supplementary information was scaled back in mid-2005 and withdrawn from January 2006.

The APS figures used in this research monitor are for the 12-district Lancashire County Council (NUTS-3) area; the 14-authority Lancashire NUTS-2 area that includes Blackburn with Darwen and Blackpool unitary authorities, and comparator figures for Great Britain.

For the year to June 2007, the APS survey interviewed 280,661 people. In the Lancashire NUTS-2 area, 6,187 interviews took place. Broken down by the individual authorities in Lancashire, over were undertaken in the two unitary authorities of Blackburn with Darwen and Blackpool. The impact of the interviews in these two authorities will therefore have a disproportionately high affect on the overall Lancashire results.

The complete range of available data sets from the Annual Population Survey for all areas of the country can be downloaded from www.nomisweb.co.uk. Once users have registered on the nomisweb site, it is possible to download all APS variables along with a wide range of other official government figures.

Please note that the earlier editions of the research monitor in the archive section of this website contain LFS results that go back to 1997.

Employment Rate Working Age (National Performance Indicator NI151)

Table 1, lists the employment numbers and rates for those of working age results for 2004 onwards. The Lancashire County Council area (NUTS-3) results are the most liable to statistical errors due to the small sample size, but the general impression is of employment rates that are marginally lower the GB average. For the broader Lancashire NUTS-2 area, the addition of the two unitary authorities appears to lower even further the recorded employment rates.

There is a desire to analyse NI 151 results down to the district authority level, but the sample sizes make analysis for the 12-district authorities in Lancashire very problematic. For the year to June 2007, only two of the 12 districts had sample sizes in excess of 300, whilst two other authorities recorded figures of fewer than 160 people interviewed.

Table 1 Employment Rate, Working Age, 2004 to Mid-2007
 
Lancashire County (NUTS-3)
Lancashire NUTS-2
Great Britain
No.
%
No.
%
No.
%
 
 
 
 
 
 
 
Jan 2004-Dec 2004
508,600
73.8
625,400
73.2
26,246,000
74.4
Apr 2004-Mar 2005
507,500
73.7
625,000
73.1
26,313,600
74.5
Oct 2004-Sep 2005
511,500
74.4
628,800
73.7
26,374,600
74.6
Jan 2005-Dec 2005
512,800
74.6
628,900
73.7
26,361,500
74.5
Apr 2005-Mar 2006
517,600
75.0
630,700
73.7
26,323,800
74.3
Jul 2005-Jun 2006
519,500
75.2
633,000
73.9
26,322,000
74.2
Oct 2005-Sep 2006
515,700
74.6
628,400
73.3
26,317,200
74.1
Jan 2006-Dec 2006
514,200
74.3
627,700
73.2
26,407,100
74.3
Apr 2006-Mar 2007
506,000
73.3
619,700
72.3
26,417,500
74.2
Jul 2006-Jun 2007
510,200
73.9
623,000
72.7
26,455,500
74.3
Source ONS - Annual Population Survey

Self-Employment, Historical Context and Recent Results

At the national level, self-employment as a proportion of the adult population has grown over the last twenty years. The period 1986 to 1990 in particular saw a high rate of growth with the proportion rising 6.3% to 7.9%. This growth in self-employment in the 1980s was attributed to government incentives such as the small business start-up scheme, the growth in long-term unemployment, the expansion of the service sector, where self-employment is more prevalent, coupled with the decline in manufacturing, and the shift towards contracting-out of services by large employers.

In general, the self-employed are more commonly associated with skilled trade occupations i.e., in the Construction sector, also business activity industries such as Banking, Finance and Insurance. There is also a geographic tendency towards higher self-employment levels in London and the South East.

Self-employment is generally entered into most frequently after the age of 30. This is partly due to the need for people to acquire sufficient experience and financial resources. The proportion of the self-employed therefore is found to increase with age, especially for those over the retirement ages of 59/64.

Table 2 Self-Employment as a Percentage of All People Aged 16+ in Employment, 2004-2007
 
Lancashire County (NUTS-3)
Lancashire NUTS-2
Great Britain
No.
%
No.
%
No.
%
 
 
 
 
 
 
 
Jan 2004-Dec 2004
62,500
11.9
76,600
11.9
3,422,100
12.6
Apr 2004-Mar 2005
64,100
12.2
78,500
12.2
3,460,300
12.7
Jul 2004-Jun 2005






Oct 2004-Sep 2005
63,100
11.9
77,000
11.9
3,495,600
12.8
Jan 2005-Dec 2005
65,700
12.4
78,100
12.0
3,511,200
12.8
Apr 2005-Mar 2006
67,500
12.7
79,600
12.3
3,527,900
12.9
Jul 2005-Jun 2006
70,400
13.2
82,500
12.7
3,530,300
12.9
Oct 2005-Sep 2006
68,100
12.8
81,200
12.5
3,560,800
13.0
Jan 2006-Dec 2006
61,700
11.6
75,900
11.7
3,572,400
13.0
Apr 2006-Mar 2007
61,600
11.7
76,300
11.9
3,598,300
13.1
Jul 2006-Jun 2007
62,300
11.7
77,800
12.0
3,612,100
13.1
Source ONS - Annual Population Survey

Table 2, self-employment data for Great Britain, the county council broader Lancashire. Unlike Table 1 and 3, the figures are for all people aged over 16 and not just those of working age.

For the past few years at the national level, the Annual Population Survey results have suggested a rate of self-employment of between 12.6%-13.1%, with the trend being slightly upwards. The more statistically volatile results for the two Lancashire areas suggest lower rates of self-employment in comparison to the national average.

Economic Activity Rates

The APS results for the percentage of working people who are economically active reveal that activity rates in the broader Lancashire area have been consistently below the national average. Excluding the two unitaries, the figures for the Lancashire County Council area are between the lower Lancashire NUTS-2 results and the higher rates recorded at the national level.

Table 3 Percentage of Working People Who Are Economically Active, 2000 to Mid-2007
 
Lancashire County (NUTS-3)
Lancashire NUTS-2
Great Britain
 
 
 
 
Jan 2004-Dec 2004
77.3
76.8
78.2
Apr 2004-Mar 2005
77.2
76.7
78.3
Jul 2004-Jun 2005



Oct 2004-Sep 2005
77.7
77.2
78.4
Jan 2005-Dec 2005
78.1
77.4
78.4
Apr 2005-Mar 2006
78.0
77.1
78.3
Jul 2005-Jun 2006
78.2
77.3
78.4
Oct 2005-Sep 2006
78.0
77.1
78.4
Jan 2006-Dec 2006
77.9
77.0
78.6
Apr 2006-Mar 2007
77.2
76.3
78.5
Jul 2006-Jun 2007
78.0
76.9
78.5
Source ONS - Annual Population Survey

This page was compiled by Bryan Moulding .

All enquiries from the media should be sent to Corporate.Communications@lancashire.gov.uk .

Any other questions about the content of this page may be sent to EconInfo@lancashire.gov.uk .

For all enquiries about the county council's services , contact the Customer Service Centre on 0845 0530000 (01772 530000) or at Enquiries@css.lancscc.gov.uk .

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