Methodology

How we calculate the metrics in our economic profiles.

Data Sources

SourceGeographyFrequencyLicence
Business Register and Employment Survey (BRES)LA and belowAnnualOGL v3.0
Claimant CountLA and belowMonthlyOGL v3.0
Annual Survey of Hours and Earnings (ASHE)LAAnnualOGL v3.0
Census 2021Output area and aboveDecennialOGL v3.0
HM Land Registry Price PaidLAAnnual (December averages)OGL v3.0
UK Business Counts (Inter-Departmental Business Register)LAAnnualOGL v3.0
English Indices of Deprivation 2019LA (aggregated from LSOA)Periodic (last published 2019)OGL v3.0

Employment, earnings, claimant, and business data accessed via Nomis (nomisweb.co.uk). House prices from HM Land Registry linked data (landregistry.data.gov.uk). Deprivation from MHCLG.

Location Quotients

A location quotient (LQ) measures the relative concentration of an industry in a local area compared to a reference economy (England).

LQ = (local_employment_in_sector / local_total_employment)

/ (national_employment_in_sector / national_total_employment)

LQ > 1.50: Highly specialised. The sector is significantly over-represented locally.

LQ 1.25-1.50: Specialised. Meaningful local concentration above the national average.

LQ 0.75-1.25: Average. Broadly in line with the national economy.

LQ < 0.75: Under-represented. The sector is less prevalent locally than nationally.

Shift-Share Analysis

Shift-share decomposes employment change in each sector into three components:

National share

How much employment would have changed if the local sector grew at the national all-sector rate. Reflects the overall economic tide.

Industry mix

The additional change attributable to the sector growing faster or slower nationally than the overall economy. Captures structural advantages (or disadvantages) from sector composition.

Local competitiveness

The residual: how much the local sector outperformed (or underperformed) its national sectoral trend. This is the component that reflects genuinely local factors.

Validation: For every sector, the three components sum exactly to the actual employment change. This is a mathematical identity, not an approximation.

House Prices

Median house prices are sourced from the HM Land Registry Price Paid dataset via their SPARQL linked data endpoint. We use December average prices for each year (2015 onwards) to provide consistent annual snapshots.

The price-to-earnings ratio divides the median house price by median annual workplace earnings (from ASHE) for the same local authority. Year-on-year change is calculated from the two most recent December figures available.

Indices of Deprivation

The English Indices of Deprivation 2019 (published by MHCLG) rank every local authority across seven domains of deprivation: Income, Employment, Education, Health, Crime, Barriers to Housing and Services, and Living Environment.

We use the "Rank of average rank" measure, which summarises each LA's position relative to all 317 English local authorities (where rank 1 is the most deprived). Percentiles are derived from these ranks so that higher values indicate greater deprivation.

The radar chart displays percentile scores across all seven domains, giving an at-a-glance view of a local authority's deprivation profile. Note that the IMD was last updated in 2019 and may not reflect recent changes.

Business Environment

Enterprise counts come from the UK Business Counts dataset on Nomis, which is derived from the Inter-Departmental Business Register (IDBR). This covers VAT and/or PAYE registered businesses.

Size bands follow the standard classification: micro (0-9 employees), small (10-49), medium (50-249), and large (250+). The three-year trend shows net change in total active enterprises, and the growth rate is calculated from the earliest to the latest available year.

Interactive Map

The homepage choropleth map uses Local Authority District boundaries from the ONS Open Geography Portal (December 2023 vintage, super-generalised and clipped to the coastline). Boundaries are rendered as SVG using react-simple-maps.

Colour scales use the 5th and 95th percentile of each metric to set the range, preventing extreme outliers from compressing the visible variation. The claimant rate metric uses an inverted orange scale (higher values appear darker) since higher claimant rates indicate weaker labour markets.

Limitations

Licence

This product contains public sector information licensed under the Open Government Licence v3.0. Source data is Crown Copyright: Office for National Statistics, HM Land Registry, and Ministry of Housing, Communities and Local Government.