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Scottish Economic Statistics 2006

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Definitions, Methodologies and Sources

Industrial Groupings

At the end of 2002 the UK moved from the 1992 Standard Industrial Classification ( SIC 92) to SIC2003. Data that apply to 2002 and before are coded to SIC 92, while later data use SIC 2003.

The quarterly GVA index is all on a SIC 2003 basis. The coding changes (72 new codes to provide additional detail, 1 deletion and 74 changes) mainly affect the fourth and fifth digit of the coding system.

The first two digits of the classification (2 digit SIC), which are used in much of this report, are not affected by the change, with two exceptions: the tiny sector of coin-operated photocopying machines and the new code 7415 for head office activities. The effect on the overall business register statistics of these changes is detailed later in the methodological notes (under corporate sector).

The table opposite summarises the groupings used in the publication, by 2 digit SIC code and Scottish Input-Output category. Where other groupings have been used, these are shown in individual tables. Details of the SIC 92, SIC 2003 and progress on the major re-coding exercise planned for 2007 can be found at http://www.statistics.gov.uk/methods_quality/sic/contents.asp .

Table A: Standard Industrial Classifications used in Scottish Economic Statistics

SIC

SIC section

Scottish Input- Output Categories 1

Agriculture, Forestry and Fishing 3

01, 02, 05

A, B

1, 2, 3

Production

10 - 41

Mining and Quarrying (incl oil & gas extraction)

10 - 14

C

Mining of coal and lignite; extraction of peat

10

4

Extraction of crude petroleum and natural gas etc.

11

5

Mining & Quarrying except energy producing materials

13, 14

6, 7

Manufacturing

15 - 37

D

8 - 84

Food, Drink and Tobacco

15, 16

8 - 20

Textiles, Footwear, Leather & Clothing

17 - 19

21 - 30

Petroleum Products, Nuclear Fuel, Chemicals and Mineral Products

23, 24, 26

35 - 46, 49 - 53

Metals, Metal Goods, Mechanical Engineering & Transport Equipment

27 - 29, 34, 35

54 - 68, 77 - 80

Electrical and Instrument Engineering

30 - 33

69 - 76

Other Manufacturing

20-22, 25, 36, 37

31-34, 47, 48, 81-84

Electricity, Gas and Water Supply

40 - 41

E

85 - 87

Construction

45

F

88

Services

50 - 99

Wholesale, Retail and Repairs

G

Motor Vehicle Retail & Wholesale

50

89

Wholesale

51

90

Retail

52

91

Hotels & Catering

55

H

92

Transport, Storage and Communication

60 - 64

I

93 - 99

Financial Intermediation 2

65 - 67

J

100 - 102

Real Estate, Renting & Business Activities

70 - 74

K

103 - 114

Public Administration & Defence 2

75

L

115

Education & Health

80, 85

116 - 118

Education

80

M

116

Health & Social Work 3

85

N

117, 118

Social & Personal Service Activities

90 - 93

O

119 - 122

1 Input output tables for 2002 are summarised in tables 1.4 and 1.5. Full tables can be found at http://www.scotland.gov.uk/Topics/Statistics/14713/484
2 Not included in Scottish Annual Business Statistics
3 Scottish Annual Business Statistics excludes SIC 1.1-1.3,85.111,85.12,85.13,85.311,85.321

Scottish quarterly GDP (chapter 1)

Gross Domestic Product ( GDP) is a measure of the value of goods and services produced by residents, before allowing for depreciation or capital consumption. Net receipts from interest, profits and dividends abroad are excluded. There are two measures of GDP, market prices and basic prices. The Scottish quarterly index is measured in basic prices, which excludes taxes less subsidies on products (taxes on products include VAT and excise duties). Gross Value Added ( GVA) is another term for GDP at basic prices.

GDP at market prices is the headline measure used by the UK but they also produce estimates of GVA for their industry breakdown as it is difficult to break down taxes and subsidies below whole economy level. GDP at market prices is not produced for Scotland due to the same difficulty of allocating taxes and subsidies below national level.

Information is compiled for over 260 industries in Scotland. For each industry an index is created representing the volume of Gross Value Added ( GVA) created by that industry over time. It can be difficult to get value added figures on a quarterly basis so proxy indicators are used where value added data are not available. Examples of proxies used include: deflated turnover, deflated production, the volume of a good or service sold or produced and, for some parts of the public sector, employee numbers. These data come from a range of sources including monthly and quarterly turnover inquiries carried out by the Office for National Statistics; published data sources ( e.g. on employment levels or activity levels in certain industries); and data received directly from companies and other organisations.

In February 2004 on publication of results for 2003 Q3, the Scottish GDP estimates moved to annually weighted and chained estimates of volume measures - referred to as "annual chainlinking" - as recommended in the System of National Accounts 1993. This is consistent with the UK where this approach was introduced on 30 September 2003 in respect of the 2003 Q2 results.

The main difference between chainlinking and the previous "fixed base" methodology is that the weights applied to each industry (reflecting importance in the Scottish economy) are updated on an annual basis, instead of a 5-yearly basis. The major effect of chainlinking has been to more accurately reflect the changing importance of sectors. The impact of chainlinking the Scottish GDP series to 2000 weights was to reduce the negative effect of the low/declining growth in some sectors, while simultaneously increasing the importance of those which had been performing well. Both of these changes had a positive effect on the overall level of growth estimated by the Scottish GDP series. However, updating weights does not necessarily result in a positive impact on GDP. For example, if prices in an industry fall over time, despite high growth in the volume of output (as measured by the GDP index), the industry's relative value can decrease. This would result in a fall in the weight, and a reduction in the impact of high growth in that industry. Further information on this and other methodological issues are available on the Scottish Executive internet site www.scotland.gov.uk/gdp .

Scottish GDP estimates will generally be less reliable than the estimates for the UK, primarily because the equivalent UK figures are produced by balancing 3 independent sets of estimates (Output ( GVA), Income & Expenditure-based approaches). Furthermore, the survey data tend to be based on smaller numbers of units, making figures for Scotland more likely to be subject to small random fluctuations.

Scottish Input-output tables (chapter 1)

A wide variety of data sources are used in the construction of the Scottish Input-Output tables. Wherever possible, Scottish data from ONS inquiries have been used, in addition to data from Scottish Executive surveys or other official sources. The tables are constructed in accordance with national guidance, as given in the European System of Accounts 1995. The industrial classifications are based on Standard Industrial Classifications, as shown in table A.

Further information on the construction and use of the Input-Output tables can be found on the Input-Output website at: www.scotland.gov.uk/input-output .

Total exports (chapter 1)

Exports by industry and destination have been estimated from Scotland's Global Connections Survey. The survey in 2004 was circulated to a representative sample of just over 11,000 companies with operations in Scotland. The companies were selected using stratified random sampling from the Inter-Departmental Business Register.

The response rate was 35 per cent (including nil responses). The information provided was supplemented with data from the ONSUK Monthly Production Inquiry, International Trade In Services survey and was then grossed up to cover all companies on the IDBR using turnover. Adjustments were also made to the data for some industries based on other available information.

More information on the sampling and grossing methodology is available on the Scottish Executive website via: www.scotland.gov.uk/exports .

Index of Manufactured Exports (chapter 1)

The estimates that make up the quarterly index of manufactured exports are derived from data on sales of goods produced by the Scottish manufacturing industry for export outwith the UK. The Office for National Statistics collects the data used to produce these figures in their Monthly Production Inquiry.

The data are then deflated to 2000 prices using UK export producer price indices, which are also produced by the ONS. Deflated export sales of the companies covered by the survey are then grossed up to represent the manufacturing business population using the Inter Departmental Business Register ( IDBR). The data are then seasonally adjusted where appropriate. The Scottish Executive has developed systems to seasonally adjust the series in line with standard National Statistics practice.

The index of Scottish manufactured exports is based on a sample of around 1,000 Scottish manufacturing companies per quarter. This sample covers all sizes of unit across the manufacturing sector.

Further information about the methodology of the Index of Manufactured Exports can be found on the website: www.scotland.gov.uk/exports

Corporate Sector (chapter 2)

The estimates given have been constructed using data from the Inter Departmental Business Register ( IDBR), Labour Force Survey ( LFS), the Family Resources Survey ( FRS) and the Survey of Personal Incomes ( SPI). The IDBR extract provides an estimate of the number of enterprises registered for VAT and/or PAYE. A modelling procedure that combines data from the IDBR with estimates derived from the LFS, FRS and SPI is used to calculate the number of unregistered enterprises. The principles of the model were developed by economic consultants working with the Department of Trade and Industry ( DTI) and Eurostat.

It should be borne in mind that the number of enterprises with no employees which are not registered on the IDBR is significant. These are estimated from a combination of sample surveys which are all subject to sampling error. For example a yearly estimate of 6,000 taken from the LFS has a 95% confidence interval of +/- 2,640. It is the nature of sampling variability that the smaller the group whose size is being estimated, the proportionately less precise that estimate is. Very small estimates are subject to larger standard errors, which can result in fluctuation between years. For this reason year on year comparisons containing the smallest size band (enterprises with no employees) should be regarded with caution.

The estimates:

  • Include enterprises that operate in Scotland irrespective of whether their head office is located in Scotland or elsewhere;
  • Count enterprises only once (in tables 2.1 and 2.2) or once each in each of the local areas they operate in (in table 2.3), irrespective of the number of local units they maintain;
  • Cover enterprises in the business sector - that is companies, sole traders, partnerships, public corporations/ nationalised bodies and not for profit organisations - and exclude central and local government;
  • Include enterprises from the sources described above, as follows (in 2004): 118,620 enterprises were registered for VAT and 30,405 for PAYE only; to this 121,220 enterprises with zero employees are added, estimated on the basis of LFS, FRS and SPI figures.

Employment and turnover values were calculated for all enterprises, however turnover values for Financial Intermediation enterprises have been excluded, as these are not available on a comparable basis.

Registered Enterprises

These are estimated from Scottish extracts of the IDBR taken in November of each year. Enterprises with no UK activity or dummy enterprises created to help with clerical procedures are excluded. Enterprises which have zero employment and zero turnover are also excluded as they are holding companies whose activity is recorded elsewhere or are enterprises not contributing to the economy at the time of the estimates.

Companies with only one employee (who is also the employer) are treated as a self-employed person working in a firm with zero employees unless the enterprise is part of an enterprise group. As these companies provide no employment for others it is more consistent to classify them as enterprises with no employees.

Most tables report on the business sector, excluding central or local government. The tables are therefore affected by the decision by ONS to re-classify Primary Health Care Trusts to the government sector in 2001 and subsequently in 2003 to re-classify the remaining NHS trusts to the government sector: While this effects relatively few large enterprises the discontinuity in the employment and turnover tables is considerable: in 2001 the re-classification removed employment of 54,200 from the business sector; in 2003 the effect on business sector employment was -95,530 with a turnover change of -£4.7 billion.

The Scottish Corporate Sector Statistics 2004 tables are the second set of Corporate Sector tables to be produced to the new SIC 2003 industrial classification. The change from SIC 92 affects the tiny sector of coin operated photocopying machines - the effect on count of enterprises and employment was less than 10 between 2002 and 2003 - and the new coding for head office activities (7415). As a result of the head office coding change, 30 enterprises changed coding to division 74 between 2002 and 2003, with combined employment of 580.

Unregistered Enterprises

The LFS provides data on self-employment without employees (as first or second job). The figure for second jobs is augmented by data from the FRS on self-employment in third jobs. This estimate of the total number of self-employed jobs (with no employees) is compared to the self-employment registered on the IDBR in enterprises with no employees. As many self-employed people are not required to pay VAT or register for PAYE, the figure from the LFS is generally higher.

The difference between the two figures, self-employed jobs in unregistered enterprises, can be used as a starting point to estimate the additional sole traders or partners with no employees. The ratio between sole traders and partners is different for each industry and can be obtained from the SPI. Scottish ratios are calculated where statistically reliable, otherwise UK ratios are used to derive the number of unregistered enterprises from the number of self-employed jobs in unregistered enterprises. Each of these unregistered enterprises is assumed to provide employment for one (if sole trader) or two (if partnership).

Turnover in unregistered businesses will generally be lower than that of registered businesses of the same size, as turnover in the former would usually be below the VAT threshold. Turnover for the unregistered enterprises was imputed from turnover per head of registered enterprises with zero employment in that industry division and then scaled down by a factor of a half. For a few 2-digit industry divisions, this still left average annual turnover per unregistered business above the VAT threshold. In these cases, the unregistered turnover total was adjusted until turnover per unregistered business was under the VAT threshold for that year.

Geographical Analyses

The geographical analyses now use a postcode index file from the General Register Office for Scotland. Unregistered enterprises are not included in the geographical analyses. Hence, the allocable total for Scottish employment and turnover in Table 2.3 does not equate to those in the tables containing full estimates for the zero employee size band.

Size bands

Enterprises in Table 2.1 to Table 2.3 are classified by employment size bands on the basis of their total UK employment. The rationale behind this approach is that the size of the overall enterprise determines its behaviour as an economic agent. An enterprise with a large number of employees in the UK as a whole is likely to behave like a large enterprise, irrespective of its level of Scottish employment.

An alternative approach involving the allocation of enterprises to employment size bands based on their total Scottish employment has not been included. This type of analysis is available on request from the Scottish Executive.

The section on R&D classifies expenditure by product group. Details of these can be found at http://www.statistics.gov.uk/downloads/theme_commerce/MA14_2002.pdf

Scottish Annual Business Statistics (chapter 3)

Scottish Annual Business Statistics are sourced from the Annual Business Inquiry ( ABI) conducted by the Office for National Statistics ( ONS). All ABI figures in this publication are at current prices unless otherwise stated. For information on the methodology used to compile regional ABI statistics, please visit the following ONS site: http://www.statistics.gov.uk/abi/background_info.asp .

Since 1998, the Scottish Executive has paid for an enhanced Annual Business Inquiry sample in Scotland, to improve the quality of Scottish figures. Around 3,000 extra firms in Scotland are sampled annually as a result of this "boost", giving a total annual sample size in Scotland of around 9,000 firms.

ONS has provided the following information on Regional Capital Expenditure:

Accurate estimation is dependent on there being a strong correlation between local employment and the variable of interest. For many variables this will be the case, although the strength of the relationship will vary. Capital expenditure, however, is markedly different from most other variables in that any direct relationship with employment will be weak. Indeed, some large items of capital expenditure may be in relation to new sites where there is little or no employment. Also, a business may be investing in corporate systems which it may be conceptually difficult to associate with any individual local unit.

We recognise that the regional estimates of capital expenditure will, for these reasons, be particularly uncertain. We will continue to look for better ways of measuring regional capital expenditure without placing an undue burden on contributors. In the meantime and notwithstanding the current problems with the quality of the data, the sub-national values are being published for continuity reasons but they may not be published in the future. Comments on this proposal are welcome and should be mailed to ABI2@ons.gov.uk

The manufacturing, construction and service sectors are based on the Standard Industrial Classifications ( SIC). Although the tables refer to the service sector for simplicity, it should be noted that the figures quoted do not relate to the entire service sector, but only to those sectors covered by the Office for National Statistics' Annual Business Inquiry. The SICs that are excluded from the ABI are 1.1 - 1.3 (part of agriculture), 65-67 (Financial Intermediation), 75 (Public Administration) and the following sub-classes of SIC 85 (Health and Social Work): 85.111, 85.12, 85.13, 85.311, 85.321.

In 2000 for the first time, the Forestry ( SIC 2) and Fishing ( SIC 5) sectors were surveyed as part of the ABI. Parts of Agriculture ( SIC1.4 & 1.5) were surveyed for the first time in 2001. Figures for these sectors have been included in this publication.

Annual Business Inquiry data relating to Oil & Gas extraction ( SIC11.1) is allocated to UK regions (including Scotland) according to the address at which the business is registered. Such offshore activity is excluded from Scottish National Account figures ( e.g.ONS Regional Accounts, where it is assigned to an "Extra-regio" category and counted separately).

For additional Tables not included in this publication, please visit the following website: http://www.scotland.gov.uk/Topics/Statistics/16170/4363 .

Definition of Terms - Annual Business Statistics

Number of Local Units

This relates to the number of individual business sites e.g. a plant, factory, shop etc.

Total turnover

Turnover is defined as total sales and work done. This is calculated by adding to the value of sales of goods produced, goods purchased and resold without further processing, work done & industrial services rendered and non industrial services rendered.

Purchases of goods & services

This represents the value of all goods and services purchased during the year.

Gross Value Added at Basic Prices

Approximate gross value added represents the income generated by businesses out of which is paid wages and salaries, the cost of capital investment and financial charges, before arriving at a figure for profit. It includes taxes on production ( e.g. business rates), net of subsidies but excludes subsidies and taxes on products ( e.g.VAT and excise duty).

Net Capital Expenditure

This is calculated by adding to the value of new building work, acquisitions less disposals of land and existing buildings, vehicles and plant and machinery.

Total Labour Costs

This represents the total cost to employers of employing staff. This includes gross wages & salaries and also employers' National Insurance contributions and contributions to other pension and welfare schemes.

Total employees

This is the point in time estimate of full and part time employees on the payroll on a set day in December.

Labour Market (chapter 4)

Sources

Population data. Table 4.1 shows 2005 mid-year estimates of the population. Chart 4.1 shows 2005 mid-year estimates and 2004 based population projections. Population estimates are provided by the General Register Office for Scotland and are based on the 2001 census.

Estimates for economic activity, unemployment and total employment, as shown in tables 4.2, 4.3 and 4.6, chart 4.2 and 4.3, are from the Labour Force Survey ( LFS). Figures in table 4.2 and 4.6 are from the spring quarter of the survey and are not seasonally adjusted. Figures in table 4.3 are from the Annual Population Survey ( APS) data set. The LFS is a survey of individuals and is subject to sampling error, with information for local areas based on relatively small samples. For example from the Spring quarter of the LFS estimates of 10,000 have approximate 95% confidence intervals of +/-4,000. However, the APS, used in table 4.3, has a larger survey sample since it is comprised of 4 quarters of LFS data and has a boost to the survey in Scotland. Thus confidence intervals are much smaller for data from the APS, which is why it is used for Local Authority area analyses.

Unemployment The Government's preferred measure of unemployment is the International Labour Organisation ( ILO) definition. Unemployment calculated on this basis is shown in tables 4.2 and 4.4. This is obtained from the Labour Force Survey. The ILO unemployment rates for local authority areas shown in table 4.4 are modelled from APSILO unemployment and claimant count unemployment data.

Qualifications and training information shown in table 4.8 and 4.9 and Chart 4.4 are obtained from the Spring quarter of the Labour Force Survey.

It should be noted that all estimates produced from the Labour Force Survey were revised in 2004. This is because the information has been re-weighted to be consistent with the 2001 census. This means some information will be inconsistent with what was published in SES 2003.

Estimates of employee jobs, as shown in table 4.5 are from the June quarter of the quarterly employee jobs series, data are not seasonally adjusted. Estimates in chart 4.5 are taken from the 1998 and 2004 Annual Business Inquiry. Data in table 4.5 and chart 4.5 are shown by industry groups based on the SIC 92 and SIC 2003 classification systems as outlined in table A. Both data sources are surveys of employers and are subject to sampling error, with information for local areas based on relatively small samples. Figures should therefore be treated with caution.

The source of data for tables 4.10, 4.11, 4.12 and 4.13 showing unemployment figures, is the claimant count. This measures the number of people claiming unemployment-related benefits. Only information on computerised claims is available for age and duration analysis (table 4.11 and 4.12), however these make up 99 per cent of all claims nationally. Data in table 4.11 & 4.12 are for June in each year and are not seasonally adjusted.

Table 4.13 shows annual claimant count rates for Local Authority areas. The claimant count data are used to estimate the numerator of the claimant count unemployment rate. The denominator is a measure of economic activity for working aged people (ages 16 to 59 for females and 16 to 64 for males), which is a residence-based rate. Economic activity is derived using three sources of data: The Annual Population Survey ( APS), 2001 Census of Population and General Register's Office for Scotland ( GROS) mid-year population estimates. The number of economically active people of working age is obtained from the calendar year APS. This information is combined with population data at 1991 ward boundary level from the 2001 Census population and updated using GROS population data at Local Authority area level for each year. Rates are then scaled so that the Scotland rate equals the rate shown in table 4.10. Table 4.10 shows annual average claimant count unemployment level and work-based rate.

Figures on earnings shown in tables 4.17 to 4.21 are from the Annual Survey of Hours and Earnings ( ASHE). This is a business survey carried out by the Office for National Statistics.

Vacancies data shown in tables 4.14 to 4.16 are not national statistics, details on the limitations of the data can be found at www.nomisweb.co.uk/articles/ref/vacs/LMT 200506-363.pdf. Data are from Jobcentre plus vacancies (extracted from Nomis). Industry groups are based on the SIC 92 and SIC 2003 classification systems as outlined in table A. Occupation groups are based on the SOC (Standard Occupational Classification) 2000 system, details of which can be found at: http://www.statistics.gov.uk/methods_quality/ns_sec/downloads/SOC2000_Vol1_V5.pdf .

Definition of Terms - Labour Market

Working age

16 to 64 for men and 16 to 59 for women.

Employment

People in employment means those working for at least one hour in a typical week.

Employment rate

Proportion of working aged people who are in employment.

Economic activity rate

Proportion of working aged people who are economically active.

Economically active

In employment or actively seeking work ( i.e. unemployed).

Economically inactive

Not economically active, e.g. retired, student, sick/disabled, looking after family/home.

Full time workers

Persons employed for 30 hours or more during a typical week.

Part time workers

Persons employed between 1 and 30 hours a week.

Unemployment

International Labour Organisation ( ILO) definition of unemployment. This counts people who are either 1)Out of work and want a job, have actively sought work in the last 4 weeks and are available to start work in the next 2 weeks or 2) Out of work, have found a job and are waiting to start in the next two weeks.

Claimant count

Number of people claiming unemployment related benefits (Jobseeker's Allowance or National Insurance Credits).

Household Income and Benefits (chapter 5)

Household income

Source

The household income measures and percentages below median income are derived from the Department for Work and Pensions' Households Below Average Income ( HBAI) analyses, which are derived from data from the Family Resources Survey.

Definitions

The income measure used in HBAI is weekly net equivalised household income. Income is the total income of all members of the household, including dependants. Income is adjusted for household size and composition by equivalisation, which reflects the common sense notion that a household of five adults will need a higher income than a person living alone to enjoy a comparable standard of living. The adjusted income is referred to as equivalised income.

HBAI employs two measures of income: Before Housing Costs ( BHC) and After Housing Costs ( AHC). The need for both measures arises from the variation in housing costs: in part this reflects variations in the quality of housing, but there are also significant cost variations that do not reflect quality variations. The growth in BHC income is likely to overstate improvements in the living standards of low-income groups, because it counts, as an income rise, higher Housing Benefit which merely offsets higher rents. Conversely, income growth AHC will tend to understate improvements in living standards where higher housing costs reflect improved housing. Because of this each measure has imperfections as a guide to differences in, and changes in, living standards, but the two are complementary.

Income Before Housing Costs ( BHC) includes the following main components: usual net earnings from employment; profit or loss from self-employment; all Social Security benefits; income from occupational and private pensions; investment income; maintenance payments (if a person receives them directly); income from educational grants and scholarships (including, for students, top up loans and parental contributions); the cash value of certain forms of income in kind.

Housing Costs include rent; water rates and community water charges; mortgage interest payments; structural insurance premiums; ground rent and service charges.

Income is net of the following: income tax payments; National Insurance contributions; domestic rates/council tax; contributions to occupational pension schemes; all maintenance and child support payments, which are deducted from the income of the person making the payment; parental contributions to students living away from home.

Benefits

For full definitions of the benefits and statistical groups used in tables 5.3 and 5.4, please see the footnotes beneath the tables.

Public Sector (chapter 6)

Income and expenditure

The data in tables 6.1 and 6.4 and chart 6.1 are taken from the Scottish Executive's Government Expenditure and Revenue in Scotland ( GERS) 2003/04 publication. More details on the estimation methods can be found in the publication, which is available at http://www.scotland.gov.uk/library5/government/gers05-00.asp

Charts 6.2 and 6.3 take data directly from the HM Treasury Public Expenditure Statistical Analyses ( PESA). This information will feed into GERS 2004/05. The entire PESA publication can be accessed via http://www.hm.treasury.gov.uk/economic_data_and_tools/ finance_spending_statistics/ pes_publications/pespub_index.cfm .

Tables 6.2, 6.3 and 6.5 are based on Scottish Local Government Financial Statistics 2004/05, which was published by the Scottish Executive in June 2006. Further information is available via the Local Government Finance Statistics website www.scotland.gov.uk/stats/lgfstats .

Employment

The employment estimates in table 6.6, chart 6.4 and chart 6.5 are sourced from the quarterly Public Sector Employment in Scotland series. The source is relatively new and is not yet classed as National Statistics. Definitions can be found below.

Public Sector Employment Data Sources (article 3)

The public sector comprises central government, local government and public corporations, as defined for the UK National Accounts. The Sector Classifications Guide (MA23) provides information on the classification of organisations and institutions in the National Accounts: http://www.statistics.gov.uk/CCI/SearchRes.asp?term=ma23 .

Local Government Sources

Local government data are sourced from the quarterly Joint Staffing Watch Survey, which has been carried out since 1996 1. This provides the number of local authority employees by service group; these are: Education teaching staff, Education other staff, Social Work, Police & Related, Fire & Related and Other staff. Local government also includes national parks staff. Due to definitional issues, this data may differ from other sources of information for the individual sectors of Local Government. More information on these definitional issues can be found at: http://www.scotland.gov.uk/Publications/2005/03/20889/55029 .

Central Government Sources

Armed Forces

Armed forces data are sourced from the Ministry of Defence's quarterly publication of UK Regular Forces 2.

Civil Servants

Data for the Civil Servants are collected directly from the organisations themselves. The organisations included are:

Scottish Executive (excl Agencies)

General Register Office

Agencies

National Archive Scotland

Communities Scotland

Registers of Scotland

Courts Group

Scotland Office

Fisheries Research Services

Transport Scotland

Historic Scotland

Scottish Building Standards Agency

HM Inspectorate of Education

Social Work Inspection Agency

Office of Accountant in Bankruptcy

Scottish Agricultural Science Agency

UK departments with staff in Scotland

Scottish Court Service

Ministry of Defence

Scottish Fisheries Protection Agency

Department for Work and Pensions

Scottish Prison Service

Department for International Development

Scottish Public Pensions Agency

HM revenue and Customs

Scottish Awards Agency for Scotland

Scotland Office

Crown Office and Procurator Fiscal

Other Civil Service

Public Corporations

Public corporations are companies or quasi-corporations controlled by government. These companies receive more than half their income from sales of goods or services into the market place. Public Corporations within the PSE in Scotland series include Scottish Public Corporations and UK Public Corporations with a presence in Scotland. Data for the Scottish Public Corporations are collected directly from the organisations themselves. The Scottish Public Corporations included are:

Audit Scotland
Caledonian MacBrayne LTD
Highlands & Islands Airports LTD
Scottish Water
Strathclyde Passenger Transport
Aberdeen Harbour Board
Northern Lighthouse Board

Data for the UK Public Corporations with a presence in Scotland are estimated based on UK data and business survey information. The UK Public Corporations currently included are:

Civil Aviation Authority
British Waterways
The Crown Estate Commissioners
Post Office LTD
Horse Race Totalisator Board
Driving Standards Agency
Vehicle and Operator Services
Ordinance Survey
Defence Aviation Repair Agency
Army Base Repair Organisation
N.A.A.F.I.
The British Council
Remploy LTD
British Nuclear Fuels PLC
OFCOM
Magnox Electric PLC
Channel Four Television Corporation
British Energy LTD
British Energy Generation ( UK) LTD

Non-Departmental Bodies

Non-Departmental Bodies ( NDPBs) within this publication are those defined within National Accounts as NDPBs and include both Scottish NDPBs and UKNDPBs with employees in Scotland. Advisory NDPBs are also included in this publication. Data for the Scottish NDPBs are collected directly from the organisations themselves. The Scottish NDPBs currently included are:

Crofters Commission
Deer Commission
Highlands & Islands Enterprise
Learning & Teaching Scotland
National Galleries of Scotland
National Library of Scotland
National Museums of Scotland
Parole Board
Scottish Children's Reporter
Scottish Environment Protection Agency
Scottish Enterprise
Scottish Funding Councils (Higher & Further Education)
Scottish Legal Aid Board
Scottish Natural Heritage
Scottish Qualifications Authority
SportScotland
The Royal Botanic Garden Edinburgh
The Royal Commission on the Ancient and Historical Monuments of Scotland
The Scottish Arts Council
The Scottish Commission for the Regulation of Care
Scottish Social Services Council
The Water Industry Commissioner for Scotland
VisitScotland
Highland RFC Association
Careers Scotland
Bord Gaidhlig Naa H-Alba (The Gaelic Development Agency)
Local Government Boundary Commission for Scotland
Additional Support Needs Tribunals for Scotland
Architecture and Design Scotland
Bus User's Complaint Tribunal
General Teaching Council for Scotland
Lands Tribunal for Scotland
Mobility & Access Committee for Scotland
Rent Assessment Panel for Scotland
Risk Management Authority
Scottish Criminal Cases Review Commission
Scottish University for Industry

Data for the UKNDPBs with a presence in Scotland are estimated based on UK data and business survey information. The UK Public NDPBs currently included are:

Student Loans Company
Construction Industry Training Board
Medical Research Council
Sea Fish Industry Authority
Equal Opportunities Commission
United Kingdom Atomic Energy Authority
Community Development Foundation
Commission for Racial Equality
Disability Rights Commission

NHS

NHS employment in Scotland is available for Q3 each year, the other quarters data are estimated 3.

Miscellaneous

The following organisations are not included in any sub-sector of the public sector but are included in the total:

Scottish Parliament Corporate Body
Scottish Public Services Ombudsmen
The Standards Commission for Scotland
Office of the Scottish Charity Regulator
BBC
Forestry Commission
Electoral Commission

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