Rural labour markets: the welsh example

Abstract

This paper examines the rural labour market within Wales over the last decade. Data from the Labour Force Survey and the New Earnings Survey are used to compare trends in economic activity rates, employment, education and earnings in rural Wales with the rest of the country. In addition to the rural–urban comparison, evidence presented from other rural labour market studies is used to establish similarities between the rural labour market within Wales and the rest of the UK. In this respect, the paper collects evidence from which the need for differential labour market policy between the rural and urban area can be assessed.

Keywords:

• Rural areas
• labour markets
• Wales

Acknowledgements

Financial support from the European Social Fund is gratefully acknowledged.

Notes

This is also the definition used by the Welsh Assembly in its Rural Development Plan and the Statistical focus on Wales, making the analysis comparable.

However, it is recognised that substantial heterogeneity exists within this area; a further breakdown into the valleys, the most urban unitary authorities and other unitary authorities is presented in the WELMERC Discussion Paper Number 2004-01. For an analysis of each of the unitary authorities within Wales see Jones et al. (2004).

GDP (Gross Domestic Product) is GVA plus taxes (and less subsidies) on products. GVA is measured in current prices, which means that increases over time are affected by inflation.

This has obvious implications for the housing market; the interdependency between the rural housing and labour markets is considered in the sixth section.

Population figures are taken from Census data.

Source: Improved Statistics on commuting in Wales, National Assembly, 2001.

Some of the unemployment data for females in rural Wales are suppressed by the LFS due to small sample sizes.

WDA (2002) ‘A commitment to rural Wales’.

Data from the UK tourist survey.

A change in occupational groupings after 2001 prevents comparison with the 2003 figures.

Source: Local Labour Force Survey 2001.

Rural development plan, National Assembly for Wales (1999).

The low rate of business formation is cited as a challenge facing rural Wales in ‘A commitment to Rural Wales’ WDA (2002).

The lower proportion in public administration is surprising given its dominance in the structure of employment identified earlier. This would seem to suggest large firms dominate employment in public administration in the rural areas. Of course the reverse could be true, that the firms are small enough not to be VAT registered.

QLFS, Autumn 2001.

Source: Digest of Welsh Statistics 2003.

The State of the Countryside Report (2003) examines each of these areas.

Several studies find the difficulties faced by rural areas tend to be exacerbated by isolation.