North East Unveils New Jobs Deal to Combat Low Pay and Retain Youth

The North East of England is set to become a more attractive place to work, as local leaders unveil a comprehensive strategy aimed at improving job opportunities and combating low wages. The initiative, named the New Deal for North East Workers, focuses on investing in the region’s economy to remove barriers faced by both employees and employers. This plan aims to prevent young residents from migrating to larger cities like London in search of better job prospects.

Addressing Economic Challenges

Mayor Kim McGuinness emphasized the importance of this strategy during a meeting with the North East Combined Authority (NECA) cabinet. She expressed her hopes that the deal would create viable opportunities for the region’s youth, allowing them to thrive in their local communities rather than feeling compelled to seek employment elsewhere. McGuinness stated, “We want young people to know they don’t have to leave the region and go to London for success. They can do it right here.”

The North East has long struggled with high rates of economic inactivity and youth unemployment. Recent statistics reveal that inactivity due to health issues has surged in recent years, while many locals remain trapped in low-paying, insecure jobs. A report presented to NECA members highlighted that several businesses are facing difficulties in attracting skilled talent from within the region, which negatively affects economic growth.

Key Priorities for Growth

The New Deal addresses these pressing issues by identifying key growth sectors, including the offshore wind, artificial intelligence (AI), and creative industries. The programme includes plans to help residents acquire additional skills, thereby enhancing their employment prospects. Additionally, it aims to improve employment rates by providing better public transport, affordable childcare, and fair wages, which will help dismantle existing barriers to work.

The policies were developed in collaboration with local employers and education providers, aligning with the national Government’s Get Britain Working agenda. This collaborative effort is expected to create a more skilled and diverse workforce, enabling employers to recruit and retain qualified staff while also supporting targeted initiatives to boost employment rates.

McGuinness reiterated the vision for the North East, stating, “A healthy society relies on people going to work, but far too many people don’t have a job – or don’t have a job they want. We won’t stop until the North East is the best place to work in the country. We know that is possible.”

The NECA cabinet unanimously endorsed this strategy, which is anticipated to be formally launched in autumn 2023. By prioritizing local talent and fostering a supportive environment for businesses, the North East aims to redefine its employment landscape, making it a destination for opportunity and growth.