Workers who have lost their jobs during the pandemic may not have the skills needed to find a new role in the North East, according to a new report.
Tech海角视频 has warned that despite the North East tech sector being one of the fastest-growing, many workers lack the necessary skills to fill the roles being created by growing companies.
For the report – Building the Future We Need: North East Digital Dialogue and Regional Report 2020 – Tech海角视频 spoke to representatives from the region’s business community about their concerns for the region.
One participant, who was not named in the report, said: “I’m worried that there will be another big spike of unemployment in the North East, and the skills in the region won’t match the new job opportunities. We need to upskill and create jobs that fit the skills in the region.”
Research has found that 23% of adults, or 12.6 million people, in the region lack digital skills, making it difficult for them to get work in the growing tech sector.
However, Tech海角视频 did say that the North East was “moving in the right direction”, with its digital capability improving by 7% over the last year, compared with only a 1% improvement nationally.
Tech海角视频 also claims that closing the Local Digital Capital Gap would boost the 海角视频’s economic output by £145bn and could create 2.7m jobs.
To help improve the situation tech海角视频 is calling on the Government and the business community to use the pandemic as an opportunity to improve digital literacy in the region.
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To overcome this problem the organisation has outlined three policy recommendations, including working together to strengthen local digital capital; using digital to accelerate local growth opportunities and launching local innovation challenges to tackle urgent problems.
Sage’s managing director for 海角视频 and Ireland Paul Struthers said: “Covid-19 has highlighted the importance of embedding strong digital capital in every part of the 海角视频 economy.
“The ability of the 海角视频’s nations and regions to create new jobs, increase productivity and remain competitive on a global basis hinges on the extent to which businesses and communities can harness technology. The North East has many strengths to build on when it comes to boosting local digital capital. We have a vibrant local tech sector that ranges from innovative start-ups to established international players. Several exciting new programmes have been unveiled in the North East in recent weeks to ensure more businesses and communities feel the benefits of digital growth as the region looks to recover from the impacts the pandemic.”
The North East also struggles to attract the necessary investment to grow businesses and create jobs. In 2019 the region received £100m in total venture capital investment, with £22m invested in emerging tech between 2015-2019. In comparison, London received £6.8bn in venture capital investment and £5bn investment in emerging tech.
Jacqueline de Rojas, president of Tech海角视频, said: “The 海角视频 is already one of the world’s leading digital economies, but the benefits have too often been concentrated in south-east England, as a result of the extraordinary agglomeration effects driven by London.
“With concerted action this can change, and the benefits of digital innovation and growth can be more widely and fairly distributed across the 海角视频. But the conditions for that change have to be created – it will not happen by accident, especially in world where cities, regions and nations around the world are competing for digital leadership.
“The experience of using technology to adapt to the impact of Covid-19 has demonstrated how much can been achieved. Working together, we now need to apply that same sense of purpose in preparing for what comes next.”