1. Ian Williams Director of Economic Growth Darlington – A Growing Economy Monday 9 May 2016

2. What is Darlington's economy telling us? Key Facts  72.7% of Darlington residents in employment (Tees Valley average 68.5%)  Unemployment is currently 6.8%, down 1.3% and below Tees Valley average of 8.4%  Darlington employees have an average FT weekly salary of £517.80 or just under £27,000 pa, highest of 12 North East authorities (Darlington residents £484, £25,000 pa)  There are 50,100 jobs in Darlington 67.5% are full time, 32.5% part time

3. Where are Darlington’s current jobs?  33% (16,500) of all jobs are within the Public Administration, Education and Health sector  22% (11,000) are within the financial and other business services sector  15% (7,500) are in the Wholesale and retail, including motor trades  7.2% (3,600) are in Manufacturing sector  6.2% (3,100) of Darlington jobs are in Information & Communications  5.7% (2,900) jobs in Accommodation and food services  4.9% (2,500) in Logistics & Warehousing  2.5% (1,200) jobs in Construction

4. How does this compare to job sector breakdown for Tees Valley?  34.5% (90,000) of all jobs are within the Public Administration, Education and Health sector  17.1% (44,700) are within the financial and other business services sector  16.2% (42,200) are in the Wholesale and retail, including motor trades  9.5% (24,900) are in Manufacturing sector  5.4% (14,200) jobs in Accommodation and food services  5.1% (13,400) jobs in Construction  4.8% (12,500) jobs in Logistics & Warehousing  2.3% (6,000) jobs in Information & Communications

5. Jobs growth and replacement demand for Darlington jobs up to 2024 What sectors are jobs currently being created in?  In 2015 5,413 Darlington jobs were advertised on the internet, a reduction of 5% (288) from 2014*  37% of the job vacancies advertised were within the health and social care sector;  31% were within other services,  13% in the business and professional services sector,  10% in advanced manufacturing,  6% in digital and creative sector (although this had the highest actual number increase of 85 extra vacancies than 2014)  2% in construction and 2% in logistics.

6. Long term jobs growth and replacement demand (2014 – 2024) 2014 job total 2014 actual % 2024 jobs estimate Net change 2024 replacement demand estimate Public Administration, Education and Health16,50033.0%16,7812816,545 Business & other services (incl professional / financial)11,00022%12,0781,0784,469 Manufacturing3,6007.2%3,265-3351,241 Construction1,2002.5%1,373173439

7. Anticipated qualification level changes up to 2024  UKCES Working Futures 2014 – 2024 projections indicate qualification profile of employment will continue to shift to higher level qualifications.  By 2024 54% of those in employment are expected to be qualified to level 4, currently 30.3% of Darlington residents are qualified to NVQ4 / CHE or A Level.

8. Emerging Policy And Economic Drivers Policy Northern Powerhouses initial focus on four “primes”: advanced manufacturing; energy; digital; health innovation; These fit well with Tees Valley priority sectors Devolution deal and Combined Authority offers a new opportunity with more control of key funding areas and capacity to develop new mechanisms and initiatives. However, low business density means proposed business rate retention may reduce local revenues.

9. Economic Drivers  Improving national and Tees Valley economy, although employment growth stronger than wage or productivity growth;  High levels of business starts for lifestyle businesses, however a need to address low business density and employment rates, by focusing support on high growth potential start ups and scalable companies;  Need to change the Tees Valley narrative for local and national audiences to consistently positive messages: High Gross Value Add of our Priority sectors; and  Need to address principal constraints to productivity: mitigation of high energy costs and raw materials through circular economy model.

10. Job Projections Strong growth in advanced manufacturing, health innovation and logistics, 3 of the 4 northern powerhouse primes. Relative decline in employment in 4 th Prime: Digital and Creative; and Tees Valley presently accounts for circa 8% of total employment in 4 Northern Powerhouse Primes Recent Activity:

11. Job Projections University and FE College Campus 2,500 jobs per annum remains an achievable target Net Job Creation, 2015-2025 OriginalRevised Low Carbon / Process, chemical and energy+2,500+2,000 Advanced Manufacturing+2,500+1,500 Other Manufacturing-5,000-4,000 Construction+4,000+3,000 Professional and business services+8,000+7,000 Logistics+2,000+3,000 Digital+2,000+3,000 Higher Education+1,000 Health and social care+4,000+3,500 Services+4,000+2,000 Culture and leisure-+3,000 Total +25,000 Source: Tees Valley Strategic Economic Plan, 2014 Minor adjustments to the sector profile of the 25,000 job target; and Focus of job creation on NVQ Level 4 jobs, particularly in priority sectors

12. Education, Employment and Skills  Four areas in the Tees Valley have been identified as needing to be addressed: poor school performance variable careers guidance improve coordination of support for unemployed/inactive adults/young people enhanced workforce planning for employers;  Major changes: Tees Valley Education, Employment and Skills (TVEES) Partnership Board, TVEES Joint Commissioning Group, Adult Education Budget and DWP Work and Health Programme, also implications of potential national policy changes. New arrangements can strengthen opportunities for young people in Tees Valley – better careers and jobs advice and developing the full potential of the apprenticeship models. Increased signposting of (existing and planned) job opportunities/structural change in Priority sectors to ensure local take up.