1. Kick-off meeting on Labour Market Areas, Luxembourg 05.04.2016
Study on the applicability of EURO method in the delineation of Labour Market Areas
Kezán András
Kick-off meeting on Labour Market Areas, Luxembourg

2. Kick-off meeting on Labour Market Areas, Luxembourg 05.04.2016
Goals
The expected result of this research is, to set up the non-overlapping system of Labour Market Areas for the whole country. It is aimed to ensure an additional territorial classification beside the existing administrative boundaries (which is based on the real local labour connections and flows) for decision makers in order to provide them with more detailed information on the local labour situation. By using this information main stakeholders might become capable of elaborating more precise policy interventions in this field. Further goal of our project is testing the applicability of EURO method in Hungary.
Kick-off meeting on Labour Market Areas, Luxembourg

3. Roadmap Task1. Feasibility research
2.(a) TIMETABLE TO CARRY OUT EACH STAGE OF THE ACTION SHOWING MAIN DATES AND EXPECTED RESULTS FOR EACH STAGE
Milestones/ Deliverables / Tasks / Results / Reports
Timetable
Task1. Feasibility research
M +9
Milestone 1. Reviewing the scientific literature in connection with local labour markets, reviewing existing and formerly used methods and their outcomes /
M+3
Milestone 2. Compilation of the research plan
M + 4
Milestone 3. Choosing input data of the analysis and modelling
M+4
Deliverable 1. Research plan
M+5
Milestone 4. Sensitivity analysis
M+6
Milestone 5. Choosing the appropriate parameters and delineate the suggested LMAs
M+8
Deliverable 2. Feasibility study on the EURO method
M+9
Task 2. Validation and model finalisation
M+13
Milestone 6. Choosing feasible LMA structures
M+10
Milestone 7. Comparing other existing methods and their outcomes with the EURO method
Deliverable 3. Validation report, the comparative analysis of EURO method with other existing methods
Deliverable 4. Final list and maps of LMAs
Task 3. Communication and dissemination
M+18
Deliverable 5. Scientific publication on the feasibility of EURO method in Hungary (bilingual)
M+15
Milestone 8. Describing the LMAs by the help of further statistical indicators, grouping the LMAs from many points of view
M+14
Milestone 9. Compilation of printed publication on “Labour Market Areas in Hungary”
M+16
Deliverable 5. Printed publication on “Labour Market Areas in Hungary”
Milestone 10. Participating in scientific and other forums
Deliverable 6. Publishing the outcomes of the action, short description of the EURO method, list and maps of the LMAs on the HCSO website
Task 4. Sharing knowledge and best practices

4. Methodological background
In order to use EURO method properly, it should be clear what are the differences between the many quiet similar, but basically very diverse definitions like:
Daily urban system
Functional urban region
Nodal region
Local labour market area
Travel to Work Area (TTWA)
etc.
Kick-off meeting on Labour Market Areas, Luxembourg

5. Kick-off meeting on Labour Market Areas, Luxembourg 05.04.2016
Input data (census)
Employed
( )
Temporarily staying
abroad
(56 694)
Living in Hungary
( )
Daily commuting
( )
Living and working in
the same settlement
( )
Working in various
settlements
( )
Commuting to other
settlement
( )
Commuting to abroad
(27 128)
Practically in Hungary that figure does not only refer to daily commuters!
Kick-off meeting on Labour Market Areas, Luxembourg

6. Other input data that help to validate the outputs of the model
Difficult to find other statistical information which is suitable to validate the model from an external point of view. (There are no other information available at this spatial level which can describe the local labour markets (like wages, job vacancy, employment of local units etc.).)
So we have to observe and evaluate the outputs from an internal point of view (based on commuting data). BUT we are capable of linking some other information to these data.
Accessibility (by car or by public transport)
Direction of commuting flows
Population
Area
Kick-off meeting on Labour Market Areas, Luxembourg

7. Kick-off meeting on Labour Market Areas, Luxembourg 05.04.2016
Test criteria
Size (population, area, employment)
Accessibility
Central places (none, one or more), inner flows
Commuting flows outward from the LMAs
Commuting flows of the settlements from the reserve list
Enclaves, exclaves
Border effects
Settlements without commuting links
Relations between LMAs and the local geographical characteristics (differences between various morphological areas eg. plains, highlands etc.)
Kick-off meeting on Labour Market Areas, Luxembourg

8. Comparing the outcomes
In order to understand the function of the model (used) and its outcomes, it is essential to compare them with the outcomes other methods.
The following methods are planned to use:
SMART method
LLS method
CONCOR analysis
Clique Percolation Method (CPM)
CURDS method
Louvain algorythm
We also plan to compare the outcomes of EURO method with the existing administrative units like:
LAU1 units
Service area of employment centers
Kick-off meeting on Labour Market Areas, Luxembourg

9. First results of the sensitivity analysis on raw data
MINSZ
MINSC
TARSZ
TARSC
LMA_NO
AVSZ
MAXSZ
500
0,667
10000
0,75
175
542
21 296
1000
159
1 029
23 452
2000
142
2 066
26 280
3000
125
3 004
29 883
12500
154
24 219
15000
150
24 869
17500
149
25 037
20000
148
25 207
0,5
262
1 013
14 197
208
17 901
0,8
188
19 815
0,85
174
1 232
21 419
133
28 072
120
31 139
114
32 792 98
38 201
0,7
128
29 177
2500
111
2 704
33 686
5000 92
5 582
40 720
7500 84
7 825
44 644
Kick-off meeting on Labour Market Areas, Luxembourg

10. Kick-off meeting on Labour Market Areas, Luxembourg 05.04.2016
First results of the sensitivity analysis on raw data (minsz: 1000; tsz:10000; minsc: 0,5 ;tsc: 0,667)
Kick-off meeting on Labour Market Areas, Luxembourg

11. Kick-off meeting on Labour Market Areas, Luxembourg 05.04.2016
First results of the sensitivity analysis on raw data (minsz: 1000; tsz:10000; minsc: 0,667 ;tsc: 0,75)
Kick-off meeting on Labour Market Areas, Luxembourg

12. Kick-off meeting on Labour Market Areas, Luxembourg 05.04.2016
First results of the sensitivity analysis on raw data (minsz: 1000; tsz:10000; minsc: 0,7 ;tsc: 0,8)
Kick-off meeting on Labour Market Areas, Luxembourg

13. Kick-off meeting on Labour Market Areas, Luxembourg 05.04.2016
First results of the sensitivity analysis on raw data (minsz: 3000; tsz:10000; minsc: 0,667 ;tsc: 0,75)
Kick-off meeting on Labour Market Areas, Luxembourg

14. THANK YOU FOR YOUR KIND ATTENTION!
Kezán András
Kick-off meeting on Labour Market Areas, Luxembourg