The Local Government Association (LGA), representing councils across England, has called for more powers to be devolved to local authorities after new research highlights the varied regional factors affecting the jobs market in different parts of the country.
While national data has show strong growth in job vacancies, a local picture of the job market by the LGA and online job site, Adzuna, has revealed the disparities in the challenges facing local economies in different parts of the country.
Analysis from the Institute for Employment Studies using real-time vacancy data from Adzuna and commissioned by the LGA found that in 42% of the country, vacancies outnumber unemployed people, making it harder for businesses to recruit and slowing growth such as the West Midlands and North-east, while parts of the South East and London have low unemployment and relatively low vacancy levels. Post-industrial areas and coastal towns meanwhile face low vacancy numbers, coupled with relatively higher unemployment and risk their local economies falling further behind other parts of the UK.
The picture in the North-west however, shows strong growth in vacancies, but comparatively low productivity which highlights the skills shortages that are inhibiting growth in the region.
In their report, Work Local – Unlocking talent to level up, the LGA sets out how more targeted support, coordinated by councils and combined authorities, is needed to match employers with jobseekers, engage those have left the jobs market, and ensure sufficient skills training is in place to meet necessary demand.
They argue that local councils are better placed to direct resources where needed, in place of the 49 national schemes and services currently managed with government departments in Whitehall, with limited coordination between providers.
Cllr Kevin Bentley, Chairman of the LGA’s People and Places Board, said:
“Our economy is changing rapidly and a record number of vacancies alongside large falls in people in the workforce have combined to create the tightest jobs market in our lifetimes.
“These changes are not being felt equally across the country, with too many people battling for fewer jobs in some areas while in others, employers are crying out for skilled workers to meet demand.
“The Government’s ‘one size fits all’ national approach to employment and skills is no longer fit for purpose. Levelling up should mean adapting support to local needs, making it more personalised and joined-up for people seeking work, while recognising the wide variations not just between different parts of the country, but also within them.
“No area should be left behind. Councils and combined authorities– who know their communities best – want to be front and centre in ensuring everyone has the chance to learn new skills and find work, in good jobs needed by local businesses, in the places where they live.”