Further devolution could solve growing jobs crisis says LGA

The Local Government Association (LGA) believes the growing jobs crisis could be solved quicker if more powers were given to devolved councils and combined authorities.

New research commissioned by the LGA found that two jobseekers are competing for every one vacancy in a third of the country.

In a report the body has recommend more support from local authorities to match employers with jobseekers, engagement with those who have left the job market and sufficient skills training.

The LGA is now calling on government to give the necessary powers to councils, as elected local leaders could work on the ground to target and level up local areas.

While England already has 49 employment and skills-related schemes, the LGA pointed out that these are disconnected and too short-term, as they are managed by various Whitehall departments and delivered by several providers.

Cllr Kevin Bentley, Chairman of the LGA’s People and Places Board, said: ‘Our economy is changing rapidly and a record number of vacancies alongside large falls in people in the workforce have combined to create the tightest jobs market in our lifetimes. 

‘These changes are not being felt equally across the country, with too many people battling for fewer jobs in some areas while in others, employers are crying out for skilled workers to meet demand. 

‘The Government’s ‘one size fits all’ national approach to employment and skills is no longer fit for purpose. Levelling up should mean adapting support to local needs, making it more personalised and joined-up for people seeking work, while recognising the wide variations not just between different parts of the country, but also within them.

‘No area should be left behind. Councils and combined authorities – who know their communities best – want to be front and centre in ensuring everyone has the chance to learn new skills and find work, in good jobs needed by local businesses, in the places where they live.’

Research by the Institute for Employment Studies with data from Adzuna shows that in 42% of the country there are more vacancies than unemployed people which could be contributing to rising prices and inflation.

Coastal and post-industrial areas were found to have low participation and fewer vacancies than average, while London and the South East had high participation but low vacancies.

The Midlands and North West were also seen to be experiencing a strong growth in vacancies but low rates of economic activity, reflecting a skills shortage.

In related news, researchers at the University of Leeds have discovered that people who reported feeling ‘lonely often’ were significantly more likely to face unemployment in the future. 

Photo by Clem Onojeghuo