Structural Change, Specialisation and Regional Labour Market Performance: Evidence for the UK

Abstract

While structural change and regional differences in the pattern of employment specialisation are widely perceived to be significant factors in accounting for disparities in the labour market performance of regions in the United Kingdom, there have been relatively few recent attempts to gather detailed evidence on this issue. The current study aims to fill this gap by examining the effects of structural change and associated changes in the pattern of employment specialisation on three key indicators of regional labour market performance: the rate of employment growth, the unemployment rate and the rate of non-employment. The findings indicate that while industry structure has statistically significant effects on regional labour market performance, the quantitative significance of these effects is relatively small.