EMPLOYERS in the North-East have been told they must take action now to help the 400,000 adults in the region who have the reading ability of an 11-year-old.

The call, from the Learning and Skills Council County Durham, came at a conference for employers to increase basic skills across the county.

A national survey last night showed that 44 per cent of employers believed workers' skills shortages were costing them money.

The poll for the UK-wide Learning and Skills Council (LSC) showed that bosses believed 2.4 million of their workers were incompetent.

London firms were the least likely to offer training and the North-East most likely, with 64 per cent of firms offering staff training.

In the North-East, the number of people lacking basic skills was the highest in the UK and more than a quarter of the 400,000 with the reading ability of an 11-year-old were in employment.

The deficiencies in both literacy and numeracy are costing the North-East economy a staggering £600m a year, the conference heard.

Research by Ernst and Young has indicated that low skills cost the UK economy £10bn a year.

The LSC County Durham is encouraging more employers to develop literacy and numeracy opportunities for their employees in the workplace.

Speaking at the event at LG Phillips, in Durham, LSC County Durham executive director Austin McNamara said: "There are a scandalous number of adults in this country who have problems with numeracy and literacy, and the Government recognises this is a major barrier to economic development.

"In County Durham, there is a particular problem, and in some parts of the county the problem is as bad as anywhere in the country.

"If we assume that a large majority of people who have numeracy and literacy problems are in work, then we are not going to find a solution to the problem unless we involve employers."

In the North-East, 22 per cent of the population is below level 1 (equivalent to a GSCE Grade D to G) for literacy, compared with 16 per cent in England as a whole. For numeracy, the figure is 54 per cent for the North-East and 47 per cent for the rest of the country.

Employers also heard from 23-year-old Peterlee woman Joanne Abbott, who has successfully completed six courses while working at Walkers Snack Foods, in Peterlee.

* The Northern Echo is backing LSC Tees Valley and County Durham's efforts to improve basic skills in the region as part of its Working for a Future campaign to boost the North-East's job prospects.