North East Local Enterprise Partnership reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Strategy and Policy Director, Richard Baker, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS).

“Today’s figures continue to demonstrate the impact of COVID-19 on our economy with a continuing decrease in employment and a rise in the number of people claiming unemployment related benefits.

“The decision to extend the furlough scheme will protect many jobs for the future. However, it remains an uncertain time for businesses as a result of Covid controls and the need to continue to adapt to new processes following the Trade Deal with the European Union.

“It is essential that government continues to support the economy through the pandemic and invests to support the proposals in our COVID-19 Recovery Plan to enable us to drive forward our region’s recovery.

“The data released today covers the three-month period to November 2020. Employment continued to decrease during this time, both nationally and in the North East. The employment rate for the North East region, including the North East LEP and the Tees Valley LEP areas, was the lowest in England at 71.2 per cent. Both the unemployment rate and the number of working age people outside the labour market were much higher than they were between March and May 2020. The number of people being made redundant was at its highest level since 2009.

“In the North East LEP area, the number of people claiming unemployment-related benefits has increased by over 31,000 since March, with rates at 10 per cent in some areas. Employment in the region has fallen in most age groups, but the largest impact appears to have been on those aged under 25 and among 50 to 64-year-olds.

“These statistics include the November lockdown period but do not include the impact of the restrictions since Christmas.

“Strategic leadership and a strong partnership with government is more critical than ever – we will work closely with government to ensure that support for businesses is reflective of the need of our region.”

New business survey launched to assess impact of EU exit and coronavirus pandemic in the North East

The beginning of 2021 has been a challenging start to the year for many businesses. England entered another national lockdown at the end of December, and the UK’s exit from the EU on 31 December brought new rules and regulations impacting all businesses that operate in the European Union.

Because of this we have launched a brand new survey on the North East Growth Hub to find out how our region’s businesses have been impacted by the UK’s new trading agreement with the EU, and the ongoing coronavirus pandemic. We want to find out what preparations, planning and changes organisations have been able to make during this very difficult time.

All the information shared with us will be fed back to government, ensuring North East businesses get the help and support they need.

One of the main things we want to understand is how the UK’s exit from the EU – and its new trading agreement with the bloc – has affected businesses in the North East. We know from previous surveys that many regional businesses had not prepared for the new rules, which came into force on 01 January this year. We’d like to know what the impact has been in areas such as customs procedures, paperwork relating to imports and exports, supply chain disruption, and data storage and transfer. We are also keen to know if this has opened up any new opportunities for businesses.

The coronavirus pandemic continues to be the main concern for most businesses in the North East. A large proportion of our region’s businesses have been forced to close because of the new national lockdown, and business owners have to – once again – look to new, innovative ways to engage with their customers.

Through this new survey we’d like to understand what measures businesses have taken to shield some of the impact of COVID-19; whether that’s been through stockpiling, furloughing staff, adopting new technologies, or introducing new products and services.

We’d also like to know if businesses plan to retain any of the changes they’ve made after we emerge from the pandemic, for example, remote working, or a greater focus on online retail.

Businesses can also let us know if they have benefitted from any of the government’s financial interventions, including the Coronavirus Job Retention Scheme, Bounce Back Loans, and grant payments. Importantly, we’d like to know from businesses if they think some of these measures should continue.

The final part of the survey focuses on business resilience. We know many North East businesses have made huge changes to adapt to our current situation, and we’d like to know the type of measures businesses have introduced. It could be a greater investment in IT and digital, more focus on crisis planning, investing in staff training, or introducing e-commerce. Whatever changes businesses have made, we’d like to know what they are and how effective they’ve been.

All the information we gather through this new survey will help us deliver the right support, to the right businesses, at the right time. The survey takes approximately 10 minutes to complete and all the information supplied will be treated confidentially.

You can access the Understanding how EU Transition and COVID-19 is impacting your business survey via this link.

Thank you in advance for sharing your feedback. If you have any questions about the survey you can contact us by emailing [email protected].

And do please remember that North East businesses looking for free, impartial, one-to-one business support and advice can book an appointment with our Growth Hub Connectors via www.northeastgrowthhub.co.uk. The Growth Hub Connect team can guide you through the business support, and finance and funding available to help your business thrive in 2021.

By Emma Ward, Research and Evaluation Manager at the North East Local Enterprise Partnership.

Funding on offer for North East employers to help young people into work

New funding from government is on offer to help employers in the North East create job placements for young people who might otherwise be at risk of long-term unemployment.

Applications are now open for the Kickstart Scheme, which offers employers of any size, and operating in any sector, funding to create new, six month job placements for young people who are currently receiving Universal Credit.

Michelle Rainbow, Skills Director at the North East Local Enterprise Partnership, explains: “The aim of this new scheme is to help young people gain the skills, confidence and experience that they need in order to go on and find work once they’ve completed their job placement.

“It’s not just a short-term measure. In the North East we really want to provide high quality job placements that will not only give young people experience of the workplace, but also give them valuable opportunities to learn and progress.”

Businesses that want to create 30 or more job placements can apply directly to the Kickstart Scheme via www.gov.uk. For businesses that plan to create fewer than 30 placements, the North East LEP will apply on their behalf, grouping applications to create clusters of high quality placements across a range of sectors in the North East.

Organisations of any size are eligible to apply, as long as the placements they are creating help young people to become more employable, for example, by helping them develop their skills in the workplace, by providing support with interview preparation and CV development, or by providing careers advice and help with goal-setting.

The funding on offer includes 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum auto-enrolment pension contributions. There is also £1,500 per job placement available for setup costs, support and training.

Employers can spread the start date of the job placements until the end of December 2021.

Michelle Rainbow added: “We know that young people, many of whom have finished school, college or university during the pandemic, are facing a difficult time and might have seen their plans for the future turned upside down.

“That’s why programmes like this are so important, and why we are working with North East employers to help give the next generation the best possible start in what is one of the most difficult times any of us have seen.”

For more information about the Kickstart Scheme visit www.northeastlep.co.uk/kickstart.

Proposed recovery and renewal deal for post-COVID North East published

North East COVID-19 Economic Response Group outlines proposals to transform and reimagine the North East economy

The North East COVID-19 Economic Response Group has published its Recovery and Renewal Deal for the North East, which outlines how a thriving post-pandemic economy could potentially be created.

The group is made up of the North East Local Enterprise Partnership (LEP), CBI, North of Tyne and North East Combined Authorities with the support of industry, to ensure the North East has strong economic leadership that acts quickly and collaboratively to mitigate the impacts of COVID-19.

Its proposal reflects on COVID-19 as a catalyst for change and details how the North East is ready and prepared to harness this catalyst to reinvigorate the North East economy.

The document sets out how, with the necessary support from the government, the North East could maximise opportunities to reach a goal of rapidly creating 100,000 good quality and secure jobs.

In the Recovery and Renewal Deal for the North East, the Group is asking the government for £2.8bn to directly unlock half of required 100,000 additional jobs quickly. It also wants accelerated confirmation of existing business cases, including Transforming Cities funding; a commitment to joint working in areas where the North East can lead the national recovery, specifically low carbon energy; and flexibility within national programmes to allow for maximum leverage of local and national resources.

It is envisioned that this would keep people in jobs and training, support businesses and sectors to restart and recover, and support the transition of our communities and places as they adapt to living with COVID-19.

In the long-term, the deal sets out how our future economy can be built by maximising the potential of our existing assets and exploring new opportunities and by investing in digital and transport connectivity.

Opportunities identified in the document include a series of new projects to empower our rural and coastal areas and reinvigorate our town and city centres; achieving zero carbon emissions targets; utilising new digital construction and advanced manufacturing techniques; leading the national offshore wind revolution; and delivering the first digitally-connected Freeport for the UK.

The proposals give particular focus to jobs in the key areas of data ageing, low carbon, life sciences and pharma. This will help the transition to a stronger, higher-productivity and higher-wage economy, with people primed to adapt to challenges and new opportunities.

Lucy Winskell, Chair of the North East LEP, said: “The Recovery and Renewal Deal for the North East is an ambitious proposal that is designed to create a fair playing field for everyone.

“Through our Strategic Economic Plan, it was our goal to create 100,000 new and better jobs and we were doing well – with 68,000 more jobs in March 2020. But the impact of COVID-19 will reset that, which is why our Recovery and Renewal Deal is so important.

“We have presented a proposal that puts sustainability and decarbonisation at the core. The Recovery and Renewal Deal ensures communities continue to improve and provide a strong offer for people to live, work, study and visit.”

Sarah Glendinning, Regional Director for the CBI North East, said: “Now more than ever we need to be imaginative in our thinking, brave in our approach and robust in our delivery in order to recover and thrive.

“In the Recovery and Renewal Deal for the North East, we have suggested the way to a new North East. Now is the time to come together to think bigger, greener, more inclusively and with innovation to reimagine our economy.”

Mayor Jamie Driscoll, North of Tyne Combined Authority said: “The pandemic has hit people hard. Young people need jobs. Businesses need investment. Yet we have the potential to be world leaders in offshore energy, advanced manufacturing, and sustainable transport.

“Our Recovery and Renewal deal will create 100,000 well paid jobs. It supports more affordable homes and better health. It’s what our region needs, and I want central government to back our plan and back the North East.”

Councillor Iain Malcolm, Chair, North East Combined Authority, said: “It is vital that we have a strong plan in place to help our businesses and communities to recover from this unprecedented crisis.

“The Recovery and Renewal Deal for the North East builds on the work we are already doing with government and other partners nationally and regionally to unlock all available support and financial assistance and sets out a bold vision for future prosperity.”

A dedicated North East COVID-19 Response Group web page has been launched for those looking for more information and partners wanting to engage with its work.

North East businesses can also access the North East Growth Hub, where a COVID-19 (coronavirus) toolkit provides the most up to date support and advice, including partner information.

Read the Recovery and Renewal Deal for the North East here.

North East Local Enterprise Partnership publishes its Annual Review 2019-2020

Tribute paid to its ‘exceptional’ team and the resilience of the North East’s business community.

The Chief Executive of the North East Local Enterprise Partnership (LEP), Helen Golightly, has paid tribute to the LEP’s ‘exceptional’ team and spoken about how the region’s inbuilt resilience and strong community will see it through the coronavirus crisis, in its Annual Review, published today.

Referencing the annual government review of all Local Enterprise Partnerships, which resulted in the North East LEP being marked exceptional for its delivery, Golightly said: “This demonstrates our strong leadership and solid implementation to ensure that our strategic projects are delivered to make the maximum impact to boost economic development and create more and better jobs.”

The Annual Review 2019-2020 sets out the progress that has been made against the six targets in the Strategic Economic Plan, in relation to the number, quality and type of employment opportunities available, the proportion of the workforce that is in employment and economically active, and productivity.

The two headline targets are to increase the number of jobs between 2014-2024 by 100,000 and for 70% of these jobs to be ‘better jobs’.

While COVID-19 has since made these targets more difficult to achieve, by December 2019 total employment had increased by 57,000. Employment in ‘better jobs’ had increased by 70,400.

Other key achievements in the last twelve months have included the North East Growth Hub becoming a critical resource for North East businesses, offering support on the EU Exit and how to best mitigate the impact of coronavirus. The launch of a second Good Career Guidance Benchmarks pilot has also taken place in the North East LEP region, this time focusing on primary schools.

The government announced in March 2020 that the North East will be at the centre of investment in innovation, while a highlight within the North East LEP’s transport programme has been the region collectively securing £198m from the Transforming Cities Fund to invest in key sustainable transport projects.

Speaking about the challenges currently being faced by businesses, North East LEP Chief Executive Helen Golightly said: “These may be truly uncertain and turbulent times but rest assured, we continue to support businesses and communities.

“This region is not frightened of a challenge and I am confident that our inbuilt resilience and strong community identity will carry us through to the recovery when we will do everything we possibly can to ensure our regional economy is back to pre-COVID-19 levels – and stronger again.”

Click here to read the North East LEP’s Annual Review 2019-2020.

North East Local Enterprise Partnership reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s (North East LEP) Senior Economist, Victoria Sutherland, has commented on today’s regional labour market statistics, released by the Office for National Statistics.

The data covers both the North East LEP and Tees Valley LEP areas and is for the final quarter of 2019.

“Employment has fallen, with 12,000 fewer people in work between October and December 2019 than in the previous quarter, and 13,000 fewer than in the same period in 2018. The sharp decline over the last quarter is disappointing news for the North East. It reflects part of a broader trend with the North East being one of four English regions (Yorkshire and the Humber, West Midlands, South West) to experience a decline in employment over the last quarter.

“Within this overall trend, the number of women employed has increased over the quarter by 7,000, while the number of men in employment has declined by 19,000. It is unclear at the moment what is driving these differing trends.

“Unemployment increased by 3,000 over the quarter and by 9,000 over the year, increasing the unemployment rate from 5.4% to 6.1%. The North East is the English region with the highest unemployment rate. Again, the trends differ across genders, with male unemployment increasing over both the quarter and the year, whilst female unemployment has fallen.

“Combined, these figures suggest the North East labour market is less strong than it was a year ago.

“It will be critically important that the North East Local Enterprise Partnership continues to work with partners across the region to deliver the Strategic Economic Plan’s ambition of more and better jobs. The Strategic Economic Plan is the region’s plan for delivering economic growth, but we cannot do it alone. We hope that the upcoming Budget prioritises those investments that partners in the region have highlighted to government as being important to driving growth in our economy.”

In conversation with Professor Stuart Corbridge, Vice-Chancellor of Durham University

Education employs 85,000 people in the North East and offers significant opportunities for more and better jobs in the region, directly and indirectly. Durham University is a world leader and has a ten-year strategy to invest £1 billion in people, and digital and physical infrastructures. Vice-Chancellor Professor Stuart Corbridge explores how universities can make a major contribution locally and globally, support a diverse and vibrant economy, and help tackle the country’s productivity challenge.

Education has long been a North East success story. But it’s not just part of our heritage, it’s a key sector for our future too: both in nurturing the highly-skilled workforce of tomorrow, and as a major employer, innovator, and exporter today.

Here at Durham, we’re not just England’s third oldest university; we’re making significant investments to ensure we remain a world-class university: investment that is absolutely necessary as we face increasing competition from universities in Asia, North America, Europe and elsewhere.

Universities already make a sizeable contribution to the economy: over £50 billion GVA in 2014/15, according to Universities UK. Our own figures suggest we were responsible for around £1.1 billion of that total.

At Durham, we employ 4,300 staff and have 18,400 students – considerable numbers in a City with a population of around 65,000.

But we believe there is also great potential for growth: the average student head count across Russell Group universities is 27,000; and the average staff roll is 7,700. So we’re in a period of carefully planned expansion: to recruit an extra 360 academic staff and grow our student numbers to 21,500 by 2027.

We believe we can achieve these targets because we continue to attract high calibre staff and students from around the world. We are also consistently ranked among the world’s top 100 universities (most recently 78th in the QS World University Rankings 2020).

But this isn’t just about us: the North East stands to benefit hugely from our success and from that of all the universities in the region: Durham, Newcastle, Northumbria and Sunderland.

It’s estimated that international students contribute around £700 million a year to the North East economy. As we and others look to attract more students from overseas (our target is 35% by 2027) this income will grow significantly.

Education and training is another valuable export industry. We continue to benefit from English being the international language of choice and the long-standing reputation of UK education. Many of our alumni hold senior roles in government and industry worldwide.

The value of education exports to the UK was almost £20 billion in 2016, and the value of transnational education within that, though still relatively small (£1.8 billion), was up 73% on 2010, showing the growing attractiveness of this option to overseas students.

We also need to tackle the big challenges facing our home economy – not least the productivity gap. Universities are well-placed on this front as we collaborate with industry to develop new technologies, research new ways of working and deliver high-level skills for the workforce of the future.

The Northern Accelerator programme, which brings together Durham, Newcastle, Northumbria and Sunderland Universities, is helping researchers to spin out and commercialise ideas, leading to the formation of potentially high-growth, research-intensive businesses linked to the research expertise here in the North East.

The Intensive Industrial Innovation Programme, which involves Durham, Newcastle, Northumbria and Teesside universities, is helping SMEs access academics, PhD students and research facilities to address their research challenges, leading in turn to the development of new products and services.

And the Durham City Incubator, a partnership between ourselves, Durham County Council and New College Durham, is supporting and encouraging graduate and student enterprise: helping our graduates stay in the North East and creating new and better jobs.

We’re all aware of the challenges facing us, but working together as a region we can drive success. Universities aren’t businesses in a conventional sense. We don’t have shareholders, nor do we seek to maximise profits. But we do deliver jobs, value and innovation. We are major enterprises in the modern economy. We are anchors for the future of the North East.

A partnership that works both ways

A PARTNERSHIP THAT WORKS BOTH WAYS

Jane Austin, Head of HR and Communications at water retail company Wave, became involved in the North East LEP’s Enterprise Adviser programme after Wave’s CEO heard about the programme at a conference.

Jane was matched with a school just a couple of miles from where she lives and is now working in partnership with Fiona Brennan, (pictured left), Work-Related Learning Co-ordinator at Marden High School in North Tyneside.

Together, Jane (pictured below) and Fiona aim to strengthen careers guidance at the school, ensuring that the school achieves the eight Good Career Guidance Benchmarks which have been successfully piloted here in the North East and now form a central part of the Government’s new careers strategy.

“We had already completed an internal audit to see how the school was performing against the eight benchmarks, and this helped us to identify our priorities for the academic year, and for our work with Jane,” explained Fiona. “For example, we found that our careers provision varied across year groups and that we needed to provide more opportunities for our younger pupils.”

 “Working together with Jane has been a really positive experience and I feel that we’re making good progress towards achieving the benchmarks. The most useful thing has been having the support of someone who is looking at our situation from a different perspective.

 “We want to make sure that students come away from our career events feeling inspired and wanting to know more. We need to spark their interest and give them experiences which they can relate to.

 “We now have a number of careers-focused events planned for different year groups in the New Year and more in the pipeline – these include a half day event where pupils will run their own business, learning how to make business decisions in areas such as pricing, HR and production. We’re also challenging stereotypes, with younger pupils meeting people who work in all sorts of different careers, from firefighters to marketers.

“I’m really, really happy with our partnership and Jane’s experience and passion means we work very well together.

 Jane Austin added: “Working together, we’ve made huge progress in a short time. We’ve moved towards filling the gaps in provision which the school had already identified and we’re in a position now where we have a plan for the careers offering for every year group and we can evidence the Good Career Guidance Benchmarks in a more robust way across all ages.

 “While I’m working with the school on a strategic level, I’ll still be supporting them at events which is great as I have the pleasure of watching the students grow and, every time, I come away astounded by them.

 “There’s something amazing about a partnership between business and education. The school gains from it but so does the business.

 “I’ll be calling on my colleagues in finance, sales and our CEO, who will all be volunteering at events and sharing their knowledge with pupils. Our employees get a lot out of being involved and opportunities to volunteer are really valued by people at all levels – the partnership really does work both ways and it’s one of the best things I’ve ever done.”

 Find out more about the North East LEP Enterprise Adviser programme.