Agenda item

Report of the Strategic Director, Communities and Environment

The Committee heard that this was the 4^th evidence gathering session as part of the Review to Address Skills Shortages & Increase Employment Opportunities.  The previous sessions had focussed on early years/ pre 16 / post 16 /post 18 and career progression.

The Committee were advised that today’s session would focus on retraining and retention of staff, in particular those over age 45.

The Committee first heard from Carly Hinds, from the Education Development Trust.  Carly advised the Committee that the Fuller Working Lives project was delivered by Education Development Trust in Partnership with DWP and NELEP. 

Carly advised the Committee that the Fuller Working Lives strategy was produced by the DWP in February 2017.  It had an ambition to increase retention of older workers within the labour market and to change the perception of employers and individuals.    Education Development Trust, including the National Careers service became involved in the Fuller Working Lives pilot in 2017.  The Trust have worked in partnership with DWP and JCP and worked in conjunction with the North East LEP as a priority included within their 2024 vision:

·                “A reduction in inactivity levels in our 50 plus workforce, as skills investment enables our older workers to remain in work.”

It has been identified that we are getting older and it is inevitable that we need to stay in work longer as this means we are better off financially and for health benefits.  We are leaving the labour market earlier now that in 1950 this generation is facing a unique set of problems.  They face 10 hours of informal caring per week, there is more potential for them to have dependents and are working full time. 

Fuller Working Lives offer three main elements of support:

·         Consultancy support to help with succession planning delivered via workshops

·         Careers fairs to get 50 plus customers into work

·         Career Reviews which were held in employer premises to facilitate a dialogue between the employee and employer regarding the remainder of their career, this can often be more successful with an individual who is impartial like ourselves.

When work is completed a high-level feedback report is provided to the employer to enable them to understand needs, aspirations and increase retention and recognise potential of staff. 

The Careers Advisers are level 6 qualified, and they work with individuals in a confidential space to explore issues with an impartial person.

There have been some challenges:

·         The Lack of a National Campaign reflected in both EDT delivery areas

·         NE employers struggling to prioritise 10 to 15-year problem in a difficult economic environment

·         SMEs reluctant to engage

·         Large amount of engagement work to secure delivery of MLCR

The project has been awarded further funding to deliver Fuller Working Lives in 2019.  They are promoting the mid-life career reviews.  Consultancy support will be available to 14 business and will be delivered on an individual basis.  The project will be setting up some ‘What The Future Holds’ careers fairs.

The Committee then heard from Martin McDonnell and Julie Killick on current employment/ unemployment position within Gateshead. 

Currently the employment rate in Gateshead is 73.4%, in the North East 70.8% and 75.1% in Great Britain.  In terms of unemployment, this is measured via a claimant count which in Gateshead is 5,360 or 4.2%.  This compares to 4.0% in the North East and 2.4% nationally.

7,200 or 24.6% of economically inactive residents want a job.  This compares to 19.4% in the North East and 21.4% nationally.

Redundancies have had little impact in Gateshead, and this has not been a factor in the growth of unemployment.  For those  people who work in retail and have faced redundancy, in the main have transferable skills and have moved into other employment.

Universal Credit has gathered pace over the last year, six previous types of benefit have been replaced by Universal Credit.  There are still 8,300 on Employment Support Allowance in Gateshead.  There is a natural migration of 50-60 people per week.  The government is telling us that we have record levels of employment, however if someone is working one or two hours per week they are classed as being in employment.  Although some people like the flexibility of working part time hours and short hours.  There is also some anecdotal evidence that there are not so many zero hours contracts around.

It was noted that the figures on the surface look quite good, however, the actual income into some family groups has been pushed down.  Gateshead has a very robust labour market, with employment sites at Team Valley, Blaydon and Felling with good infrastructure in place, close to major road and rail routes.  In terms of job density per resident, it is 0.81 in Gateshead vs 0.73 in the North East.  It is hoped that there will be more and better jobs following the developments of  Follingsby Max, Gateshead Quays and Baltic Quarter. 

Follingsby Max will employ at least 1,000 people, it is hoped that jobs can be managed to get the maximum for Gateshead residents.  Gateshead Quays will be on stream hopefully within a couple of years. 

Currently there are residents who are just coping.  Sometimes the barriers to work are very personal.  The service aims to support residents and work intensively in partnership with other services.   There are a number of schemes operating in Gateshead and the North East to support residents:

·         Generation NE – to support 18-29 year olds

·         Building Better Opportunities Wise Steps - working with those further away from the labour market

·         Links to Work – 12 to 24 months with the unemployed

·         Syrian Vulnerable Persons’ Resettlement Scheme

·         Families Gateshead – this helps those into work who have the support of Families Gateshead

The following support is also undertaken by external providers, the DWP, the National Careers Service, the Mental Health Trailblazer and Moving on Tyne and Wear.

Economic Development has an officer co-located within the Gateshead Housing Company and Job Centre Plus.  The service also has the Make a Change Project which is an economic development project funded by ESF.

There are a number of  challenges in terms of criteria, specifically around, who can be  helped, when they are helped, how they are helped,  the eligibility criteria, numbers can be capped, there is a reliance on EU Funding, there is a fragmented provider market etc.  The support is time limited and there can be a lack of continuity.

It was noted that there are a lot of programmes which are nationally commissioned and are driven by unit cost. 

RESOLVED    -           (i)         That the issues raised be noted

                                    (ii)         That the proposals outlined for future evidence gathering be approved.