Greater Manchester LEP REPORT - Emsi

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Greater Manchester LEP REPORT - Emsi
Greater Manchester
     LEP REPORT
Greater Manchester LEP REPORT - Emsi
Contents
Emsi LEP Report | Greater Manchester LEP

                                           3......Foreword

                                           4......Overview of our region’s economy

                                           5......High level overview of our region’s industries and occupations

                                           6......What are our top industries?

                                           7......What are our top occupations?

                                           8......What are our highest paying industries and occupations?

                                           9......What are our niche industries and occupations?

                                           10....What are our most competitive industries and occupations?

                                           11....Where are the jobs in our most niche industry?

                                            About Emsi
                                            Economic Modelling Specialists International (Emsi) creates tools and services that help
                                            organisations better understand the connection between economies, people and work. Through
                                            our unparalleled local and granular economic data, we are now working with more than 100
                                            colleges, universities and LEPs across the country, giving them the understanding they need
                                            in order to close skills gaps, drive growth, and increase productivity in their local economy.
 2
Greater Manchester LEP REPORT - Emsi
Foreword

                                                                                                           Emsi LEP Report | Greater Manchester LEP
The central role of LEPs – determining local economic priorities, driving economic growth and
helping to increase regional productivity – all require that you have a thorough understanding
of your regional economy. One of the methods at your disposal to help you acquire this
understanding is of course Labour Market Information (LMI).

There is a wealth of publicly available data sources available, but there are numerous problems
associated with using them. To begin with, not one dataset out there gives a complete picture of the
labour market. Secondly, all datasets contain strengths, weaknesses, and data suppressions. And
thirdly, attempting to use the raw data is a hugely time-consuming and resource-consuming activity.

Most LMI solutions can help overcome the first and the third problem, by combining different
datasets into one system. However, this still doesn’t overcome the second problem – that of
weaknesses and data suppressions. Since these problems and gaps in the data tend to occur at
the 3 and 4-digit industry and occupation levels, what most LMI solutions tend to do is to make
assumptions about the granular levels based on the data and trends at the more generic levels.
This approach is bound to lead to erroneous conclusions, since many of the industries and
occupations at the 3 and 4-digit level are quite different from one another and are highly unlikely
to have been growing or declining at the same rate (for example, within the 2-digit Leisure,
Travel and Related Personal Service Occupations, there are such disparate occupations as Travel
Agents, Caretakers, Hairdressers and Barbers, and Sports and Leisure Assistants). The same
errors will occur if assumptions are made at the geographical level, as regions are made up of
sub-regions which are often far from homogenous.

At Emsi we take a different approach. Rather than taking public datasets and making broad
assumptions, we economically model them together using a technique developed over many years,
which allows us to retain the strengths and discard the weaknesses of each source. What we end
up with is a dataset that gives a detailed and accurate picture not only of regional labour markets,
but also of the sub-geographies within, right down to the most specific industries and occupations.

The intent of this report is to give you a flavour of this data, tailored specifically to your region.
Some of the highlights of the data in this report are:

        • Granular data (4-digit) on occupations and industries throughout
        • A look at the industries and occupations which make your region unique
        • A look at the occupational make up of the most unique industry in your region

This kind of granular data can go a long way to helping you better understand what industries,
occupations and skills are driving your region. In turn, this can help you in a number of ways,
including better defining your region’s economic priorities, formulating a more effective growth
strategy, and encouraging inward investment into your region.

Our goals are very similar to yours: you are looking to drive growth and increase productivity in your
region; we produce granular data that is designed to give organisations such as yours the knowledge and
understanding you need to be able to more effectively drive growth and increase productivity in your
region. We hope that this report will be of use and of interest to you as you strive to meet your goals.

                                                                                                               3
Greater Manchester LEP REPORT - Emsi
Overview of our region’s economy
Emsi LEP Report | Greater Manchester LEP

                                                                               Number of jobs in 2015:

                                                                                      1,239,524
                                                     Projected number of jobs by 2020:

                                                    1,267,087
                                            Forecast increase in jobs between 2015 and 2020:

                                                                               27,563
                                                          Forecast job growth between 2015 and 2020:

                                                                                     2%
                                                 Average wage in our region:

                                                         £24,645

 4
Greater Manchester LEP REPORT - Emsi
High level overview of our region’s
industries and occupations

                                                                                                                        Emsi LEP Report | Greater Manchester LEP
                                                                                         Top 5 high level industries
                         Industry                   2015 Jobs     2020 Jobs

Wholesale and Retail Trade; Repair                                                                           192,006
 of Motor Vehicles and Motorcyles                                                                            193,036

                Human Health and                                                                   170,328
              Social Work Activities                                                                   179,890

        Professional, Scientific and                                          119,122
                Technical Activities                                            126,290

              Administrative and                                           112,915
        Support Services Activities                                         115,461

                                                                         110,834
                         Education
                                                                       106,176

                                                                                      Top 5 high level occupations
                      Occupation                    2015 Jobs     2020 Jobs
                                                                                                             226,084
           Professional Occupations
                                                                                                   233,389

                                                                              165,139
           Elementary Occupations
                                                                               167,143

                Administrative and                                          161,684
            Secretarial Occupations                                          165,130

       Associate Professional and                                           161,620
           Technical Occupations                                             166,149

               Sales and Customer                               122,094
               Service Occupations                               124,982

 Top 5 high level growth industries

                                                                                         Change in Jobs
Industry                                                                                                     % Change
                                                                                           (2015-2020)
Human Health and Social Work Activities                                                          9,562            6%
Professional, Scientific and Technical Activities                                                 7,168           6%
Construction                                                                                     4,578            8%
Information and Communication                                                                    4,436           12%
Real Estate Activities                                                                            3,111          11%

 Top 5 high level growth occupations

                                                                                         Change in Jobs
Occupation                                                                                                   % Change
                                                                                           (2015-2020)
Professional Occupations                                                                          7,305           3%
Associate Professional and Technical Occupations                                                  4,529           3%
Caring, Leisure and Other Service Occupations                                                     3,954           3%
Administrative and Secretarial Occupations                                                        3,446           2%
                                                                                                                            5
Sales and Customer Service Occupations                                                            2,888           2%
Greater Manchester LEP REPORT - Emsi
What are our top industries?
                                                 A good place to start when trying to understand what is driving your regional economy is to look
                                                 at which industries are driving employment both in terms of total numbers employed and in terms
Emsi LEP Report | Greater Manchester LEP

                                                 of future growth. However, simply looking at the headline industries will not tell you an awful lot.
                                                 To come to a really good understanding of the drivers in your region, it is crucial to drill right down
                                                 to the most specific industries (4-digit SIC). Our data tool, Analyst, allows users to do just this, and
                                                 the information below shows both the biggest industries and the highest growth industries in your
                                                 region, right down to the most granular levels.

                                                 Top 10 biggest industries

                                                                             Industry              2015 Jobs       2020 Jobs
                                                                                                                                                        69,866
                                                                    Hospital activities
                                                                                                                                                             74,522

                                                   Public administration and defence;                                                 53,109
                                                           compulsory social security                                                 53,059

                                                                                                                             43,630
                                                                    Primary education
                                                                                                                           41,762

                                             Retail sale in non-specialised stores with                                 38,695
                                           food, beverages or tobacco predominating                                      39,216

                                                        Restaurants and mobile food                                35,559
                                                                    service activities                               37,640

                                                              Temporary employment                             31,882
                                                                    agency activities                          32,293

                                                                                                          28,282
                                                        General secondary education
                                                                                                         27,261

                                                    Business and other management                         28,108
                                                               consultancy activities                         31,973

                                                    Financial service activities, except            22,625
                                                       insurance and pension funding                  24,134

                                                                                                    22,046
                                                           Beverage serving activities
                                                                                                     23,150

                                                 Top 10 highest growth industries

                                                  Industry                                                                 Change in Jobs (2015-2020)     % Change

                                                  Hospital activities                                                                          4,656             7%
                                                  Business and other management consultancy activities                                         3,865            14%
                                                  Accounting, bookkeeping and auditing activities; tax consultancy                             2,225            10%
                                                  Restaurants and mobile food service activities                                               2,081             6%
                                                  Computer consultancy activities                                                              1,662            15%
                                                  Other human health activities                                                                1,567            10%
                                                  Financial service activities, except insurance and pension funding                           1,509             7%
                                                  Renting and operating of own or leased real estate                                           1,500             9%
                                                  Social work activities without accommodation for the elderly
                                                                                                                                               1,370            11%
                                                  and disabled
                                                  Beverage serving activities                                                                  1,104             5%
 6
What are our top occupations?
The industry data tells us a good deal, but we also need to look at the local economy through the
lens of occupations to see which jobs are driving the regional economy. As with the industry data,

                                                                                                               Emsi LEP Report | Greater Manchester LEP
our Analyst tool can drill right down to the most granular detail, and so below we have set out the
Top 10 occupations in your region both in terms of total numbers employed, and forecasted change
to 2020 at the 4-digit SOC level.

                                                                               Top 10 biggest occupations

                      Occupation           2015 Jobs           2020 Jobs
                                                                                                     52,573
         Sales and retail assistants
                                                                                                      53,092

                                                                               34,444
    Care workers and home carers
                                                                                 36,079

               Other administrative                                     30,583
                 occupations n.e.c.                                      31,311

                                                                       29,729
                            Nurses
                                                                         31,392

                                                                      28,597
           Cleaners and domestics
                                                                     27,976

                                                             23,813
    Kitchen and catering assistants
                                                              24,662

   Elementary storage occupations                           23,003
                                                            23,334

   Book-keepers, payroll managers                          21,827
                 and wages clerks                           22,708

      Sales accounts and business                     20,140
          development managers                        20,510

    Primary and nursery education                 17,027
            teaching professionals                16,967

                                                                 Top 10 highest growth occupations

Occupation                                                             Change in Jobs (2015-2020)   % Change

Nurses                                                                                     1,663          6%
Care workers and home carers                                                               1,635          5%
Property, housing and estate managers                                                      1,115         10%
Book-keepers, payroll managers and wages clerks                                              881          4%
Kitchen and catering assistants                                                              849          4%
Call and contact centre occupations                                                          838          8%
Nursing auxiliaries and assistants                                                           821          5%
Other administrative occupations n.e.c.                                                      728          2%
Chartered and certified accountants                                                          674          7%
Medical practitioners                                                                        604          5%

                                                                                                                   7
What are our highest paying industries
                                           and occupations?
                                           Another important aspect of unlocking your region’s labour market is to look at how much
Emsi LEP Report | Greater Manchester LEP

                                           industries and occupations pay. As with the data presented on previous pages, we have drilled
                                           right down to the most granular 4-digit SIC and SOC codes to unlock the highest paying industries
                                           and occupations in your region.

                                           Industries – Median annual salary
                                                                                  £100,120.12

                                                                                                                                                                                                                                                   £49,902.59
                                                                                                         £75,464.06

                                                                                                                                                                              £53,053.36

                                                                                                                                                                                                                                                                                         £49,449.09
                                                                                                                                                                                                                            £50,696.96
                                                                                                                                £72,801.51

                                                                                                                                                                                                                                                                          £49,708.92
                                                                                                                                                                                                     £51,826.12
                                                                                                                                                       £55,187.34

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                                                                                           £34.24
                                                                                                                 £33.01                 £32.58                 £32.28                 £31.60
                                                                                                                                                                                                             £28.98
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What are our niche industries and occupations?
 Where things begin to get really interesting is when we uncover the industries that make
 your regional economy unique. Our Analyst tool contains a function known as Location Quotient,

                                                                                                              Emsi LEP Report | Greater Manchester LEP
 which is a statistical measure of industry or occupation concentration in an area compared to the
 rest of the country. Location Quotient works on a benchmark basis, with 1.0 indicating the national
 average. Therefore, industries and occupations with a score of more than 1.0 indicates that they
 have an employment profile that is greater than the national average.

                                                                              Industry Location Quotient

                                   Industry       2015 LQ         2020 LQ
                                                                                                     12.62
Manufacture of starches and starch products
                                                                                                   12.22

             Manufacture of machinery for                                                 8.76
          paper and paperboard production                                              8.31

                                                                              7.24
             Manufacture of industrial gases
                                                                                     7.94

      Manufacture of non-wovens and articles                                 6.99
      made from non-wovens, except apparel                            6.22

                                                                         6.67
                          Manufacture of pulp
                                                        4.67

Manufacture of macaroni, noodles, couscous                               6.64
          and similar farinaceous products                     5.37

               Manufacture of other knitted                       5.94
                    and crocheted apparel                         5.94

       Manufacture of soap and detergents,                    5.23
        cleaning and polishing preparations                    5.40

                                                         4.89
           Manufacture of carpets and rugs
                                                            5.37

                    Manufacture of cordage,           4.38
                     rope, twine and netting           4.46

                                                                        Occupation Location Quotient

  Occupation                                                                           2015 LQ     2020 LQ

  Textile process operatives                                                                2.95       2.88
  Textiles, garments and related trades n.e.c.                                              2.48       2.23
  Air transport operatives                                                                  2.20       2.14
  Weavers and knitters                                                                      2.20       2.01
  Air travel assistants                                                                     1.98       1.99
  Sewing machinists                                                                         1.93       1.84
  Call and contact centre occupations                                                       1.86       1.94
  Pensions and insurance clerks and assistants                                              1.59       1.57
  Legal associate professionals                                                             1.58       1.58
  Upholsterers                                                                              1.57       1.49       9
What are our most competitive industries
                                            and occupations?
                                            We can also measure which industries and occupations make your region unique using a function
Emsi LEP Report | Greater Manchester LEP

                                            on Analyst called Shift Share. Using this function produces a figure known as Competitive Effect,
                                            which is similar to Location Quotient, but rather than measuring uniqueness in terms of total jobs,
                                            measures it in terms of job growth. What this figure does, therefore, is to explain how much of the
                                            change in a given industry or occupation in your region is due to some unique competitive advantage
                                            that the region possesses. Positive numbers denote a positive Competitive Effect, and so the larger
                                            the number, the greater the Competitive Effect.

                                            Industry Competitiveness

                                                                              Industry      Competitive Effect

                                           Activities of employment placement agencies                                                                 1,047

                                                       Renting and operating of own or
                                                                                                                                                   1,003
                                                                     leased real estate

                                                        Non-specialised wholesale trade                                                          930

                                                                Activities of sport clubs                                                  867

                                                      Business and other management
                                                                                                                                       843
                                                                 consultancy activities
                                                           Television programming and
                                                                                                                              728
                                                                 broadcasting activities

                                                                   Real estate agencies                                      696

                                                   Other telecommunications activities                                  674

                                                         Other retail sale of new goods
                                                                                                                       645
                                                                  in specialised stores

                                                       Computer consultancy activities                             633

                                            Occupation Competitiveness

                                                                          Occupation        Competitive Effect

                                                Property, housing and estate managers                                                                   405

                                                    Call and contact centre occupations                                              309

                                                                                Farmers                                        284

                                                                Human resources and
                                                                                                                 228
                                                            industrial relations officers

                                                         Estate agents and auctioneers                     189

                                                   Chartered and certified accountants                   176

                                                                                  Clergy           142

                                             Pharmacy and other dispensing assistants           135

                                                   Gardeners and landscape gardeners           129

 10                                           Human resource managers and directors          118
Where are the jobs in our most niche industry?
The data on page 9 showed which industries are most unique to your region, with the Manufacture
of starches and starch products industry coming on top. However, we might then ask the question,

                                                                                                                Emsi LEP Report | Greater Manchester LEP
what are the occupations that this sector employs? Through our Staffing Pattern function in Analyst,
we can answer this question. The data below gives a breakdown of the Top 5 occupations within this
sector, including numbers employed, employment forecast, hourly earnings and education level.
The significance of this information is that you can find out quickly and simply what the occupations
are in an industry, and therefore the skillset for that sector. It is worth noting that the process can
also be run in reverse, whereby users can begin with an occupation (rather than an industry) and
run an Inverse Staffing Pattern to quickly identify the industries that employ this position.

                                                                               % of
                         Employed      Employed     Change    % Change        Total    Median
                                                                                                   Education
Description             in Industry   in Industry   (2015 –     (2014 –     Jobs in     Hourly
                                                                                                       Level
                             (2015)        (2020)     2020)       2020)   Industry    Earnings
                                                                             (2015)

                                                                                                    Honours,
Production and                                                                                     Bachelor's
                                86            79         -7        -8%      38.9%      £20.37
process engineers                                                                                degree; BTEC
                                                                                                      Level 6

Purchasing                                                                                          Honours,
                                                                                                   Bachelor's
managers and                    60            52         -8       -13%      27.2%      £23.58    degree; BTEC
directors                                                                                             Level 6

Metal working                                                                                       A Levels;
production and                  40            35         -5       -13%      18.1%      £12.06    Level 3 NVQ;
maintenance fitters                                                                              BTEC Level 3

                                                                                                    Honours,
Chartered and                                                                                      Bachelor's
                                18            16         -2       -11%       8.3%      £17.87
certified accountants                                                                            degree; BTEC
                                                                                                      Level 6

Financial and                                                                                       A Levels;
accounting                      17            14         -3       -18%       7.5%      £21.31    Level 3 NVQ;
technicians                                                                                      BTEC Level 3

                                                                                                                    11
To find out more about how Emsi can help your organisation
          build a better regional economy, contact:

            Email: info@economicmodelling.co.uk
                    Phone: 07720 641 651
            Web: www.economicmodelling.co.uk
          Blog: www.economicmodelling.co.uk/blog
                      Twitter: @EMSI_UK
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