This research project provides an insight into existing and likely future skills needs in the West Midlands.
It considers the changing needs of the region's economy and labour market as it moves out of recession and helps inform decisions of employers, individuals and skills providers.
This research project has two objectives:
Firstly, to gain a greater understanding of the issues, challenges and opportunities facing the West Midlands economy as it emerges from recession — from a skills perspective but also in relation to other policy areas such as enterprise and innovation. This understanding will help focus limited resources and maximise the resources' impact.
Secondly, the research will help to shape work by the West Midlands Skills Partnership, Executive group, partners such as Business Link and Business Voice West Midlands, and organisations providing careers information, advice and guidance, including Connexions.
Key headlines
Historically, the West Midlands has had a weak industrial structure with low value added private activities (such as wholesale and retail, hotels and catering) dominating the regional economy.
Geographically, the areas expected to experience the most fragile economic recovery in terms of growth in GVA and jobs are traditional industrial areas (such as the Black Country). However, recovery is expected to be strongest in areas clustered in the south and east of the region, in Solihull and Warwickshire.
GVA is forecast to grow by 11% (£9 billion) over 2010–2015.
At 5% over the period (representing the creation of just over 11,000 net new jobs) employment growth is forecast to be similarly modest.
The gap to be addressed to match the England average will be significant:
- 66,000 more higher skilled workers need to be recruited or up-skilled
- 25,000 new jobs would need to be created in higher value added business and professional services
- Nearly 20,000 new jobs would need to be created in ICT
- More than 15,000 jobs would need to be created in digital media
- More than 10,000 new jobs would need to be created in medical technologies
But the potential benefits could be substantial. If skill levels in 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 also attracted to the region, and existing ones were developed such that their share of GVA matched the England average:
- There would be a much more significant growth in GVA and jobs
- GVA growth between 2010 and 2015 would be raised to 23%
- Net new jobs created rise to more than 200,000
Gross Value Added growth prospects by sector and cluster
Source: Cambridge Econometrics | Full size image on flickr
Read the report
Published 28th June 2010
Our overview report, The West Midlands economy post recession: key issues and challenges (pdf, 843kb), sets out the key messages and policy implications. This will provide the basis for developing recommendations and actions.
Dataset
We've shared the data behind the charts in the report: