North East businesses are leading the UK in creating opportunities for young people, with seven in ten (70%) having recruited early careers talent in the past year, according to new research from Lloyds.

The figure is the highest of any UK region, ahead of Scotland (66%) and the North West (60%), and compares with a national average of 52%.

The latest Lloyds Business Barometer reveals a strong and sustained commitment to investing in young workers and, of the region’s companies in the region that hired early careers talent in the past 12 months, 93% of firms expect to recruit more over the next year.

Even among North East businesses that did not recruit early careers talent in the last year, 52% say they would do so if they felt able.

Which factors would increase employer confidence to invest in early careers talent?

When asked what factors would most increase their confidence to invest specifically in early careers talent, North East employers highlighted greater certainty over government funding and stronger external collaboration.

Nearly two fifths (38%) cited greater certainty over government funding as a primary catalyst. This was followed by more relevant local training provision (36%), stronger links with education providers (35%) and better information on available support (33%).

Nearly a quarter (24%) pointed to access to finance to manage upfront recruitment and training costs.

Businesses confident on funding skills investment


This confidence extends to wider investment in skills, with more than three quarters of North East businesses (76%) confident they can secure the funding needed to invest in training, apprenticeships or new hires over the next one to three years.

On the types of skills businesses need, sales and business development (36%) was the most cited by North East businesses, followed by customer service and relationship management (34%) and problem-solving, adaptability and communication (33%).

Internal upskilling drives workforce development strategy

When it comes to addressing anticipated skills gaps, North East businesses are taking a practical approach, with internal training and upskilling of existing staff leading the responses at 47%.

This research comes after Lloyds announced an investment of £100m in future skills in August as it expanded its support for young people.

Martyn Kendrick

North East businesses clearly have an appetite to grow and invest in the next generation of talent, and it is particularly encouraging that the region leads the UK for early careers recruitment.

What comes through strongly is that the willingness to invest is there, and the bigger challenge is making sure businesses can find the people with the skills they need.

Bringing businesses, education and training providers closer together will be key to closing that gap, helping more young people into work and giving North East firms access to the talent they need to grow.

The national picture

More than half (52%) of UK businesses have recruited early careers talent in the past year, with the North East leading on recruiting early careers talent at 70% followed by Scotland (66%) and the North West (60%).

Of the companies that hired early careers talent in the past 12 months, 89% expect to recruit more over the next year. That figure rises among South East and London businesses to 97% and 96% respectively.

Even among those that didn't recruit early careers talent in the last year, 56% say they would do so if they felt able. That figure increases to 75% in Scotland and 71% in London.

Four in five businesses (80%) are confident they can secure the capital required to invest in training, apprenticeships or new hires over the next one to three years. The UK figure compares to the top three nations and regions: 89% in Scotland, 87% in Yorkshire & Humber and 85% in the West Midlands.

On the types of skills that businesses need, customer service and relationship management (33%) was the most cited by businesses, followed by AI and automation (26%) and digital and data (23%).

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said:
“Businesses are not simply hiring for today, they are investing in the people who will shape their future. The strength of employers’ appetite for early careers talent is encouraging, but ambition needs to be matched by better access to candidates, clearer routes into training and the confidence to keep investing.

“Technology will continue to transform how businesses operate, and the findings are a powerful reminder that customer facing skills still matter. The ability to understand customers, build trust and manage relationships will help set the best businesses apart.

“Closing the gap between ambition and action will be a joint effort between businesses, government, communities and education providers. By helping businesses find the right people and develop the skills they need, we can build a stronger pipeline of talent and support growth across the UK.”