Skills Economic Policy 12 April 2013


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Skills Economic Policy 12 April 2013

  1. 1. Skills and economic policy – the current choice and use of different training methods 12 April 2013 Skills Development in Higher Education Conference Martyn Sloman & Marius Meyer @SABPP1 1
  2. 2. Higher education challenges • Role in socio-economic and political landscape • Skills shortages – talent management • Competition vs collaboration • Technology • Youth unemployment • Retaining academics • Limited resources • Link with other skills imperatives, e.g. QCTO, NSDS111
  3. 3. Ederer (2007)
  4. 4. Internships – adding practice to knowledge  An internship is an intervention  Employer complaints about the knowledge of graduates  Interns learning and applying their knowledge in practice  Employer commitment to integrated skills development  Reduction in youth unemployment 4
  5. 5. Training and skills policy objectives 1 Economic competition in the global economy 2 Social inclusion of all sections of the community
  6. 6. Global quiz Which company? 1 Is the largest manufacturer of PCs in the world? 2 Processes more internet transactions than Amazon and eBay combined? Which country? 3 Is home to Embraer – the leading aircraft maker? 4 Is home to TUF – owner of the largest tinned tuna brands in the US, the UK and France? Which South African company? 5 Appears in the BCG 2013 list of 100 global challengers? 7
  7. 7. The quality-cost revolution …the breakneck speed at which China and India…compete for high-value goods and services. This is shattering the view that the economic world would remain divided between head nations and body nations. New competition is no longer based on quality or cost but on quality and cost, offering companies more strategic choices about their global distribution of high-skill and low-skills work
  8. 8. BCG Top 100 “Global Challengers” Revenues above $1billion, foreign revenues at least 10% • 2006: firms came from 7 countries. 84 companies from the BRIC countries including 44 from China alone • 2013: firms came from 17 countries. Only 13 from China • Shift from heavy industry to consumerorientation – financial services, ecommerce, health care, food manufacturing 10
  9. 9. Competitive advantage through enhanced workforce skills “We need employers to become more productive and effective in their field, capable of competing globally in the high skills, knowledge driven economy, and optimising the talent and skills of their people”. “Our people will have the skills, expertise and flair to take on higher quality and higher level jobs, across the whole range of occupations. It will put us in a virtuous cycle of better skills, better jobs and higher wages”. “Changes in technology, international markets, products and consumer demand will continue to drive the need for higher and different skills, including literacy and numeracy, technical skills, and managerial and leadership skills”.
  10. 10. The productivity problem “Over the last decade, New Zealand has suffered from poor productivity growth and a relative decline in the internationally competitive sectors of the economy. Export growth has been patchy in recent years and our current account deficit has grown unsustainably large”. Prime Minister John Key , May 2009 Budget Speech “New Zealanders choose to be poorer than other nations because we choose to work in low-wage activities. Our land-based industries are the bedrock of our economy. Dairying is to us what minerals are to Australia. And yet, as this book will show, we cannot build a successful modern economy based on pastoral farming and horticulture alone” . Paul Callaghan,‘ Wool to Weta’, 2009
  11. 11. The job summit and the nine-day fortnight 200 participants invited attended a one-day summit in Auckland on 27 February 2009. “The best and brightest ideas from those at the job market coal-face”. • voluntary agreement to reduce hours to nine-day fortnight • employer receives five hours payment at adult minimum wage • workers in scheme would not be made redundant The Prime Minister stated that he would give priority to taxpayer-paid training subsidies for workers to develop their skills on the tenth-day. An idea that he wanted to investigate “without delay”.
  12. 12. • 11 March YouTube announcement • the Prime Minister stated the scheme would go ahead but the training element would be ‘decoupled’ • investigations had demonstrated the complexity of training provision • various indications of training opportunities forthcoming: financial literacy, c.v. preparation, health and safety • obligatory training unenforceable
  13. 13. ‘Indentured apprentices’ entered into a formal agreement and spent time under a master craftsman to get what was known as their ‘ticket’. 20
  14. 14. Apprenticeships must: deliver high quality, nationally-recognised qualifications relevant to the skill, trade or occupation of the learner and employer; offer individuals appropriate training to achieve a good standard of literacy and numeracy and ICT (information and communications technology), where relevant to the skill, trade or occupation; involve at least 280 hours of guided learning per year; deliver training that directly meets the needs of employers and learners. ‘Apprenticeship’ is now a framework for work-based learning which is used as the basis for paying training providers – both Further Education Colleges and private sector training companies. 21
  15. 15. Apprenticeships and conversion ……In 2010–11 Elmfield Training received £41 million from the Skills Funding Agency…. approximately half of that was a result of the Wm Morrison Supermarkets contract. Existing employees have been re-labelled as apprentices, usually as a result of a training provider persuading an employer to become involved in the statefunded scheme. Conversions are the easiest way for government to increase apprenticeship numbers (particularly for people aged 19 and over) and increase 22 the stocks of qualifications in the workforce. Fuller and Unwin
  16. 16. Apprenticeships are now regarded as: • a potential platform for higher education and certainly for advanced further education • an alternative route for young people who do not choose to remain in full-time education after 16 or do not achieve the GCSEs required to study at higher levels • the means of attaining the skills and qualifications associated with a specific occupational role while in employment. The demands are therefore considerable and possibly 23 contradictory Fuller and Unwin
  17. 17. Redefinition of apprenticeships? We support the significant increase in apprenticeships, but there is a risk that the rapid expansion may result in the programme becoming less focused. For that reason the Government needs to clearly articulate the overarching strategy and purpose of the apprenticeship programme. The introduction of a definition of apprenticeships would also ensure greater clarity within that strategy. Simply enough, not all instances of training on a job are apprenticeships. Apprenticeships require a new job role, a role that is new to the individual and requires them to learn a substantial amount before they can do that job effectively. An apprenticeship without a job is a form of vocational training. An apprenticeship in an old job is on the job training. There must be a job and the job role must be new. 24
  18. 18. Thank you