How Yorkshire is leading the way in tackling the UK’s rising unemployment
With UK unemployment reaching its highest levels in four years, initiatives in Yorkshire are taking a leading role in job creation at a time when economic uncertainty is hindering growth across a wide range of industries.
Today, 1.64 million people aged 16 or over are unemployed in the United Kingdom, representing an unemployment rate of 4.6%.
Worryingly, Office for National Statistics figures have also shown that job vacancies nationwide are falling, owing to concerns over National Insurance tax hikes for employers.
With April bringing NI contribution increases from 13.8% to 15% along with lower salary thresholds from which businesses begin paying the tax of £5,000, York and North Yorkshire small businesses have reportedly been feeling the squeeze along with the rest of the region.
Additionally, larger employers throughout Yorkshire have frozen pay increases in preparation for the tax hikes.
In May, Burberry announced that it would be cutting 1,700 jobs, which would impact its trench coat factory in Castleford, following a loss of £66 million over the last financial year.
Despite these challenges heavily impacting Yorkshire's job markets, the region is also leading a fightback against unemployment, kicking off a series of lucrative initiatives designed to get those without a job back into the workforce.
Reviving Yorkshire’s Job Markets
April saw South Yorkshire emerge as part of a £125 million initiative to help boost Britain’s workforce as part of a government ‘trailblazer’ programme.
South Yorkshire will be one of nine trailblazer locations that will see £18 million invested to tackle inactivity and boost employment throughout the county.
In its first year, the programme will work with over 7,800 South Yorkshire residents and help up to 3,000 people find or stay in their jobs.
The government has also identified three Yorkshire cities, Leeds, Sheffield, and York, as some of its 13 ‘growth areas’ in which it will relocate thousands of civil service roles away from London. The move is expected to unlock £729 million for local economies by 2030.
South Yorkshire has been particularly hard-hit by unemployment in recent years, and Rotherham Metropolitan Borough Council has sought to tackle the issue head-on by approving a £1.7 million initiative as part of the South Yorkshire Inactivity Trailblazer.
It’s hoped the move will help to reverse the town’s unemployment figures, which show that almost one-in-three working-age adults are currently out of work.
North Yorkshire is also set to experience a jobs market boom with building work underway for a new retail and leisure destination based near Richmond.
When it opens its doors, Scotch Corner Designer Village will feature 73 retail stores, restaurants, and cafés and is expected to create 1,300 jobs for the county.
Opportunities in AI
Perhaps the biggest boost to Yorkshire’s job market will be driven by the United Kingdom’s artificial intelligence boom.
Forecasts suggest that implementing and overseeing AI technologies will require an additional 610,000 job roles in Britain, representing a net gain of 310,000 jobs by 2028. This will drive demand in Yorkshire and beyond for workers with both technological skills and the ability to oversee generative AI output.
Yorkshire will reap the benefits of the UK’s AI initiatives, with North Yorkshire bidding to become one of five national AI Growth Zones.
It’s estimated that becoming an AI Growth Zone would not only generate £85 billion for the region but would also help to protect 7,000 jobs, including 3,500 in the north of England.
In recent weeks, it was announced that Yorkshire AI Labs, a specialist incubator that creates artificial intelligence firms, has launched the Oberon Yorkshire AI EIS Fund, which is set to invest millions into the development of the technology within the region.
The fund aims to position Yorkshire as a leading location in the growth of AI within the United Kingdom, with the technology helping to not only create new jobs but also improve productivity in existing roles.
The development of artificial intelligence can take a proactive approach to improving the UK’s unemployment rate.
Crucially, the technology can improve candidate screening by using algorithms to match jobs to their ideal applicants. It can also offer bespoke training services to improve the onboarding process and ensure that new recruits excel in their roles over time.
Time-saving automation tools such as employee management systems and paystub generators can also allow HR professionals more time to efficiently recruit candidates, helping to prevent turnover and a higher unemployment cycle.
Reversing Unemployment
Rising UK unemployment is worsening issues that have already blighted areas throughout Yorkshire, but the county appears to be growing its initiatives in a bid to get residents back to work, with thousands of jobs expected to be created across the region.
With a strong focus on becoming a leader in the development of artificial intelligence in the United Kingdom, we could see Yorkshire’s unemployment rates fall further should its ambitions become a reality.
Tackling unemployment remains a priority for Yorkshire, and the future looks bright despite its recent struggles with rising taxation.