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Abstract. Labour Market Areas (LMAs) are regions built on the basis of commuting to work data so that the majority of the labour force lives and works within their boundaries. LMAs have long being recognised as relevant for assessing the effectiveness of local policy decisions. Eurostat encourages LMA development in the European Union. The idea is to share methods and tools towards the creation of a harmonised geography. As the LMA functional approach to territorial partitioning is getting more and more used for policy purposes, the demand for indicators is increasing. The paper illustrates the shared method, the recently publicly available software package LabourMarketAreas developed at Istat for LMA design. The paper also presents examples of indicators at LMA level built from register data. Finally the small area estimation method implemented by Istat to release employment and unemployment rates at this geographical level is sketched.

We briefly define disclosure limitation. We outline a new method for disclosure limitation, illustrating our approach on microdata from the Community Innovation Survey of manufacturing and services sector enterprises. Our method builds regression models for the continuous variables to be protected. Some of the fitted values from these models are then shrunk before being released. We also review the microaggregation approach to disclosure limitation. We briefly describe a method based on principal components analysis for defining broader categories for the variable geographical area. We discuss how to assess both the amount of protection offered and the error induced by a disclosure limitation method. We find that for the four 'Nomenclature of economic activities in the European Union' main economic activities considered the new method offers more protection than microaggregation and very often leads to a smaller error.

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