Prioritization-workshop-Peer-Learning:- UK

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Developing, activating and using skills; insights from the UK skills system

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  • UKCES research shows that currently, only 15% of UK employers have or offer Apprenticeships.
  • Private services are expected to be the main engine of job growth
  • Prioritization-workshop-Peer-Learning:- UK

    1. 1. OECD Priority Setting Workshop - Norway Building an Effective Skills Strategy for Norway 22nd to 23rd October 2013 Lesley Giles UK Commission for Employment and Skills
    2. 2. Our Commissioners 2
    3. 3. About the UK Commission for Employment and Skills What levers do we deploy to strengthen the skills system? Commissioner Insights Research and Intelligence Out ambition is to transform the United Kingdom’s approach to investing in the skills of people as an intrinsic part of securing growth Delivering Investment
    4. 4. Why do skills matter? They play a vital role in performance Firms in the UK that don’t invest in training, are on average... Manufacturing Retail and Wholesale 2x Transport and Comms Likelihood of business failure 2x 2x Twice as likely to fail And this varies by sector... Construction Hotels and Restaurants 4x 9x
    5. 5. Are businesses investing wisely in skills? The nature of employer engagement There are 2.3 million businesses of 1+ employers across the UK. Of which... 59% train (1.3 million) Of those who do train: 8% (0.2 ml) Do not know if they want to do more 41% do not train (0.9 million) Of those who do not train: 29% (0.6 ml) 23% (0.5 ml) 26% (0.6 ml) Would like to do more training Do sufficient training to meet needs No training need 15% (0.3 ml) Perceived need but met barriers Key Challenge: Training investment is declining in real terms, and only 19% of UK businesses are adopting High Performance Working practices, is this ambitious enough?
    6. 6. Is skills investment of sufficient quality? The nature of employer engagement Across the United Kingdom £49 BILLION is spent on training, however: 6 £24.7 billion is on direct costs of training £24.3 billion is the wages of those being trained these direct costs include… £2.8 billion was counted as fees to external providers for courses £6.8 billion was spent on training management £3.6 billion was spent on training centres* £9.7 billion went on the wages of trainers providing on the job training Source: UKCESS 2011 * Training centres either on-site or off-site within the same company
    7. 7. Is skills investment of sufficient quality? Pockets of skills deficiencies persist Increased workload for other staff 48% 85% Struggle to meet customer services Lose business to competitors Delay developing new goods or services Key: skills shortage vacancies 47% 20% 44% 16% 45% skills gaps
    8. 8. Apprenticeships The nature of employer engagement In total 9% of UK employers have apprentices currently on site and a further 6% offer them but don’t currently have any Have staff undertaking Offer but don't have Do not currently have / offer 9% 6% 85% Source: UKCEPS; Base: All employers
    9. 9. Work experience – a rare commodity Placements are offered to young people by size and sector By size 67% 47% 27% 28% 20% Total 35% 2 to 4 5 to 9 10 to 24 25 to 99 100+ Base: 2 to 4 (3373), 5 to 9 (3415), 10 to 24 (3326), 25 to 99 (3082), 100+ (1808) By sector 51% 31% 27% 17% Total 19% 15% 21% Primary sector and utilities Manufacturing Construction Trade, accomodation and transport Non-market services Business and other services Source: UKCEPS; Base: Primary (673), Manufacturing (1166), Construction (1033),Trade (4980), Business (4101), Non-market services (3051)
    10. 10. Sectors matter to skills investment The nature of employer engagement When we look at investment in training by sector there is considerable variation: 85% Health & Social Care 69% Energy 57% Manufacturing 53% Construction 52% Source: UKCESS Digital & Creative UK Average 59%
    11. 11. Where will the growth come from? Informing plans for growth Projected UK employment change by sector (000s) between 2010-2020 Sector Change (‘000s) Manufacturing -170 Non-market Services -103 Primary Sector & Utilities -22 Construction 237 Trade accommodation & transport Private services expected to be the main engine of job growth (2010-2020) 415 Business & other services 1,195 Source: Working Futures
    12. 12. Incentivising Employer Ownership of skills Improving employer engagement and skills development Five guiding principals… • Creating the conditions to allow employers to take end to end responsibility for workforce development will drive better outcomes • A focus on outcomes in terms of better jobs for people and a job done better for business. • Greater alignment of public and private training will leverage greater private investment and create a more responsive system. • Simplicity and transparency work best for individuals and employers • Encouraging and incentivizing more collaboration between colleges / providers and employers will deliver better vocational learning
    13. 13. Leveraging investment Improving employer engagement and skills development Investment Funds • Employer Investment Fund • Growth & Innovation Fund • Employer Ownership Pilot EIF & GIF Investment so far ... • 124 investments • £110m UKCES •£108m employer EO Pilot investment so far ... • 36 investments • £102m UKCES • £108m employer “We want to encourage employers to take the lead in designing, developing and delivering the training and employment solutions they need.” Charlie Mayfield, Chairman UK Commission for Employment and Skills
    14. 14. Find out more… www.ukces.org.uk @UKCES
    15. 15. Where will future jobs come from? Informing plans for growth Most net job growth (2010-2020) expected in high level occupations but job openings expected in all broad occupations due to replacement demands Projected UK Job Openings 2010-2020 Occupation Net Job Openings (‘000s) Managers 1,850 Professional 3,184 Associate Professional 2,000 Admin & Secretarial 1,309 Skilled trades 1,153 Caring, Leisure etc 1,457 Sales 939 Operatives 633 Elementary 1,344 Net job growth Replacement Demand Source: Working Futures
    16. 16. ‘An inconvenient truth’ Opportunities for Young People Across the UK, 24% of businesses had recruited education leavers in past 2-3 yrs. 16 yr olds In England, Wales and Northern Ireland, most businesses found education leavers well prepared for work (with preparedness increasing with age) 59% 41% 17-18 yr olds leaving school 64% 36% Experience of world of work 17-18 yr olds leaving FE 72% The minority of employers report issues with education leavers. The two key issues were: 28% Young people leaving HE 84% 16% Poor attitude/ Personality
    17. 17. Types of policy levers to optimise investment Raising Employer engagement Source: Collective measures
    18. 18. Improving market signals and information LMI for All Data sources will be pulled or pushed into LMI for All LMI for All will be an online portal where the data is stored Developers will access LMI for All to get data to build websites and apps

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