Skills shortages are threatening the region's resurgence. Business Correspondent Jonathan Jones investigates the causes and possible solutions.

THE problem of skills shortages in the region has raised its head again. When the North-East lost its pits and shipyards in close succession, the skilled jobs of traditional industries disappeared to be replaced by jobs in call centres and customer care.

Now those new sectors are suffering, as the shipyards go through something of a resurgence.

Despite this, the region does not have the major problems of skills shortages associated with the more buoyant South-East.

According to Jim Lewis, head of external relations (learning and skills) for regional development agency One NorthEast the region's skills shortages amount to two per cent of its available workforce.

He said: "In the South-East, the shortages are three times that level, so we have to keep our problems in proportion.

"Because of the boom in the South-East and London, a lot of traditional skills, such as bricklayers, plumbers and other building trades have moved to where the work is, and that is causing the problem for us in the North-East."

However, Mr Lewis said it is the new economy group, such as the hospitality and IT sectors, that is being hit the hardest.

He said: "The problem is that we have people like welders and electricians who can't deal with customers face-to-face. Their skills are based on building products rather than services, and they simply don't have the skills to cope with the jobs available within the new economy."

And he said it was important for the region to face up to its problems now, as the skills shortages are set to be exacerbated by plans by the Government to build two aircraft carriers.

He said: "The North-East is expecting to win a fair share of the work on the aircraft carriers, and we need skilled people to do it.

"However, that kind of work has changed, and it is not traditional shipbuilding skills we will require.

"It is more in line with the skills of the process and offshore industry, where construction is carried out on a modular basis.

"A lot of the new jobs will also be IT-related ones, with many of them being office-based, rather than on the shopfloor."

The good news is that the aircraft carrier contracts are likely to keep those working on them in jobs for 15 years.

Mr Lewis said: "Workers in shipyards are used to having job security measured in months, but the aircraft carrier projects could see us through the next 15 years."

Companies such as Swan Hunters, on the Tyne, are now trying to encourage older workers, with more traditional skills, back into the workforce, as well as introducing Modern Apprenticeship schemes.

Mr Lewis said: "I think employers are beginning to wake up to the fact that the workforce of tomorrow is the workforce of today, just older, with increased skills.

"The skills shortages will not go away if employers are only looking to employ young people. They need to make the most of the older workforce."

Another startling statistic quoted by Mr Lewis is that the region's job-seekers feel they have to leave the region to get a good job.

He said: "There's still a misconception that you can't find a good job as a lawyer or doctor in this region, and we need to change that. We have to let people know that the North-East is a good place to live and build a career."

That is why the CBI, One NorthEast and the North East Chamber of Commerce are joining forces to launch a campaign in the autumn to make young people aware of the kind of jobs currently available in the region, and the ones that will become available in the near future.

The chamber is one of the biggest training providers in the North-East, training people in disciplines from business administration to engineering and dental nursing.

Its chief executive, George Cowcher, said: "Whenever we consult with our 5,500 members on issues affecting their businesses, skills comes out amongst the top issues.

"However, it varies enormously from sector to sector. At the moment, there are particular shortages in electrical engineering and construction trades."

He added: "At the chamber, we are particularly concerned about basic skills, such as literacy and numeracy, amongst the younger members of the workforce."