Spatial inequality and skills in a changing economy
Spatial disparities in employment and skills are entrenched and increased during the recession. There are also spatial variations in ambitions, aspirations and motivations. Localised outlooks may constrain ambition but such individuals are ‘settled’ not ‘trapped’ making rational choices to remain supported by current social networks. Government policy promotes a ‘rebalancing’ of the economy which in spatial terms is about ‘sharing’ growth rather than curtailing growth and reallocating it elsewhere.
Equality Briefing Paper – Spatial Inequality and Skills in a Changing Economy (PDF, 1.5 Mb)
Published September 2011
This is one of a series of briefing papers in an equalities series assessing different dimensions of skills in a changing economy. Here the focus is on spatial inequality at a variety of geographical scales from the regional through the sub-regional and local to the micro-level in the UK. The aim is to provide insight and understanding into the skills related challenges, needs and opportunities, for individuals who are spatially disadvantaged in the labour market. The emphasis is on new and recent evidence since 2005.
In relation to spatial inequality there is an important distinction between:
- compositional effects – reflecting the uneven spatial distribution of people with different skill levels and other labour market attributes; and
- area effects – which remain once population composition has been accounted for.
While all areas have felt the impact of recession its spatial imprint has been uneven. Contrary to initial expectations that London and the South East would be disproportionately hard hit, it was regions in the north and midlands that experienced the largest increases in unemployment rates.
There is an uneven geographical distribution of skills across the UK. The supply of and demand for higher level skills are concentrated in London and the South East. However, spatial variations in employment rates are much less pronounced for those with higher level qualifications than for those with no qualifications. Those with no qualifications saw larger percentage point reductions in employment rates during the recession than those with higher level qualifications.
There are also spatial variations in ambitions, aspirations and motivations. Localised outlooks may constrain ambition but such individuals are ‘settled’ not ‘trapped’. They make a rational choice to remain supported by current social networks.
The findings have significant implications for the ‘rebalancing’ of the economy, where spatial rebalancing is about ‘sharing’ growth rather than curtailing growth and reallocating it elsewhere.
This paper is one of a series of five Briefing Papers on equality and skills, which include:
- Disability and skills in a changing economy
- Gender and skills in a changing economy
- Low skills and social disadvantage in a changing economy
- Older people and skills in a changing economy
- Spatial inequality and skills in a changing economy
Other recent research in this area includes:
The Youth Inquiry (UK Commission 2011) explored questions around the unemployment, recruitment and employer perspectives of young people.
In May 2011, Joseph Rowntree Foundation published ‘Poverty and ethnicity: a review of evidence’ and is launching a fuller programme of in this area.
