Inventing our future Collective action for a sustainable economy

Where are we now?
Long-term trends and
strategic challenges
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In common with the rest of the UK, the bulk of skills deficiencies reported
by employers are in soft skills such as communication, team-working and
customer-handling skills. These types of skills are also often essential in
getting unemployed or inactive residents back into work. Over the next
20 years, workplaces will become increasingly dense in their use of
technology – across all sectors and occupational levels. The challenge is
to equip young people with the skills for this new environment and
constantly upgrade the existing workforce.
Evidence suggests that employers in the region have particular
deficiencies in management skills. In the most recent Learning and Skills
Council (LSC) Employer Skills Survey, employers reported that 30 per cent
of employees with skills gaps lacked management skills – the joint highest
of the English regions. International comparative studies suggest that
management skills are a major driver in the productivity advantage of
leading economies over the UK.
The skills challenges are to increase employer demand for and utilisation
of high-level skills; better tailor skills and educational provision to
employer needs and ensure adequate access to education and skills
development in parts of the region that have lower levels of attainment
than average. The region also needs to match other leading economies
in developing an active approach to managing migration. This is essential
for attracting highly skilled workers and researchers, enabling potential
entrepreneurs to stay and maintaining networks with those that leave,
so as to realise international trade and collaboration opportunities.
Embracing change – demography, health and work
The region’s population grew by over 14 per cent between 1981 and
2005, which is more than double the rate for the UK as a whole and second
only to the South West. The population is now at 5.5 million, but further
growth to 6 million by 2021 is likely under current trends. ii According to
predictions from Anglia Ruskin University’s Chelmer demography model,
Cambridgeshire, Essex and Hertfordshire are projected to account for over
two-thirds of this growth. iii
The region’s population is aging. The Government Actuaries Department
predicts that, over the next 20 years, the share of the region’s population
aged 15 to 49 will decrease from 46 per cent in 2004 to 42 per cent in
2021, while the share aged 65 and over is expected to increase from
17 per cent to 21 per cent. This has major implications for housing markets
and public services, but also provides businesses with a growing market
for new products and an experienced labour supply.
The region is increasingly open to migration from other parts of the UK
and overseas – with people coming to live, work, visit or study. Successful
regions and communities tend to be outward-looking and tolerant, with
a proactive approach to attracting talented people and managing the
effects of migration.
ii. According to predictions from Anglia Ruskin University’s Chelmer demography model.
iii. East of England Annual Monitoring Report 2006 Background Paper: Demographic Issues in the
East of England 2006: Table 6.