Skills shortages put Wolverhampton’s future economic growth in jeopardy
New analysis from leading prison education provider Novus has revealed that Wolverhampton’s labour market is outperforming national trends, with robust job creation expected to continue.
Between 2019 and 2024, Wolverhampton added 7,805 new jobs—a 7.6% increase, comfortably outpacing the national average of 5.4% and this is forecast to continue with an additional 3,217 jobs are set to be created by 2029.
However, Novus’ analysis suggests the city region may struggle to sustain its economic momentum unless persistent skills shortages are addressed—particularly in sectors identified as vital for future growth.
Despite the momentum, certain high-potential sectors remain underrepresented in the regional workforce. As an example construction ranks below the national average in both workforce size and employment concentration, despite major local investment.
This threatens to put the City of Wolverhampton Council recent commitment of £98 million to build 500 new homes and renovate others, alongside a broader £259 million capital programme for estate renovations and property refurbishments, in jeopardy of being unfulfilled.
Peter Cox, Managing Director of Novus, commented: “Wolverhampton’s labour market is moving in the right direction—but to unlock its full potential, we must tackle the underlying issue of skills shortages. This acutely applies to the city’s ambitious plans to build new homes and improve existing buildings as delivering these plans will require urgent action to address the shortage of skilled tradespeople in the construction sector.
“These potential skills shortages in Wolverhampton’s labour market highlight the importance of local people—including those furthest from the labour market—being given the opportunity to develop skills that match future demand.
“At Novus, we work with people in custody who are often the furthest removed from the labour market, yet have the potential to be reintegrated through education and training. With strategic investment in this untapped workforce, we can not only reduce reoffending but also support Wolverhampton’s growing economy with much-needed talent.”
Novus analysis also identified that the city’s fastest-growing sectors include Human Health and Social Work Activities, Professional, Scientific and Technical Activities, Transportation and Storage and Accommodation and Food Services. These industries are expected to lead job creation in the coming years and will require a skilled, adaptable workforce to keep pace.
Meanwhile, Electricity, Gas, Steam and Air Conditioning Supply—though a relatively small sector by employment—offers the highest average wages per worker. With national targets for net zero accelerating demand for green energy skills, the region has a key opportunity to plug a future workforce gap through targeted training and apprenticeships.
Novus’ analysis also highlights some persistent challenges within Wolverhampton’s current skills base. Just 34% of residents hold higher education qualifications (Levels 7–9)—12% below the national average. Only 1% hold an apprenticeship, while 13% of the population have no qualifications at all—a figure well above the West Midlands average of 1%.
Cox added: “Skills shortages won’t fix themselves and as such it is vital that there is a cohesive plan put in place to ensure that future economic growth potential is not put at risk due to a lack of a skilled workforce. It’s essential that prison education, local training programmes and workforce strategies are closely aligned with employer needs. Wolverhampton’s growth depends on having the right people, with the right skills, in the right roles.”
A recent Novus-commissioned poll found that 55% of UK voters believe rehabilitation should be a central focus of the prison system, while 60% support public investment in prisoner education. When informed that reoffending costs the economy £18 billion annually—and that education reduces reoffending by 7.5 percentage points—support for prison education rose to 68%.
Cox concluded: “Wolverhampton’s future is full of promise—but only if we build the skills to support it. By investing in people—whether they’re in the community or in custody—we can help ensure that this economic growth benefits everyone and that no opportunity is left unfulfilled.”
