Up-skilling and diversification are key to growth and job creation across the West Midlands

Targeting investment on higher value added sectors such as digital media and medical technologies, and developing a workforce with the right skills to service those sectors would significantly increase job growth and the prosperity of the West Midlands according to new research.

The research (pdf, 498kb), undertaken by the West Midlands Observatory, shows that the potential benefits of targeting investment are substantial. If workforce skill levels in the West Midlands were increased to match the England average, growth in Gross Value Added (GVA) — the measure of economic output per head of population — over the next 5 years would increase by 2 percentage points from 10% to 12% and net new job creation would nearly double from 11,000 to 21,000. If in addition more businesses in higher value added sectors and clusters were attracted to the West Midlands, so that their share of economic activity reflected the position nationally, GVA would grow by some 23% by 2015 and more than 200,000 net new jobs would be created.

Local authorities, business groups and other key partners across the West Midlands are looking to achieve sustainable economic growth in jobs and GVA over the next 5 years. This new research shows how, in a time of austerity and funding cuts, the Observatory can provide authoritative and objective research to help decision makers target limited resources and do more with less.

The research (pdf, 498kb) provides an insight into the region’s existing and likely future skill needs. It has been produced to inform the development of skills and investment priorities that focus shrinking levels of public sector investment in areas that will maximise  impact.

A range of key investment locations across the region, including Longbridge and Eastside in Birmingham, Ansty Park in Coventry, i54 in Staffordshire, Coventry and Wolverhampton city centres and Dudley, Telford, Walsall and West Bromwich town centres, can play a key part in diversifying local economies.

New research shows targeted welfare to work provision is necessary to reduce worklessness

Welfare to work programmes aimed at getting people back into work should take a ‘whole person’ approach, rather than tackling factors such as age, ethnicity or disability in isolation, according to new research from the West Midlands Regional Observatory carried out on behalf of the West Midlands Economic Inclusion Panel.

The research findings confirm those of other studies by the Observatory, that the West Midlands has one of the highest rates of worklessness in England, with some disadvantaged groups experiencing much higher rates of worklessness than others.

The latest research provides insights into the major factors influencing a person’s chances of being in or out of work and shows that these can vary greatly according to the individual’s background and personal characteristics.  The research demonstrates how combinations of factors such as having no formal qualifications or a long-term health problem or disability, or being a lone parent, affect a person’s chance of being out of work.

Breaking into the Low Carbon Economyhttps://wmro.wordpress.com/2010/02/12/higher-level-skills-can-help-boost-the-region%e2%80%99s-economic-recovery/

Car breakers and recyclers, along with the construction industry, could benefit significantly from existing and future low carbon legislation according to research from the West Midlands Regional Observatory.

The low carbon agenda is gaining pace as the West Midlands seeks a way out of recession, because of the range of opportunities that it provides.

In a low carbon economy businesses deliver products and services, while reducing their level of carbon emissions. We tend to link the low carbon economy with high-tech industry and high levels of innovation, technology and investment. However, the Observatory’s research has found that the opportunities stretch well beyond hydrogen cells, solar panels, electric cars and science parks. There are a number of opportunities for the rest of the region’s economy.

Higher level skills can help boost the region’s economic recovery

It’s no secret that the West Midlands has been harder hit by the recession than any other UK region. Indeed economic growth has been slower than that of many other regions for a number of years. This reflects long standing structural problems which mean we have relatively few high growth businesses. As a result, economic recovery in the West Midlands is expected to be difficult and protracted. Although headline regional Gross Value Added (GVA) is expected to begin to rise this year, an upturn in employment is not expected until 2012 – and projections show that it could be well into the next decade before the region reaches the peak levels of employment seen in 2008.

West Midlands ‘output gap’ has risen to £15bn

The West Midlands’ economy is less productive than the national average, and the gap is growing, according to new research released by the West Midlands Regional Observatory.

In the 2009 ‘State of the Region’ report, the Observatory has revealed that compared to the UK average, the economic output gap of the West Midlands – caused by the region’s lower economic output per head of population – has risen from a figure of £10 billion in 2005 to a current estimate of £15 billion.

‘Green’ firms fight the recession

The environmental technologies or “green” sector is showing greater resilience to the recession than the manufacturing sector as a whole, according to recent skills research by the West Midlands Regional Observatory.

The environmental technologies sector comprises companies concentrating on renewable energy, pollution monitoring and waste management, amongst others. Although the sector has been adversely affected by the recession, companies are fairing better than their counterparts in other sectors.

More likely to die or retire than work again

After two years claiming incapacity benefit, a person is more likely to die or retire than work again, according to research highlighted in a recent report by the West Midlands Regional Observatory.

The Economic Inclusion Baseline Report for the West Midlands (pdf, 1.06mb), shows the facts behind what has become a significant problem for the region.