Labour market areas in Great Britain: Developments since 1961

Abstract

Since employment problems vary widely between individual localities, the definition of local labour market areas is of considerable importance for employment policy. The paper describes the results of studies undertaken to identify changes in self-contained labour market areas (LMAs) throughout Great Britain between 1961 and 1971. LMAs are defined by the application of a gravity formula to commuter flows between areas. The number of LMAs fell by one third over the decade, reflecting longer average work journeys. LMAs tended to combine on stable and predictable lines, through the strengthening of their main previous commuter links. The studies also show marked contrasts in LMA patterns between the central and peripheral regions of Britain. Most of the conurbations comprise a number of separate LMAs (some of them extending far into the surrounding countryside) and thus cannot be regarded as unified labour markets. Over one half of the 25 largest LMAs are located outside the conurbations, representing large self-contained economic communities which are inadequately recognised in conventional geographical categories. The paper also notes recent changes in the Department of Employment's “travel to work areas” based on similar criteria. Finally, it seems likely that LMAs have continued to expand since 1971 as the result of interconnected developments in housing, employment and transport.