This document discusses the need for the West Midlands region to develop skills that will prepare workers for future economic needs rather than just improving outdated skills. It notes high-skill, high-value industries will be key to future success. Since the late 1990s, the region's growth has lagged behind the UK average and unemployment has risen, particularly among young, unskilled workers. While the skills gap is closing, the region still has a high percentage of residents with no qualifications. The document calls for increasing innovation and reducing risk-aversion around science.

1. “ Shining some clear light” Rosie Paskins Chief Executive West Midlands Regional Observatory West Midlands Regional Observatory 2009 Fit for the Future?

6. Since the late 1990s regional growth has been lower than the UK average West Midlands Regional Observatory 2009

7. The regional output gap continues to grow - to £15bn West Midlands Regional Observatory 2009

8. Worklessness is high and increasing West Midlands Regional Observatory 2009 Source: Office for National Statistics (Annual Population Survey 2004-2008) Crown copyright material is reproduced with the permission of the Controller of HMSO

9. After a marked increase last year, the region now has the highest unemployment rate of all regions Source: Office for National Statistics (Labour Force Survey, seasonally adjusted data) West Midlands Regional Observatory 2009

10. Young and unqualified people have been particularly badly affected by the recession Source: LFS 2009

11. More than I in 10 of our young people is claiming Job Seekers Allowance West Midlands Regional Observatory 2009 Source: Office for National Statistics (claimant count, September 2009)

12. The region is closing the skills gap Source: WMRO

13. But we still have the highest percentage of working age population with no qualifications Source: LFS 2008 England

14. Private sector employment has been contracting, in contrast to all other regions (1998 – 2005) West Midlands Regional Observatory 2009

15. The number of those aged 85 and over is expected to double in the next twenty years West Midlands Regional Observatory 2009

18. Places potentially at economic risk include Bridgnorth and Cannock Chase Cannock Chase Bridgnorth Red areas are at most risk, green areas at least risk

19. The proportion of private sector employees with NVQ Level 4+ is falling Source: LFS 2008

20. The region has one of the lowest proportions of private sector employees with NVQ Level 4 Source: LFS 2008 England

21. The majority of out-of-work benefit claimants are claiming incapacity benefits

25. West Midlands Regional Observatory 2009