Education Commission 1st April 2014 Denise Ogden Director Regeneration & Neighbourhoods

Issues Not enough Jobs – 259,500 jobs and 424,000 working age population Reliance on public sector Reduction in private sector jobs in Tees Valley economy from 203,400 (2007) to 186,800 (2012) High levels of unemployment, particularly amongst young people: 13:2%, c.f. unemployment rate 8.2% nationally (2012) – the highest of all the LEP areas 63% of the working population in employment c.f. 70% nationally 3 rd Highest youth unemployment rate in the Country (margins are small)

Tees Valley Statement of Ambition 1. Drive the transition to a High Value Low Carbon Economy 2. Create a more diversified and inclusive economy –Develop infrastructure and place to enable economic development –Support sector development and enterprise –Develop the workforce within the Tees Valley –Promote the Tees Valley economy –Secure investment to meet the economic development needs of the Tees Valley

We need growth in our employment opportunities Managers of existing small companies need the skills to understand how best to access growth/potential to expand Entrepreneurship is needed to help within existing companies and to create more new business Workforce succession planning is needed within existing companies to address the impact of the ageing workforce and the untapped business growth opportunities General management entry-level skilled staff must be available in the area to ensure public sector growth/ additional relocations in this area

All individuals need to have general employability skills The right behaviours and attitudes STEM skills – we need greater access to / take up of STEM subjects particularly post 16 Improved Careers Education advice, information and guidance

We need more people to have certain sector specific / professional skills including a need for Graduate Engineers Health and social care sector staff/ filling existing vacancies – growth sector Support service staff for private sector companies – e.g. financial, marketing, management

City Deal – job creation City Deal, 25,000 net new jobs over 10 years Industrial/manufacturing – made up of major new investment in petrochemicals/ advanced manufacturing, low carbon and environmental technologies, off-setting employment decline in traditional sectors Local demand - made up of construction, retail, leisure, business services, education and health & care, influenced by a growing and ageing population Growth sector service - made up of tourism/ leisure, digital, telecoms and creative; logistics; financial and business services, higher education and public sector regional/ national service centres In terms of diversification of the economy many of the new jobs will come from stimulating entrepreneurs / new businesses and growing existing business through bespoke support/ finance with an emphasis on commercialisation of products/ processes Create a Business Growth Hub tasked with creating new business/jobs, across all sectors. An improvement in skills levels is required to enhance the attraction of the area to companies and help retain and growth them. This will be tackled by establishing a skills hub together with a relaxation of national rules to increase throughput in producing the skills required by employers Infrastructure improvements to rail, road, port and airport

Job Creation Low Carbon – 2,500 Advanced manufacturing – 2,500 Other manufacturing – 5,000 Construction – 4,000 Tourism & retail – 2,000 Finance and business services – 8,000 Logistics – 2,000 Telecoms & digital – 2,000 Higher education – 1,000 Health (care) – 4,000 Other public services – 2,000 25,000

Skills profile of Employment Growth