Labour Market Report for York and North Yorkshire, The key sectors expected to provide opportunities for growth in the region:
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1 Labour Market Report for York and North Yorkshire, Content Key sectors for growth Page 1 Headline job news Page 2 National and regional trends Page 5 Employment trends in York and North Yorkshire Page 6 Gross weekly earnings Page 6 Employment change : number of employees by industry Page 7 Employment by industry, York and North Yorkshire/GB Page 8 Job Vacancies Top occupation groups Page 9 Top occupations Page 10 Skills in greatest demand Page 11 Employers with most job openings Page 14 The key sectors expected to provide opportunities for growth in the region: Agriculture and food: over 17,000 people are employed in farming, and there are almost 8,000 agriculture and related businesses. Agriculture, food manufacturing and biorenewables are supported by world-class innovation and expertise at FERA (Food and Environment Research Agency) and the University of York. Plans for the Sand Hutton Applied Innovation Campus aim to double employment on the site to 1,600 high quality jobs. Bio-renewables and energy: energy and water have high concentrations in North Yorkshire. In Selby the Drax Power station has converted three of its six generators to biomass, and plans to become a predominantly biomass supplier. The new The Biovale proposal for an innovation cluster makes clear the concentration of biorenewable businesses in the area. The bioeconomy encompasses the production of renewable biological resources and their conversion into food, bioenergy and other products. Visitor economy: accommodation and food are particularly important in the region, especially so on the coast and in York. The county has a wealth of market towns, and more national parks and areas of outstanding countryside and coast than practically anywhere in England. Manufacturing and engineering: although relatively small sectors compared with other areas, there are localised hotspots. Food manufacturing accounts for 35% of manufacturing jobs in the area. Retail and town centre businesses: these tend to thrive in the area, especially so in major tourist attractions such as York and Harrogate, but also in the many attractive market towns. Railway jobs are also particularly important in York, boosted recently by Virgin s decision to base its East Coast Mainline HQ in the city, and to build a new rail academy in Potash mine: the planned Potash mine near Whitby, which recently received planning approval, is expected to bring over 1,000 jobs to the area. 1
2 Headline job news in York and North Yorkshire Flood defences in York will be the first part of the regeneration of 35 hectares of brownfield land. Eight brownfield sites in Leeds will be cleared for housing development. The projects will enable building of close to 1,500 new homes, attract investment and create jobs. (Business Desk 21/1/2015). Virgin Trains, the new operator of the East Coast Mainline, has confirmed that the headquarters for the operation will continue to be based in York. The offices currently employ 200, and Virgin has announced commitment to open a new rail academy in the city for 2016 (York Press 1/12/14). Primark are opening a new store at the Coppergate Centre in York and will create over 100 jobs. An opening date is yet to be announced (York Press 24/01/2015). Nestle has launched its Youth Employment Initiative in a bid to overcome the problem of its ageing workforce. The company plans to employ 1,900 young people, with apprenticeships playing a major role. Nestle will recruit 50 apprentices this year, including 3 engineers and 6 food operations apprentices in York. Competition for places is high, with 200 applicants for engineering places (Business Desk 03/03/2015). Coventry University Scarborough Campus is part of a scheme that will also include a University Technical College, sports village, and other facilities. Developers say it could bring 1 billion to the local economy over the next decade. The new building is due to open in 2016 and aims to create 100 jobs in its first phase (York Press 09/03/2015). York has had a record year for tourism. Throughout the year 83% of hotel rooms were occupied. Visits to attractions were up 4%, and city centre footfall was up by 8%. The tourism industry supports 19,000 jobs in York (York Press 25/03/2015). Screen Yorkshire has secured rights to develop a huge studio space on the former RAF site at Church Fenton. The 100,000 sq ft hangar will be repurposed and will be called The Yorkshire Studios. Over 21m has been injected into the region's economy, primarily through location-based dramas backed by the Fund, including Peaky Blinders, Dad's Army and Jonathan Strange and Mr Norrell. Increasing the number of productions has potential for sustaining the industry s infrastructure and workforce (Business Desk 04/06/15). York City Football Club is to get a refurbished 8,000-capacity stadium. The development will include a leisure centre, cinema and facilities for York Teaching Hospital NHS Trust and York St John University. There will be new jobs both in construction and on completion (Business Desk 30/03/2015). A new Everyman Cinema is to be built in Harrogate on the site of a former department store. The development will include several new restaurants. 250 jobs will be created (Business Desk 30/03/2015). Insurance provider Hiscox plans a new UK office in York, bringing 500 jobs. The frame of the new building was completed this week. Hiscox has already recruited a team of 150 working out of neighbouring offices. The building project has seen 1,000 BAM construction workers employed on the site (York Press 01/04/2015). 2
3 Headline job news in York and North Yorkshire Malton has been named a food enterprise zone (FEZ), one of only six in the country. A 50,000 grant from DEFRA has helped to create the FEZ at Malton Food Park. The agri-food park is expected to create over 500 jobs. The development was recently awarded 2.1 million in local growth funding for highways work (York Press 09/04/2015). Care company SureCare, is looking to recruit 100 care workers in Scarborough. Home services, respite and holiday care are all part of what SureCare does. The Chester-based company is embarking on a UK-wide expansion programme. In April SureCare were recruiting for a similar number in York. (Business Desk 11/05/2015) Portakabin Group has won the Large Employer of the Year category at the York Apprenticeship Awards. In the past three years, the Portakabin Group has increased its recruitment of apprentices from one to more than 30 and has plans in place to significantly expand the initiative over the next two years with a view to creating a Portakabin Group Academy. Apprentices range from joiners, electricians, plumbers, painters, a fabricator/welder and wood machinist to trainee project managers, a CAD design specialist and a draughtsperson (Business Link 28/04/15). Link to Gear4music, one of the region s fastest-growing online retailers, has nearly doubled its sales over the last two years. It operates from an office, showroom and distribution centre on the outskirts of York. Gear4music currently has 110 employees and adds up to 50 more during the Christmas run-in (Yorkshire Post 19/05/15). The York Potash Project has been approved by 8-7 votes at a meeting of the North Yorkshire Moors National Parks Authority. The plans are for a shaft to be dug a mile into the moors, and for a 23 mile tunnel containing underground conveyor belts linking the mining site to a processing plant in Teesside. Sirius Minerals believe the mine will create 1,040 direct jobs, with a further 1,010 supported in the construction and development phase (Business Desk 01/07/2015). Jobs in the creative industries increased by 5.5 percent in 2014 according to the latest figures from the Department for Culture Media and Sport. York s creative industries have been contributing to the trends with a number of companies trading overseas. Tockwith-based Stage One s latest project is a 6 million contract to build the UK Pavilion at this year s World Expo. Known as The Hive, the aluminium structure is made up of 169,300 different components, all manufactured on the outskirts of York. Stage One has worked on numerous international film, TV and sporting events, including the Olympic Games and the Eurovision Song Contest and MTV Music Awards. Also trading globally is game designer Revolution Software, which saw its latest game, Shadow of the Temple, downloaded 2.5 million times in a single day (York Press 02/07/2015). The University of York is to receive 4 million of public funding to set up a Digital Creativity Hub, one of six digital economy centres being created nationwide. The York centre will focus on harnessing the power of digital creativity to provide new technologies for digital games, and interactive media. The other hubs will be located in London, Swansea, Newcastle, Bath and Nottingham (Business Desk 13/07/2015). Skipton Building Society has recruited 155 people at its Skipton head office, in response to increased activity and call volumes. Membership grew by 26,000 in the six months to 30 June, adding to the net 31,300 increase in 2014 (Business Desk 29/07/2015). A local farmer has applied for planning consent for a 200 chalet holiday park near Great Ayton. The park would create an estimated 170 jobs, though direct employment and in the supply chain (Business Desk 05/08/2015). 3
4 Headline job news in York and North Yorkshire Fulford-based Persimmon Homes has reported a 31% pre-tax profit rise in the first half of The firm s headcount has increased by 500 to 4,000 since January, including local recruits to sales, construction and technical teams. Nationally Persimmon has 120 combat to construction trainees and expects to have close to 200 ex-military employees by the end of the year (York Press 19/08/2015). Job Losses There are fears for 150 jobs at Harrogate insurance company Engage Mutual due to plans to move operations to Brighton (York Press 02/03/2015). Yorkshire Fresh Fruit a subsidiary of Bakkavor based in Selby, is to close making 445 workers redundant due to the loss of a key contract with Asda (BBC 20/02/15). Kellingley Colliery, the last remaining deep coal pit in North Yorkshire, is to close at the end of the year, with the loss of 500 jobs (York Press 26/03/2015). Shepherd Group is to cut 55 jobs in its York- based construction division a much lower number than the 180 jobs that were feared to be at risk. It is mostly back office jobs that have gone. There were 38 compulsory redundancies and 18 volunteers (Business Desk 21/05/15). SSE, the energy company, is closing the Ferrybridge C power station in March 2016 with the loss of around 170 jobs. As many people as possible will be redeployed (Business Link 21/05/15). Smith and Nephew, the global medical technology business, is closing its facility in York with the relocation of 80 jobs to the London area (York Press 11/06/2015). Eggborough Power Station has been given just six months before its planned closure with 240 job losses. The Czech owners have reached the decision that the plant is financially unsustainable. Plans to convert the coal-fired station to biomass were dashed in 2013 when the government decided not to fund the conversion (York Press 02/09/2015). Almost 50 jobs are at risk at The Food and Environment Research Agency (Fera) just six months after it was taken over by Capita with the promise of 90 new roles. Fera has issued voluntary redundancy letters to 48 people in total at its headquarters in Sand Hutton near York, including nine people in science roles (York Press 17/09/15). 4
5 National and regional employment trends National employment trends Employment has continued to rise and unemployment to fall since late There were over half a million more people in work in December 2014 than a year earlier, 73% of all year olds. The unemployment rate was 6.4%, compared with 7.7% a year earlier. The proportion of those who were economically inactive (out of work but not available for work) was 22.8%, compared with 22.9% a year earlier. The UK economy continued to grow, with GDP increasing by 0.7% in quarter Output increased by 0.7% in services, production by 1.0%, construction was flat and agriculture decreased by 0.7%. Meanwhile the inflation rate was 0.1% in June, compared with -0.1% in April. This was the first time the inflation rate was negative since Sources: Annual Population Survey, Claimant Count, GDP preliminary estimate, Consumer Prices Index, Office for National Statistics Yorkshire and the Humber employment trends The employment rate in Yorkshire and the Humber in December 2014 was 70.5%, slightly below the UK average of 72.2%. The unemployment rate in the region was 7.6%, compared with 6.4% for the UK. The rate had fallen compared with the previous quarter when it stood at 9.1%. Yorkshire and the Humber had a 2.3% rate of Jobseeker s Allowance claimants, with only the North East and Northern Ireland being higher. Output in the region rose sharply in February 2015, and new orders increased at their fastest rate since November Sources: Annual Population Survey, Claimant Count, GDP preliminary estimate, Lloyds Bank Yorkshire and the Humber PMI, Markit 5
6 Employment trends in York and North Yorkshire Employment rates % aged Employment has risen in all areas except Richmondshire, Scaborough and Selby. All areas apart from Scarborough had a higher rate of employment than the national average Craven Hambleton Harrogate Richmondshire Ryedale Scarborough Selby York Region average UK average Unemployment rates % aged Unemployment has continued to fall, and all areas in York and North Yorkshire continue to have rates below the UK average, with the exception of Scarborough Craven 4.4 n/k Hambleton Harrogate Richmondshire 4.5 n/k Ryedale n/k n/k Scarborough Selby York Region average UK average Gross weekly earnings across Yorkshire and the Humber have remained static in 2014 compared with 2013, whilst the UK median has grown marginally. However, there are considerable variations across York and North Yorkshire, with rates actually falling in Harrogate and York. Gross weekly pay 2013 Gross weekly pay 2014 Craven Hambleton Harrogate Richmondshire Ryedale Scarborough Selby York Yorkshire and the Humber UK Median Source: Annual Survey of Hours and Earnings
7 Employment change in York and North Yorkshire Job losses Job gains Electricity, gas etc down 500 Agriculture etc up 193 Water supply, sewerage, waste management down 200 Mining and quarrying up 219 Construction down 1,200 Manufacturing up 1,258 Information and communication down 2,600 Wholesale and retail up 630 Public admin/defence down 3,109 Transport and storage up 1,795 Education down 682 Accommodation and food service up 8,204 Health and social work down 1,188 Financial and insurance up 427 Other services down 379 Real estate up 1,360 Employment change York and North Yorkshire Source: Business Register Employment Survey 2015 Note that the farm agriculture data comes from a DEFRA survey for
8 Employment by industry, York and North Yorkshire compared with GB Employment by industry, York and North Yorkshire/GB N Yorks GB Source: Business Register Employment Survey, Office for National Statistics 2015 This chart compares employment in York and North Yorkshire with the average for Great Britain. There are markedly higher proportions in North Yorkshire employed in: Agriculture: reflecting the rural nature of North Yorkshire Wholesale and retail: in part because of the importance of visitor economy Transportation and storage: in particular because of the importance of the railway industry in York Accommodation and food service: also serving the visitor economy Education and health and social care also have higher than average proportions of employment in the area, the former boosted by York s universities. Sectors where York and North Yorkshire has lower proportions employed include manufacturing information and communication technology, information and communication, financial and insurance services and professional, scientific and professional services and administrative and support services. 8
9 Top occupation groups in York and North Yorkshire in 2014 The following six pages will focus on job vacancy, job creation and recruitment trends in the region. The information comes from reports produced by the Labour Insight data mining software. The reports provide a valuable insight into the job market, but it advisable to bear in mind that: the system will only capture jobs advertised on the web, and we know that a significant proportion of jobs are not advertised the classifications are assigned by the system s algorithms, and occasional blips can occur. The chart below groups related occupations together giving a good general picture of demand. There were 58,689 vacancies over the year, compared with 58,068 the previous year. York and North Yorkshire are compared with the UK average. Markedly higher proportion of vacancies than average: caring personal services, food preparation and hospitality, nursing and midwifery, other elementary services. Lower than average: ICT professionals, sales and marketing, business, research and administrative professionals and associate professionals, functional mangers/directors. Source: Labour Insight, Burning Glass Technologies, October
10 Top occupations in York and North Yorkshire in 2015 This chart shows individual occupations. The top five occupations were: software developer/engineer, registered nurse, secondary school teacher, chef, retail supervisor. The demand for good communication skills exceeds all others by far. Source: Labour Insight, Burning Glass Technologies, October
11 Top core skills in York and North Yorkshire in 2015 The top five core skills, across all occupations, were communication, planning, customer service, general computer skills and detailed-orientated skills. Source: Labour Insight, Burning Glass Technologies, October
12 Top specialised skills in York and North Yorkshire in 2014 The top five specialised skills in demand were Javascript, sales, business management, Microsoft C# and mathematics. IT skills dominate, but that is also the case with the nationwide data. Source: Labour Insight, Burning Glass Technologies, October
13 Top IT skills in York and North Yorkshire in 2014 The top five IT skills in demand were Excel, Javascript, Office, Microsoft C# and.net Programming broadly in line with demand UK-wide. Higher demand than average was shown for Javascript, Microsoft C#,.NET Programming and jquery. Javascript is a programming language used as part of web browsers. Microsoft C# is a general purpose programming language..net is a software framework that runs primarily on Microsoft Windows. jquery is a Javascript library widely used in websites. Source: Labour Insight, Burning Glass Technologies, October
14 Employers with most job openings in York and North Yorkshire in Employer Postings Sector Location North Yorkshire County Council 3,069 Local authority Various National Health Service 2,296 Healthcare Various Estio Healthcare 717 Health and social care Various University of York 485 Education York City of York Council 342 Local authority York Covance Ltd 292 Drug research and Harrogate development Barchester Healthcare 195 Health and social care Various Bettys and Taylors of Harrogate 187 Tearooms, tea and coffee Various suppliers Sodexo 159 Facilities management Various Pearl Linguistics Ltd 132 Translation and Various interpretation McDonalds Restaurants 130 Restaurants Various Four Seasons Healthcare 119 Health and social care Various York St John University 111 Education York Amey UK Ltd 111 Infrastructure support Various Harrogate Borough Council 109 Local authority Harrogate Cubed Resourcing 102 Agency Various Corecom Consulting Ltd 93 IT agency Various Hilton Worldwide 91 Hotels York Huntercombe 87 Care homes Various Fenwick 85 Retail York Source: Labour Insight, Burning Glass Technologies, October 2015 Prepared for Careers Yorkshire and the Humber, October 2015 E: 14
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