Employment Vulnerability Index

Introduction

The Employment Vulnerability Index (EVI) is an indicator that identifies those Statistical Area Level 2s that have higher proportions of workers with lower qualification levels and the types of jobs thought to be at risk in the current economic climate. The index is calculated on three variables which, after a principal components analysis (PCA) are weighted to give an EVI score. All EVI scores across the country are compared relative to each other and placed in groups, where the SA2s with higher EVI scores are considered more at risk of substantial job losses. The EVI is calculated for SA2s that make up the 101 Significant Urban Areas (SUAs) across Australia, that have a working population of more than 50.

More information on the Employment Vulnerability Index can be found in this document

Inputs

We will run the Employment Vulnerability Index across the whole of Australia, to see if we can replicate the “pre-packaged” EVI produced for use already in the AURIN portal

To do this

  • Select Australia as your area
  • Select Employment Vulnerability Index for Australia 2011 Data Profile as your dataset, selecting all variables

Once you have selected selected your area and data, open the Economic Vulnerability Index tool and enter the parameters as shown below. These are explained underneath the image.

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  • Dataset Input: Choose the dataset that you would like to include in the EVI calculation. In this portal, the dataset which feeds into this has been generated, and we use it here – Employment Vulnerability Index for Australia 2011 Data Profile
  • Key Column: The column specifying the individual codes for the areas that are included in the analysis. In this instance we specify SA2 Code 2011
  • Industry Variable: here we specify which industry column will be included in the analysis. There are a number of ones that we can select, but in this instance we select Proportion Employed in Vulnerable Industries
  • Employment Variable: This parameter covers the employment category. Again, there are a number that we could included, but in this instance we select Part-time Employed as a Proportion of Total Employed
  • Education Variable: This parameter covers the education component of the analysis. There is only one variable to include here: Proportion of Working Age Persons without a Post-School Qualification
  • Industry Weight: This specifies the weighting of the Industry variable in the analysis – we use the default value of 0.66
  • Employment Weight: This specifies the relative weighting of the Employment variable in the analysis – we use the default value of 0.33
  • Education Weight: This specifies the relative weighting of the Education variable in the analysis – we use the default value of 0.66

Once you have entered all the parameters, click Add and Run to execute the tool

Outputs

Once your tool has run, click Display on the dialogue pop-up box that appears. This will open your new dataset (named Output: EmploymentVulnerabilityIndex-Workflow XXX) in your data panel. It should look something like the image below

EVIoutput

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If you click the EVI column you can see that it ranges between 0 and 1. The most economically vulnerable area is the SA2 of Acton in the ACT.

Now we would like to compare our result to the EVI produced in the pre-packaged Economic Vulnerability Index for Australia. To do this:

  • Select Employment Vulnerability Index for Australia 2011 as your dataset, selecting all variables
  • Merge the two datasets together: Employment Vulnerability Index for Australia 2011 and your generated dataset: Output: EmploymentVulnerabilityIndex-Workflow XXX
  • Create and Interactive Scatterplot of the two EVI indices (x attribute: EVI 2011, y attribute: EVI)

Your scatterplot should look something like the image below

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This shows that our EVI that we generated ourselves is very similar to the EVI produced for Australia by the Centre of Full Employment and Equity (CofFEE)