Greater Manchester Chamber of Commerce has published a new report highlighting significant progress in tackling the skills gaps affecting businesses across all sectors and boroughs of the region.
As part of the Greater Manchester Local Skills Improvement Plan (LSIP)—a Department for Education initiative to align skills training with employer needs—the Chamber engaged with nearly 4,000 local businesses to identify key skills priorities. Based on this data, which was obtained through surveys and one-to-one interviews, the Chamber developed recommendations for colleges and training providers to address existing skills gaps.
Businesses highlighted deficiencies in retrofitting skills, emerging technology skills such as AI, mental health nursing and social care staff, sustainability and green skills in manufacturing, plus a general shortage of basic IT skills, leadership and management skills, and net zero and sustainability skills across all sectors.
Many of the new programmes and courses that have been introduced are backed by the DfE’s Local Skills Improvement Fund, coordinated through GMColleges, which is designed to help colleges and training providers address the gaps identified in the LSIP. Those listed in the Chamber’s LSIP Progress Report include:
• 23 new Level 3–5 courses in health and social care, forecast to support 257 learners by July 2025.
• Changes to Level 3 digital and technology courses, which now cover essential and specialist areas including AI, cybersecurity, VR and robotics, ensuring flexibility for adult learners and addressing skills gaps in emerging technologies.
• The development of nine construction Level 1 micro courses, linked to retrofit pathways.
• Extensive professional development opportunities for teaching staff to ensure they are equipped to deliver training in emerging technologies and practices.
• The development of new Level 3, Level 4, and Level 5 digital courses, plus enhanced digital teaching facilities.
• The addition of electric and hydrogen vehicle technologies across Level 1–4 automotive courses.
• The expansion of construction sector training, covering core trades, sustainability practices, Modern Methods of Construction and green technologies.
Commenting on the GM LSIP Progress Report, Chris Fletcher, Policy Director at Greater Manchester Chamber of Commerce, said: “After a year which has seen significant economic and political changes, both on a local and national level, we have continued to support businesses through their skills and labour market challenges. The Progress Report brings together the actions and activities from the last 12 months that are intended to address the skills gaps identified through our research to ultimately help employers get the skilled individuals they need.
“Although we have come to the end of this round of the LSIP, our work doesn’t stop. Over the next few months, we will continue to actively engage with employers to further understand skills and labour market constraints, then from Autumn 2025, the second phase of the LSIP will begin – feeding into the work of Skills England – and jointly owned by the Greater Manchester Combined Authority. For those employers who have not yet been involved with this project, we urge you to do so and help set the skills strategy for the future.”
Interim Director of Education, Work and Skills at GMCA, Nicola McLeod, said: “Greater Manchester’s Local Skills Improvement Plan is a core part of our evidence base for understanding the needs of employers in the city region. It’s vital that we are able to better align the system to meet these needs, and the joint ownership of the LSIP process and plan going forward will allow us to use the new powers and flexibilities that GMCA have received under the shift to deeper devolution. We are in a stronger position than ever to build on the existing impact of the LSIP, solving skills and labour challenges in a more intentional way, delivering a more skilled workforce for employers, and more opportunities for residents.”
Skills Minister Jacqui Smith said: “I am pleased to see the progress being made to bring these Local Skills Improvement Plans to life.
“We remain committed to the LSIP model as part of our Plan for Change, and have strengthened the role that Mayors and Strategic Authorities will play in identifying and addressing the local skills issues in the plans.
“Skills England will work hand-in-hand with businesses, education providers, Mayors and Strategic Authorities, unions, and other bodies to tackle skills shortages, co- creating solutions to ensure more opportunities for young people and existing workers wherever they are based in the country.”
Alongside its Annual Progress Report, the Chamber has also published a series of Local Economic Reports, one for each borough in GM, which detail each area’s skills requirements – now and in the future.
The Chamber team has dissected intelligence gathered throughout the LSIP project, analysing employment and GVA data and the planned investment projects taking place across GM, listing the occupations that will be required to bring each project to fruition.
