The disparity in Gross Domestic Product (GDP) between the northern and southern regions of the UK remains a pressing concern. The allure of higher entrepreneurial opportunities in the south has led to a migration of talent, exacerbating the scarcity of well-paid jobs in the north and fostering a socio-economic imbalance.
A recent report from the Invest North project proposes targeted measures to harness the north’s specialized industries and bolster its economic standing. Emphasizing a ‘place-based industrial investment strategy,’ the report advocates for leveraging the region’s strengths in advanced manufacturing, life sciences, digital technology, energy, and business services.
However, the report underscores the challenge of attracting and retaining skilled talent, with 60% of the expertise needed falling within shortage occupations. The shortage of digital skills, as highlighted in the current Shortage Occupation List, further complicates matters, particularly in sectors like technology.
Moreover, there’s an urgent need for skilled workers in advanced manufacturing and engineering, as underscored by the COO of Groupe Atlantic. A shortage of skilled employees in these sectors could impede progress, particularly in initiatives such as meeting Net Zero targets.
The report stresses the role of diversity in driving innovation, noting that only 10% of engineering employees are from minority ethnic backgrounds. Increasing diversity not only fosters innovation but also attracts global investors, enriching the region’s perspective.
To address skills shortages and accelerate economic development, businesses are encouraged to tap into the global talent pool through immigration. Obtaining a sponsor license enables UK businesses to recruit skilled workers from abroad, contributing to long-term economic growth in the north.
However, upcoming changes in immigration policies, including increased salary thresholds and modifications to occupation codes, may impact businesses exploring immigration routes. While certain discounts, such as the new entrant rate, are anticipated to remain, regional businesses are advised to proceed with caution.
The report suggests prioritizing local and national labor markets to fill skills gaps before turning to international talent. One avenue worth exploring is leveraging graduates from top northern universities, where key sectors like engineering, technology, and computing are highlighted as lacking in the current talent pool.
Despite challenges, businesses have various immigration options to attract and retain overseas talent, ultimately contributing to the upliftment of the northern economy.