Building a stronger North East: Literacy, skills and business growth
Date published:
The Chamber’s latest column for The Journal by Marianne O’Sullivan, policy manager
Tackling the issues of poor literacy and communication skills in the region will be vital to reducing economic inactivity and driving growth. North East businesses, including members of the Chamber, will also need clarity and support from the government to create growth amidst the financial pressures associated with the upcoming rise in National Insurance.
Figures from the Office for National Statistics (ONS) released in February show that while the North East’s unemployment rate has fallen by 0.4% compared to figures released the previous month, the region’s economic inactivity rate has increased by 0.5%, meaning the region continues to face higher levels of economic inactivity than the UK average.
A recently published Chamber-led report highlighted that the North East is the worst-performing region for adult literacy, with 23.1% of adults having functional illiteracy in 2021. This is a key barrier to people accessing work, contributing to high levels of economic inactivity.
The report outlines several recommendations, including an employer-endorsed communication skills framework. This would create a shared language between employers and education providers, ensuring training aligns with real-world job requirements.
Other recommendations highlighted in the report include focusing on skills and competencies rather than qualifications during recruitment and increasing collaboration with the voluntary, community and social enterprise sectors so that people can access safe spaces to improve their communication skills.
The Chamber has presented these findings at the first Hartlepool Literacy Summit. There is a real desire for changes to be made in tackling high levels of illiteracy in Hartlepool and the wider North East. The Chamber will continue to work with local and national government to address the region’s skills gaps, making full use of devolved powers and funding to drive growth in the North East.
Businesses need clarity and support to create growth. The increase in National Insurance contributions is forcing businesses to reconsider their recruitment, pricing and investment plans. Nationally, 82% of firms surveyed by the British Chambers of Commerce have said the National Insurance rise will negatively impact their business.
While the government’s long-term strategy seeks to create a stronger economic foundation, the immediate reality is that rising costs and financial pressures are at risk of becoming unmanageable. Businesses in the North East need clarity and support to navigate this transition without compromising growth and competitiveness.
We are North East business, and we will continue to work with our members and local and national government to drive growth and create a stronger, fairer North East.