The North’s skills gap is hiding untapped talent

The North of England is currently undergoing a period of notable transformation, with substantial investment creating new jobs and laying the groundwork for sustained growth. Major infrastructure projects, such as improvements to transport links and digital connectivity, are being rolled out across the region. These initiatives are designed not only to boost economic prospects but also to make the North a more attractive place to live and work, encouraging inward investment and fostering pride in local communities.

However, the true measure of this progress will not be the number of jobs created alone, but whether employers can actually access the specific skills they need to thrive and whether local people can fully benefit from the new opportunities being generated in their communities. Success will also depend on how effectively education providers, local authorities, and businesses collaborate to ensure training and upskilling align with the evolving needs of the regional economy.

From Sheffield and Middlesbrough to Manchester, Leeds and Cumbria, businesses large and small are actively preparing for changing demands across a wide variety of sectors, including construction, health and social care, engineering, manufacturing, digital technology, and the rapidly expanding low-carbon industries. The diversity of these sectors reflects the North’s potential to lead in both traditional and emerging fields, capitalising on its industrial heritage while embracing innovation.

Yet, in my conversations with employers, one challenge comes up repeatedly: while they are eager to hire and expand, they often struggle to find people with the right blend of skills and experience. This skills gap can slow growth, limiting both businesses’ and individuals’ ability to reach their full potential. Some companies have responded by investing in in-house training programmes, while others have formed partnerships with local colleges and universities to shape curricula that better match real-world needs.

The Employer Skills Survey clearly illustrates the challenges ahead. Businesses across the North East, North West, and Yorkshire and the Humber continue to face persistent vacancies they cannot fill, often because applicants lack the right skills, qualifications, or sector-specific experience. This mismatch between supply and demand is not only frustrating for employers, but also discouraging for job seekers who may feel excluded from new opportunities by barriers that often seem insurmountable.

At the same time, thousands of young people across these regions are not in education, employment or training (NEET). The reasons vary—from a lack of awareness about career pathways to limited access to training, or personal circumstances that make it difficult to engage with the labour market. Addressing these issues requires targeted outreach, mentorship programmes, and a commitment to lifelong learning that goes beyond traditional education routes.

This is more than a labour market problem. Behind every statistic is a person looking for their first opportunity, trying to change careers, or with valuable experience that may not fit neatly on a CV.

People develop skills in many ways, including qualifications, short courses, site experience, previous roles and the work they do every day. Too often, the evidence is scattered across different systems, held by different organisations or difficult to share. Employers may be searching for capabilities that already exist but remain hidden.

If the North is to make the most of regeneration and investment, creating jobs is only part of the answer. We must also connect people with opportunity and give employers the confidence to recognise, develop and mobilise the talent already around them.