Bridging skills gap will cut unemployment
Date published:
The Chamber’s latest column for The Journal by Erika Armanino, knowledge and research executive
The North East continues to face unique challenges in its labour market, with recent data from the Office for National Statistics (ONS) showing an unemployment rate of 5.4% between September and November 2024. This figure underscores a persistent regional disparity, with the national average sitting significantly lower at 4.4%.
We’ve also seen the same trend in our latest Quarterly Economic Survey (QES) that found that labour market challenges have intensified, with 76.9% of respondents highlighting staff costs as a major concern, a 27.8% increase from the previous quarter. Businesses also reported a quarterly 3.9% decrease in future workforce projections.
This data highlights that many businesses in the region are struggling to find skilled workers, particularly in industries like technology, manufacturing and renewable energy.
At the same time, young people and those who are not working due to health issues or family responsibilities continue to face barriers to work.
However, better training programmes, supporting apprenticeships and helping people learn the skills needed for growing industries can make a big difference.
Local businesses and schools need to continue to work together to prepare workers for the jobs of tomorrow. Government support, like funding for new projects or offering incentives for businesses to grow in the North East, can also help create more jobs.
The North East Chamber of Commerce is leading efforts to address the region’s employment and skills challenges through the Local Skills Improvement Plans (LSIPs).
This initiative is focused on aligning skills training with the needs of employers, particularly in key sectors like low-carbon energy, clean growth and advanced manufacturing.
Developed in collaboration with local businesses, education providers and government bodies, the LSIPs identify gaps in the current training system and propose targeted solutions to bridge these gaps.
By tailoring programmes to meet industry demands, the LSIPs aim to equip people with the skills needed for emerging job opportunities, helping to reduce unemployment and support economic growth across the region.