Task Force on EU Labour Market Areas Oliver Heiden Eurostat.E4 TF-EU-LMA Task Force on EU Labour Market Areas Oliver Heiden Eurostat.E4 WG on Regional, Urban and Rural Development statistics – 2014 October

What is an LMA? (1) Functional, NOT administrative region (=NUTS) October 2014

What is an LMA? (2) October 2014

What is an LMA? (3) Definition: majority of people live AND work in a LMA Assumptions: in an LMA… constant labour cost, employment, productivity etc. administration of the ‘centre municipality’ impacts whole area administrative parts benefit from collaboration LMA grid characterises commuting behaviour October 2014

What was done so far? 2007 Eurostat questionnaire 2012 Study on comparable Labour Market Areas Research report based on NSI questionnaires Overview of national methods and data Recommendations for methodology 2013 – 2014 Task Force on Labour Market Areas Implementation based on the Study Definition of EU method Technical implementation Recommendations October 2014

LMA Task Force organisation (1) Countries with official LMAs BE, DE, EE, FI, FR, IT, (NL), SE, UK. Countries with experimental LMAs CY, CZ, DK, EL, (PT), SI, SK. Countries with no LMAs AT, BG, ES, HU, IE, LT, LU, LV, (PL), RO. October 2014

LMA Task Force organisation (2) DE: Wolfgang EMMEL (only 1st meeting) Hessisches Statistisches Landesamt FR: Stéphanie MAS Ministère du Travail, de l'Emploi, de la Formation professionnelle et du Dialogue social IT: Sandro CRUCIANI Istituto nazionale di statistica (ISTAT) HU: András KEZÁN Központi Statisztikai Hivatal (KSH) NL: Hilde KEUNING VAN OIRSCHOT Centraal Bureau voor de Statistiek (CBS) PL: Paweł STOPIŃSKI Główny Urząd Statystyczny (GUS) UK: Andrew BATES Office for National Statistics (ONS) October 2014

LMA Task Force achievements (1) Work plan: Appraisal of the approach presented in the Study  Definition of the EU-method  Ways and means of promoting the harmonised method  Official proposal of the EU method  October 2014

LMA Task Force achievements (2) Appraisal of the approach presented in the Study October 2014

LMA Task Force achievements (3) Definition of the EU-method UK (TTWA) method to be applied to all EU Simple is beautiful = input data: only commuting flows 2x2 parameters Self-containment: MINIMUM, TARGET Size: (Number of employed) MINIMUM, TARGET October 2014

LMA Task Force achievements (4) self-containment size October 2014

October 2014

October 2014

LMA Task Force achievements (5) Which are the optimal parameters? Sensitivity analysis Measuring impact of changing parameters One by one (ceteris paribus) Size-Variants 1,2 MINIMUM TARGET SIZE 1.000 25.000 SELF-CONTAINMENT 66.7% 75.0% MINIMUM TARGET 3.500 50.000 66.7% 75.0% SC-Variants 3,4 MINIMUM TARGET SIZE 3.500 25.000 SELF-CONTAINMENT 70.0% 75.0% MINIMUM TARGET 3.500 25.000 66.7% 85.0% October 2014

LMA Task Force achievements (6) Four countries NL - SE Av. LAU2 Population ≈ 33.000 Av. LAU2 Area 100-1500 km2 AT - HU Av. LAU2 Population ≈ 3.300 Av. LAU2 Area 33 km2 Assumption: difference in results due to… Different size (population AND area) of building blocks Different commuting behavior (transport network, commuting allowance, culture etc.) October 2014

LMA Task Force achievements (7) TTWA Workers 3.4 mill. LMA 64 Average 53.000 Austria October 2014

Austria October 2014 MinSIZE = 1000 Workers 3.4 mill. LMA 73 Average 46.000 TTWA Workers 3.4 mill. LMA 64 Average 53.000 TargetSIZE = 50.000 Workers 3.4 mill. LMA 55 Average 62.000 October 2014

Austria October 2014 MinSC = 70.0% Workers 3.4 mill. LMA 55 Average 62.000 TTWA Workers 3.4 mill. LMA 64 Average 53.000 TargetSC = 85.0% Workers 3.4 mill. LMA 48 Average 71.000 October 2014

LMA Task Force achievements (8) Searching for the optimal parameters… 1=  min. Size 2=  tar. Size 3=  min. SC 4=  tar. SC different MS – different sensitiveness impact on number of LMAs parameter sets October 2014

LMA Task Force achievements (9) Agreement on methodological details Optimal parameters to be defined by NSIs MINIMUM flows between LMAs (intrinsic), MAXIMUM homogeneity within LMAs: employment, productivity, labour cost etc. (extensic) Manipulations after the run of the algorithm is allowed Concentration on large LMAs with EU relevance Technical difficulties Implementation of TTWA algorithm still not final TF Member States did not define optimal parameters October 2014

LMA Task Force achievements (10) Input data recommendations Commuter data source Census data, or registers if updated Employed persons Age group 16+ Commuters From residence or communal establishments To usual workplace, no fixed workplace or home (!) Daily, weekly or less frequent No cross-border commuting October 2014

LMA Task Force achievements (11) Ways and means of promoting the harmonised method Mentoring programme Task Force member countries mentor 3-4 other countries Help in the definition of optimal parameters for all countries Multi-benefitiary grants are planned to support the programme Planned for autumn of 2015 (The implementation of the algorithm needs to be finalized first) October 2014

LMA Task Force achievements (12) Official proposal for the EU-method The method is basically final, some minor details have to be clarified ISTAT provided script 0.9, 1.0 and 1.1 in R (The sensitivity analysis and the procedure to define the optimal LMA breakdown to be finalized first. Planned for spring 2015 October 2014

Thank you for your attention! More information on CIRCABC: https://circabc.europa.eu/w/browse/398c68fd-ce35-407c-97a9-a015921dfd4f Contact: ESTAT-REGIO@ec.europa.eu October 2014