The number of long-term sick residents in Lincolnshire has risen by more than 10,500 in the past three years.

New figures highlighting challenges in the labour market come as the county also looks to tackle skills shortages and more young people not in education.

A new report before Lincolnshire County Council has said that the unemployment rate – those out of work but seeking employment – was at a "very low" 2.8%.

However, it said it was "only truly positive" if it was accompanied by low rates of "economic inactivity" – those not seeking employment.

These numbers though have increased by 10,000 since 2019, and the latest data shows that nearly a quarter of all working age people in the county are not in work.

More than 31% are long-term sick – up 10,500 on 2019 and higher than the 25.5% national figure.

The situation had been exacerbated by the COVID pandemic, the report said.

"This means that there is a smaller labour pool for employers to recruit from than pre-pandemic and has resulted in businesses either being short-staffed, or seeking alternative routes to fill roles," said the report.

The county is also reporting a skills shortage with a survey in December finding that 85% of businesses had struggled to recruit staff and the report said the toughest roles to fill were those such as caring occupations, maintenance engineers and production operatives.

The study, however, said the hospitality sector was also reporting a "lowering of quality candidates with basic communication and numeracy skills they require".

Lincolnshire also has marginally lower levels of 16-17 year olds participating in education and training, with 92.7% of the age cohort not participating, compared to 92.9% in England and 93.9% in the rest of the East Midlands.

The report also hits out at "complex" training provider system for employers with further and adult education spending now 50% lower than 2009-10 in real terms.

"Often local, smaller training providers who are able to provide locally relevant provision are unable to compete with larger national scale providers," said the report.

"A shortage of suitably qualified staff, in addition to increased costs, has seen a reduction in provision being offered in community settings in more rural locations exacerbating skills gaps."

The council said it is taking steps to improve the situation in Lincolnshire, including working with training providers to develop a new strategy, and creating a Learning and Skills Improvement Plan with the Federation of Small Businesses.

"We continue to work with training providers to understand their concerns and to develop a shared approach strategy to government for capital support for the benefit of residents of Lincolnshire," said the report.

Councillors will discuss the report at a meeting next Tuesday.