Transcript How well are the skills needs of employers in Northern Ireland being

How well are the skills needs of
employers in Northern Ireland
being met?
DEL lunchtime seminar
16th January 2014
Lesley Giles, Deputy Director
UK Commission for Employment and Skills
Our Commissioners
What does the UK Commission for Employment
and Skills do?
Commissioner
Insights
Research and
Intelligence
Our 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
Skills matter, skills play a vital role in performance
What’s the value of skills?
Firms in the UK that don’t invest in training, are on average...
Manufacturing
2x
Retail and
Wholesale
2x
Transport and
Comms
2x
Likelihood of
business failure
Twice
as
likely
to
fail
And this varies
by sector...
Construction
Hotels and
Restaurants
4x
9x
Are businesses investing wisely in skills?
Are skills needs being met?
There are 59,700 businesses with a headcount of 1+ across Northern
Ireland. Of which...
41% do not train
63% train
37%
do not train
(0.9
million)
Of those who do train:
9%
Do not know
if they want to
do more
31%
Would like
to do more
training
Of those who do not train:
23%
22%
15%
Do sufficient
training to
meet needs
No training
need
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?
Source: UKCESS 2011; Note: Figures relating to whether those who train and would like to do more training come from the skills equilibrium follow up
survey, this survey covers employers with 2 or more working proprietors and no employees as well as employers with 1+ employees.
Is skills investment of sufficient quality?
What’s the shape of the training market?
Across Northern Ireland
£1.36 BILLION
is spent on training, however:
6
£805 million is on
direct costs of training
£558 million is the wages
of those being trained
these direct costs include…
£76 million was counted as fees to external providers for courses
£228 million was spent on training management
£221 million was spent on training centres*
£235 million went on the wages of trainers providing on the job training
Source: UKCESS 2011, Investment in Training Survey
* Training centres either on-site or off-site within the same company
Pockets of skills deficiencies persist
and are growing
Between 2008 and 2011 there was a
small increase in vacancies in Northern
Ireland. This was primarily driven by
micro businesses (1-4), where the
number of vacancies per employee
increased almost three-fold.
Number of
vacancies per
employee by
employer size in
Northern Ireland
8.8
2008
2011
3.1
3.4
2.4 2.7
1.9
Total
1-4
5-10
2.3 2.2
11-49
2.1 2
50+
7
Source: UK Employer Skills Survey 2011, Northern Ireland Skills Monitoring Survey 2008; Vacancy base: all establishments in Northern Ireland within each size band; Skills-shortage vacancy
base: all establishments with vacancies within each size band.
Persistent skills deficiencies impact on NI firms
There are opportunities to exploit business benefits
72%
Increased workload for other staff
Delay developing new goods or services
58%
49%
20%
40%
Struggle to meet customer services
Lose business to competitors
Increased operating costs
Skills shortage vacancies
40%
20%
33%
36%
Skills gaps
Source: UKCESS 2011; Base: Employers in Northern Ireland with skills shortage vacancies (124 unweighted), Employers in Northern
Ireland with skills gaps (618 unweighted)
8
Are skills programmes being sufficiently used?
From two markets for skills to one
Proportion of all employers using
public or private training providers
UK
Northern
Ireland
Any private
40
39
Commercial
35
34
Third sector/not for
profit
11
13
Any public
14
14
FE College
12
11
HEI
6
7
22%
Of employee’s trained were
training towards a qualification
Source: UK Commission’s Employer Perspectives Survey
Are skills programmes being sufficiently used?
In total 6% of employers in Northern Ireland have apprentices currently on site
and a further 7% offer them but don’t currently have any
6%
7%
Have staff undertaking
Offer but don't have
Do not currently have / offer
87%
Source: UKCEPS; Base: All Northern Ireland employers
Are there sufficient career opportunities for young
people?
Across Northern Ireland, 28% of businesses had recruited education leavers in the
past 2-3 yrs.
16 yr olds
53%
47%
17-18 yr olds leaving school
65%
35%
17-18 yr olds leaving FE
74%
26%
Young people leaving HE
80%
20%
Most businesses found
education leavers well
prepared for work
The minority of employers report
issues with education leavers.
(with preparedness
increasing with age)
• Experience of world of work
The two key issues were:
• Poor attitude/ Personality
Work experience – a rare commodity
The extent to which placements are offered to young people by
size and sector
By size
68%
53%
32%
Total
40%
31%
25%
2 to 4
5 to 9
10 to 24
25 to 99
100+
Base: 2 to 4 (221), 5 to 9 (230), 10 to 24 (224), 25 to 99 (219), 100+ (106)
By sector
63%
32%
Total
17%
18%
25%
28%
32%
Primary sector Manufacturing Construction
Trade,
Business and
and utilities
accomodation other services
and transport
Non-market
services
Source: UKCEPS; Base: Primary (55), Manufacturing (67), Construction (84),Trade (341), Business (208), Non-market services (245)
Sectors matter to skills investment
A key basis to develop strong collaborations
When we look at investment in training provided by employers across different sectors, there
is considerable variation:
Sector
Percentage doing training
Mining & Quarrying
15%
Agriculture
47%
Construction
51%
Transport & Communications
54%
Electricity, Gas & Water
54%
Manufacturing
54%
Community, Social & Personal Services
57%
Hotels & Restaurants
60%
Wholesale & Retail
60%
Business Services
76%
Finance Services
76%
Health & Social Work
83%
Education
91%
Public Administration
92%
Future skills considerations
Informing plans for growth in the economy
Our latest Working Futures report shows that business services are expected to continue to
be a key engine of growth in Northern Ireland
Forecast output and employment by broad sector for Northern Ireland 2010 - 2020
Primary sector and utilities
Manufacturing
Construction
Trade, accomod. and transport
Business and other services
Non-market services
-20%
14
Source: Working Futures
-10%
Output
0%
10%
Employment
20%
30%
40%
50%
Leveraging investment:
Employer Ownership of skills
Investment Funds
“We want to encourage
• Employer Investment Fund (UK)
employers to take the lead
• Growth & Innovation Fund (England) in designing, developing
• Employer Ownership Pilot (England) and delivering the training
and employment solutions
EIF & GIF Investment so far ...
they need.”
• 124 investments
• £111m UKCES
•£103m employer
EO Pilot investment so far ...
• 36 investments
• £102m UKCES
• £98m employer
Charlie Mayfield, Chairman
UK Commission for Employment and Skills
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
Thank you!
Find out more…
www.ukces.org.uk
@UKCES