Functions of places

Places serve various economic functions that meet the needs of their residents. These functions can evolve over time as economic conditions shift, influencing how people live and work in the area.

Main types of place functions

Places often combine multiple functions, though one may dominate.

These include:

• Administrative - Involves delivering public services, such as education in schools or healthcare in hospitals, managed by local authorities.
• Commercial - Focuses on profit-making services, like banking or financial operations.
• Industrial - Centres on manufacturing goods and distributing them to markets.
• Retail - Involves selling products directly to consumers through shops, markets, or other outlets.

How functions change over time

A place's dominant function can shift as its economic needs change. For example, during the 1960s, Liverpool experienced a decline in its docks and industrial areas because such work relocated overseas. This led to the introduction of new retail spaces, tourist attractions, and commercial offices in the former dock areas, transforming that part of the city.

Recent trends, such as the rise of online banking and shopping, have challenged some places' retail functions, leading to further economic decline. The COVID-19 pandemic accelerated this shift by boosting the use of online services.

As functions evolve, they attract different businesses and workers, which can revitalise or alter the character of the area.

Demographic changes in places

Demographics refer to the characteristics of a population, including aspects like age, ethnicity, and socio-economic background. These features often change alongside a place's economic functions, as new opportunities draw in specific groups of people.

Links between functions and population characteristics

When a place's function changes, its population may adapt accordingly. Economically growing areas tend to attract young people and become more ethnically diverse, as they offer jobs that appeal to a wider range of workers.

Places with high job availability often have a younger, working-age population. In contrast, areas with fewer opportunities may see an ageing population.

Age structure in different places

Population pyramids illustrate age distributions and can highlight economic differences.

Examples from 2011 census data:

• In Central Liverpool (population 5,436), there was a notable bulge in the 20–39 age group for both males and females, with a high proportion of males. This suggests abundant work opportunities, attracting young, working-age individuals.
• In Lerwick (population 6,958), the distribution was more even, with wider bars in the 40–79 age ranges and fewer young people. This indicates concerns about an ageing population, potentially due to limited job prospects.

Such structures show how economic vitality influences who lives in a place.

Changes in ethnic composition

The ethnic makeup of a place can shift due to migration patterns linked to historical events. In the UK, post-Second World War labour shortages led to encouragement of migrants from Commonwealth countries. For example, many from the Caribbean settled in South London, while those from India, Pakistan, and Bangladesh moved to northern and Midland cities like Bradford and Birmingham.

Urban areas like Liverpool tend to be more ethnically diverse than rural or remote places like Lerwick.

2011 census data comparison:

• Liverpool: 86.9% White, 2.5% Mixed/Multiple Ethnic Group, 4.2% Asian/Asian British, 2.6% Black/African/Caribbean/Black British, 1.8% Other.
• Lerwick: 96.8% White, 0.4% Mixed/Multiple Ethnic Group, 2.2% Asian/Asian British, 0.4% Black/African/Caribbean/Black British, 0.2% Other.

These differences reflect varying histories of migration, with cities often experiencing greater diversity.

Impacts of demographic shifts

As people of different ages and socio-economic backgrounds arrive, a place's character can transform. In economically struggling areas, new migrants, whether from within the country or abroad, may invest in housing and revive local industries.

Some migrants establish businesses serving their own communities, encouraging further in-migration. This can lead to gentrification, where wealthy individuals move into a poorer area, improve housing, and attract new businesses, often increasing housing prices and the overall cost of living.

Reasons why places change over time

Places evolve due to a mix of physical and human factors. Understanding these helps explain shifts in functions and demographics.

Physical factors influencing change

Physical geography can alter over time, affecting a place's development.

Examples of physical factors:

• Expanding areas may run out of space, limiting growth.
• Coastal erosion, such as in Happisburgh, Norfolk, causes rapid recession, threatening buildings and infrastructure for tourism or fishing.
• Climatic conditions, like high rainfall or low winter temperatures, can make areas inhospitable. However, as global climates change, these places might become more attractive, drawing migrants for employment.
• Climate shifts could also change farming types, altering rural landscapes.

Historical development

Places go through cycles of growth and decline. New buildings and industries emerge, while old ones fade, changing livelihoods. Historical booms and busts, often tied to industrial changes, shape a place's trajectory.

Accessibility and connectedness

Improved access can drive economic development. New transport hubs, like airports, connect places to distant areas, helping businesses attract skilled workers or trade goods.

Connectedness extends to technology, such as expanding 5G networks into rural areas, or cultural links, like discovering historical artefacts that boost tourism.

Local and national planning

Planning decisions influence change. National governments allocate development funds selectively, while regulations like green belt land (areas around UK cities where no development is allowed) prevent building to preserve open spaces.

Local authorities must identify land for new housing to address UK-wide shortages, which can reshape places.

Measuring change using the Index of Multiple Deprivation

The Index of Multiple Deprivation (IMD) is a tool that assesses deprivation across the UK by ranking small areas called Lower Layer Super Output Areas (LSOAs) based on various criteria. Deprivation means lacking access to essentials like income, housing, and healthcare.

How the IMD works

The IMD uses 39 criteria grouped into seven categories, with greater weight given to income and employment (45% of the total score). Areas are ranked using deciles, dividing them into ten groups from most deprived (decile 1) to least deprived (decile 10). Supplementary indices focus on deprivation among children and the elderly.

Categories of deprivation

• Education - Measures lack of skills and attainment in the population.
• Health - Assesses risks of early death or reduced quality of life due to poor health.
• Crime - Evaluates the likelihood of becoming a crime victim.
• Employment - Tracks the share of working-age people excluded from jobs.
• Income - Identifies the proportion facing low-income deprivation.
• Barriers to housing and services - Examines physical and financial access to homes and amenities.
• Living environment - Gauges the quality of indoor and outdoor surroundings.

Example IMD rankings

This table compares deprivation in Liverpool (against England, 2019) and Lerwick (against Scotland, 2020):

A decile of 1 for Liverpool's income means at least 90% of places in England have higher earnings. Combining criteria gives an overall view of improvement or decline.

Other ways of measuring change in places

Beyond the IMD, various indicators can track how places evolve, focusing on economic, demographic, and land use shifts.

Employment and economic indicators

Changes in employment across the four sectors – primary (e.g., farming), secondary (e.g., manufacturing), tertiary (e.g., services), and quaternary (e.g., research) – can show a place's position on the Clark-Fisher model, which describes economic development stages.

Rising numbers of part-time or temporary workers may signal shifts in the labour market. Increases in house prices often indicate improving economic fortunes.

Demographic and land use indicators

Quantitative data on age and ethnicity can reveal functional changes. In the UK, a younger, more ethnically diverse population often signals economic growth.

Land use maps and aerial photography track physical changes, such as abandoned industrial sites. The duration these remain derelict indicates economic health. Analysts can calculate percentages of land used for purposes like industry or housing, showing evolving priorities over time.