Increased skills, training and pathways into employment
Performance reflections
Three hundred and eighty-nine Coventry 16- to 17-year-olds were not in education, employment, or training (NEET) for 2025, a rate of 4.3%, remaining lower than the regional and national averages and the average amongst similar areas (‘statistical neighbours’). This includes young people whose status is unknown as well as those who are confirmed NEET; Coventry saw a notable increase in the number confirmed as NEET in 2025, with a reduced number with an unknown status, an overall increase in NEET or unknown.
Although our overall performance decreased slightly, we remain below (better than) England and the West Midlands for the 8th consecutive year.
The reduction in Job Shop customers going on to get jobs is primarily due to a 20% decrease in grant funding in 2025 to 2026 compared with 2024 to 2025, alongside a shift in grant focus towards residents with higher and more complex needs. Further grant reductions are anticipated from 2027 to 2028 onwards, so future targets will need to reflect this changing funding landscape.
Consideration should also be given to the value of job starts, as outcomes for higher‑needs residents may reasonably be regarded as higher‑value achievements. Also, wider economic factors should be considered, like a tightening labour market.
The estimated employment rate amongst all Coventry residents reduced from 75% in 2024 to 70%. However, this indictor is significantly influenced by Coventry’s high and growing economically inactive student population. As of December 2025 (the latest available data), there were approximately 19,000 economically inactive students, an increase of 5,700 since December 2024, this would reduce the employment rate, even though these people chose to study and not work.
Performance is also affected by wider labour‑market changes driven by economic factors that sit outside the control of the Employment, Skills and Libraries service. An estimated 14,100 Coventry residents were unemployed during January to December 2025, an unemployment rate of 7.1%; higher than the national and regional averages.
Both the number unemployed in Coventry and the % unemployment rate has increased in the last recent year, which is a consequence of the stagnant economic growth, rising costs of doing business and issues such as higher interest rates choking economic demand. Businesses nationally are also reporting recruitment challenges, suggesting a shortage of available labour with the skills required by businesses with vacancies.
As the Council is now spending all its Apprenticeship Levy funding, the scheme has been put on pause. This pause will see no further increase in the amount pledged and a gradual reduction in the amount transferred as those apprentices that are being funded come to an end. Alternative arrangements for Coventry businesses to access levy funds are available via the WMCA. The situation will be reviewed next year, and should the Council still be spending all of its own levy, the transfer programme will remain paused.
Actions taken in year
The provision of tracking and supporting the participation of 16- to 17- (up to 25 with an EHCP/Care Leavers) year olds into education, employment or training contract was re-procured and has been awarded to the Shaw Trust. Funding has been awarded through budget setting to support education and/or employment pathways for children and young people aged 14+, with a view to providing additional options for children and young particularly focussing on those who are struggling to engage with education.
The Job Shop overachieved on Grant Funding targets, stretching all Grants to support wider group of residents while targeting high impact support in Key Wards including Job Fests and the Hub and Spoke model bringing value from the Department for Work and Pensions (DWP), National Careers Service, Training Providers, Voluntary and Community Sector.
In total 5 Job Fests have now been held across various community locations with over 1800 residents attending. The events have brought together a wide range of local employers, training providers and support services, offering live vacancies and practical advice across sectors such as business administration, hospitality and early years.
Access to free training, apprenticeships and confidence-building support have also been provided. The most recent Job Fest took place at Willenhall Social Club with over 600 people attending this event and at least 33% of the attendees reporting a positive interaction including on-site interviews.
Our Adult Education provision is also strongly targeted, with 61% of learners from IMD 1 to 3 areas and 7,236 enrolments from working‑age residents. Outcomes remain positive, with 52.13% progressing into employment, apprenticeships or further learning. The Job Shop continues to operate at scale, supporting over 9,000 registered customers and delivering 60,000 engagements, with 60% of users from the most deprived communities.
Targeted programmes are delivering above expectations. Connect to Work has supported 293 residents, with 69 moving into employment against a target of 30. The Youth Trailblazer has provided 145 young people with subsidised work experience, with 39 progressing into paid employment. These results demonstrate that Coventry’s approach is effectively reaching disadvantaged residents and supporting sustained progress into work and improved financial stability.
Whilst the unemployment rate is strongly driven by macroeconomic trends, we will expect the new regional business support model, driven strongly by the new High Growth Service and Local Enterprise Support service, to accelerate growth in business turnover and the creation of new jobs.
Alongside this, we will continue to use Integrated Settlement funding and funds from the Employment Support Transition Fund to continue delivery of the Job Shop Hub and Spoke service to connect Coventry residents with employment and training opportunities and equip them with the right skills to fill new vacancies.