The Importance of Labour Market Intelligence (LMI) The UKCES Offer North West

www.gov.uk/ukces

Growing importance of labour market intelligence for colleges

POLICY MARKET FORCES

LMI

Applications of labour market intelligence

Business development

Curriculum strategy

Careers information and advice

Local strategic dialogue

Content

PLANNING PLANNING

PLANNING

Sources of Information

Official statistics

LEPs National Careers Service

Employer bodies Outcomes dataJobcentre

Internal resources

Partners

ProductsLabour market

models

Direct employer

engagementCurriculum

panelsCollege

MISCollege

CRMCustomer feedback

Surveys Business databases

Business Intelligence services

UK Commission Employer Skills Survey

90,000 interviewsEmployer investment

in training and skills challenges

UK Commission Employer Perspectives

Survey18,000 interviews

Employer views and interaction with the

external skills system

Working FuturesLabour market

projectionsPicture of UK employment,

productivity, labour supply and skills

for the next ten years

UK Commission Intelligence Products

Youth unemployment in the North West

North West United Kingdom

Source: The Inter-Departmental Business Register (IDBR), March 2014

30

25

20

15

10

5

0

Dec

200

4

Jun

2005

Dec

200

5

Jun

2006

Dec

200

6

Jun

2007

Dec

200

7

Jun

2008

Dec

200

8

Jun

2009

Dec

200

9

Jun

2010

Dec

201

0

Jun

2011

Dec

201

1

Jun

2012

Dec

201

2

Jun

2013

Dec

201

3

Jun

2014

16 - 24

25 - 49Une

mpl

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2010

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2012

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16 - 24

25 - 49

Skills shortage vacancies and skills gaps mean workers without the right skills to do their jobs…

Source: UK Commission’s Employer Skills Survey, 2013 base: all establishments in North West (8763)

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16 - 24

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8

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Skill shortage vacancies Skills gaps

While skill mismatches remain, too many employers remain unmoved to invest more in skills

Source: UK Commission’s Employer Skills Survey 2013, Base- all establishments in the North West (8,763)

ALL EMPLOYERS

58% 42% Wanted to undertakemore training

(No desire for more training)

In training equilibrium

Of non-trainers…. (Base: 1,873)

31% 69% No training needed

Wanted to train more

66% 34%Train Don’t train

Among all employers…. (Base 8,763)

Don’t Know

50% 48% 2%Wanted to train more

Do sufficienttraining

Of trainers…. (Base: 6,837)

Internal training used more than external training

Commercial organisations

Suppliers*

Regulatory bodies*

Further Education Colleges

Non-profit organisations

Customers*

Universities or HEIs

External providers used, across all establishments

Source: UK Commission’s Employer Perspectives Survey (2012/2014). Base: All North West(1,163/1,069).

32%

6%

21%

10%

6%

32%

9%9%

4%

41% Private or Commercial (2012: 36%)

2012

11% Public(2012: 16%)

2014of all employers provide training for their staff

* Not asked in 2012

58%

35%

45%of all provide internal training (2012: 59%)

provide both internal and external training (2012: 34%)

of all provide external training (2012: 45%)

14%10%

70% 68%

2012 2014

Recruitment of education leavers varies by both location and sector

31%27%

24%

25%28%

17%

26%

18%

30%

29% 26%39%

Manufacturing

CumbriaUK

Primary sector and Utilities

Construction Trade, accomodation and transport

Business and other services

Non-market services

All North West establishments - Primary (425), Manufacturing (703), Construction (708), Trade, Accomodation and Transport (2,947), Business (2,444), Non-Market Services (1,536).

Base: All North West establishments (8763)

Base: All establishments in the North West - Cheshire & Warrington (1436), Cumbria (1,021), Greater Manchester (2,985), Lancashire (1,851), Liverpool City Region (1,470)

Of all establishments recruited education leavers

LEPs in the North West

Sector

Greater Manchester

Cheshire & Warrington

Lancashire Liverpool City Region

27%

Source: UK Commission’s Employer Skills Survey 2013

Levels of recruitment of education leavers up from 2013, most considered prepared for work

16 year-old school leavers

17-18 year-old school leavers

17-18 year-old college leavers

University/HE leavers

Base - All North West establishments that have recruited each type of education leaver in the previous 2-3 years: 16 year old school leavers (1,234), 17-18 year old school leavers (1,685), 17-18 year old FE leavers (1,740), University/HE leavers (1,833)

44%30%10% 11%

Very poorly prepared Well preparedPoorly prepared Very well prepared

25%

19%

10%

5%

5%

2%

10%

13%

56%

59%

59% 25%

Source: UK Commission’s Employer Skills Survey 2013

Where are the new jobs coming from? Projected industry growth, 2012-2022 (North West)

-20-30 200 40-10 3010

000s of net new jobs, 2012-2022

50

10%

12%

13%

35%

7%

-20%

-4%

-10%

-9%

11%

14%

15%

30%

9%

-18%

-2%

-9%

-9%

UK

North West

Health and Social work

Professional services

Construction

Information Technology

Support Services

Agriculture

Education

Public admin. and defence

Rest of manufacturing

Source: Working Futures 2012-2022

What new workers will we need? Projected occupation growth, 2012-2022 (North West)

56%

68%

49%

56%

36%

36%

23%

25%

33%

59%

69%

51%

59%

33%

35%

26%

25%

30%

Expansion Replacement

0-50 50 100 150 200 250 300 350

000s of new jobs, 2012-2022

Professional Occupations

Caring, leisure and other service

Associate professional and technical

Managers, directors and senior officials

Sales and customer service

Elementary occupations

Process, plant and machine operatives

Skilled trade occupations

Administrative and secretarial

Source: Working Futures 2012-2022

UK

North West

LMI for All

LMI for All

Informed Individuals makingeffective career decisions

LMIeg LFS

LMIeg ASHE

LMIeg ESS13

CareersWebsites& Apps

CareersWebsites& Apps

CareersWebsites& Apps

Open access LMI data portal

Improves evidence base for careers decisions and strategic planning

Places onus on third-parties to develop engaging interfaces

Pilot is live now

Getting access

Employer Skills and Perspectives Surveys Open access via website to UK and regional reports, infographics and slide packs plus local data tables

More information: employer.surveys@ukces.org.uk

Working Futures UK and regional reports available from www.gov.uk/government/publications/working-futures-2012-to-2022

To find out more email: working.futures@ukces.org.uk

LMI for All More information: www.lmiforall.org.uk

LMI Network

The LMI Network connects users of labour market information and supports them in sharing ideas and expertise.

The LMI Network will be valuable for those who are responsible for analysing and using LMI such as: unemployment statistics, employer surveys, qualifications levels, pay rates, occupational and industrial make-up of an area.

It’s free of charge network that supports peer-to-peer learning and support between LMI users.

Join today at: www.tiny.cc/LMINetwork

The LMI Network will help it’s members to:

Share their expertise and experience Identify research collaboration opportunities

Share advice on technical issues, definitions and

Methodological problems; and Signpost each other to reports, findings and events of interest.