YORKSHIRE is suffering from chronic economic problems - including low wages, educational under achievement, poor skills levels and unemployment - according to a new report.

The quality of life in Yorkshire is highlighted in the first report of its kind in the country.

The State of the Region report, commissioned by the emerging Yorkshire and Humber Regional Development Agency (RDA), paints a comprehensive picture of the region's economic strengths and weaknesses.

Yorkshire and Humber is the first region in the country to have produced a report which, for the the first time, draws together a vast array of indicators and statistics which compare the region's position with the rest of the UK and Europe.

RDA chairman Graham Hall said: "The picture painted in this report shows that we do need a catalyst for change in the region."

The State of the Region report will form a crucial backdrop to the RDA, which is charged with developing and implementing a new regional economic strategy by John Prescott, Secretary of State for the Environment, Transport and the Regions.

The report includes such indicators as: income per head, economic growth, foreign investment, industrial development, labour markets, skill level, educational attainment, deprivation and regeneration, housing and tourism.

Problems the region need to address in the future include:

l Gross Domestic Product (GDP) per head between 1994-96 was only 88 per cent of the European Union average

l unemployment remains above national rates

l educational achievement and skills levels are below those in a number of other regions

l there is a low-wage regional economy

l foreign investment into new manufacturing industries is low.

Jeremy Walker, the regional director of the Government office for Yorkshire and the Humber, said: "The report which shows a serious and persistent under-performance of the region's economy, provides a benchmark and sets baselines for the new RDA.

"The RDA can build on and put to good use this information in drawing up its new Regional Economic Strategy; in clarifying and determining priorities for investments, and in monitoring and evaluating progress and performance."

The report was researched and compiled by the Leeds Business School at Leeds Metropolitan University.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.