West Midlands Jobs Boost: £75m Skills Package and Youth Guarantee Launched
The Department for Work and Pensions has confirmed a major initiative to tackle youth unemployment in the West Midlands, with Birmingham and Solihull selected as primary pilot sites for a new national Jobs Guarantee scheme. This forms part of a comprehensive £75 million construction skills package designed to train thousands of local workers and meet growing sector demand.
Addressing the Youth Unemployment Challenge
Recent statistics reveal a pressing national issue, with 946,000 young people aged 16 to 24 recorded as not in employment, education, or training during July to September 2025. This represents approximately 12.7% of all individuals in this age group, equating to roughly one in eight young people across the UK. The majority of these – some 580,000 individuals – are classified as economically inactive, highlighting the urgent need for targeted interventions.
Government and Local Authority Collaboration
DWP Minister Dame Diana Johnson confirmed that the Government has been working closely with West Midlands Mayor Richard Parker and local authority leaders to develop this substantial skills investment. The three-year programme aims to train more than 12,000 local people to fill approximately 4,000 annual vacancies in the region's construction sector.
Mayor Richard Parker emphasised that the West Midlands is "primed for a construction boom", driven by ambitious development plans including:
- Construction of 12,200 new homes annually
- A £2.4 billion transport improvement programme
- Major infrastructure projects such as the HS2 Hub
- The East Birmingham Sports Quarter development
The National Jobs Guarantee Pilot
From spring 2026, long-term unemployed 18–21-year-olds in Birmingham and Solihull will be offered six months of fully subsidised, paid employment through the new national Jobs Guarantee. This pioneering approach represents one of the first regional rollouts of this national initiative, positioning the West Midlands at the forefront of youth employment innovation.
Specialist Training and Educational Partnerships
The skills package includes significant investment in educational infrastructure, with Dudley College of Technology designated as one of only ten Construction Technical Excellence Colleges in England. The institution will receive a share of £100 million in funding to lead regional training in both traditional trades and emerging green skills.
Key training initiatives include:
- Expansion of the successful Construction Gateway programme providing free, four-week intensive training
- Specialist pathways through Crown Rail's Sector-based Work Academy Programmes for track-rail roles
- Guaranteed job interviews and free CSCS cards for all programme participants
Youth Guarantee Trailblazer Programme
The West Midlands Combined Authority is receiving up to £5 million as a "Youth Guarantee Trailblazer" region, testing innovative approaches to reach NEET individuals. This data-driven strategy involves collaboration with the NHS and local anchor institutions to create subsidised internships for those facing the most complex barriers to employment.
Employer Engagement and Future Skills
Regional employers are being encouraged to join the "YouthPath" campaign, which seeks to deliver 20,000 opportunities for young people across the West Midlands. This completely free service for businesses helps small and medium-sized enterprises create meaningful work experience and apprenticeships for residents aged 16 to 30.
Mayor Richard Parker stressed that this substantial investment is fundamentally about ensuring local people "get the first shot at the good jobs being created". He highlighted that by 2035, over half of the region's jobs will require higher-level skills, making these early interventions in STEM and construction sectors particularly vital for long-term economic prosperity.
The comprehensive approach combines immediate employment opportunities with sustainable skills development, positioning the West Midlands as a national leader in addressing youth unemployment while meeting the demands of a rapidly expanding construction sector.
