An examination of sectoral mobility in the UK labour force

Sectoral movements are more volatile than residential migration. Residential migrations, even those over a relatively short distance need considerable time for movers to analyze, weigh the costs and benefits, and then further time to plan and execute the move. Whereas sectoral labour movements can be undertaken quite quickly and are thus capable of responding with greater immediacy to economic pulses. This paper describes a comparison of residential and sectoral labour movement between 1989 and 2005 based upon UK Labour Force Survey data. The dataset extracted provides those labour counts which had moved residence within the past year and also those who had moved sector within the past year. The sectoral transfer data shows much greater volatility during the 1989- 1995 'Economic Shock'. An examination by correlation matrix reveals the unique degree to which the construction industry is connected (in terms of sectoral transfer) to the other industry sectors.