West Yorkshire LSIP

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View the WY LSIP Report

Discover the latest insights from the West Yorkshire LSIP Report.

June 2026 Report

Other Reports

Priority Sectors

The LSIP is focused on accelerating growth in West Yorkshire's high value and high growth sectors, where the region has existing strengths and future opportunity, as well as areas of significant employment and skills needs.

Advanced Manufacturing & Engineering

Advanced Manufacturing & Engineering is one of West Yorkshire’s most significant economic sectors, contributing around £7.7 billion in GVA and employing over 110,000 people across more than 5,500 businesses.

The sector spans precision engineering, digital manufacturing, robotics, low carbon technologies and materials innovation, and is central to productivity, innovation and supply chain resilience.

Employment is expected to remain broadly stable overall, but the workforce is undergoing structural transformation, with demand shifting from routine roles towards higher-level technical, digital, and engineering occupations. Without targeted skills intervention, shortages risk constraining productivity, investment and long-term resilience.

Key Skills Gaps and Workforce Pressure

The sector faces persistent shortages across engineering, technician and skilled trade roles, alongside recruitment difficulties linked to an ageing workforce, strong competition for STEM talent, and underrepresentation of women and other underrepresented groups. The evidence also points to declining demand for lower-skilled routine roles, offset by increased demand for technicians, maintenance, design, and engineering roles. These pressures are limiting productivity, progression, and workforce renewal.

Relevant SIC codes

The sector covers manufacturing activities across C10–C33, including fabricated metal products (C25), electrical equipment (C27), machinery and equipment (C28), and transport equipment (C29–30).

Key SOC occupations

Mechanical Engineers (SOC 2122)
Electrical Engineers (SOC 2123)
Engineering Technicians (SOC 3113)
Production Managers (SOC 1121)

Construction

Construction is a national priority sector and a critical enabler of housing, infrastructure and net zero delivery. It contributes significantly to economic output and is forecast to grow in West Yorkshire faster than the UK average over the medium term.

Growth is driven by major national and regional commitments, including large-scale housing delivery, retrofit programmes and infrastructure investment (such as Mass Transit), creating sustained demand for a skilled workforce.

This demand is driven by both expansion and high replacement need, reflecting an ageing workforce and ongoing project pipelines.

Key Skills Gaps and Workforce Pressures

The sector faces persistent shortages across:

Skilled trades (e.g. carpenters. electricians, plumbers)
Technical and professional roles (e.g. engineers, project managers)
Retrofit roles (e.g. installers, assessors, coordinators)

Relevant SIC codes

The sector covers SIC codes F41–F43 (construction of buildings, civil engineering and specialised activities) and comprises a large, SME‑dominated supply chain.

Key SOC Occupations

Construction & Building Trades (SOC 531)
Electricians (SOC 5241)
Civil Engineers (SOC 2121)
Quantity Surveyors (SOC 2453)

Creative & Cultural Industries

West Yorkshire has one of the fastest growing creative economies in the UK and is a nationally recognised Creative Industries Priority Place. The sector delivers high value, high productivity employment, with strong growth across screen, music, games, fashion, and digital content.

Despite this strong growth, declining participation in creative education and emerging skills gaps risk constraining future talent pipelines, limiting access to creative careers and restricting sector growth without targeted intervention.

Key Skills Gaps and Workforce Pressures

The sector faces shortages in:

Digital design, games, virtual production and content creation
Project management and production roles
Commercial, financial and IP management skills

Relevant SIC codes

The sector covers SIC codes F41–F43 (construction of buildings, civil engineering and specialised activities) and comprises a large, SME‑dominated supply chain.

Key SOC occupations

Programmers & Software Developers (SOC 2136)
Web & Multimedia Designers (SOC 2137)
Content Creators and Artists (SOC 3411)
Creative Technologists (SOC 2136 / 2137)

Digital & Technology

Digital and technology is a foundational sector for West Yorkshire and a key enabler of growth, productivity and innovation across the wider economy.

It is identified as a priority sector within the LSIP and wider regional plans, with employer evidence highlighting persistent shortages in technical and specialist skills alongside wider gaps in leadership, employability and workforce readiness.

West Yorkshire has an established digital and technology base, with recognised strengths in data, AI and cyber security, and a strong concentration of digital businesses and employment.

Demand is being shaped by rapid technological change, particularly automation and AI, which is increasing the need for both immediate recruitment responses and longer-term workforce transformation.

Key Skills Gaps and Workforce Pressures

The main skills pressures relate to shortages in software development, data, cyber and AI-related roles, alongside limited leadership capability to manage digital transformation and AI adoption. Employers also identify cross-cutting gaps in communication, problem solving, and adaptability. Despite relatively strong digital participation and qualification levels, significant numbers of residents still lack essential digital capability. At the same time, rapid technological change is increasing the need for continuous reskilling and making labour market intelligence more quickly outdated.

Key SOC occupations

Programmers & Software Development Professionals (SOC 2134)
IT Business Analysts / Systems Designers (SOC 2133)
Cyber Security Professionals (SOC 2135)
IT Network Professionals (SOC 2137)
IT User Support Technicians (SOC 3132)

Financial & Professional Services

West Yorkshire is England’s second largest Financial & Professional Services (FPS) Centre outside London, employing around 290,000 people across more than 27,000 firms.

The sector makes a major contribution to regional GVA and includes nationally significant institutions such as the Bank of England and the Financial Conduct Authority.

The sector is central to delivery of the Local Growth Plan, with sustained demand for higher level professional, digital and leadership skills. Employer evidence highlights immediate workforce pressures and ongoing transformation driven by AI, automation and digitalisation, creating risks to productivity and competitiveness if not addressed.

Key Skills Gaps and Workforce Pressures

The sector faces shortages in higher skilled professionals, particularly in digital, compliance and advisory roles, alongside rising demand for data, AI and analytical capability.

Workforce pressures include:

Immediate gaps in leadership, people management and client-facing skills
Graduate retention challenges and underutilisation of local talent
Rapid skills transformation driven by automation and AI
Persistent mismatches between workforce capability and employer demand

These challenges require continuous upskilling and adaptation to maintain productivity and competitiveness.

Relevant SIC codes

The sector spans SIC codes K64–66 and M69–74, covering financial services, insurance, accounting, legal and wider professional services.

It contributes approximately £6.8bn in financial services and £2.1bn in accounting and legal services.

Key SOC occupations

Finance Professionals (SOC 242)
Legal Professionals (SOC 241)
Business Associate Professionals (SOC 354)
HR & Training Associate Professionals (SOC 357)

Green Economy

The Green Economy is a priority growth sector within the Local Growth Plan, underpinning delivery of Net Zero, clean energy and decarbonisation ambitions. It is central to regional and national commitments on energy transition, retrofit and low carbon development.

Employer evidence highlights rapidly increasing demand for green, sustainability and retrofit skills, alongside significant challenges in accessing job ready workers at pace.

Skills needs are crosscutting, requiring integration across sectors including construction, manufacturing, digital and professional services.

Key Skills Gaps and Workforce Pressures

Key challenges include:

High proportion of vacancies difficult to fill due to lack of job-ready skills
Shortages in skilled trades (retrofit, electrification, heat pumps) and STEM capability
Increasing demand for digital, data and AI skills within green roles
Underrepresentation of women and minority groups in technical and leadership roles

As an emerging and cross-cutting sector, employers face difficulty accessing workers with the right mix of technical, digital and sector-specific skills. Rapid technological change and evolving regulation are intensifying these missmatches.

Key SOC occupations

Electricians (low‑carbon / solar) (SOC 5241)
Plumbers & Heating Engineers (heat pumps) (SOC 5314)
Retrofit Coordinators (SOC 2431)

HealthTech & Life Sciences

West Yorkshire is a nationally recognised HealthTech and life sciences hub, anchored by world class universities, NHS assets and a dedicated HealthTech Investment Zone.

The sector is a key driver of innovation led growth, with strong alignment to the Local Growth Plan and cluster-based economic priorities.

Employer evidence highlights high demand for specialist STEM, digital and regulatory skills, alongside persistent recruitment challenges driven by rapid technological change and global competition for talent.

This makes HealthTech a critical priority for skills development and workforce planning.

Key Skills Gaps and Workforce Pressures

The sector faces shortages in specialist STEM, technical and regulatory roles, alongside increasing demand for digital, data and AI capability. Employers also report the need for “T‑shaped” skills—deep technical expertise combined with broader operational understanding.

Relevant SIC codes

The sector spans SIC codes M72, C21, C26 and J62–63, covering scientific research, pharmaceuticals, medical technologies and digital health

Key SOC occupations

Biological Scientists (SOC 2112)
Biochemists & Biomedical Scientists (SOC 2113)
Laboratory Technicians (SOC 3111)
Programmers & Software Developers (SOC 2134)

Overarching LSIP Priorities

The LSIP identifies both immediate skills priorities (next 12–18 months) and medium-term skills shifts (2–3 years). In the short term, the emphasis is on addressing hard-to-fill vacancies through expanded technical provision, short courses and job-ready training. Over the medium term, the focus shifts towards building resilient pipelines into higher-level technical and professional roles, supporting adoption of digital, AI and low-carbon technologies, and strengthening leadership and management capability to drive productivity and business growth.

Within the priority skills sectors the LSIP addresses 6 overarching priorities:

1. Address critical technical and specialist skills shortages

Expand and rebalance technical provision to tackle hard-to-fill vacancies across priority sectors, focusing on job-ready, occupation-specific skills in the short term.

Objective

Address hard-to-fill technical and specialist roles

Key Actions

Align provision to employer demand
Strengthen employer co-design
Expand job-ready training

KPIs

Increased proportion of provision mapped to LSIP priority sectors
Year-on-year shift in learner enrolments into priority sectors

Impact

Reduced vacancy pressures
Improved workforce readiness

2. Strengthen digital capability, including AI and low-carbon skills

Embed digital, data, AI and low-carbon skills across sectors to support technological adoption, productivity growth and the transition to a Net Zero economy.

Objective

Embed digital and sustainability skills across all sectors

Key Actions

Integrate digital, AI and green skills into provision
Expand targeted digital and low-carbon training

KPIs

Growth in enrolments and completions in digital, AI and low-carbon provision
Increased proportion of provision embedding digital / sustainability competences

Impact

Improved workforce adaptability
Stronger innovation and Net Zero alignment

3. Strengthen progression pathways into higher-level skills (Levels 1-8)

Improve progression from entry-level and Level 3 provision into higher technical and professional roles, strengthening pipelines that support long-term workforce sustainability. Improve coordination across FE, HE, independent training providers and employment support.

Objective

Strengthen progression into higher-level technical and professional roles

Key Actions

Improve FE-HE coordination
Expand Level 4-8 provision
Create clear career pathways

KPIs

Increased enrolments in LSIP-aligned provision
Evidence of improved FE-HE collaboration
Growth in Level 4-8 provision aligned to LSIP priorities

Impact

Stronger pipeline into high-value roles
Improved retention and progression

4. Develop leadership, management, soft skills and workfroce readiness skills

Address cross-cutting gaps in leadership, management, employability and work readiness that limit productivity, progression and business growth.

Objective

Improve employability, leadership and management capability

Key Actions

Embed soft skills in technical provision
Expand work-based learning

KPIs

Increased proportion of provision embedding leadership, management and soft skills outcomes
Evidence through case studies of delivery and impact

Impact

Improved job readiness
Stronger SME leadership capacity

5. Expand flexible and employer-responsive training

Evidence how provider offers have been adapted to remain aligned to current and emerging labour market demand. Including, where possible, meet employer needs through flexible delivery, including funded provision and curriculum re-sequencing.

Objective

Improve accessibility and responsiveness of provision

Key Actions

Expand modular, CPD and short-course delivery
Increase employer-responsive curriculum design

KPIs

Evidence of provider adaptation to labour market demand
Evidence of flexible delivery (e.g. modular, blended provision)

Impact

Faster upskilling and reskilling
Increased participation from SMEs and adults

6. Improve inclusion and access to skills for under-represented groups

Reduce structural barriers to participation and progression by improving access to skills provision for SMEs, disadvantaged communities and under-represented groups across West Yorkshire.