Look at north-east England

Northumberland, Tyne & Wear, County Durham

Overview

Throughout this area there is little consistency in terms of employment and commercial development as the various regions maintain separate identities. In the north-east, Samsung is closing its Billingham factory in April with the loss of 400 jobs and the transfer of activities to India. On the positive side, projects such as the expansion of Newcastle Airport and the development of Finningley Airport have involved a recruitment drive that started just before last Christmas.

There is uncertainty about the future of Corus on Teesside with a bid to become a separate entity currently in progress. At present the company has a workforce of 2,900 in this area alone, and there will be serious consequences if the bid fails; success would guarantee the future of steel in the area for at least 15 years. In Newcastle, around 1,550 jobs have been gained while 3,000 have been lost; the next two to three years, however, should see contracts totalling some £260 million coming into the area.

There has been an increase in unemployment figures in recent months. There is a great deal of competition for available vacancies and Service leavers must be totally prepared, with sound research, an effective CV and good interview techniques, if they are to be successful. Some recent unemployment figures are:

- Darlington 4.4 per cent

- Hartlepool 7.1 per cent

- Middlesbrough 7.9 per cent

- Redcar and Cleveland5.5 per cent

- Stockton on Tees 5.3 per cent.

There is demand throughout the region for tradesmen and LGV drivers. Central government capping of local council funding has reduced local government opportunities. An Inland Revenue call centre has been promised but no timetable has been given. The telecommunications, computing and IT industries are still static. The region has a good general engineering base, but the electronic and electrical engineering industry is proving slow to pick up.

While airports seem set to expand, although no start date has been announced, no aircraft engineering jobs are envisaged because teams will be brought in from other airports. Manufacturing industries find that profit margins are further eroded by low-cost competition from abroad and increases in both the national minimum wage and employers’ National Insurance contributions. Call centre employment now seems to have peaked with some companies having already moved overseas and others making preparations to relocate.

The massive and predicted increase in house prices in England’s north-east has now occurred. Nevertheless, Service leavers may still be attracted to the area because it is home to many and housing costs are still attractive when compared with those in the south of England.

Opportunities and skills shortages

In general the north-east’s economy does not demand high-level skills. Only 10 of the 60 sectors in the region require high knowledge intensity and these account for only 12 per cent of the region’s employment, compared with 30 per cent for the UK as a whole. In contrast, there are 41 north-east sectors with low or very low knowledge intensity, employing 66 per cent of the workforce, compared with 50 per cent nationally.

Employers generally report few skill shortages, with these being particularly concentrated in the hotel, restaurant, sports and leisure, education, health, and social care sectors. There are also opportunities for electricians, plumbers and building construction trades, drivers of all classes, nurses and trainers.

Some Service leavers still do not convert their Service skills into relevant civilian qualifications. Additionally, some still book resettlement courses without consulting local employers who know what qualifications are required. A check of local jobsites to discover current employment needs and pay scales may reveal any further training that may be necessary.

Employer news

Newcastle United Football Club is building a casino-based leisure complex, which will create 2,000 jobs. Another 400 jobs will be available if a car factory creates a third shift, and an IT helpline, a nightclub and a law firm each hope to employ more than 200 people. Other new jobs are for telephone staff, chemistry graduates, sales people and factory workers. Major losses are forecast for British Airways, Lloyds TSB, shipbuilding, clothing factories, the rail enquiries service and local councils.

Salaries

A rough guide to salaries in the region is given below. This is inevitably very general and there will be variations between industries and also in various parts of the north-east.

Manual £10,000 to £13,000

Semi-skilled £12,000 to £16,000

Skilled and supervisory £15,000 to £25,000

Managerial £18,000 to £30,000

Executive £30,000 to £45,000 and upwards

House price guide

The following prices are a rough guide only to property prices and are liable to overnight change as financial factors in the country as well as in the region affect housing.