APPENDIX 21
Memorandum from the East Midlands Development
Agency (JG 27)
CONTEXT
All RDAs have been tasked with producing a regional
economic development strategy, which will be with Ministers by
the end of October.
Emda strongly believes that the region's prosperity
will be achieved through its people and that people are the region's
most important resource. It also believes that all those who wish
to participate should be able to do so—linking with the
social inclusion agenda.
Learning and Skills has been identified by emda
as one of the key drivers towards economic success. It is also
identified as one of the key components towards helping people
enter the workplace and help them retain jobs, in an increasingly
changing work environment.
In drawing together the strategy it became apparent
that there was an urgent need for research into a number of related
areas—not least the labour market and skills trends of the
region, from now until 2010, an audit of voluntary sector capacity
and activity and a social inclusion strategy.
A thorough and accurate analysis of these issues
will help identify the most effective ways in which all people
in the region can be helped to realise their potential.
IS THERE
A JOBS
GAP?
As mentioned above, we need to undertake research
into a number of areas in order to enable us to have a clear picture
of any disparity in terms of the supply and demand for labour
at the regional and local levels.
However, in general terms there is a definite
decrease in the number of job vacancies in manufacturing—in
March 1999 there was a reduction of 30-40 per cent. As this region
is second only to the West Midlands in terms of the size of the
manufacturing industry within the economy, this is obviously a
worrying trend. If we consider clerical, administrative and managerial
job vacancies, in the same period these have increased by over
80 per cent. This has clear implications in terms of the skills
mix that individuals need in order to remain competitive in the
region's labour market and also in the perceptions that people
have as to the type of work available to them.
Looking at this in more detail, there are a
number of areas that appear to display trends towards a disparity
linked to the supply and demand for labour. We will wish to examine
these in more detail as part of our programme of research—the
areas fall into three categories: Three Cities, Former Coalfields,
and Coastal Areas.
THREE CITIES
This relates to parts of Nottingham, Derby and
Leicester. Whilst these cities are fairly prosperous overall,
each has a higher proportion of ethnic minority residents than
other areas in the region. This has resulted in an apparent disparity
between the supply and demand of labour, whether due to racial
issues or due to the skills base not matching employers' requirements.
FORMER COALFIELDS—NORTH
NOTTINGHAMSHIRE AND
NORTH DERBYSHIRE
With the significant decline in traditional
industries, deep coal mining and textiles, the area has been left
with fairly low skill levels, linked to industries that no longer
exist, coupled with a history of low educational achievement levels.
There are issues around the type of jobs available and the rates
of pay. Many of the jobs are part-time and perceived to be more
suitable for women—whereas there is fairly high male unemployment.
As with racial issues, this reflects more of a cultural/attitudinal
problem rather than purely a skills match problem.
COASTAL AREAS
Problems here relate to a low skills base, including
basic skills and the seasonal nature of the employment. Particularly
difficult is the ability for the 18-24 year olds to access New
Deal as they tend to be unemployed for periods of less than six
months. This exacerbates the low skills issue as the intensive
services available through New Deal are not open to them.
EMDA'S
ROLE
As mentioned earlier, we will shortly be producing
a Regional Skills Action Plan which will address issues of skills
gaps and the changing context of work. This will examine the role
of individuals, employers and the learning industry. Whilst at
this point in time the plan will be fairly strategic—looking
at headline issues—it will be developed, in consultation
with partners, over the next 12 months. Over the 12 months we
will be commissioning research and we will be looking at specific
issues in much more detail and any disparities between the supply
and demand for labour will be amongst them.
East Midlands Development Agency
October 1999
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