Achieving Inclusive Growth in the
North East
5th June 2013
Structure of the Presentation
•
Context
•
The Inclusive Growth Research
•
The North East Economy and the IER
•
Achieving Inclusive Growth
•
Introduction to the Discussion Sessions
Context
Context
Background
- Next programme of European Structural Funds
- Focussed on 3 pillars – smart growth, sustainable
growth and inclusive growth
-Inclusive growth – better connectivity between
opportunities and people
- Represents a significant opportunity for the North East
Three skills
and
inclusion
priorities
-Promoting employment and supporting labour mobility
-Promoting social inclusion and combating poverty
-Investing in education, skills and lifelong learning
The Inclusive Growth Research
Research Questions
1. Which groups or areas experience lower outcomes or are at
risk of becoming disengaged with employment or entrepreneurial
opportunities?
2. Which groups experience barriers or are under-represented
in key growth areas, such as low carbon, creative and digital,
research and innovation and advanced manufacturing
opportunities?
3. What has been successful in improving aspirations and
outcomes for less engaged groups?
4. Does the current skills and employability infrastructure
address barriers to employment or enterprise opportunities?
5. What opportunities are there for expanding engagement in
STEM subjects, innovation and manufacturing skills amongst
under-represented groups and communities?
Study Method
Review of
Literature
- Review of labour market position of
disadvantaged groups / areas
- Analysis of what works in supporting groups /
areas
- Assessment of existing skills and employability
infrastructure
Gap filling
- Consultations with third sector organisations,
skills agencies, representatives from business
community, sector experts and individuals from
disadvantaged groups
Study Method
Testing and
refining
Purpose of workshop
-Draw on the expertise of those with knowledge of
the North East economy and of under-represented
groups to answer key questions and make
recommendations for the LEP’s approach to
inclusive growth
The North East Economy and the
Independent Economic Review
Strong employment growth in the last economic
cycle: 67,000 jobs added
Employment Change in LEP Areas
Employment
Change
1998
2008
West of England
451,797
522,342
70,545
16%
North East
702,108
769,514
67,406
10%
1,176,266
1,283,769
107,503
9%
620,633
676,521
55,888
9%
1,072,086
1,161,801
89,715
8%
Liverpool City Region
551,131
584,357
33,226
6%
Derby, Derbys. Nott. and
Notts
831,095
29,648
4%
Gtr Birmingham and Solihull
815,042
27,684
3%
Leeds City Region
Sheffield City Region
Greater Manchester
Source: Annual Business Inquiry
860,743
842,726
Net
%
Changing nature of the North East economy
•
On-going decline of manufacturing sector and growth of
service sector (often low added value)
•
Growth of highly skilled professional and associate
professional and technical occupations
•
Decline in skilled trades, process, plant and machine
operative and admin and secretarial roles
•
A growing business base and increasing skills levels
But still a significant gap with the national*
average in a number of areas
* Minus London, Source: Annual Population Survey, Regional Accounts, Annual Business Inquiry
The NE Independent Economic Review
Overview
•
Provides an independent economic assessment of the
economy
•
Identifies priority actions to stimulate growth and
productivity
•
Focussed on creating more and better jobs
Key finding
•
A shortage of private sector employment
•
60,000 additional private sector jobs required
Where will growth come from?
•
Low carbon (energy and offshore renewable)
•
Creative and digital
•
Advanced manufacturing
•
Research and innovation
•
Pharmaceuticals
•
Tourism
NB - Many of these sectors will require non-specialist roles, e.g.
marketing, back office functions etc
•
Still significant employment opportunities in other
sectors – e.g. Care , Retail
Potential Sources of Additional Employment
Sector
Number of Jobs
Exporting
Innovation
Financial and professional services
Business services
New Economy
Tourism
Universities
Total
Source: North East Independent Economic Review
8,000
5,000
10,000
15,000
15,000
8,000
4,000
65,000
But more jobs is not enough...
•
The North East needs higher skilled and higher paid jobs
•
60% of its employment growth will be in graduate level
jobs
•
In the long-term this will provide progression
opportunities within the labour market
•
Growth sectors such as the new economy, tourism and
business services provide opportunities at various skill
levels
And a major focus on young people and
education ..
•
North East Schools Challenge to improve further primary
and secondary schools
•
Doubling of youth apprenticeships to strengthen
vocational provision
•
Increased access to University education for young
people
Achieving Inclusive Growth
Which groups experience lower outcomes?
Women
Disabled People
LGBT People
Young People (under
25)
Black and Ethnic
Minority People
Offenders
Older People (over 50)
Migrants and
Refugees
Disadvantaged /
Deprived Areas
Rural Areas / Less
well-connected areas
•
Disadvantage is multi-faceted
•
The interplay of these characteristics, along with
geography and connectivity, impacts on economic
opportunities
Labour market context
Key Labour Market Statistics
Target Group
Working age
population
Economic
Activity
Employment
1,270,100
74.3%
66.8%
10.1%
6.4%
Women
636,200
68.2%
62.5%
8.0%
3.5%
Young People (16-24)
248,500
62.3%
48.4%
22.4%
n/k
Older People (50-64)
376,700
64.3%
59.2%
7.9%
n/k
Disabled People
308,700
50.3%
43.0%
14.6%
n/k
60,600
63.6%
2
56.0%
11.9%
11.9%
6,000
n/k
32.0%
n/k
n/k
NELEP Average
BME
Offenders
1
Unemployment
Self
Employment
3
LGBT – see below
n/k
n/k
n/k
n/k
n/k
Source: ekosgen analysis of Annual Population Survey (January – December 2012)
1
North East Equality and Diversity Partnership Board (2010) Differing Rates of Employment for a Range of
Diverse Groups
2
Calculations based on 1 less the % of ethnic minority aged 16-64 who are economically inactive
3
ONS – Census 2001
Implications of low economic participation and
employment for the North East economy
x
Inability to fully maximise its economic opportunities
x
Smaller pool of labour available to employers
x
Reduced income in North East
x
Limited purchasing power
x
Lower levels of business start up rates
x
Reduced innovation levels
x
Overall economic growth below NELEP’s potential
What Works in Achieving Inclusive
Growth?
How to improve aspirations and outcomes
Success Factors:
 Intensive / Outreach support - successful targeting of
disadvantaged groups requires a substantial outreach
element and intensive support over the long-term
 Support self employment / community enterprise
development - promoting enterprise as an option and
providing a continuum of quality pre-start, start up and
post start support
 Involvement of third sector organisations – they
understand the barriers and challenges
How to improve aspirations and outcomes
Success Factors:
 Provision of employment coaching and work
placements – engaging employers to source work and
brokering appropriate candidates into employment
 Progression to mainstream support – complement
and don’t duplicate mainstream support: progress
groups to mainstream support once barriers are
removed.
Does the skills and employability
infrastructure address barriers?
Significant disparities in participation in education,
employment support, training and apprenticeships.

Low representation of women in science and
engineering – 97% of starts in engineering were male

Less than 20% of starts in science, engineering and
manufacturing, energy and utilities, construction and
automotive are females

Only 7% of starts nationally were by individuals with a
learning disability
Enhancing the skills and employability
infrastructure
1. Addressing gender gaps in participation
2. Encouraging participation into ‘atypical’
employment
3. Raising women’s educational participation rates
4. Developing a strategy for lifelong learning
5. Building on the strengths of the third sector…
The role of the Third Sector
A vital part of the skills and employability
infrastructure:
•
Provides employment and volunteering opportunities
•
Improves the skills and experience of disadvantaged groups
•
Provides a voice and influence
•
Attracts investment
 What can other sectors learn from the third sector
in providing opportunities for disadvantaged
groups?
The role of the Third Sector
What support does the third sector need to continue
playing this role?
1. Closer working between third sector and private sector
(capacity building and joint bidding)
2. On-doing engagement between NELEP and third sector
3. More coordinated and proactive approach to joint
commissioning of public services contracts by local
authorities and other local commissioners
4. Others?
What are the barriers to participation?
Employment
x
Lack of technical skills – engagement in STEM subjects from
early age
x
Lack of interest in some vocational areas amongst some
groups
x
Access to low cost transport
Enterprise
x
Growth focussed enterprise support – may not suit all
entrepreneurs
x
Lack of engagement with mainstream business support
Summary
The 65,000 additional jobs envisaged in the IER could
provide significant opportunities for inclusive
employment and growth
However there is a need for...
•
An understanding of the opportunities that will arise and
the skills / attributes needed to access them
•
Clarity over the support needed to ensure all residents
can benefit from these opportunities
•
Agreement on defining and measuring success
Discussion Sessions
Discussion 1: Opportunities in the
North East Economy

What employment opportunities are expected to arise in the NE
growth sectors?

What employment opportunities will arise in the rest of NE
economy?

What opportunities for enterprise are there within the NE economy?

What skills / attributes will be required to access these
opportunities?

What are the potential barriers to accessing these opportunities?

Do people within the disadvantaged groups / areas have these skills
and attributes and what support do they need to acquire them?
General Barriers to Participation
SECTOR
Low Carbon
Creative and Digital
Advanced Manufacturing
Research and Innovation
Pharmaceuticals
Tourism
Other Sector (specify)
Other Sector (specify)
Other Sector (specify)
BARRIERS
Specific Barriers to Participation
SECTOR
GROUPS
Women
Low Carbon
Creative and Digital
Advanced
Manufacturing
Research and
Innovation
Pharmaceuticals
Tourism
Other Sector
(specify)
Other Sector
(specify)
Other Sector
(specify)
Young
People
Older
People
Disabled
BME
Migrants
&
Refugees
LGBT
Offenders
Deprived/
Disadvantaged
Areas
Employment Opportunities
SECTOR
Low Carbon
Creative and Digital
Advanced Manufacturing
Research and Innovation
Pharmaceuticals
Tourism
Other Sector (specify)
Other Sector (specify)
Other Sector (specify)
OPPORTUNITY
Enterprise Opportunities
SECTOR
Low Carbon
Creative and Digital
Advanced Manufacturing
Research and Innovation
Pharmaceuticals
Tourism
Other Sector (specify)
Other Sector (specify)
Other Sector (specify)
OPPORTUNITY
Discussion 2: Delivery of Support to
Disadvantaged Groups / Areas

What support is needed?

What are the features of effective support?

How can support best be delivered to disadvantaged
groups and areas?

What roles should mainstream and specialist services
play?

What are the implications of the IER for institutional
capacity and support?
Types of Support Needed
SECTOR
Low Carbon
Creative and Digital
Advanced Manufacturing
Research and Innovation
Pharmaceuticals
Tourism
Other Sector (specify)
Other Sector (specify)
Other Sector (specify)
TYPE OF SUPPORT
Discussion 3: Success in encouraging
Inclusive Growth in the North East

How would you define success?

How would you measuring success in supporting
Inclusive Growth?

Is there a need for new indicators and approaches?
Defining Success
How would you define success?
Plenary Discussion
Plenary Discussion
 What are the implications of the discussions for
achieving Inclusive Growth in the North East?
 Recommendations for the Growth Plan
 Recommendations for the new European
Programme
 Other issues / priorities