A three-year, business-led ‘road map’ has been launched to narrow skills gaps in the workplace, spotlight training opportunities including for NEETs and boost Hampshire’s regional economy.

Commissioned by Hampshire Chamber of Commerce in partnership with firms, education providers, policymakers, charities and the public sector, the Hampshire and The Solent Local Skills Improvement Plan (LSIP) 2026-29 builds on detailed research to identify four top priorities for action.

These are summarised as: a more responsive and inclusive ‘skills ecosystem’; more support for workforce ‘progression and transitions’; stronger awareness and access for employers and residents alike; and deeper employer participation.

Ross McNally, Hampshire Chamber Chief Executive, said:

“The LSIP is deliberately employer-focused to ensure that skills training works better for businesses of all sizes and sectors. In the research stage, employers - especially SMEs - consistently told us they want a skills system that is easy to access, flexible and has the capacity to enable genuine employer participation opportunities rather than simple engagement.”

NEETs, the widely recognised acronym for young people typically aged 16 to 24 who are not in education, employment or training, face particular barriers to acquiring skills and participating in work, the LSIP research report found.

Issues cited include youth disengagement driven by lower confidence, higher anxiety, limited networks and reduced access to early work experience.

In Hampshire, 35.2% of young people are at risk of becoming NEET, well above the national average of 28.2%, highlighting the scale of vulnerability across the region.

Under the government’s rollout of LSIPs nationally, Hampshire Chamber is the official ‘employer representative body’ (ERB) for Hampshire and The Solent.

The new plan strengthens the delivery of priorities and foundations set out in two previous LSIPs, one covering the Solent, the other focused on the ‘Enterprise M3’ area across north Hampshire and Surrey.

Following publication of a white paper on post-16 education and with guidance from government agency Skills England, all 39 ERBs were required to develop a second round of three-year LSIPs this summer.

Based on the research report produced for Hampshire Chamber by consultants and analysts Lichfields, the new LSIP for Hampshire and The Solent is designed to be a unifying strategy in response to changing economic conditions and labour market pressures.

Lichfields found that the region now supports almost one million jobs, having added 31,300 jobs since 2023, with strongest growth in Portsmouth and Southampton. At the same time however, labour market participation has actually weakened over the past three years relative to the whole population.

Employment has fallen by 8,100 people, unemployment has risen to 3.2% and economic inactivity has increased significantly. Barriers include caring responsibilities, youth disengagement, early retirement among skilled workers, a weaker jobs market and greater exposure to external economic shocks.

Factors directly influencing skills gaps in all sectors include shortages of digital capability, leadership, essential employability skills and green skills.

“The new three-year plan is a road map for the next phase of LSIP delivery,” Ross McNally explained.

“The strategy highlights the major sector opportunities and challenges we face including in our core clusters of maritime, defence, aerospace, advanced manufacturing, creative industries and health and social care."

“The creative industries, for example, contribute over £900 million in GVA, while marine and maritime support 20,000 jobs and £1.7 billion in economic output. Logistics employs 27,000 people, with the Solent Freeport expected to create 15,000 additional jobs."

“Across all sectors, improving workforce participation, business capability and access to flexible skills provision will be critical to achieving and sustaining regional growth."

“Trends analysed in the report underline the need for a skills ecosystem that drives productivity while also widening participation. An expansion of the employment base must be matched by efforts to unlock local talent, reduce barriers to work and support employers to recruit, retain and grow their workforces."

"That means building and maintaining strong skills development pathways between education providers and employers. We must also recognise and address demand-side barriers which influence businesses confidence, capability and flexibility to recruit."

“Our LSIP report makes clear that we need to strengthen capability across the workforce. Financial literacy, leadership and entrepreneurial confidence are among the essential foundations for improving resilience and productivity especially among our SMEs and micro-businesses. This is particularly important in a region such as ours where 88% of businesses employ fewer than ten people."

To read and download the Hampshire and The Solent LSIP report, visit Hampshire LSIP Skills Channel | HCOC LSIP