Holding on to young talent is vital for prosperity of region

Mar 12 2009 by Peter McCusker, The Journal

RECENT figures showed the brain drain of young people from the North East had been arrested, but will the recession force the brightest to leave the region once more? Peter McCusker reports.

THE Newcastle office of one of the big four accountancy firms has seen a sharp rise in applications for its graduate trainee posts with around 170 people chasing the 16 to 17 trainee positions it will recruit for this year.

The head of Deloitte in the region has put this down to the lack of job opportunities elsewhere in the region.

The brain drain of North East talent had been recognised as an issue for the regional economy for generations, though the trend has been largely arrested.

But with regional unemployment now at its highest level for over a decade – at 8.4% – there is growing concern that some of the North East’s brightest brains my be forced to look elsewhere for work.

Paul Williamson, senior partner at Deloitte Newcastle, said the firm has seen a 12% rise in applicants for the 17 graduate posts it recruits every year.

Normally it has around 120 applications for its trainee accountant posts but this year the number has shot up to around 170.

He said: “Five years ago we were recruiting around 10 graduates every year. This has now risen to 16 or 17 last year and we will be recruiting the same number this year.

“There are fewer opportunities for graduates in the jobs market. This is making the market more competitive, hence we are seeing an increase in applications.”

However, there are a number of initiatives under way to ensure there are enough opportunities for the thousands of graduates who will leave the region’s universities this year.

Late last year regional development agency One North East joined forces with Northumbria University in a bid to encourage more graduates to remain in the North East.

They signed a Memorandum of Understanding in which they agreed to work with North East employers to ensure graduates remain in the region once their education has finished, and the university is now working on graduate recruitment with over 600 regional employers.