About the Prototype
Too often when we compare areas for economic development, we look out for neighbouring areas or those that feel similar – but this tool uses hard data to take one Local Authority district and tell which five areas are most alike, and which five are furthest away. We take Emsi’s data on detailed industry employment patterns, crunched together using a Krugman Similarity Index. What that does is tell us the percentage of jobs across areas which are in the same industries – so if the similarity measure is 90 per cent, it means that 10 per cent of workers would have to change jobs to have exactly the same mix of industries.
- Identifying peer areas with which to compare economic performance given similar industry structures
- Evaluating how unique an area is compared with others in terms of its industry structure