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Transcript of There is an urgent need to raise UK skills levels to help drive productivity, growth and jobs. The...
“There is an urgent need to raise UK skills levels to help drive productivity, growth and jobs.”
“The skills and capabilities of our people are ultimately the
basis for our long-term competitiveness.”
Vince Cable, Secretary of State for Business, Innovation
and Skills
Charlie Mayfield, Chairman, UK Commission for Employment and Skills
The case for investing in skills: Employer ownership and Apprenticeships
Our Commissioners:
FE, HE and Careers
About us: The UK Commission for Employment and Skills
More employers investing in the
skills of their people
More employers taking ownership of
skills
More career opportunities for
young people
More collective action by employers through stronger sectors and
local networks
Provide outstanding labour market intelligence which helps businesses and people make the best choices for them
Maximise the impact of employment and skills policies and employer behaviour to support jobs and growth
Work with businesses to leverage greater investment in skills
Aim: Transform the UK’s approach to investing in the skills of people as an intrinsic part of securing jobs and
growth
Five assets and 100 staff to deliver on outcomes3
Key LMI resources from the UK Commission
UK Commission’s Employer Skills
Survey87,500 interviews
To understand employer investment and skills challenges
Monitor employer investment
Assess employer skills needs
Understand recruitment practices
Working Futures
850,000 time series extrapolations
To understand labour market prospects for next ten years
Input to careers and skills advice
Inform policymakers at national & local levels
Inform curriculum strategies
Employer Perspectives
Survey15,000 interviews
To understand employer perspectives of recruitment and
young people development
Young People
Apprenticeships
Work placements
Future jobs market: which sectors?
Projected UK employment change by sector (000s) between 2010-2020
(Source: Working Futures)
Change(‘000s)
-170
-103
-22
237
415
1,195
Sector
Manufacturing
Non-market Services
Primary Sector & Utilities
Construction
Trade accommodation & transport
Business & other services
Private services expected to be the main engine of job growth (2010-2020)
Future jobs market: which occupations?
Most net job creation (2010-2020) expected in high level occupations, but job openings expected in all occupations due to replacement demands
Net Job Openings(‘000s)
Occupation
Managers
Professional
Associate Professional
Admin & Secretarial
Skilled trades
Caring, Leisure etc
Sales
Operatives
Elementary
1,614
2,726
1,742
1,106
930
1,256
779
535
1,117
Projected England Job Openings 2010-2020(Source: Working Futures)
Replacement DemandJob Creation
Future job market: which regions?
While growth will occur almost everywhere, the north-south divide will continue to be exacerbated.
Projected change in total employment across the UK: 2010-2020
6-8%
4-6%
2-4%
0-2%
There are 2.3 million businesses in the UK with 1+ staff...
59% train(1.3 million)
41% do not train(0.9 million)
Of those who do not train:
26%Said they had no training needs
15% Perceived need but met barriers**Also includes small proportion of businesses that
said ‘don’t know’ or ‘no reason’, or that ‘people learnt as they went’
Barriers cited include:
Time
Lack of information
£Cost
…of which:
Training in the UK
Training raises businesses survival and performance rates
Employers who do not train, on average, are twice as likely to fail, opposed to those that do...
The consequences of not training...
Sectors we want to be famous for - industry strategy
Industry strategy sectors to focus on:
•advanced manufacturing including aerospace, automotive and life sciences•knowledge intensive services including higher education, creative industries and professional services•enabling sectors, such as information economy, construction, energy, including green energy
Why ‘employer ownership’?
The skills system: two decades of reform
Less globally competitive: ‘system’ is too complexTwo markets for skills developmentA lack of alignment
Employers need to own the skills agenda
Employer ownership: aim
Businesses working together to deliver game-changing, sustainable ways to improve skills in the workforce to drive productivity and growth.
“By giving businesses the chance to shape and set their own training agenda, we’re giving them the power to enrich their workforce with the skills needed for their future success."
Matthew Hancock,Minister for SkillsBusiness, Innovation and Skills
Employer ownership – key facts (funding)
Two funding rounds – round 1 complete
Total value - £340 million (£90 million added)Around £240 million availableAvailable to financial year 2015 - 2016
Round 2 – open for business
The Pilot project started a year ago to test the vision
* Subject to final due diligence checks
Total funding: £165 million
Progress to date
Received 269 bids
Employers invested: £98 million
Employer Ownership Fund invested: £67 million
Invested in 35 projects*
Investments will fund:
Planned impact to date
45,000 other learning or training opportunities; including work experience and work
placement opportunities
18,500 full time non-apprenticeship training opportunities
11,000 Apprenticeships; including 4500 at age 16 - 18
Employer leadership
Key features to date
Strong employee and employer partnerships
Support and opportunities for young people
Innovative proposals
Collaborative approaches
Case study: Arla Foods
A collaborative project between natural competitors to design and deliver the training the industry needs
Transforming skills in the UK Dairy Industry
Objectives:
• 280 new Apprenticeships (Level 2 - 4)
• 6300 non-Apprenticeship Qualification based training
• 1350 other training opportunities, not leading to a qualification
Funding requested: £2 millionEmployer contribution: £2.5 million
An innovative employer collaboration to tackle skills challenges in the industry.
Case study: Construction Employers
Objectives:
• Introduce a new work experience programme for 1,998 individuals.
• Creating 709 apprenticeships in areas of skills shortage
• Delivering 24,686 skills training interventions to up-skill the workforce.
Funding requested: £8 million
Employer contribution: £8 million
Construction skills for growth
Employer ownership of skills
Extending the ambition
Nurture greater employer and college collaboration
Public investment in work based training to incentivise direct employer investment
Strong employer-led partnerships
The next phase
Proposals which will enable employers to improve the skills of their current and future workforce
Industrial partnerships with genuine employer leadership and governance, and end-to-end responsibility for skills
Apprenticeships and other training/development opportunities
Small and medium sized enterprises
And the skills solutions
Training and skills development to help people into work
Collaboration between employers, colleges and training providers
Productivity and growth driven by improved skills, supported by strong collaboration between employers, trade unions and providers
More private investment in skills
So what are we looking for now?
Responsive colleges and training providers working with employers
Better quality and robust apprenticeships, traineeships and vocational provision
Close work with the British Council in India, China and other countries – education as an export
Participation in and research for the OECD relating to standards, apprenticeships and qualifications
And what about our international work?
Alignment of qualifications systems to support mobility across Europe (EQF)
International best practice – national occupational standards, apprenticeships and qualifications
If you would like to hear more please contact:
07825 522479
www.ukces.org.uk
Thank you very much for listening
Alison Morris, Senior Manager, UKCES