It is entirely possible for a nation or a region to achieve economic growth, yet still leave large numbers of its people untouched by the increased prosperity. Yet the moral imperative for those responsible for making economic decisions, must surely be to seek to ensure a different type of growth - one which benefits as many people as possible, both in terms of the job opportunities available, and the benefits that society reaps as a result of growth.
In recent years, economic growth has not often benefitted every part of society in the UK, making inclusive growth a top priority for national and local policymakers. The uncertainty brought about by the Covid-19 pandemic, the Ukraine war and recent economic instability in the form of rising interest rates and surging inflation have further highlighted the importance of addressing this challenge.
In this context, the 2023 IED Annual Conference focused on the role that local governments can play in both promoting economic growth and achieving inclusive growth. During the conference, the Institute of Economic Development (IED) presented a manifesto to give councils statutory powers over economic development.
Following the news that LEPs will be transferred to local government from April 2024, the role of local authorities in powering inclusive growth is now more critical than ever - and labour market data can help them achieve this.
What is inclusive growth?
Inclusive growth is an approach to economic development that ensures that all regions and segments of society benefit equally from increased prosperity. It is aimed at reducing disparities between different groups of citizens and regions, enabling a fairer and more equitable distribution of profits. Some of the critical challenges inclusive growth aims to address include:
Income inequality
Limited access to education
Limited access to job opportunities
Disparities in infrastructure
Unemployment
Social mobility barriers
Precarious job conditions
During the IED National Conference, Annabel Smith, Head of Place and Practice Centre for Progressive Policy at the Inclusive Growth Network, shared a detailed list of features for good employment that are worth looking at. Among these are pay and employee benefits, terms of work, opportunities for training and career progression, and work-life balance such as remote working options and flexibility with working hours. It’s clear that the UK governments and local authorities across the country need to work not just to create jobs but to create good jobs, building a fairer labour market that works for all.
The barriers to inclusive growth in the UK
We know that economic growth is not benefiting all UK citizens the same, but how exactly? Last year, the Lightcast team published our Levelling Up report, which follows the UK government’s Levelling Up plans and contains a detailed analysis of the disparities of job growth, recruitment trends, and skills needs across the UK.
Looking at geographic differences, we can see a considerable split between urban and rural areas. For instance, job growth between 2011 and 2021 concentrated around London and the Greater South East of England. Areas elsewhere in the country either experienced a slower pace of growth or an actual decline in jobs over the past decade.
In 2021, there was, on average, 22 job postings for every 100 jobs available in urban areas, compared to 17 job postings in rural areas, meaning recruitment activity is 30% higher in cities. Urban areas also offered more high-skilled job opportunities. Over the past year, 56% of all job postings in cities were for high-skilled roles compared to 46% in other areas.
But even within one local market, not everyone benefits from economic growth in the same way. For example, looking at Bristol, job postings for high-skilled occupations (defined by those requiring a bachelor’s degree or above) offer an average median salary of 41.9K a year, whereas job postings for low-skilled occupations (those requiring GCSE levels or no educational degree) offer a median average salary of 32.1K. This is just some of the data that reiterates the urgency and importance of focusing on inclusivity when planning economic growth strategies.
Achieving inclusive growth through skills
One of the key supporting pillars of the IED manifesto is “Labour Market and Skills Activation.” This pillar includes, among other points, enabling local authorities to lead Local Skills Improvement Plans by assessing local skills needs and collaborating with educators and employers in meeting current regional skills gaps.
Skills are the common denominator between local labour market demands and what education providers teach their learners. By establishing a common ground, it becomes much easier for local authorities and educational institutions to work together in developing initiatives to boost certain skills that may be in demand, helping local businesses grow while supporting students in accessing higher-quality jobs.
Lightcast’s skills data enables you to understand what skills are required not just in your region but also across particular industries and occupations. Our Open Skills Library groups over 32,000 skills into 40+ categories, giving you a highly detailed view of the specialised and common skills needed across any occupation. Because skills are organised into categories, you can understand the hierarchy from broad clusters to highly specific skills, and view related skills too. This helps you clearly define skills profiles and understand how skills demand is changing in your region real-time.
Using Lightcast to achieve inclusive growth
Lightcast works with various public sector organisations across the UK and globally to provide them with labour market data that can power their economic growth initiatives. Aside from our Skills APIs, Lightcast can also provide data on labour supply and demand, emerging occupations and sectors, recruitment activity by industry, occupation, or employer, and role demographics. With this data, you can:
Assess whether skills supply is meeting employer demand
Identify areas of growth and opportunities for improvement
Understand projected trends in jobs and skills in your region
Work with education providers and employers to close skills gaps
Create evidence-based initiatives and allocate resources effectively
Starting with a skills and data-based foundation enables public sector organisations to truly understand their regional economic needs, and work collaboratively with the education and private sectors to ensure improvements in education, career guidance, work conditions and career progression, ultimately driving both talent and business growth in their region. If you would like to learn more about Lightcast solutions, explore case studies or get a demo, get in touch with our team below.
