Employment

Employment has a major positive impact on an individual’s long-term health and wellbeing as well as that of their family members.  It can influence social mobility, economic independence, housing, and income levels.

Unemployment, however, can be both a cause of and a result of ill health.  The negative effects of unemployment on health and wellbeing can be linked to poverty and low income levels.  Long-term unemployment; limiting illnesses; low paid, short-term and temporary employment; and low level skills can affect an individual’s ability to gain and sustain employment.  The current economic climate presents particular obstacles to gaining employment for specific age groups (for example, 16-18 year olds and people aged over 50 years) and also for people who have recently been made redundant and may need to re-train to secure available employment opportunities.

This topic has strong links to the following JSNA topics:

 

Last updated: 2015-05-19 15:49:07
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1. What are the key issues?

Unemployment rates have been consistently higher for males than females.  A higher proportion of males are economically active compared with females.

Graduate unemployment is a significant issue in Redcar & Cleveland because there is a high proportion of unemployed young people, many of whom have higher level qualifications, and this is concentrated particularly in certain wards towards East Cleveland.  Although there are now more new graduates in Redcar & Cleveland than ever before, more graduates gain employment outside Redcar & Cleveland than within, with about half finding employment in Middlesbrough and Stockton-on-Tees.

The tertiary sector in Redcar & Cleveland is very small, so there are few entry level jobs which would often be filled by unskilled young people.

Economically, Redcar & Cleveland is still dominated by heavy industry, but jobs in this sector are declining.

 

Last updated: 19/05/15

2. What commissioning priorities are recommended?

It is vital that public, private and voluntary sector organisations work in partnership to remove the barriers to employment facing many residents of Redcar & Cleveland.  This needs to be tackled from multiple angles, providing appropriate training and support for all those struggling to gain employment, but also seeking to increase the opportunities available, both for specific groups such as graduates, and for the labour market in general, to reduce competition for the jobs that are available.

2012/01
Grow the tertiary sector in Redcar & Cleveland
by encouraging the growth of the tourism and related industries which bring greater volumes of entry-level jobs. Partially achieved and remains a priority.

2012/02
Continue to support a culture of enterprise and business creation
through practical and financial assistance.  Partially achieved and remains a priority.

2012/03
Increase support and funding for voluntary groups
working with specific groups, particularly those furthest from the labour market. Partially achieved and remains a priority for the ESIFS Social Inclusion Task and Finish Group.

2012/04
Increase awareness amongst young people of the variety of opportunities available
to allow them to improve the likelihood of education, employment and training.  Partially achieved and remains a priority.

2012/05
Increase the capacity of organisations working with residents to overcome barriers to employment
to ensure that the level of support does not fall as the number of customers rises.  Partially achieved.

 

Last updated: 19/05/15

3. Who is at risk and why?

Age
Youth unemployment has more than doubled since January 2005 but has fallen from its recent peak of 13.6% in January 2010 and remains some way below its highest point of 20.5% in January 1995.

In England, people aged 18-24 years are nearly twice as likely to be claiming Job Seekers Allowance than the general population (6.6% and 3.6%, respectively) and three times more likely than those aged 50 to 64 years (Nomis, 2012).

Older people face a number of potential barriers to labour market participation including out of date skills and qualifications, discrimination by employers in relation to age and higher expectations of salary upon entering the labour market.

Gender
Men are more likely to be economically active than women (83.9% and 72.0% respectively).  Male unemployment is 7.9% in England, compared with 7.4% for females.  Men in full-time employment earn more than women in full-time employment (£533.30 and £433.00 per week, respectively) (Nomis, 2012).

Socioeconomic status
Two-fifths of all adults aged 45-64 on below average incomes have a limiting longstanding illness or disability, one-and-a-half times the rate for those on average incomes and three times the rate for those on high incomes (The Poverty Site, 2010).

Ethnicity
There is strong evidence to suggest that ethnic minorities remain less well integrated into the regional labour market than their White British counterparts. Previous research suggests that different ethnic minority groups face a range of barriers in accessing the UK labour market.

Black African, Black Caribbean, Pakistani and Bangladeshi households are more likely to be workless than other ethnic groups (The Poverty Site, 2011).

Refugees face a number of distinct personal and structural barriers to economic participation including issues such as English language acquisition, lack of confidence and self-esteem, lack of UK work experience, references and proof of overseas qualifications.

Disability
In 2010/11, 6.3% of adults with learning disabilities were in employment in England (Learning Disabilities Observatory, 2012) compared with 71.8% of the population.

Disabled people are less likely to be employed (49%) than non-disabled people (78%).  Of those who are employed, about one-third of disabled people are in part-time employment compared with one-quarter of non-disabled people (Office for Disability Issues, 2012).

Low skilled adults
Having low or no skills is a major cause of unemployment and is widely acknowledged as one of the main barriers preventing unemployed people from returning to and remaining in the labour market.

Lone parents
Lone parents face issues such as finding childcare and childcare costs, domestic responsibilities, location of employment and emotional support.

Mental health
People with mental health problems have significantly lower employment rates than other working age groups.  Mental health problems can lead to significant disruption in people’s lives and those suffering from problems can experience issues in relation to confidence, self-esteem, concerns in relation to coping mechanisms and impact upon work.

Carers
About half of carers spending the most time (between 20-49 hours) caring per week were in employment in 2001.

Approximately one in five carers has to give up work, which affects pension contributions and increases the risk of poverty in later life.

Offenders
Offenders often have problems which can affect employment prospects (for example, drug dependency, homelessness and employer discrimination).


Non-group specific
Diabetes is the leading cause of blindness in the working age population.

People with autism spectrum disorders (ASD) may need support from services, because impaired capacity for social interaction hampers their chances of employment and achieving independence.

Communities where worklessness has remained high over the last ten years now suffer further from the effects of the recession. The unemployment rate gap between those local authorities with the highest and lowest rates had narrowed over fifteen years.  There is now concern for those who are already long-term unemployed and who live in existing vulnerable economies where unemployment is expected to increase and available vacancies will further decline (Houghton et al, 2009).

The North East Regional Joint Health Review and Scrutiny Committee examined the health needs of the ex-servicemen and their families.  Roughly one person in twelve in the UK is a member of the ex-service community: either a veteran of the armed forces or a carer, dependant or close family member of a veteran.  The employment needs and associated health and wellbeing in relation to this group continues to be a high priority, and work will continue locally to complement that taking place regionally.

 

Last updated: 02/07/13

4. What is the level of need in the population?

There are 82,800 working age adults in Redcar & Cleveland.  With 58,200 in employment, the overall worklessness rate remains high at 30%.  There are 12,950 adults claiming key out-of-work benefits, 15.6% of the working age population, compared with 14.2% in the North East and 10.6% nationally.

Unemployment
Redcar & Cleveland has been affected by the 2008 credit crunch and subsequent recession which has seen an increase in the numbers of people claiming Jobseekers Allowance (JSA).  Claimant count rates in Redcar & Cleveland increased from an average 3,200 in the years 2004 to 2008 to over 5,700 in 2012 and 2013.  The number reduced to about 4,200 in 2014.  JSA claimant count rates in Redcar & Cleveland tend to be higher than the national rate (Nomis, 2014).

Claimant count trend, Redcar & Cleveland, 2004 to 2014

Within Redcar & Cleveland, four wards have claimant count rates below the England average.  There is a near eight-fold difference in rates, from 1.6% in West Dyke to 12.2% in Grangetown.  Two wards (Grangetown and Coatham) have more than one in ten of the working aged population claiming unemployment benefits.

Claimant count map, Redcar & Cleveland wards, Apr 2014

Redcar & Cleveland’s economy has historically been dominated by a few large employers, especially in shipbuilding and heavy industry but both of these have shrunk in recent years.  Increasing automation has significantly reduced the number of operatives required per shift in these sectors.  Where unskilled labour is required, it is increasingly outsourced on temporary short-term contracts, which creates much more instability and insecurity.  This is an issue worst affecting those living in the north of Redcar & Cleveland in close proximity to these heavy industries.  This is reflected in the ward areas where unemployment levels are highest, and also in the difference between unemployment for men and women.  The five wards with highest unemployment rates are Grangetown, Coatham, South Bank, Kirkleatham, and Eston – all clustered close to heavy industry.

The Annual Population Survey estimates unemployment, as not all unemployed people are in receipt of JSA.  This estimates about 7,000 people to be unemployed in Redcar & Cleveland in 2013, considerably more than the 4,200 JSA claimants identified.  As with JSA claimants, unemployment in Redcar & Cleveland increased during the recession to a rate over 13%, but is now reducing.  In 2013, unemployment was 11.3% in Redcar & Cleveland compared with 7.6% in England (Nomis, 2014).
Unemployment (survey-based) trend, Redcar & Cleveland, 2004 to 2013

Benefit claims
The level of key benefit claimants in Redcar & Cleveland is almost half as high again as the rate in Great Britain and higher than the North East.  Total claimant rates are also higher than the North East and Great Britain.  Worklessness remains a major challenge in Redcar & Cleveland and this has been exacerbated by the recession.  The largest group of claimants are in receipt of Employment Support Allowance (ESA) and incapacity benefits (IB).  In Tees Valley, over 65% of ESA/IB claimants have been in receipt of those benefits for more than five years with 57% of claimants being male.  Rates of ESA/IB are above the GB average.

Working-age client group - key benefit claimants, Redcar & Cleveland, February 2014

 

R&C

North East
(%)

Great Britain
(%)

number

%

Job seekers allowance (JSA)*

4,260

5.1

4.3

2.9

Employment support allowance (ESA) and incapacity benefit (IB)*

6,710

8.1

7.9

6.2

Lone parents*

1,520

1.8

1.5

1.2

Carers

1,900

2.3

1.9

1.4

Others on income-related benefits*

460

0.6

0.5

0.3

Disabled

1,190

1.4

1.3

1.2

Bereaved

170

0.2

0.2

0.2

Total key out-of-work benefits

12,950

15.6

14.2

10.6

Total claimants

16,220

19.6

17.6

13.3

* = key out-of-work benefits

Total key out-of-work benefits may not add up as individuals may be in receipt of more than one benefit

Source: Nomis (2014)

 

The proportion of the working age group claiming disability benefits has risen faster in Redcar & Cleveland in the last five years than it has in the North East region or in Great Britain as a whole.  The proportion of disability benefit claimants in Redcar & Cleveland is the highest of all local authority areas in the North East.

There are certain groups who are particularly vulnerable to social exclusion and could struggle to gain employment, including ethnic minorities, migrants, disabled people, homeless people and those struggling with substance abuse.  However, the most at risk groups differ from place to place and the groups identified as most at risk in Redcar and Cleveland are:

  • Young people, many of whom are NEET
  • Graduates
  • People living in the most deprived wards
  • People with disabilities
  • Offenders.


Offenders
It is partly the decline in heavy industry and construction which is the greatest barrier to offenders – especially youth offenders – looking for work.  They tend to be referred from the probation service to the National Careers Service, who identify the most appropriate training or employment route for the young person and locate the funding to provide them with the opportunity.  They report that a large proportion of these users express a desire to follow a construction training route but that the number of jobs available in this sector is decreasing.  Their task is therefore to try and broaden the young people’s horizons and educate them about other opportunities available that may be more easily attainable.

Rural communities
East Cleveland has low levels of car ownership and declining public transport provision.  There is no rail service serving this area east of Saltburn and bus services are reducing.  Bus services are dependent on market forces and, despite the Tees Valley Bus Network Strategy, services are at risk of further cuts if usage does not increase.  The worst affected areas are those which are most rural and isolated and contain pockets of severe and persistent deprivation, where even road access is limited.  Further reduction in transport services could exacerbate this situation for the most vulnerable groups.

Young people
Young people are a group who have been identified as being at risk of unemployment in Redcar & Cleveland.  Youth unemployment in Redcar & Cleveland is seventh worst in the North East at 9.6%.

Youth unemployment (age 18-24), Redcar & Cleveland, 2000-2014

In 2013, 380 young people (aged 16-18 years) in Redcar & Cleveland were not in education, employment and training (NEET).  This equates to 7.7% and is higher than the England average of 5.3% and similar to the North East average of 7.6%.  St. Helens (a similar area) has a rate of 7.3%.

Not in education, employment or training, Redcar & Cleveland, 2013

Across the Tees Valley, fewer than 2% of 16-18 year olds are ‘long-term’ NEET remaining completely outside of the system between their 16th and 18th birthdays. The majority of young people move in and out of the system; typically over 50% of the NEET group is actively seeking education, employment or training at any one time.

The loss of Education Maintenance Allowance (EMA) and reductions in subsidised travel have created further barriers for young people who struggle to pay for transport to college, apprenticeships or work.  This will further limit young people’s access to training and education which will affect their chances of finding work.

Graduates
There is a lack of employment opportunities for graduates in Redcar & Cleveland.  The annual ‘What do graduates do?’ survey analyses the geographical regions and employment sectors in which graduates are employed.  Jobs are not spread equally around the country and the North East region has one of the lowest proportions of graduate jobs in the country, with just 3.8% of graduates employed in this region.  Moreover, the greatest growth sectors for graduate jobs are business services, computer science and IT services, which are not strong in Redcar & Cleveland.  The sectors in which jobs were distributed more evenly were health, education and social care but opportunities in these sectors have tended to reduce with the overall size of the job market and public sector spending cuts.


Types of jobs
Redcar & Cleveland has a higher proportion of part-time jobs compared to the North East and Great Britain.  There is a higher than average proportion of jobs in manufacturing and construction but a lower proportion in services.  Redcar & Cleveland cannot compete with the retail facilities available nearby in Middlesbrough and Teesside Park in Stockton.  The recent success stories for large scale employment are in supermarket developments, each employing several hundred local and long-term unemployed residents.  However, this kind of supermarket retail need has now been met and the likelihood of another major supermarket opening is low.

Employee jobs by working pattern and industry sector, Redcar & Cleveland, 2012

 

Redcar & Cleveland

North East

Great Britain

Employee jobs

%

%

%

Total employee jobs

38,700

-

-

-

Full-time

26,100

67.4

65.6

67.3

Part-time

12,600

32.6

34.4

32.7

Employee jobs by industry

 

 

 

 

Primary Services (A-B: agriculture and mining)

-

-

0.2

0.3

Energy and Water (D-E)

-

-

1.4

1.1

Manufacturing (C)

6,500

16.8

11.1

8.7

Construction (F)

1,600

4.1

5.3

4.5

Services (G-S)

29,000

74.9

81.9

85.5

    Wholesale and retail, including motor trades (G)

5,800

15.1

14.2

16.1

    Transport storage (H)

2,600

6.7

3.7

4.6

    Accomodation and food services(I)

2,100

5.5

6.6

6.9

    Information and communication (J)

200

0.5

2.7

3.9

    Financial and other business services(K-N)

4,800

12.4

16.1

21.5

    Public admin, education and health (O-Q)

11,800

30.6

34.1

28.1

    Other Services (R-S)

1,600

4.1

4.5

4.5

Source: ONS annual business inquiry employee analysis

Notes:

 % is a proportion of total employee jobs

 Employee jobs excludes self-employed, government-supported trainees and HM Forces

 Data excludes farm-based agriculture

 

The tourism sector is one that the Council is working to develop but it has not as yet had a large impact on the economy, or brought about the large number of low skill service jobs that come with this sector in hospitality and holiday accommodation.  Again, this is highly differentiated between different wards in the Borough which have very different geographical characteristics affecting their local economies.  East Cleveland features both coastline and part of the North York Moors National Park yet it struggles to create an identity as a visitor destination due to its close proximity to the industries of Teesside.  There are few restaurants and hotels to employ large numbers of unskilled labourers with limited and outdated infrastructure to support tourism.  In addition, there is a high number of empty retail properties in rural areas, creating a poor environment.  Potential customers travel to neighbouring areas.

Many graduates are now taking jobs that would have otherwise been more suitable for entry level young people.  Employers are likely to recruit the highest level of skills available in the market at the best price, and research has shown that whilst the majority of businesses are fairly confident to employ graduates, most are very nervous to employ school leavers with no qualifications.  This means that 16- and 17-year-old school leavers are most at risk of unemployment.  Furthermore, it is this group who are considered by employers to be the least prepared to enter the workplace, adding to the risks associated with employing young people.

Job availability
Job density is defined as the ratio of number of jobs in an area compared with the working age population.  In Redcar & Cleveland, there are about 45,000 jobs, giving a job density of 0.54 jobs per working age adult, compared with 0.78 in Great Britain (Nomis, 2014).  This suggests that there are not enough employment opportunities available for the population.

Redcar & Cleveland has 8.7 JSA claimants for every Job Centre Plus notified vacancy, compared with 3.7 claimants per vacancy in Great Britain (Nomis, 2012). This data set is no longer being updated.

Qualifications
In Redcar & Cleveland fewer residents achieve qualifications at each level and more residents have no qualifications at all than either the North East or Great Britain as a whole.  This, together with Redcar & Cleveland’s small service sector, would suggest that there are many more residents best qualified for entry level positions than there are jobs available.  This skills mismatch creates a barrier to employment for many residents, and constitutes a major employment issue.

Qualifications, Redcar & Cleveland, January to December 2013

 

Redcar & Cleveland

North East

Great Britain

number

%

%

%

NVQ4 and above

21,600

25.8

28.1

35.2

NVQ3 and above

43,200

51.6

51.7

55.8

NVQ2 and above

58,400

69.9

70.4

72.5

NVQ1 and above

69,800

83.5

83.7

84.4

Other qualifications

5,500

6.6

5.6

6.3

No qualifications

8,300

9.9

10.7

9.3

Notes

Numbers and % are for people aged 16-64

% is a proportion of resident population of area aged 16-64

No qualifications: No formal qualifications held

Other qualifications: includes foreign qualifications and some professional qualifications

NVQ 1 equivalent: e.g. fewer than 5 GCSEs at grades A-C, foundation GNVQ, NVQ 1, intermediate 1 national qualification (Scotland) or equivalent

NVQ 2 equivalent: e.g. 5 or more GCSEs at grades A-C, intermediate GNVQ, NVQ 2, intermediate 2 national qualification (Scotland) or equivalent

NVQ 3 equivalent: e.g. 2 or more A levels, advanced GNVQ, NVQ 3, 2 or more higher or advanced higher national qualifications (Scotland) or equivalent

NVQ 4 equivalent and above: e.g. HND, Degree and Higher Degree level qualifications or equivalent

Source: ONS annual population survey (NOMIS)

 

 

Last updated: 19/05/15

5. What services are currently provided?

National Measures

Get Britain Working
National Government introduced welfare reforms in 2010 and introduced the Work Programme.  The Work Programme represents a step change for Welfare-to-Work, creating a structure that treats people as individuals and allows providers greater freedom to tailor the right support to the individual needs of each customer.  It has replaced previous programmes for unemployed people.

  • The Work Programme - helps individuals prepare for, find and stay in work. There are eight eligible customer groups and it is mandatory for people aged 18-24 years after receiving JSA for nine months.
  • Community Work Placements - aims to equip jobseekers with a valuable period of experience in a work-based environment, enabling them to develop the disciplines and skills associated with sustained employment, as well as to move them into employment.
  • Work Clubs - are for anyone who is unemployed and looking for work. They give people the opportunity to make the most of the local knowledge that's available, to support them in their search for a job.
  • Work Together - the opportunity to volunteer with a local voluntary organisation to help learn new skills and improve chances of finding work.
  • Work Trials – a voluntary opportunity which provides the chance to try out a job for up to 30 days.
  • Work Experience - gives anyone aged 18 to 24 years and receiving JSA the opportunity to take part in a work placement.
  • New Enterprise Allowance – provides help and financial support to set up a business for anyone in receipt of JSA for six months, Income Support (if a Lone Parent) or Employment Support Allowance (Work Related Activity Group).
  • Enterprise Clubs - help to become self-employed or to start a business.
  • Sector-based Work Academies – offer training, work experience and a guaranteed interview for anyone aged over 18 and in receipt of JSA or Employment Support Allowance (Work Related Activity Group).

Specialist disability employment support

  • Work Choice - is a programme to support disabled people with complex, disability-related barriers to help them find and stay in suitable employment. 
  • Access to work - can help if a person’s health or disability affects the way they do their job. It gives them and the employer advice and support with extra costs which may arise because of individual needs. It includes support for those who wish to move into self-employment.
  • Disability Employment Advisers - if people need extra employment support because of a disability, the local Jobcentre will put them in touch with one of their Disability Employment Advisers (DEAs).  DEAs can give help and support regardless of an individual’s situation. They can help people find work, or they can help them to gain new skills even if they have been out of work for a long time or have no work experience.


Drug or alcohol support - This voluntary service is for people who have a dependency on drugs or alcohol that affects them finding or keeping work.  It can also help people who have a problem with both drugs and alcohol.

Education Funding Agency (EFA) - The 16-19 Bursary Fund is a scheme intended to help the most vulnerable 16-19 year olds in full-time education.

SFA Apprentice Grant for Employers (AGE) - The AGE 16 to 24 Grant for Employers aims to support businesses, who would not otherwise be in a position to do so, to recruit individuals aged 16 to 24 into employment though the Apprenticeship programme.

DFE Youth Contract - The purpose of the Youth Contract programme for 16- and 17-year-olds is to engage young people who are hardest to reach and support them into education, training or a job with training.

DWP Families with Multiple Problems (FamilyWise) - supports disadvantaged families, facing multiple barriers to work, to move closer towards and into sustainable employment.

DCLG Troubled Families - the programme is targeted on families identified through a set of national criteria which include juvenile offending, involvement of any family member in Anti-Social Behaviour (ASB), exclusion from school or unauthorised absence levels of 15% or more, and receipt of a range of worklessness benefits.

National Careers Service - provides information, advice and guidance to help individuals make decisions on learning, training and work opportunities. The service offers confidential and impartial advice supported by qualified careers advisers.

 

Tees Valley Measures

 

Tees Valley Jobs and Skills Investment Scheme - offers businesses a 12 month wage subsidy of up to 50% towards the cost of a new trainee, apprentice or graduate of any age.  There is no limit to the number of people that a company can employ, providing the posts are additional and can be sustained for a minimum of two years.

Tees Valley Workforce Skills – provides a range of training and support to up-skill employees within businesses employing less than 250 people.

YES Project - a Tees Valley wide initiative being delivered by Youth Directions for Stockton which works with NEET young people to support them into Education, Employment or Training.

Graduates for Business - an initiative from Teesside University aimed at helping graduates to get their foot on the first rung of the career ladder by assisting them in finding employment with SME’s based in the North East.  Graduates can be placed on a register to be offered vacancies as and when they arise.  Businesses can access up to £11,000 as salary support to employ a graduate, and the University provides a free recruitment service.

 

Local initiatives in Redcar & Cleveland

There are several organisations providing services for unemployed people and the groups most at risk of unemployment:

Connexions
Connexions provide a careers service for Tees Valley.  It is an independent information, advice, guidance and support service for young people.  It provides advice on education, employment and training to 13-19 year olds.  This service is divided between the school age team and the NEETs team, who provide transition support for school leavers.  They also work with various partners to support the most hard to reach groups in to education, employment or training.  This includes the Target team for care leavers, producing Pathway Plans; the Teenage Pregnancy Service and the Youth Offending Team, who provide a member of Connexions staff three days a week to provide practical support for young offenders on referral and reparation orders.

Routes to Employment
The Routes to Employment team work within Redcar & Cleveland Council to assist unemployed residents to gain the skills they need to secure employment through the delivery of ‘Introduction to Employment’ and employment coaching services designed to assist residents to become work ready.  It provides advice, guidance, training and support to remove barriers to work for unemployed residents.  The team also support employers to recruit staff and offers training and selection events.

The Enterprise Team
The Enterprise Team work within Redcar & Cleveland Council to deliver a £2.5m project funded by the European Regional Development Fund (ERDF) supporting residents on a pathway to self-employment.  The aim is to create an enterprising Borough with a wealth of new fledgling businesses and a culture that fosters new business ideas and translates them into reality.  The team works to raise the awareness of the opportunity for self-employment and enterprise as a credible career path and a way into work.  It provides unlimited free professional information, advice & guidance for residents to help them on their business journey, supporting over 1,000 residents to become ‘enterprise ready’.  This includes holding community events, workshops and one to one coaching of residents and providing residents with business loans and support once they have become established.

National Apprenticeship Service
The National Apprenticeship Service (NAS) supports, funds and co-ordinates the delivery of apprenticeships throughout England.  It is responsible for increasing the number of apprenticeship opportunities and providing a dedicated, responsive service for both employers and learners.

The NAS provides 40,000 apprenticeship grants to employers in small businesses nationally to help them grow through employing young people.  They receive £1,500 for each 16 to 24-year-old they employ, providing they have not recruited an apprentice already in the past 12 months.  This is in addition to the training costs for the apprenticeship framework which are met in full for apprentices in this age group.

Apprenticeships are seen as an optimal way to provide training – developing people and their skills ‘on the job’ while providing businesses with a secure supply of people with tailored skills.  Redcar & Cleveland Council is leading the way in offering apprenticeships in local organisations, and has facilitated over 350 since 2010.  It has also encouraged the employment of apprentices by partners such as Coast and Country Housing and the NHS.

National Careers Service
The National Careers Service is provided by the Skills Funding Agency on behalf of the Department for Business, Innovation and Skills.  It offers information, advice and guidance with decisions on learning, training and work opportunities. The service offers confidential and impartial advice, supported by qualified careers advisers.  Support is available with career decisions and planning, goal development, action planning, provision of and guidance in the use of career tools including CV building and job hunting tips, advice about learning and development, and funding for study as well as job market information and job profiles.  There is also tailored advice for specific population groups, such as young people, older people, offenders or those with disabilities.

Graduate Intern Programme
This programme aims to provide graduates with a one year paid internship by combining the resources of Teesside University, Jobcentre Plus and Redcar & Cleveland Council (Routes to Employment).  The programme is part funded by ERDF, and pays 50% of the graduate’s wage for the first 32 weeks.  The rest of the salary is made up by Jobcentre Plus for the first eight weeks, as during this time the graduate continues to receive unemployment benefits.  During weeks 9-20, Teesside University will fund 50% of the graduate’s wage, and Redcar & Cleveland Council will bear this cost during weeks 21-32.  During the final 20 weeks of the year, the employer will bear the full cost of the graduate’s wages.  Graduates from any university are eligible providing they live in the Redcar & Cleveland area and are a recipient of Jobseekers Allowance without having started the Work Programme.  The businesses employing the graduates must be a small or medium enterprise (SME) that function primarily through business-to-business transactions and be located within reasonable travelling distance of Redcar & Cleveland.  The project aims to secure 20 internships.

Fire Team
The Fire Team programme is provided through a partnership between Cleveland Fire Brigade, Probation Service, Redcar & Cleveland Adult Education and Routes to Employment.  It is an intensive, one week programme offered to young offenders and was conceived to address a need to work with young people and adults who did not normally fall into commonly targeted groups.  It aims to allow attendees to examine their past and current behaviour, as well as learn new skills which can be transferred to the workplace to raise chances of gaining employment.  The programme attendees learn basic Fire Service skills such as communication, teamwork, hose handling, problem solving, working at heights, fire behaviour and science, fire extinguishing and first aid, as well as examine the impacts of anti-social behaviour for different people and organisations.  Following completion of the programme, the young people work with Routes to Employment to progress further towards employment.

ELITE project
The ELITE project stands for Education, Learning, Information, Training, Employment and will provide opportunities for young people aged 14-19, living in Redcar & Cleveland to progress into learning or work by December 2013.  It brings together ten partners to offer targeted, personalised, intensive and flexible programmes of support.  This particularly tackles issues relating to people in the NEET group.

Family Wise
The Wise Group delivers the European Social Fund support for families contract for the North East of England. The Wise Group works with a number of partners to support families into work.  Family Wise offers comprehensive information, advice and support services to help different family members to build on their individual strengths to identify and move towards finding suitable jobs.  Families will have a personal family coach who works with them to identify what help they need. Together they agree a family action plan and personal action plan for each member of the family who needs a job.  Personalised support is offered throughout and this continues once individuals move into work to help them stay in work.  To qualify for support, at least one member of the family must be in receipt of a working age benefit such as Jobseeker's Allowance or Income Support.

Working Communities Team
The Working Communities Team is a partnership between Routes to Employment, Jobcentre Plus and Coast and Country housing, providing an advice and information service to help Redcar & Cleveland residents get back into work or find training opportunities.  Seven outreach workers are based in the community and can provide help through home visits.  A range of services are available to help individuals.

YouthWise
The YouthWise project provides mentoring opportunities for young people not in education, employment or training (NEET).  It builds on the success of the ‘This is your Council’ project which involved young people visiting departments of the Council, interviewing Council employees and gaining an insight into the services that the Council provides.

The project aims to reduce the barriers to employment arising from young people not being prepared for work by developing key work and life skills such as teamwork, communication, negotiating, problem solving and presentation skills.  It also improves the young person’s confidence and awareness through working within a real life work environment.

Several private sector training providers active in Redcar & Cleveland including: Pertemps; Jigsaw; Avanta; Neeta; and TTE.
 

Last updated: 19/05/15

6. What is the projected level of need?

Due to the broader travel-to-work area a Tees Valley perspective is provided to project the level of need.  Redcar & Cleveland has 20% of the Tees Valley population.

The Tees Valley Strategic Economic Plan (Tees Valley Unlimited, 2014) sets out the economic vision for Tees Valley for the next 10 years.  It forecasts the following level of need.

Tees Valley currently has 281,000 jobs and a working age population of 421,000.  To bring employment levels up to the national rate, an additional 28,000 jobs are needed.  Tees Valley Unlimited’s (TVU’s) target is to create 25,000 new jobs in the Tees Valley over the next decade, a 10% increase on 2014.  These will bring over £1 billion of gross value added (GVA) benefits, closing the gap between Tees Valley and national employment rates and matching the private sector employment rates in Manchester, Birmingham and Leeds.

These 25,000 new jobs will be achieved in the following sectors, noting the forecast reduction in ‘other manufacturing’:

Net Job Creation, Tees Valley, 2015-2025

 

Employment

GVA

Low Carbon

+2,500

£147m

Advanced Manufacturing

+2,500

£147m

Other Manufacturing

-5,000

-£250m

Construction

+4,000

£231m

Tourism and retail

+2,000

£57m

Finance and Business Services (ex digital)

+8,000

£307m

Logistics

+2,000

£118m

Telecoms and Digital

+2,000

£87m

Higher Education

+1,000

£31m

Health (Care)

+4,000

£116m

Other services

+2,000

£62m

Total

+25,000

£1,052m

Source: Tees Valley Strategic Economic Plan, Tees Valley Unlimited (2014)

 
Demographic changes are also an issue.  It is predicted that the number of people over the age of 65 will rise over the next ten years, along with an increase in those aged 55 to 64 (prevalent in process and advanced manufacturing jobs) and a fall in the number of young people entering the labour market. Those aged over 55 are likely to leave the workforce during the next ten years, taking their skills and experience with them. The replacement demand in Tees Valley between 2010 and 2020 could be as high as 120,000 people across all occupations. At the same time, the number of people aged 15-24 will decline, with new entrants to the workforce over the same period diminishing. The number of school leavers (aged 15-16) in Tees Valley will shrink over the coming years; by 2017 there will be 900 fewer students in this group than in 2013. The combined effect will produce a shift in the profile of the workforce over the next ten years and measures need to be put in place now to reduce the impact upon the local economy.
 
 
Last updated: 19/05/15

7. What needs might be unmet?

The biggest issues for meeting the needs of those seeking employment is with the limited capacity of the programmes that are available.  Since welfare reform is forcing more people into the labour market, these programmes are unlikely to be able to meet the needs of a growing number of clients.

The payment by results focus of the Work Programme means that many of the organisations responsible for finding work for clients lack the capital to invest in clients in the short-term.  There is therefore a greater emphasis on working with those clients most likely to gain employment and an often limited cash flow means that the needs of those furthest from the labour market are most likely to be unmet.  Furthermore, once residents have been referred from Jobcentre Plus to the Work Programme, they become ineligible for assistance through other DWP funded programmes.  The only compulsory element is a requirement to engage with the programme every 39 days, so very little direct client support is required.  Therefore, of the overwhelming number of residents being referred to the Work Programme, it is the most vulnerable whose needs are currently unmet.  In addition, it was found for offenders that this position means that many have limited awareness and access to the range of opportunities available.

Typically, it is also those clients for whom other opportunities for gaining specialist help are diminishing as voluntary and community groups lose funding.  Not only are the needs of these groups projected to rise, but the support in place to meet these needs is also likely to fall, increasing the number of clients whose needs will be unmet.

 

Last updated: 19/05/15

8. What evidence is there for effective intervention?

Young People (up to 25)

Hidden Talents 2: Re-engaging young people, the local offer (Local Government Association, 2013) contains examples of good practice and successful projects. The LGA used evidence from successful projects to make proposals suggesting a whole-system approach based on a new level of collaboration between local and national services and a more fitting distribution of responsibilities.  The model ultimately seeks:

  • to integrate and sequence re-engagement services for the most disengaged young people up to 24, by making local partnerships default commissioners of re-engagement support;
  • to reconnect provision to employer demand in local labour markets, by flexing skills and employment services around occupational and sector funding priorities jointly set by local partners with government;
  • for local services for hardest-to-reach young people with national welfare to work services and programmes to unlock value by co-designing support packages for this group.

Some of the examples are dependent upon responsibilities moving from National to Local Government but substantial elements of the good practice could still be implemented without that change.

The following are examples of good practice in the Hidden Talents Document:

Wakefield – early identification and targeted joint working

Wakefield Council is taking a holistic view to transitioning young people through primary school, secondary schools and into post-16 education.  In one year the number of school leavers becoming disengaged dropped from 6% to 5.5%. Over the same period applications for post-16 learning via the Wakefield online prospectus increased by 22%, up to 86% by March 2012.

The authority has developed detailed data analysis to understand the current cohort and map provision, identifying young people at risk and tracking them through school, and developing information-sharing tools to inform pre and post-16 provision – a smart phone application was developed to inform young people of the opportunities ahead.

A Targeted Youth Service works with Connexions and the local third sector to provide bespoke programmes for most at risk groups – it includes the Back on Track project giving young people hands on employment experience to complement formal learning. Since 2010 it has, for instance, increased the number of young offenders re-engaging following a court order increased from 58% to 80% in 2012.

Hartlepool – bespoke employability programmes

Hartlepool’s Going Forward Together programme was the centre piece of its strategy to engage high risk young people. The programme supported over 600 of the most disengaged 14-19 year olds, with 75% progressing into education, employment and training. Despite the recession, the local authority reduced the number of disengaged young people from 9% at the end of 2007, to 7.4% in 2011, and plans to reduce to 6.7% by 2012/13.

The programme was targeted at young people identified by schools or Connexions who required additional support, such as young offenders, care leavers, or young people from disengagement ‘hotspots’.  The local authority, Connexions, schools, and training providers collectively designed bespoke engagement programmes. All provision was routed through a single referral point in the Council’s Integrated Youth Support Service, which conducted eligibility checks and offered targeted careers advice and guidance, before a referral to a named mentor that could draw on a range of wrap around services from a number of providers.

As part of the personalised intervention, subcontractors from the public, private and third sector offered varied and unique pre-employability programmes focused on helping young people remain economically active post 16 - including everything from Foundation Learning to Jobcentre Plus provision.

Since February 2011, 182 young people had been registered onto the programme; with 97% retention rate and 99% achievement rate, with 65% of participants progressing into work or learning.

Gateshead – simplified offer to employers
The Gateshead Apprenticeship Plan commits to increasing the number of apprenticeships by 600 before 2014, and increase the number of apprenticeships for 14-16 year olds to 260. Gateshead Strategic Partnership is working with the National Apprenticeship Service, Connexions, and the Gateshead Collective, a network of eight work-based learning providers, to deliver the plan’s priorities.

The single offer co-ordinates information relating to apprenticeships across the Borough, and provides a central resource with a common message for employers, and reduces the number of approaches from providers. The plan targets seven priority growth sectors for Gateshead, including science, digital and creative, and retail and tourism.

Within the model, the local authority plays a commissioning role shaping provision around local economic priorities, acting as a corporate parent for young apprentices from care. Ten partnership groups will help deliver the plan across Gateshead, with the National Apprenticeship Service acting as the delivery body.

Newcastle – Apprenticeship Plus
Newcastle City Council is leading the way on apprenticeships, for instance as an employer it has over 120 apprentices. Newcastle has also developed an Apprenticeship Plus service, which offers employers that want to recruit an apprentice an holistic, rounded service – including assistance with recruitment, arranging the delivering of training, and a salary subsidy programme for apprentices which complements NAS’s Apprenticeship Grant for Employers. The city is to build on this as part of its city deal, developing an apprenticeship hub. Furthermore, young people are assisted in interview preparation and those that apply but are not successful have the option of additional support to help fill any skills gaps. As a result, more than 50 apprenticeship opportunities have been created for young people from Newcastle’s more disadvantaged areas.

 

Further examples of good practice from Tees Valley include:

Youth Employment Initiative - Stockton
Following the success of the Future Jobs Fund in Stockton it was decided to develop this initiative to provide 165 employment opportunities for young people aged 16-24.

  • Opportunities were for at least 12 months, providing work for 35 hours or more per week and were paid at least at the national minimum wage;
  • All jobs were suitable for long term unemployed young people between 16 and 24,
  • Jobs were additional – i.e. they would not exist without this funding;
  • Opportunities had to be part of an apprenticeship framework;
  • The work undertaken directly benefitted local communities;
  • Organisations received 39 weeks subsidy for wages.

Foundation for Jobs – Darlington
Launched in early 2012 the Foundation for Jobs (FFJ) project had four key elements: promote vocational opportunities (both training and employment); increase the number of apprenticeships; build links between schools and business (and address perceptions of apprenticeships and industries in general); develop internships and entrepreneurial skills.

A full time project co-ordinator ensured that activities across all four strands were delivered and in the first year of the project 123 apprenticeships were created, over 1,100 young people attended practical/interactive themed sessions; 124 Internships were taken up and 66 young people received advice on starting their own business. The impact both in terms of actual numbers but also in terms of changing attitudes is evident amongst those working with young people in Darlington and all other Tees Valley Local Authorities are looking at FFJ as a template for their activities.

It is clear from the project’s first annual report (July 2013) that the project is performing well and exceeding the targets. The report states “Foundation for Jobs has taken a different approach to addressing youth unemployment; tackling attitudes and perceptions at a grassroots level.” It continues: “The first year of the programme has produced a blueprint for investment both in Darlington and further afield.”

 

Talent Match – Middlesbrough
Talent Match is targeting young people who are furthest from the jobs market, including those who are completely outside of the benefits, work and training system and facing severe barriers to gaining the skills they need to get into work. Talent Match boosts opportunities for young people in selected areas by bringing together partnerships of employers, education providers and others, led by local charities.

In Middlesbrough the Prince's Trust was granted more than £1.4 million from the Big Lottery Fund to deliver Talent Match.  Focusing on the areas of Gresham, University, Middlehaven, North Ormesby & Brambles Farm, Thorntree, Pallister, Park End and Beechwood Talent Match identifies, engages, inspires and supports eligible young people from the most deprived areas in Middlesbrough to enable them to move into sustained employment or enterprise by matching them with a dedicated mentor who helps boost their confidence and skills, and supports them back into the workplace.

Over the five year project 500 young people who have been unemployed for 12 months or more will increase in confidence, motivation and self-esteem; at least 100 young people will be supported into sustained employment or self-employment, lasting for a minimum of 6 months.

 

Last updated: 19/05/15

9. What do people say?

Of 157 clients who responded to an evaluation request (since April 2011),

  • 86% agreed completely that they were given appropriate information, advice and guidance to meet their request;
  • 83% said that Routes to Employment had fulfilled their request completely.

Many young people say that they want a job, but are frustrated by the number of training programmes they are asked to attend with different providers.

Employers say that many young people in particular are not well prepared for employment opportunities.  This is being addressed in part, through the ELITE project, with employability skills a key part of the programme.

Transport is a barrier to employment, particularly in East Cleveland.  Many residents cannot take up opportunities such as those at Teesport since there are no transport links for anyone who does not have their own means of getting to work.

 

Last updated: 19/05/15

10. What additional needs assessment is required?

None identified.

 

Last updated: 19/05/15

Key Contact

Name: Corinne Templeman

Job Title: Economic Development Manager

e-mail: corinne.templeman@redcar-cleveland.gov.uk

phone: 01642 495741

References

Local strategies and plans

Redcar & Cleveland Borough Council (2012). Regeneration Masterplan Delivery Plan 2012-2017.

Redcar & Cleveland Borough Council (2012). Our Plan 2012-17.

Tees Valley Unlimited (2011). Tees Valley Local Enterprise Partnership’s Statement of Ambition 2011.

Tees Valley Unlimited (2011). Tees Valley Unlimited Partnership Business Plan.

Tees Valley Unlimited (2009). Tees Valley Economic Assessment.

 

National strategies and plans

Department for Communities and Local Government (DCLG, 2009), The Houghton Review: Tackling worklessness – a review of the contribution and role of English local authorities and partnerships.

Marmot, M et al (2010), The Marmot Review: Fair Society, Healthy Lives. Strategic review of health inequalities in England post-2010.

 

Other references

ACEVO (2012). Youth unemployment: the crisis we cannot afford

Department for Works and Pensions (DWP, 2012). Qualitative Study of offender employment review: final report.

Houghton, S; Dove, C; and Wahhab, I (2009). Tackling Worklessness: A Review of the contribution and role of English local authorities and partnerships.

Joint Health Overview of Scrutiny Committee of North East Local Authorities (2011). Regional Review of the Health Needs of the Ex-Service Community.

Learning Disabilities Observatory (2012). Learning Disability Profiles 2012

Ministry of Defence (2008). The Nation’s Commitment: Cross-Government Support to our Armed Forces, their Families and Veterans.

Nomis (2012).  Labour market profile for England, September to November 2012.

Nomis (2014).  Labour market profile – Redcar & Cleveland.

Office for Disability Issues (2012). Disability Equality Indicators.

Murrison, A (2010). Fighting Fit: a mental health plan for servicemen and veterans

The Poverty Site (2010). Longstanding illness/disability.

The Poverty Site (2011). Work and ethnicity.