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A Typology of Functional Regions in Atlantic Canada (February 2013)

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A Typology of Functional Regions in Atlantic Canada (February 2013) A"Typology"of"Functional"Regions"in"Atlantic"Canada1" Alvin"Simms,"David"Freshwater"and"Jamie"Ward" Version"5,"February"5,"2013" " In"this"report"we"describe"a"typology"of"functional"regions"for"the"four"provinces"of" Atlantic"Canada."The"functional"regions"we"use"are"based"on"commuting"data" provided"by"Statistics"Canada"so"these"particular"functional"regions"can"also""be" thought"of"as"local"labor"markets."A"key"advantage"of"functional"regions"is"that"the"" region"boundaries""are"defined"on"the""basis"of"how"people"actually"behave,"rather" than"on"administrative"decisions"about"boundaries"made"by"government"agencies." The"report"provides"a"regional"typology"that"reveals"similarities"and"differences" across"the"four"provinces"in"terms"of"regional"types."The"analysis"suggests"that" regions"in"Atlantic"Canada"with"similar"characteristics,"irrespective"of"which" province"they"are"in,"have"more"in"common"in"terms"of"economic"development" opportunities"and"constraints"than"they"do"with"other"types"of"region"in"the"same" province."" The"maJor"conclusions"from"the"analysis"are:" • Functional"regions"based"on"commuting"flows"provide"a"useful"way"to" visualize"how"local"economies"are"organized"in"Atlantic"Canada."Strong" commuting"f"lows"are"associated"with"higher"performing"regional"economies" that"provide"job"opportunities"over"an"extended"area." • Five"maJor"categories"of"region"are"defined"by"the"data."These"reflect"the" standard"urban"hierarchy"where"larger"population"regions"have"more" complex"economic"functions"reflecting"the"larger"“home"market”"and" opportunities"for"agglomeration"effects." • While"the"eleven"large"urban"centers"in"Atlantic"Canada"have"the"best" average"performance"in"terms"of"all"indicators"there"are"some"very"small," remote,"rural"functional"regions"that"match"urban"centers"in"terms"of"per" capita"income"and"other"economic"measures.""In"general,"the"variability" within"each"of"the"five"categories"increases"significantly"as"the"size"of"the" regional"population"decreases." • When"additional"measures"are"added"to"the"analysis"to"better"understand" how"conditions"vary"within"each"of"the"five"main"categories"we"find"that:"i)" all"regions,"other"than"the"large"urban"centres,"on"average"have"falling" """""""""""""""""""""""""""""""""""""""""""""""""""""""" 1"The"initial"classification"of"the"regions"was"computed"using"the"6"digit"NAICs"from" the"December"2011"business"registry"Statistics"Canada"database."For"the"purpose"of" displaying"a"region’s"industry"mix"the"data"are"aggregated"into"8"classes"and"in"their" NAICs"order"they"are:"[1]"Primary"Industries,"[2]"Construction,"[3]"First"Stage" Processing,"[4]"Secondary"Manufacturing,"[5]"Retail"Trade,"[6]"Non"Government" Services,"[7]"Transportation"and"[8]"Government"Services."Note"that"the"NAIC" numbers"associated"with"the"classification"is"listed"in"Appendix"I." " 1" " populations,"but"in"every"category"there"are"regions"that"have"population" gains;"ii)"the"average"level"of"educational"attainment"declines"as"we"move" down"the"urban"hierarchy,"but"once"again"there"are"notable"exceptions"in" every"category;"iii)"the"smallest"regions"tend"to"be"the"most"isolated"in"terms" of"distance"from"a"maJor"urban"centre,"but"there"are"examples"of"small" distinct"local"labour"markets"near"large"urban"agglomerations." • In"terms"of"policy"challenges"the"eleven"large"urban"centres"have"achieved"a" critical"mass"and"largely"have"the"capacity"for"sustainable"economic"growth." The"Federal"and"Provincial"governments"can"play"a"useful"role"in"supporting" specific"actions"by"these"regions,"but"they"are"largely"capable"of"managing" their"own"development."By"contrast,"the"maJority"of"regions"in"the"two" smallest"categories,"Rural"2"and"Rural"3,"face"ongoing"economic"and" demographic"decline."Their"local"economies"are"weak"and"in"many"cases"they" are"too"remote"to"connect"to"a"larger"economy."While"there"are"notable" exceptions"of"high"performance"within"these"two"categories"these"are"mainly" idiosyncratic"and"reflect"particular"resource"endowments."It"is"difficult"to"see" the"communities"in"the"maJority"of"these"regions"remaining"in"existence" beyond"the"next"decade."This"leaves"60"functional"regions"that"are"either" small"urban"centres"or"larger"rural"regions."These"regions"are"all"large" enough"to"have"some"potential"for"economic"growth,"but"can"benefit"from"a" variety"of"investments"by"Provincial"and""Federal"agencies"to"improve"local" capacity." The$Basic$Typology$ Individual"responses"to"commuting"patterns"collected"in"the"census"are"aggregated" by"Census"Sub^Division"(CSD),"which"is"the"basic"geographic"unit"used"by"Statistics" Canada.."The"constructed"functional"regions"contain"varying"numbers"of"CSDs" depending"on:"the"underlying"size"of"the"populations"and"local"economies,"the" geographic"size"of"the"subdivisions,"and"the"degree"of"inter^CSD"travel"for" employment."Some"functional"regions"are"large"metropolitan"regions"with"a" dominant"city"and"a"complex"hinterland."Other"functional"regions"consist"of"one"or" two"low"population,"remote"CSDs"with"very"small"settlements,"and"exhibiting"a" combination"of"very"weak"commuting"flows"and"low"levels"of"employment"within" these"functional"regions." Maps"1a,"1b,"1c,"1d,"1e"show"the"functional"regions"by"province"and"identify"the" location"of"significant"settlements."These"maps"also"provide"a"sense"of"actual" population"densities."Economic"activity"is"highly"dependent"upon"population" concentrations"and"the"maps"suggest"that"large"areas"of"all"provinces"but"Prince" Edward"Island"remain"relatively"unsettled."The"final"point"to"be"taken"from"the" maps"is"the"highly"variable"size"of"the"functional"regions."Notably"the"relationship" between"size"of"region"and"population"roughly"follows"a"U"shape.""Remote"low" population"regions"tend"to"be"relatively"large"geographically"because"there"are"few" settlements"and"people"are"forced"to"travel"long"distances"for"work."At"the"other" extreme"urban"focused"regions"can"also"be"quite"large"because"of"the"attraction" 2" " power"of"a"large"city"as"a"source"of"high"wage"Jobs.."Note"that"there"are"obvious" exceptions"to"this"pattern." " " Map"1a"New"Brunswick"Functional"Region"Boundaries"and"Populated"Areas" 3" " " Map"1b"Nova"Scotia"Functional"Region"Boundaries"and"Populated"Areas" 4" " " Map"1c"Prince"Edward"Island"Functional"Region"Boundaries"and"Populated"Areas" " 5" " " Map"1d"Labrador"Functional"Region"Boundaries"and"Populated"Areas" " 6" " " Map1e"Newfoundland"Island"Functional"Region"Boundaries"and"Populated"Areas" Major$Categories" Urban$Centres–"There"are"eleven"relatively"large"urban"regions"in"Atlantic"Canada." Centres"with"populations"ranging"from"412,200"to"101,620"are"Halifax"NS,"St."John’s," NL,"Moncton"NB,"Saint"John"NB,"Fredericton"NB"and"Sydney"NS"(Cape"Breton" functional"region)."In"addition,"there"are"5"other"functional"regions"classified"as" urban,"because"of"their"industrial"and"service"diversity,"and"they"are:"Charlottetown" PE,"Kentville"NS,"Luneburg"NS,"Truro"NS,"and"New"Glasgow"NS."The"population"of" these"5"smaller"urbanized"regions"ranges"from"a"high"of"77,150"to"a"low"of"45,645." All"the"urban"regions"have"a"relatively"diversified"economic"structure,"but"regions" with"populations"of"100,000"or"more"will"have"a"comparative"advantage"over"the" smaller"urban"regions."Of"the"eleven"regions,"91"%"are"classed"as"having"very"high" industry"diversity"and"9%"as"high"diversity."By"international"standards"these"are"all" small"cities,"but"in"the"context"of"Atlantic"Canada"these"are"the"largest"urban"places" and"each"has"some"potential"to"develop"some"sort"of"a"self^sustaining"growth" process." Small$Cities$and$Regional$Towns"^"There"are"29"functional"regions"classified"as" small"cities"and"regional"towns"with"regional"populations"ranging"from"39,805"to" 9,225."These"regions"are"characterized"by"having"at"least"one"reasonably"sized"town" 7" " that"is"a"focal"point"for"public"services"for"its"region"and"for"adJacent"smaller"regions." Some"of"the"regions"in"this"category"are"quite"distant"from"urban"centre"regions"and" have"a"significant"spatial"reach"into"other"smaller"regions."Other"members"of"this" group"are"relatively"close"to"a"larger"region"that"dominates"the"broader"territory."" These"regions"are"large"enough"to"exhibit"a"relatively"diverse"economic"structure"by" Atlantic"Canada"standards,"with,"86%"classed"as"having"high"industry"diversity"and" 14%"having"moderate"diversity." Rural$1"–"There"are"31"first"order"rural"regions"in"Atlantic"Canada."These"regions" have"populations"ranging"from"7,950"to"2,140,"and"contain"communities"having" sizes"from"27"to"6,994"people"distributed"across"an"otherwise"sparsely"populated" countryside."They"are"the"small"service"centres"for"retail"and"government"services" for"their"own"residents"and"some"surrounding"regions"and"have"fairly"diversified" economies."The"breakdown"for"industry"diversity"is"3%"high,"81%"moderate,"13%" low"and"3%"very"low." Rural$2^"There"are"39"second"order"rural"regions"in"Atlantic"Canada.""The" population"of"these"functional"regions"ranges"from"2,140"to"1,810.""Industry" diversity"is"somewhat"lower"in"these"areas"with"37%"of"the"regions"classed"as" moderate,"55%"classed"low"and"8%"classed"very"low."In"many"cases"these"are"single" industry"towns,"and"often"employment"is"dominated"by"a"single"firm.""Again,"these" areas"are"sparsely"populated"with"limited"connectivity"between"communities." People"have"to"leave"their"region"to"obtain"higher"order"retail"goods"and"most"public" services."The"population"range"of"communities"in"this"type"of"region"is"between"27"
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