Warwick-commissioned report forecasts 100k new jobs for West Midlands by 2035

A report jointly commissioned by the University of Warwick has forecast the creation of almost 100,000 new jobs in the West Midlands by 2035.

The report, commissioned with the University of Birmingham and carried out by London-based consultancy Public First, precedes the release of the West Midlands Regional Growth Plan in June.

The region’s combined authority last released a growth plan in 2022, under previous mayor Andy Street.

The projected job creation hinges on the region taking advantage of its key growth ‘clusters’.

The cluster reported to have the highest relative growth potential is concerned with the manufacture of electric vehicles and is led by Warwick Manufacturing Group

A ‘cluster’ is a geographic area with a high concentration of companies, universities, and other institutions that operate in the same industry. This concentration can create a pool of expertise that increases productivity, job creation, and local GDP.

The cluster reported to have the highest relative growth potential is concerned with the manufacture of electric vehicles and is led by Warwick Manufacturing Group. Coventry, Birmingham, and Solihull are listed as the country’s three most productive areas in the industry.

Other industries in which the West Midlands is strong include logistics, professional and financial services, and aerospace.

Of the 99,377 new jobs that could be added to the region by 2035 under the most optimistic forecast, almost half of these will be in professional and financial services.

Although only 6% of Warwick students take a job in Coventry after graduation, 74% of all students who graduate from West Midlands universities remain in the region for work

On the other hand, newer industries with high growth potential, such as EV production, will make up a far smaller share of the increased employment numbers, and are set to fall under the baseline scenario.

Although only 6% of Warwick students take a job in Coventry after graduation, 74% of all students who graduate from West Midlands universities remain in the region for work. Therefore, the report may be of interest to students as they begin their search for post-graduate employment.

The report suggests various policy levers to take advantage of the West Midlands’ regional strengths, including research and development tax credits, public investments in startups, and further infrastructure development.