Our policy supplement (pdf, 498kb) provides an insight into existing and likely future skills needs in the West Midlands.
It highlights the changing needs of the West Midlands economy and labour market to inform decisions of employers, individuals, providers and the skills system. We produced the policy supplement to inform strategic thinking by the West Midlands Skills Partnership in focusing shrinking levels of public sector investment in key areas to maximise impact and developing regional skills and investment priorities.
The report draws on a range of key research projects commissioned by the Partnershipover the last year, notably:
The 2009 Regional Skills Assessment which considers future prospects for the region's key sectors and clusters, and reviews qualitative intelligence on potential skill needs, gaps and issues.
Our review of key issues and challenges for the West Midlands economy post recession, which looks in more detail at trends in GVA, productivity, employment, workforce skill levels and the size of the challenge to close the gap with other regions. The research examines the recession's impact and short term prospects, the extent of skill gaps, skill shortages and barriers to investment in skills, and alternative scenarios for the future.
Our review of potential employment and skill needs at impact investment locations identified by the Joint Strategy and Investment Board to act as a key focus for expenditure on economic development, housing and transport.
‘Position statements’ on skills priorities produced by the West Midlands' 14 upper tier local authorities that highlight current key employment sectors and, looking forward, identify priority sectors for the future to drive economic growth and the development of a high skill knowledge economy.
Key headlines
- Continuing dependence within the West Midlands on lower value added private sector activities and the public sector is inhibiting growth in GVA, productivity and demand for higher skilled jobs.
- GVA is forecast to grow by 11% (£9 billion) over 2010-2015.
- Employment growth is forecast to be similarly modest: 5% (representing the creation of just over 11,000 net new jobs) over 2010-2015.
- These forecasts for growth in GVA and jobs assume a number of key investment sites across the West Midlands will successfully attract significant numbers of high value added businesses and skilled jobs in the coming years.
- Encouragingly the 16 sites (including Birmingham New Street, Telford town centre and Ansty) where the most significant progress has been made can potentially generate more than 116,000 new jobs in the region over the next 25 years.
- Of these, nearly 61,000 (more than half) are expected to be higher level skilled jobs in managerial, professional and technical occupations.
- There are significant opportunities on offer in higher value added sectors (such as advanced manufacturing, environmental technologies and ICT) and local authorities have highlighted the need to grow and develop them in their areas.
The scale of the challenge to achieve this objective is significant but the potential benefits are substantial. If skill levels in the region's workforce were raised to match the England average:
- GVA growth between 2010 and 2015 would be raised from 10% to 12%
- Net new jobs created would nearly double from 11,000 to 21,000
If more businesses in higher value added sectors and clusters were attracted to the West Midlands, and existing businesses developed such that their share of GVA matched the England average:
- Much more significant growth in GVA and jobs
- GVA growth between 2010-2015 increases to 23%
- Net new jobs created rises to more than 200,000
Read the report
Published 12th July 2010
Regional strategic and investment priorities for 2011-2012: policy supplement (pdf, 498kb)
Dataset
We've shared the data behind the charts in the report: