The draft Regional Employability Framework (REF), which was launched in December 2006, outlines plans to deliver a more effective service to individuals and employers.
It has received strong support from Jim Murphy, Minister of State for Employment and Welfare Reform, who believes it is essential that employers are placed at its heart, but why do we need an employability framework in the North-East?
Unfortunately, we still have a very large number of unemployed people in areas such as Middlesbrough, Easington and Wear Valley. We have done well in recent years thanks to initiatives such as New Deal and Pathways to Work and we have moved people off benefit and into work faster than the national average, but we must make sure that we get the best returns on the public money that is available for tackling employability.
In the past, the structure has been complicated and needed simplifying. In future, we must do better matching those who want to work with available vacancies. The new "employability journey to work" is simpler and not every claimant will need to go through each stage.
For example, skills will be designed around the needs of the key sectors and employers. The framework will be flexible to include management of caring, jobs search, interview techniques and so on, but the focus will be on employer engagement.
Speaking at the launch, Jamie Martin, regional chairman of the CBI, expressed his hopes that the new framework will lead to employers entering into workforce contracts.
He said: "There is a tight labour market in which it is becoming increasingly difficult to fill the jobs that the new economy creates. With an ageing population, skill shortages and changing demographics creating fewer school leavers, companies are turning to Eastern Europe for skills. However, this is a short-term fix.
"The employability framework should result in a less disjointed approach to recruitment. Business people need to see the benefits and have the opportunity to shape the recruitment process to ensure employment and skills needs are met."
The final REF report is now available online from One NorthEast at www.onenortheast.co.uk/page/employability.cfm