A new report from the University of Sheffield and The Productivity Institute highlights a significant skills gap contributing to below-average productivity levels in parts of Yorkshire, particularly in Barnsley, Doncaster, and Rotherham. These areas lag 17% behind the UK productivity average, while Northern Lincolnshire and East Yorkshire exceed national levels.
The study links the productivity gap to a mismatch between workforce skills and industry needs, exacerbated by the decline of manufacturing and steel industries. Doncaster has the highest proportion of underqualified workers in the region (32.1%), signaling a pressing need for investment in skills development.
The report calls for stronger coordination between national and regional policies to address skills mismatches. It also stresses the need for increased funding for apprenticeships, with the Labour government considering reforms to the apprenticeship levy to make training more accessible.
Infrastructure investment, including the potential reopening of Doncaster Sheffield Airport, is identified as another key factor in improving regional productivity. Local authorities, including Barnsley Council and the South Yorkshire Mayoral Combined Authority, are implementing initiatives to address economic inactivity and support workforce development.
Experts emphasise that solving Yorkshire’s productivity challenges requires systemic, long-term investment in education, training, and infrastructure to align workforce capabilities with industry demands.
