Projected changes in North East employment
According to labour market and skills projections released in 2023, the North East will have a net employment requirement of about half a million in the 15 years to 2035. This is made up of a net increase in employment of about 49,000 combined with replacement demand of 451,000.
The net employment requirement refers to the total number of job openings required in an economy for its functionality. Net change results from changes in the structure of the economy, while replacement demands reflect the impact of workers leaving the labour market, mainly due to retirement.
Over a third (36%) of the North East's net employment requirement will be in non-marketed services (health, education and public administration). About 28% will be in trade, accommodation and transport and 25% in business and other services. The latter includes professional services; arts and recreation; and personal services.
About 42% of the net employment requirement in the North East will be in professional and associate professional occupations. The requirement will be particularly large where these occupations relate to health or social care, as well as among science, research, engineering and technology professionals. There will also be a large net requirement among occupations in administration, sales and caring personal services.
Well over half (56%) of the net employment requirement will be in roles requiring a qualification at degree level or higher. In contrast, the net requirement in roles with very low or no qualification requirements will decrease.
These local level projections are produced as part of The Skills Imperative 2035: Essential skills for tomorrow’s workforce research programme, funded by the Nuffield Foundation. The work is being led by the National Foundation for Educational Research (NFER). Each projections is intended as a benchmark, setting out the implications of a local area maintaining the same patterns of employment change (at a detailed sectoral level), relative to the broader national and regional picture.
