NEW research has warned that the North-East is failing to keep up with other local economies when it comes to employment rates and productivity.

The report, Ambition 2020: World Class Skills and Jobs for the UK, has been published today by The UK Commission for Employment and Skills, the parent organisation for Investors in People.

The North-East ranks seventh out of 12 in a productivity league table of the UK.

It also has a lower than average employment rate – 68.5 per cent compared with the UK average of 72.7 per cent.

Overall, it ranks 11th in the Regional UK Competitiveness Index.

Robert Macleod, at Investors in People North-East, said: “In the current economic climate, it’s more important than ever that businesses are able to get the best out of their people. This means challenging and inspiring managers and employees at all levels to achieve their potential.

“Employers have to be ambitious and act now to develop the skills they will need in future. This will improve their productivity and performance, benefiting them, their employees, and the country as a whole.”

The report warns that the UK is at risk of sliding down international productivity rankings.