Transcript Document
Forecasting Future Skill Needs in NI Presentation to Stakeholder Conference Oxford Economics Neil Gibson 27th November 2008 Outline Forecasting skills – the rationale The economic conditions – tougher times World UK NI Skills data – the current picture Skills forecasts – the forward picture - provisional Planning and enabling a ‘better’ Northern Ireland - provisional Summary and conclusions Annex Note: significant empirical project – still underway. Many information omitted on regional comparisons, time series, NQF and priority sector analysis (much of this can be included in reporting) Forecasting skills – the rationale Forecasting skills - the rationale To aid and inform strategic planning for future needs To inform on potential skills shortages which could hamper potential economic growth To raise debate about skills funding priorities and choices Technically difficult to do: Formal skills not the only method of measurement Data issues Using past evidence of realized demand as indicative of desired demand Economy hard to foretell (at the moment!) Does not replace qualitative ‘bottom-up’ information An accepted approach: The Leitch Review and, to a lesser degree, the Sector Skill Council reports include an element of quantitative measurement The project Oxford Economics are charged with is carrying out an empirical assessment of skills needs up to 2020 The economic conditions – tougher times UK heading into recession … UK : GDP growth % annual 5% 4% 3% 2% 1% 0% 1995 1997 1999 2001 2003 2005 2007 2009 2011 -1% -2% Source: Oxford Economics … as world demand begins to slide … World: GDP growth % year 5.0 Forecast 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1996 1998 2000 2002 Source: Oxford Economics 2004 2006 2008 2010 2012 … real incomes fall … UK: Stockmarket UK: House prices 3600 % year 40 3400 Forecast Nominal 3200 30 3000 2800 20 2600 2400 10 2200 FTSE All share 2000 0 1800 1600 -10 Real 1400 -20 1200 1994 1996 1998 Source: Haver Analytics 2000 2002 2004 2006 2008 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 Source: Oxford Economics … and all hope has gone!.. UK: Consumer confidence GfK NOP Index 10 0 -10 -20 -30 -40 -50 1996 1998 2000 Source: Haver Analytics 2002 2004 2006 2008 …but Interest rates still being cut MPC and Government is acting aggressively Fiscal stimulus World problem – focus of all economies Inflation coming down (though remember due to cooling world economy – perhaps temporary) Company balance sheets in decent shape after recent growth (did not return to borrowing) How much will consumers retract key … 5% saving ratio % (Nov base) GDP grow th CPI inflation Bank rate 2009 2010 2009 2010 2009 2010 -1 0.9 2.3 1.2 2 2.1 7% saving ratio 9% saving ratio -1.6 0.1 2 0.7 1.4 0.7 -2.5 -0.2 1.5 0.1 0.7 0.3 Very possible … end of ‘golden era’ for NI … Total employment: NI 000s 1,050 Forecast 1,000 950 EDF Sept 08 900 850 OE Nov 08 800 750 700 650 1996 1999 2002 2005 Source: DETI, LFS, Oxford Economics 2008 2011 2014 2017 2020 … a return to growth – but it looks very different … Agriculture, forestry & fishing Mining & quarrying Manufacturing Utilities Construction Retail & distribution Hotels & restaurants Transport & communications Financial services Business services Public administration & defence Education Health & social w ork Other personal services Total em ployee jobs Land forces Self-em ploym ent Total em ploym ent 1998-2008 (000s) -4 0 -18 -1 14 27 8 6 5 36 0 8 22 6 109 -7 20 122 2008-2018 (000s) 0 0 -8 0 -2 5 4 2 3 20 -1 3 13 3 43 0 6 48 A key difference – with skills implications Skills – the current picture (Note data LFS unless stated) NI workforce skills – up skilling evident Qualifications of persons in em ploym ent 1997 % total (3year m oving average) 2007 % total (3year m oving average) Change (pp point) NVQ Level 0 (including other and do not know ) NVQ Level 1 NVQ Level 2 NVQ Level 3 NVQ Level 4 NVQ Level 5 Total 27% 8% 14% 27% 21% 3% 100% 22% 4% 18% 25% 25% 6% 100% -4.9 -3.5 3.5 -2.0 4.0 2.8 - More graduate demand Very few graduates out of work NI: NVQ qualifications of non-employed (Average 2005-2007) Other and do not know, 3% NVQ Level 5, 2% NVQ Level 4, 9% NVQ Level 3, 19% NVQ Level 0, 42% NVQ Level 2, 20% NVQ Level 1, 5% Source: LFS Returns to qualifications Weekly w ages Postgraduate NVQ Level 4 + (not postgrad) NVQ Level 3 NVQ Level 2 NVQ Below Level 2 None UK £777 £537 £385 £322 £306 £229 NI £565 £455 £329 £275 £242 £204 NI ‘in the pack’ regionally for graduate concentrations London Canada Japan Scotland South East Finland UK ROI South West North West Eastern North East NI East Midlands Wales West Midlands Yorkshire & Humber Graduate % em ployed persons (2007, 3-year m oving average) UK=100 46% 46% 40% 39% 36% 35% 35% 34% 33% 33% 32% 31% 31% 31% 31% 31% 29% 133 133 115 112 105 100 100 97 97 94 92 91 90 89 89 89 84 International figures refer to 25-64 w orking age qualifications (2005) Sectorally – lower graduate share in ‘traditional’ and secondary activities Agriculture, forestry & fishing Mining & quarrying Manufacturing Utilities Construction Retail & distribution Hotels & restaurants Transport & communications Financial services Business services Public administration & defence Education Health & social w ork Other personal services Whole econom y NI graduate % em ployed persons (2007, 3year m oving average) 8% 0% 23% 53% 11% 14% 6% 19% 33% 50% 43% 64% 50% 30% 31% UK graduate % em ployed persons (2007, 3year m oving average) 18% 38% 28% 41% 16% 16% 14% 20% 39% 50% 44% 64% 48% 33% 35% NI (UK=100) 45 0 82 130 71 86 44 98 84 101 97 99 104 90 90 Worthy of note 18,000 less graduates than structure suggests NI: Actual minus expected qualifications (2007) Other and do not know No qualifications Level 1 Actual < Expected Actual > Expected Level 2 Level 3 18,000 more graduates in employment if NI had same sectoral skill structure as UK Level 4 Level 5 -60 -40 -20 0 20 40 NI actual minus expected qualifications (000s, 2007) Source: LFS, Oxford Economics 60 Would move NI to just below the UK graduate average Where would the 18,000 be? NI: Actual minus expected graduates (2007) Other personal services Health & social w ork Education Public administration & defence Business services Financial services Actual < Expected Actual > Expected Transport & communications Hotels & restaurants Retail & distribution Construction Utilities Manufacturing Mining & quarrying Agriculture, forestry & fishing -6 -4 -2 0 2 NI actual minus expected graduates (000s, 2007) Source: LFS, Oxford Economics 4 Less managers and science professionals NI % em ployed UK % em ployed persons (2007, persons (2007, 3-year m oving 3-year m oving average) average) Corporate Managers Science & Technology Professionals Health Professionals Teaching & Research Professionals Business & Public Service Professionals Science & Technology Associate Professionals Health & Social Welfare Associate Professionals Protective Service Occupations Culture, Media & Sports Occupations Business & Public Service Associate Professionals Administrative Occupations Skilled Metal & Electrical Trades Skilled Construction & Building Trades Sales Occupations Customer Service Occupations Process, Plant & Machine Operatives Transport & Mobile Machine Drivers & Operatives Total 8% 2% 1% 5% 4% 1% 5% 1% 1% 4% 10% 5% 6% 8% 1% 5% 4% 100% 12% 4% 1% 5% 3% 2% 4% 1% 2% 5% 9% 4% 4% 6% 1% 4% 4% 100% NI (UK=100) 66 61 101 97 109 82 122 61 64 72 111 124 156 119 45 137 115 100 Lowest concentrations of managers and professionals UK regions: Managers and professionals (2007) % in employment (3year ma) 60% 50% 40% 30% 20% 10% 0% GL SO EN UK SW Source: LFS, Oxford Economics NW SC EM WM YH WW NE NI 30,000 less managers than structure suggests? NI: Actual minus expected occupations (2007) Elementary Process, plant and machine operatives Sales and customer service Actual > Expected Personal service Actual < Expected Skilled trades 30,000 more managers and 18,000 more professionals in employment if NI had same occupation skill structure as UK Adminstrative and secretarial Other professionals Business and public service professionals Science and technology professionals Managers and senior officials -40 -20 0 20 NI actual minus expected occupations (000s, 2007) Source: LFS, Oxford Economics 40 Focus on key sectors - manufacturing A key weakness % em ployed persons (2007, 3-year m oving average) Corporate Managers Science & Technology Professionals Science & Technology Associate Professionals Business & Public Service Associate Professionals Administrative Occupations Skilled Metal & Electrical Trades Skilled Construction & Building Trades Textiles, Printing & Other Skilled Trades Sales Occupations Process, Plant & Machine Operatives Transport & Mobile Machine Drivers & Operatives Elementary Trades, Plant & Storage Related Occupations Elementary Administration & Service Occupations Total NI North East Wales UK 11% 5% 3% 4% 6% 14% 4% 6% 2% 28% 4% 5% 1% 100% 15% 7% 3% 4% 5% 16% 2% 4% 1% 24% 4% 9% 1% 100% 13% 5% 4% 3% 5% 16% 2% 4% 1% 29% 4% 9% 2% 100% 17% 7% 3% 5% 6% 13% 2% 5% 1% 19% 3% 7% 2% 100% Focus on key sectors – business services Again a key weakness – sub-sector structure likely to be a factor % em ployed persons (2007, 3-year m oving average) Corporate Managers Managers & Proprietors in Agriculture & Services Science & Technology Professionals Business & Public Service Professionals Business & Public Service Associate Professionals Administrative Occupations Secretarial & Related Occupations Sales Occupations Customer Service Occupations Elementary Administration & Service Occupations Total NI North East Wales UK 10% 2% 9% 18% 7% 10% 9% 2% 1% 14% 100% 12% 3% 7% 10% 9% 12% 4% 2% 2% 15% 100% 13% 3% 8% 12% 12% 14% 7% 2% 1% 12% 100% 16% 4% 10% 13% 10% 11% 6% 2% 1% 10% 100% Towards degree subject analysis – lower in science and arts NI % em ployed UK % em ployed persons (2007, persons (2007, 3-year m oving 3-year m oving average) average) Medicine and Dentistry Subjects Allied to Medicine Biological Sciences Physical Sciences Mathematical and Computer Sciences Engineering Technologies Architecture, Building and Planning Social Studies Law Business and Administration Mass Communication and Documentation Linguistics, Classics and Related Creative Arts and Design Education Combined degree Total 5% 14% 4% 3% 4% 5% 1% 2% 6% 2% 15% 1% 1% 3% 7% 21% 100% 2% 11% 5% 5% 6% 6% 1% 2% 6% 4% 12% 2% 3% 5% 7% 18% 100% NI (UK=100) 190 130 72 67 78 79 79 91 102 65 133 47 31 62 107 117 100 Exploring STEM – 6,000 less than structure suggests NI: Actual minus expected graduate subjects (2007) Combined degree Education Actual > Expected Creative Arts and Design Arts Business and Administration Actual < Expected 6,000 more STEM and 3,000 more creative graduates in employment if NI had same sectoral graduate subject structure as UK Law STEM Biological, Vetinary and Agricultural Sciences Medicine, Dentistry and Allied Subjects -15 -10 -5 0 5 10 NI actual minus expected graduate subjects (000s, 2007) Source: LFS, Oxford Economics 15 More business graduates yet lower than expected share of managers Subject analysis – manufacturing Strengths in maths / computing, business – weakness in engineering NI % em ployed UK % em ployed persons (2007, persons (2007, 3-year m oving 3-year m oving average) average) Subjects Allied to Medicine Biological Sciences Physical Sciences Mathematical and Computer Sciences Engineering Technologies Social Studies Law Business and Administration Creative Arts and Design Combined degree Total 4% 4% 6% 10% 16% 0% 4% 1% 25% 1% 23% 100% 3% 5% 9% 6% 20% 2% 4% 2% 15% 6% 19% 100% NI (UK=100) 174 87 71 172 82 0 102 78 171 23 126 100 Subject analysis – business services Strength in business – weakness in maths and science NI % em ployed UK % em ployed persons (2007, persons (2007, 3-year m oving 3-year m oving average) average) Biological Sciences Physical Sciences Mathematical and Computer Sciences Engineering Architecture, Building and Planning Social Studies Law Business and Administration History and Philosophical Studies Creative Arts and Design Combined degree Total 1% 2% 7% 8% 7% 4% 10% 23% 2% 4% 24% 100% 4% 6% 10% 8% 7% 6% 9% 15% 3% 5% 18% 100% NI (UK=100) 35 34 70 91 109 68 102 149 67 81 132 100 STEM – lowest regional concentration UK regions: STEM graduates (2007) % grads in employment (3year ma) 20% 18% 16% 14% 12% 10% SO EN EM WM SW Source: LFS, Oxford Economics UK SC NW WW NE YH GL NI Business administration – star performer UK regions: Business and Administration graduates % grads in (2007) employment (3year ma) 16% Demand or supplyled? 14% 12% 10% 8% 6% NI GL WM SC NE Source: LFS, Oxford Economics SO UK WW YH EN SW EM NW Creative – lowest regional concentration UK regions: Creative Arts & Design graduates (2007) % grads in employment (3year ma) 8% 6% 4% 2% 0% GL SW YH UK NW Source: LFS, Oxford Economics WW EN SO WM NE EM SC NI Subject mix new graduate entrants to labour market - HESA Medicine and Dentistry Subjects Allied to Medicine Biological Sciences Vetinary Science, Agriculture and Related Subjects Physical Sciences Mathematical and Computer Sciences Engineering Technologies Architecture, Building and Planning Social Studies Law Business and Administration Mass Communication and Documentation Linguistics, Classics and Related European Language, Literature and Related Subjects East Asiatic, African, American and Australian Languages and Literature History and Philosophical Studies Creative Arts and Design Education Combined degree Total 2002/03 % total 2006/07 % total 3.1% 14.2% 4.5% 0.1% 0.6% 2.1% 0.3% 9.2% 4.0% 3.4% 10.2% 1.8% 18.3% 1.5% 3.5% 3.1% 3.2% 15.0% 1.9% 0.0% 100.0% 3.8% 19.6% 5.7% 0.1% 0.4% 2.0% 0.6% 5.3% 4.3% 3.7% 9.6% 3.3% 13.9% 1.7% 2.8% 2.6% 3.8% 16.7% 0.2% 0.0% 100.0% NI domiciled leavers gaining HE qualifications at UK HEIs and in employment in NI six months after graduation Skills forecasts – the forward picture Approach Leitch / IER & CE - developed quantified views on long-run trends in skills requirements “One method would be to gather information from Sector Skills Councils (SSCs) about their assessments of recent trends and possible futures. This information would typically be qualitative, and often very specific, but would provide well-grounded ‘bottom-up’ information. Such assessments often suffer from excessive influence from very recent trends, but the same could be said of other methods. We do not pursue this approach. Rather, we focus on quantitative methods, intended to complement a qualitative assessment, to give some idea of scale and a means of aggregating to allow summary lessons to be drawn” Gathering data To estimate demand flows: - Expansion demand is taken from base forecasts – change in employment stock (e.g. rising stock for professional services, declining stock for manufacturing) - Replacement demand is based on flows data drawn from the LFS – leavers due to retirement, looking after home etc. i.e. replacement demand creates a need for workers even in declining sectors Though replacement demand flow analysis should be done separately by industry / occupation there are sample size complications so UK aggregates are often used An issue over skills inflow not requiring training is important (for example moving industry, returning from sickness) this raises a net / gross issue Summary baseline forecasts - occupations Net requirem ent Indicative from 'education' education and requirem ent m igrants Expansion dem and Gross replacem ent dem and Total returnees Corporate Managers Managers & Proprietors in Agriculture & Services Science & Technology Professionals Health Professionals Teaching & Research Professionals Business & Public Service Professionals Science & Technology Associate Professionals Health & Social Welfare Associate Professionals Protective Service Occupations Culture, Media & Sports Occupations Business & Public Service Associate Professionals Administrative Occupations Secretarial & Related Occupations Skilled Agricultural Trades Skilled Metal & Electrical Trades Skilled Construction & Building Trades Textiles, Printing & Other Skilled Trades Caring Personal Service Occupations Leisure & Other Personal Service Occupations Sales Occupations Customer Service Occupations Process, Plant & Machine Operatives Transport & Mobile Machine Drivers & Operatives Elementary Trades, Plant & Storage Related Occupations Elementary Administration & Service Occupations Whole econom y 27.0 1.6 8.4 1.6 1.4 9.2 0.2 3.6 -0.6 3.3 8.6 -6.6 -7.4 0.3 -8.0 0.2 -2.5 12.5 -0.6 5.5 1.4 -11.4 1.1 -5.4 5.0 48.3 42.7 15.2 10.8 2.7 23.7 14.9 2.8 13.8 4.0 1.9 22.1 63.4 10.8 8.9 29.2 40.6 11.9 48.9 27.1 64.7 4.2 59.3 22.3 34.8 100.2 681.0 16.5 6.1 12.3 1.1 13.5 12.3 8.2 21.0 0.0 6.1 16.0 43.2 11.9 4.1 21.9 29.2 15.0 38.0 14.7 74.2 2.6 27.7 19.8 24.2 63.5 503.0 53.2 10.8 6.9 3.1 11.7 11.9 -5.2 -3.7 3.4 -0.9 14.7 13.6 -8.6 5.1 -0.7 11.6 -5.6 23.4 11.8 -4.1 3.0 20.3 3.7 5.1 41.7 226.3 53.2 10.8 6.9 3.1 11.7 11.9 -5.2 -5.5 3.4 -0.9 12.9 13.6 -8.6 5.1 -6.7 10.2 -8.7 18.3 6.7 -4.1 2.7 8.1 2.1 -0.8 25.2 165.6 Whole economy (annual) 4.0 56.7 41.9 18.9 13.8 2008-2020 Assumes average annual net migration of 700 pa 2008-2020 (almost 10,000 pa 2006-07) Summary baseline forecasts – walk through 4,000 pa expansion in net jobs (people-based) 57,000 leavers pa to retirement, death, unemployment, inactivity, other occupations and out migration 42,000 returnees to labour market pa from unemployment, inactivity and other occupations Net requirement of 19,000 persons pa from education and in-migration, of which 14,000 expected to be required from ‘education’ after forecasting migration joiners (based on recent trends and economic conditions) To put this into context annual young person age cohort is 25,000 [though roughly 5,000 FT first year enrolments at non-NI HEIs, undergrad and postgrad] Skill level entering employment - NVQ 2007 % total (3-year m oving average) NI NVQ Level 0 (including other and do not know ) NVQ Level 1 NVQ Level 2 NVQ Level 3 NVQ Level 4 NVQ Level 5 Total Previously in em ploym ent From education Nonem ployed 22% 4% 17% 25% 26% 6% 100% 11% 2% 36% 30% 19% 3% 100% 72% 0% 1% 18% 0% 10% 100% Note: broadly similar, higher level 5 into employment in UK. More L2 and L3 from education in NI 2007 % total (3-year m oving average) UK NVQ Level 0 (including other and do not know ) NVQ Level 1 NVQ Level 2 NVQ Level 3 NVQ Level 4 NVQ Level 5 Total Previously in em ploym ent From education Nonem ployed 20% 5% 16% 24% 27% 8% 100% 12% 3% 33% 27% 20% 6% 100% 72% 0% 1% 12% 1% 15% 100% Seems high – verification with DETI underway Summary baseline forecasts - NVQ NVQ Level 0 Other qualifications NVQ Level 1 NVQ Level 2 NVQ Level 3 NVQ Level 4 NVQ Level 5 Whole econom y (annual) Gross replacem ent dem and (000s, 2008-2020) Indicative 'education' requirem ent (000s, 2008-2020) 208 27 44 131 131 107 30 56 30 5 6 26 36 47 14 14 Note: this takes account of sectoral and occupational shifts and educational ‘creep’ Summary baseline forecasts - graduates subjects Medicine & dentistry Subjects allied to medicine Biological sciences Veterinary science Agriculture & related subjects Physical sciences Mathematical sciences Computer science Engineering & technology Architecture, building & planning Social studies Law Business & administrative studies Mass communications and documentation Languages Historical and philosophical studies Creative arts & design Education Combined Total Indicative 'education' graduate requirem ent (000s, 2008-2020) 1.3 -1.1 2.7 0.0 0.6 0.9 0.3 1.2 1.9 2.0 5.0 2.0 29.7 0.5 1.0 0.8 0.7 11.6 0.2 61.1 % total 2% -2% 4% 0% 1% 1% 1% 2% 3% 3% 8% 3% 49% 1% 2% 1% 1% 19% 0% 100% Note: extreme care must be exercised – this uses recent trends as indication of demand into given occupations (may not be desired) Planning and enabling a ‘better’ Northern Ireland Towards an ‘upper scenario’ Extremely complex process Easier to say where we want to get to (more jobs, more productive, richer) than how To date no ‘accepted’ vision of how ‘aspirational’ growth will be delivered in terms of employment sectors (PfG target and activity focused) Gathering a consensus is complex probably un-achievable Oxford have consulted with key representatives, reviewed the Sector Skills Councils, MATRIX reports and priority sectors documentation and used their economic understating to determine a plausible ‘upper scenario’ This is based upon the approach in the Leitch Review and achieving the PfG productivity aim Sectoral balance based on Oxford’s views drawn from the examined qualitative and quantitative views of elsewhere Note: Far from definitive PfG key goals PfG key goals (examples) - - Halve the private sector productivity gap with the UK average (excluding the Greater South East) by 2015 Increase the employment rate from 70% to 75% by 2020 Secure inward investment commitments promising over 6,500 new jobs by 2011, of which 5,500 will provide salaries above the Northern Ireland private sector median 70% of new FDI projects secured to locate within 10 miles of an area of economic disadvantage Increase the number of tourists visiting each year from 1.98m to 2.5m by 2011 and increasing tourism revenue from £370m to £520m each year by the same date Ensure by 2015 that 80% of the working age population is qualified to at least GCSE level or equivalent Increase by 25% the numbers of students, especially those from disadvantaged communities, at graduate and postgraduate level studying Science, Technology, Engineering and Mathematics (STEM subjects) by 2015 Closing the productivity gap – the challenge Relative productivity: NI baseline (EDF Sept 08) UK excl GSE=100 100 98 Target half gap 2015 = 96.7 PfG target 96 94 92 90 1995 1999 Source: Oxford Economics 2003 2007 2011 2015 2019 Leitch – understanding the process Higher skills, better generic skills and improved managerial capacity → drive innovation, be more creative, take advantage of technological change and harness skills of employees → higher productivity → implication for employment by sector, occupation and skill level. i.e. supply-driven scenario - - Assumed impact on labour productivity equal to increase in an index of the quality of labour. i.e. better skills → better returns personally and to whole economy Adjusted sectoral economic model to reproduce these assumed changes in labour productivity at a sectoral and aggregate level Formed views on the extent to which each sector’s increase in productivity came about through higher output, or lower employment, or some combination Employment by sector then used as inputs for subsequent model of profile of occupations and qualifications to complete the picture and check that outcomes broadly consistent with the initial improved skill base assumptions Role of demand - although supply-side improvements are a prerequisite, the more important factor is stimulating the demand among employers for more highly skilled workers Higher skills – can mean lower jobs Less jobs 1 - Skill improvements could be translated into productivity gains (i.e. ‘lean’ manufacturing) without much or any increase in output, resulting in a fall in employment. E.g. where demand is fixed and little scope to improve product quality Less jobs 2 - Where higher skills lead to rise in general level of wages in the economy, firms in low value-added activities have to pay more and respond in part by changing the character of jobs to raise productivity, but also by exiting from activities that are no longer viable More jobs - Where improved quality of labour results in improved quality of output as well, likely to increase the volume demanded (including exports) and/or increase the price customers are willing to pay and increase employment Note also multiplier job impacts in secondary sectors Leitch – two high skill scenarios Catch up scenario - Future in which sectors that have performed less well in past decade are regarded as offering the greatest scope for improvement → greater investment in skills and a stronger relative improvement in those sectors Restructuring scenario - Future in which sectors that have performed less well in the past decade are regarded as being most vulnerable to the impact of globalisation and technological change in the future → greater investment in skills in the same sectors that saw the largest increase in the skills index in the last decade Implication - Although the two scenarios result in a somewhat different pattern of value added and employment by sector, the implications for output are similar - Whole-economy increase in the annual rate of growth of value added per workplace job (productivity) is 0.1–0.2% Leitch – UK restructuring scenario (note less jobs) Agriculture Mining & quarrying and utilities Food, drink & tobacco Textiles & clothing Wood, paper, printing & publishing Chemicals & NMMP Metals & metal goods Engineering Transport equipment Manufacturing other & recycling Construction Wholesale distribution Other retail distribution Hotels & restaurants Transport Communications Banking & insurance Professional services Computing services Other business services Public administration & defence Education Health & social w ork Miscellaneous services Total Difference from baseline 2020 Em ploym ent GVA (£m ) (000s) -10 -108 0 361 -14 -215 -6 -61 -7 503 -6 786 -13 -161 -7 447 -8 116 -2 123 12 1,420 -13 1,467 -16 1,535 19 1,326 13 1,286 3 2,457 -19 1,315 18 4,454 10 2,299 12 1,301 -54 201 19 2,312 27 4,076 -1 1,998 -40 30,985 Key Leitch – UK catch up scenario (note slightly more jobs) Difference from baseline 2020 Agriculture Mining & quarrying and utilities Food, drink & tobacco Textiles & clothing Wood, paper, printing & publishing Chemicals & NMMP Metals & metal goods Engineering Transport equipment Manufacturing other & recycling Construction Wholesale distribution Other retail distribution Hotels & restaurants Transport Communications Banking & insurance Professional services Computing services Other business services Public administration & defence Education Health & social work Miscellaneous services Total Employment (000s) 9 0 6 4 16 9 5 26 8 6 20 21 -34 3 22 -3 18 57 30 0 -6 22 46 2 283 GVA (£m) 526 527 1,196 224 1,500 2,216 1,072 2,763 1,403 606 1,946 3,490 1,549 1,470 2,294 2,639 3,032 6,150 3,039 1,779 1,924 1,774 2,913 21,115 50,546 Still a fall Mimicking Leitch – what we did Mirrored exactly the productivity and employment growth improvements set out in Leitch scenarios The sector profile – it could be argued – might be different if the Leitch – skills / earnings (as proxy for productivity return) analysis was done separately (outside scope) This is not sufficient to achieve the PfG productivity target Therefore additional jobs / productivity improvements have been added in core export sectors to reach the PfG 2015 target This sectoral mix and the balance between productivity gains / employment growth is based on consultations, SSC, MATRIX, and the ‘ethos’ of the Leitch scenarios Recall Leitch is focused on productivity improvement NOT employment growth (which remains – and may increasingly be - a problem for NI) The challenge – Q. would Leitch be enough? More ‘stretched’ scenario to close gap PfG target 97.0 96.5 Catch-up Restructure UK excl. GSE = 100 96.0 Base GB Leitch 95.5 95.0 94.5 Productivity impact applied uniformly to all regions outside GSE (not NI) 94.0 93.5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 A. Not if other regions implement Leitch also (though some modest improvement) If not – then what else? Who we interviewed (many more contacted) Government representatives Trade bodies Education bodies Local economists Sector bodies Sector Skill Councils Actual consultations took place Education & Skills Committee Stern Review Invest NI sector treams (Life Sciences, Creative Industry, Softw are, Construction and Tourism) Institute of Directors MATRIX Association of NI Colleges Pricew aterhouseCoopers Manufacturing - Food and Drink Association Tourism - NI Hotels Federation Voluntary - NICVA ICT - Momentum Association of Sector Skill Councils Workshop w ith 8 SSCs Aim • Guidance on how a more aspirational scenario for NI might be achieved • Guidance on future skill, occupation and subject needs, particularly under an aspirational scenario • No accepted vision / lack of consensus • For many consulted, consensus was to direct us towards SSCs / Sector Skill Agreement reports • SSCs completed qualitative and quantitative questionnaires (two-thirds of SSCs replied) SSC forecasts – varying time periods and details Selected SSC forecasts Cogent Construction Skills E-Skills UK Financial Services Lifelong Learning UK SEMTA Em ploym ent Em ploym ent grow th grow th forecast forecast - total expansion (000s) dem and (000s) 4.0 0.0 11.2 5.6 2.9 0.1 0.3 12.1 0.6 Em ploym ent grow th forecast replacem ent dem and (000s) 4.0 2.8 11.5 Tim e period 2004-2014 2008-2012 2006-2021 2007-2010 By 2014 2005-2014 Achieving aspirational scenario – some thoughts from consultations Upskilling of existing persons employed across sectors (though why is this not happening already?) → work smarter, think more creatively, more commercially sensitive BUT may be difficult in a downturn (training often cut back) Development of indigenous businesses and new indigenous start-ups (more likely to stay and in sectors NI not necessary renowned for its international competitiveness Attract export-orientated ‘here to stay’ high value added FDI in sectors NI can be competitive in (e.g. ICT) – competing on cost less of an option Tourism should be part of the aspiration (if not necessarily high value added) Mixed employment strategy – high and low productivity - to reflect what NI has (concentration of low skills) “No single solution – needs a bit of everything” Achieving aspirational scenario – some thoughts from consultations Skills - Upskilling Financial, literacy and numeracy Generic: Readiness for work, creativity, adaptability, problem-solving Caveat: Formal qualifications not always best proxy for skills – need for work experience – shortfall in quantitative work Occupations - Need for more managerial expertise Subjects - Sectors differ in relative importance of subjects - Matter a lot – Cogent, SEMTA, Summit Skills - Matter less – Financial Services - Generic skills matter for all sectors Extending Leitch scenarios to reach PfG target – “Convergence” PfG target achieved 101 Restructure convergence 100 Catch-up convergence Base UK excl. GSE = 100 99 GB Leitch 98 97 96 95 94 93 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Jobs and GVA additions For catch up: ■ Employment growth improved by 0.5% pa compared to Leitch restructuring in all exporting sectors (agriculture, manufacturing, transport & comms, hotels, finance, business and other services) ■ Productivity growth improved by 0.5% pa compared to Leitch restructuring in all service export sectors, manufacturing unchanged For restructuring: ■ Employment growth improved by 0.25% pa compared to Leitch restructuring in hi-tech manufacturing, communications, finance & business services and tourism (priority, export potential sectors) ■ Productivity growth improved by 0.75% pa compared to Leitch restructuring in exporting services and 0.25% pa in specialist manufacturing Jobs and GVA added Leitch restructure convergence Agriculture Extraction Manufacturing Utilities Construction Distribution & retail Transport & comms Financial & business Public admin & defence Education & health Other services Total Total annual average Employment change 2015 (000s) -0.4 0.0 -0.2 0.0 0.5 1.2 0.4 1.9 -0.8 0.4 0.4 3.4 0.5 GVA change 2015 (£m) -4.3 0.6 101.2 0.0 28.7 96.5 109.5 410.1 0.9 71.1 57.2 853.9 - Leitch catch-up convergence Employment change 2015 (000s) 0.7 0.0 2.0 0.0 1.1 2.4 0.4 4.3 0.0 1.6 0.9 13.3 1.9 GVA change 2015 (£m) 28.5 0.7 260.4 0.1 45.7 152.9 76.2 405.6 34.8 62.2 63.0 1089.2 - More productivity focussed More employment focussed 500 jobs pa 1,900 jobs pa Productivity implications Base 2015 Agriculture Extraction Manufacturing Utilities Construction Distribution & retail Transport & comms Financial & business Public admin & defence Education & health Other services Total Note: Productivity relative to UK 81.2 126.1 97.7 120.1 86.1 92.2 84.5 80.3 121.9 90.9 92.4 86.8 Leitch restructure 2015 Leitch catch-up (converge) 2015 (converge) 81.7 127.1 99.8 120.2 86.8 93.3 88.6 84.3 123.6 92.1 96.3 88.8 83.1 127.2 100.4 120.2 86.8 93.7 87.1 82.7 123.5 91.4 95.8 88.5 Sectors, skills and productivity For catch up: ■ Net additional jobs = 13,000, directly alters overall occupation structure (although only modestly) ■ Upskilling existing jobs (based on historical replacement demand analysis) / shift towards higher grade occupations ■ Skills ‘uplift’ of new entrants ■ Academic literature on links between qualifications and wages / productivity and HESA For restructuring: ■ Net additional jobs = 3,000 (very modest) ■ Significant upskilling and skills creep / shift towards managerial and professional occupations ■ Again academic literature / HESA on qualification-productivity relationship Qualifications and wages / productivity Harmon and Walker (2000) for NI and HESA (LFS possible alternative source) Harm on and Walker (2000) GCSE A-Level Degree Wage return relative to no qualications (m ale) 33% 49% 66% HESA 2004/05 Median annual salary (study and em ployed in NI) Undergraduate Postgraduate Masters Doctorate £16,000 £19,000 £19,500 £21,000 Assum ed return relative to average qualification 0% 16% 33% Assum ed return relative to average qualification 0% 19% 22% 31% Doctorate Masters PGCE Other postgrad incl unknow ns Rest of NVQ5 NVQ 4 NVQ 3 Trade apprenticeships NVQ 2 NVQ 1 Other qualifications No qualifications Productivity factor relative to NVQ 2 64% 55% 52% 52% 52% 33% 16% 0% 0% -16% -16% -33% Scenario summary (preliminary) Baseline Restructuring Catch up Total employment 2015 (job-based) Total employment 2015 (people-based) o/w NQV Level 0 % o/w NQV Level 4/5 % (graduate) 868 767 17% 35% 871 770 13% 37% 881 779 14% 36% Expansion demand 2008-2015 (annual, 000s) o/w managerial and professional o/w process and elementary 4.0 4.4 -0.9 4.7 5.4 -1.4 6.2 5.2 -0.5 Gross replacement demand 2008-2015 (annual, 000s) 56.7 56.6 57.6 Indicative 'education' requirement 2008-2015 (annual, 000s) o/w NQV Level 0 o/w NQV Level 4/5 (graduate) o/w STEM subjects o/w Business & Administraive subjects 13.8 2.5 5.1 0.4 2.5 14.5 1.9 5.9 0.5 2.9 17.3 3.1 5.9 0.5 2.8 Additional GVA above baseline 2015 (£m 2003 prices) Employment rate 2015 67% 854 67% 1,089 67% Growing demand for graduates NI: Employed graduates NVQ 4/5 % total (3-year ma) 45% Forecast 40% 35% 30% 25% Restructuring Catch up Baseline 20% 1995 2000 Source: LFS, Oxford Economics 2005 2010 2015 2020 Falling need for low skills (provisional) NI: Employed persons with no and other qualifications NVQ 0 and other % total (3year ma) 30% Forecast Possible data issue 25% 20% 15% Baseline 10% Catch up Restructuring 5% 1995 2000 Source: LFS, Oxford Economics 2005 2010 2015 2020 Leitch – some issues to consider Not predominantly an employment strategy (PSA1 not PSA 3) What do those losing jobs under restructuring do? By no means the only combination of jobs / productivity to deliver faster growth? Is productivity the only question? What impact does rising productivity have on wealth differentials and ‘lower skilled’ occupations? Is it challenging enough? UK convergence before and after NI: Relative productivity UK=100 100 Forecast Restructuring 97 Catch up Baseline 94 91 88 85 1995 2000 Source: Oxford Economics 2005 2010 2015 2020 UK convergence before and after NI: Relative employment rate UK=100 100 Forecast 97 94 91 88 Catch up Restructuring Baseline 85 1995 2000 Source: Oxford Economics 2005 2010 2015 2020 Issues with aspirations World is a changing place (especially today) A vision for faster growth is difficult to settle on (and consensus is unlikely) Productivity improvement means less jobs (where does this labour go?) Training for sectors is risky – cannot fund all. Pick winners or pick those in need of support? Winners appears more obvious – but remember it is not a ‘blank page’ – we have the skills that we have Forecasts can only provide a sense of scale and direction of travel Subject analysis limited in lessons learnt (more work required) Is observed demand desired demand? Formal qualifications are not the only metric What else are we doing / questions Qualifications elsewhere (analysis by region) Sectoral analysis, including by priority sector Qualifications by NQF Questions: Economy getting worse, importance of employment rate coming back to the fore? Retraining / upskilling in a downturn – opportunity or cutbacks? Summary and your inputs Summary and conclusions The economy is heading into tough times This could be a short term problem but may be a long term shift Growth will definitely not look like the last decade Skills needs will shift accordingly NI’s improving skills structure evident But less graduates and managers than would be expected STEM, arts under represented – business studies over represented Improved skills widely seen as a route to productivity improvement Leitch provides a potential framework – but is not an employment strategy Model suggest PfG target could be achieved by in the order of an extra 1,000 graduates per annum over base needs (approx 5K) The balance of jobs / sectors / subjects is complex – a myriad of options Ultimately however it remains a question of demand Current education outturns will be roughly in balance with labour market needs (if you assume current student outflows and no in migration) An ongoing science – revisit – refine – question and debate What we need you to do! Feedback and discuss! Think about the Leitch concept (is catch-up or restructuring the best policy – only choices?) Think about the implications of Leitch – make sense? Think about the extra convergence challenge – correct sectoral split? Challenge too hard or too straightforward? Please fill in the sheets on sectoral focus if at all possible Contact: Neil Gibson Director Regional Services, Oxford Economics Tel: 028 9266 0669 Email: [email protected] Graeme Harrison Head All-Island Consultancy, Oxford Economics Tel: 028 9266 0669 Email: [email protected] Karen Barklie Economist, Oxford Economics Tel: 028 9266 0669 Email: [email protected] Annex: Additional information Outputs of this project Analysis of current skills picture: ■ By skills level (NVQ and NQF) within SIC03 sectors and SOC00 occupations (all UK regions) ■ By graduate degree subject of study (JACS coding) within sectors and occupations (all UK regions) Forecasts of future skills needs by: ■ ■ ■ ■ Net total requirement flow (expansion demand + net replacement demand) NVQ and NQF By 14 sectors (including DETI / Invest NI priority sectors) and by 25 occupations New entrant graduate subject demand forecast Forecasts of future skills needs under an aspirational scenario ■ Development of an aspirational scenario carried out by Oxford under guidance from selected consultations and review of existing material (Govt policy / PSA and PfG targets, SSC reports) Note – sample sizes an issue (LFS based – three-year averages used) Note – quality of data an issue (LFS and sectoral employment) Note – SSC reports reviewed and comparable data summarised where possible (employment growth projections, skill and occupation trends) Is NI more exposed or not ?.. More exposed Less exposed House price contraction more severe Public sector buffer Construction and retailing key sectors in recent performance Limited world finance jobs Confidence fall acute Executive? Ill-prepared Competitive location for wages More globally integrated than previously Retailing boosted by cross border NI workforce skills – up skilling evident NI: Graduates (NVQ 4 and 5) % employed persons 35% 32% 29% 3-year moving average 26% 23% 20% 1995 Source: LFS 1997 1999 2001 2003 2005 2007 NI workforce skills – NQF Qualifications of persons in em ploym ent Do not know No qualifications Other qualifications NQF 1 NQF 2 NQF 3 > NQF 3 not including NQF 4 NQF 4 NQF 5 o/w Masters o/w PhD Total 1997 % total (3year m oving average) 2007 % total (3year m oving average) Change (pp point) 1% 28% 4% 6% 5% 30% 1% 23% 4% 2% 0% 100% 1% 20% 4% 5% 8% 28% 0% 28% 7% 3% 1% 100% 0.7 -8.0 -0.5 -0.9 2.8 -1.6 -0.6 4.9 3.2 1.5 0.3 - Qualifications of young and old NI: NVQ qualifications of working age 50-59/64 (Average 2005-2007) NI: NVQ qualifications of working age 25-29 (Average 2005-2007) Other and do not know, 17% NVQ Level 5, 7% NVQ Level 5, 9% NVQ Level 4, 15% Other and do not know, 45% NVQ Level 0, 7% NVQ Level 4, 30% NVQ Level 1, 4% NVQ Level 3, 21% NVQ Level 2, 19% Source: LFS NVQ Level 2, 8% NVQ Level 3, 26% NVQ Level 1, 4% Source: LFS NVQ Level 0, 27% Graduate concentration lower – but not due to sector NI actual graduate share in employment UK actual graduate share in employment Expected NI graduate share if sector graduate shares equal to UK shares Graduate gap due to low er sector graduate shares Graduate gap due to structure of economy Actual graduates (2007 graduate share, 3-year m oving average) UK=100 31% 35% 89.9 100.0 34% 97.7 3% 7.7 1% 2.3 Managerial concentration lower – but not due to sector NI actual managerial share in employment UK actual managerial share in employment Expected NI managerial share if sector managerial shares equal to UK shares Managerial gap due to low er sector managerial shares Managerial gap due to structure of economy Managerial share (2007, 3-year m oving average) UK=100 10.5% 15.0% 70.0 100.0 14.7% 98.3 4.2% 28.2 0.3% 1.7 STEM gap – not structure STEM graduate share (2007, 3year m oving average) UK=100 NI actual STEM graduate share in employment 12.9% 76.9 UK actual STEM graduate share in employment 16.8% 100.0 16.2% 96.4 3.3% 19.6 0.6% 3.6 Expected NI STEM grduate share if sector STEM graduate shares equal to UK shares STEM graduate gap due to low er sector STEM graduate shares STEM graduate gap due to structure of economy Forecasting skills – methodological re-cap Expansion demand Change in employment year 1 – year 0 By occupation and sector Employment in sector (12 months previous) By occupation - Census base grown at LFS occupation shares within occupation - - Model based % leaving to retire % leaving to inactivity / other % leaving to migrate % dying % leaving to other occupations (can be within same sector) % leaving to other sectors (same occupation) % split across Optional •Inactivity •Unemployed •Sickness (long term / short term) •Looking after the home •Training •Other % joining from other occupations (can be within same sector) % joining from other sectors (same occupation) Total need By occupation and section Skill requirements by occupation and sector (trends over time) i.e. increasing need for higher skills - From time series analysis of LFS new entrants series Skill requirements by occupation and sector - from LFS crosstabs of new entrants (whole economy) - % joining from new migrants % joining from inactivity / unemployment Leavers (rep demand outflows) Taken from LFS cross tabs of activity last year vs. activity this year (whole economy) Joiners (rep demand inflows) Some definitions - leavers To death To retirement (early and retirement age) To unemployment / training schemes To inactivity - Long-term sick Looking after family / home Student Other To other occupations, same sector (occupational mobility) To other sectors, same occupation (sectoral mobility) To migration (leave NI) Some definitions - joiners From unemployment / training schemes From inactivity - Long-term sick Looking after family / home Early retirement Other From other occupations, same sector (occupational mobility) From other sectors, same occupation (sectoral mobility) From migration (arrive in NI) From education system LFS flows data – leaving rates Leaving rate % total em ployed persons w hole econom y previous year (2007, 3-year m oving average) Death * Unemployment / training schemes Inactivity excluding retirement Retirement Other occupations Other sectors Out migration * Total leaving rate * Not estimated from LFS ** Replacement demand analysed by occupation → sector mobility leaving rate NI UK 0.3% 1.2% 1.9% 2.3% 2.6% ** 1.0% 9.2% 0.3% 1.9% 2.4% 3.4% 4.4% ** 1.2% 13.5% 2.7% - Leaving rates – occupations, generally lower leaving rates (less churn or turnover) Leaving rate % total em ployed persons previous year (2007, 3-year m oving average) Corporate Managers Managers & Proprietors in Agriculture & Services Science & Technology Professionals Health Professionals Teaching & Research Professionals Business & Public Service Professionals Science & Technology Associate Professionals Health & Social Welfare Associate Professionals Protective Service Occupations Culture, Media & Sports Occupations Business & Public Service Associate Professionals Administrative Occupations Secretarial & Related Occupations Skilled Agricultural Trades Skilled Metal & Electrical Trades Skilled Construction & Building Trades Textiles, Printing & Other Skilled Trades Caring Personal Service Occupations Leisure & Other Personal Service Occupations Sales Occupations Customer Service Occupations Process, Plant & Machine Operatives Transport & Mobile Machine Drivers & Operatives Elementary Trades, Plant & Storage Related Occupations Elementary Administration & Service Occupations Whole econom y NI UK Diff (pp point) 5.5% 7.1% 3.3% 2.7% 3.0% 5.6% 1.4% 3.0% 3.3% 4.9% 5.1% 5.6% 7.7% 2.0% 9.8% 5.0% 9.7% 6.2% 13.1% 11.3% 10.4% 15.1% 5.9% 15.2% 12.6% 9.2% 9.6% 11.2% 10.5% 6.3% 7.4% 8.5% 9.5% 7.5% 6.9% 9.7% 11.5% 12.1% 12.6% 12.0% 9.3% 9.6% 15.3% 12.9% 17.4% 20.9% 21.5% 18.2% 12.8% 22.0% 21.7% 13.5% -4.1 -4.1 -7.1 -3.5 -4.4 -2.9 -8.0 -4.5 -3.6 -4.7 -6.3 -6.5 -4.8 -10.0 0.5 -4.7 -5.6 -6.7 -4.3 -9.6 -11.1 -3.2 -7.0 -6.8 -9.1 -4.3 Includes all leavers: •Death •Retirement •Unemployment •Inactivity •Other occupations •Out migration PSA selected targets PSA 1 – productivity growth - Increase by 3% the level of export sales as a percentage of total sales by Invest NI client companies, excluding the top 25 exporting companies - Increase the BERD expenditure in Invest NI client companies with greater than 249 employees by a 5% CAGR (compound annual growth rate) PSA 2 – skills for prosperity - Increase by 5% the numbers studying STEM subjects in post 16 cohort by 2011 - Increase the proportion of Further Education enrolments at Level 3 from 57% in 2005/06 to 60% in 2010/11 PSA 3 – increasing employment - Increase employment levels and reduce inactivity - Assist 70,000 working age benefit clients to move into employment by March 2011, subject to economic conditions NI baseline forecasts 2008-2015 (unless stated) Em ploym ent (000s) Agriculture, forestry & fishing Mining & quarrying Manufacturing Utilities Construction Retail & distribution Hotels & restaurants Transport & communications Financial services Business services Public administration & defence Education Health & social w ork Other personal services Total 1 0 -5 0 -6 2 3 1 3 15 -1 2 11 2 28 GVA - average annual real grow th 2.6% Relativities 2015 (UK=100) GVA per head GVA per employed person Employment rate Working age population share 80 87 91 101 PfG achievement - replacement demand implications Restructuring “convergence” scenario Net requirem ent Indicative from 'education' education and requirem ent m igrants Expansion dem and Gross replacem ent dem and Total returnees Corporate Managers Managers & Proprietors in Agriculture & Services Science & Technology Professionals Health Professionals Teaching & Research Professionals Business & Public Service Professionals Science & Technology Associate Professionals Health & Social Welfare Associate Professionals Protective Service Occupations Culture, Media & Sports Occupations Business & Public Service Associate Professionals Administrative Occupations Secretarial & Related Occupations Skilled Agricultural Trades Skilled Metal & Electrical Trades Skilled Construction & Building Trades Textiles, Printing & Other Skilled Trades Caring Personal Service Occupations Leisure & Other Personal Service Occupations Sales Occupations Customer Service Occupations Process, Plant & Machine Operatives Transport & Mobile Machine Drivers & Operatives Elementary Trades, Plant & Storage Related Occupations Elementary Administration & Service Occupations Whole econom y 34.8 1.7 10.9 1.5 1.7 8.9 2.1 3.5 -0.7 3.0 7.5 -6.4 -5.9 0.2 -6.4 2.8 -1.9 13.0 -0.4 1.3 1.3 -8.8 3.4 -5.3 -5.8 56.1 44.9 15.2 11.4 2.6 23.5 14.8 3.0 13.5 3.9 1.9 21.7 63.2 11.3 8.7 29.9 43.3 12.1 48.2 27.0 62.7 4.2 62.1 22.9 35.1 91.8 679.2 17.0 6.0 12.8 1.1 13.4 12.2 8.6 20.7 0.0 6.0 15.8 42.9 12.4 4.1 22.1 29.7 15.1 37.6 14.6 72.8 2.6 28.2 19.9 24.1 61.6 501.4 62.7 10.9 9.6 3.0 11.9 11.6 -3.5 -3.7 3.3 -1.1 13.5 13.8 -7.0 4.9 1.4 16.4 -4.9 23.5 12.0 -8.8 2.9 25.2 6.5 5.7 24.4 233.9 62.7 10.9 9.6 3.0 11.9 11.6 -3.5 -5.4 3.3 -1.1 11.7 13.8 -7.0 4.9 -4.7 14.9 -8.0 18.6 7.0 -8.8 2.6 12.5 4.8 -0.3 9.0 173.6 Whole economy (annual average) 4.7 56.6 41.8 19.5 14.5 2008-2020 PfG achievement - replacement demand implications Catch up “convergence” scenario Net requirem ent Indicative from 'education' education and requirem ent m igrants Expansion dem and Gross replacem ent dem and Total returnees Corporate Managers Managers & Proprietors in Agriculture & Services Science & Technology Professionals Health Professionals Teaching & Research Professionals Business & Public Service Professionals Science & Technology Associate Professionals Health & Social Welfare Associate Professionals Protective Service Occupations Culture, Media & Sports Occupations Business & Public Service Associate Professionals Administrative Occupations Secretarial & Related Occupations Skilled Agricultural Trades Skilled Metal & Electrical Trades Skilled Construction & Building Trades Textiles, Printing & Other Skilled Trades Caring Personal Service Occupations Leisure & Other Personal Service Occupations Sales Occupations Customer Service Occupations Process, Plant & Machine Operatives Transport & Mobile Machine Drivers & Operatives Elementary Trades, Plant & Storage Related Occupations Elementary Administration & Service Occupations Whole econom y 32.0 2.3 9.5 1.7 2.3 9.8 0.5 4.1 -0.5 3.4 8.7 -4.7 -5.6 1.1 -5.7 3.7 -1.6 14.0 -0.1 4.1 1.5 -8.1 1.3 -4.5 5.7 75.0 44.0 15.4 11.0 2.6 23.7 15.0 2.8 13.6 4.0 1.9 22.0 63.8 11.4 8.8 30.2 43.6 12.2 48.5 27.2 63.9 4.2 62.7 22.3 35.9 100.3 691.2 16.6 5.9 12.4 1.1 13.2 12.3 8.2 20.7 0.0 5.9 15.8 42.3 12.5 4.1 21.9 29.2 15.0 37.0 14.5 72.7 2.6 27.9 19.3 23.8 62.1 497.0 59.4 11.7 8.1 3.3 12.8 12.5 -4.8 -3.0 3.4 -0.5 14.9 16.8 -6.7 5.9 2.6 18.2 -4.4 25.4 12.6 -4.7 3.1 26.8 4.2 7.6 43.9 269.1 59.4 11.7 8.1 3.3 12.8 12.5 -4.8 -4.8 3.4 -0.5 13.1 16.8 -6.7 5.9 -3.5 16.6 -7.5 20.5 7.5 -4.7 2.8 14.0 2.6 1.5 27.4 207.4 Whole economy (annual average) 6.2 57.6 41.4 22.4 17.3 2008-2020 PfG achievement - skills implications Restructuring “convergence” scenario NVQ Level 0 Other qualifications NVQ Level 1 NVQ Level 2 NVQ Level 3 NVQ Level 4 NVQ Level 5 Whole econom y (annual average) Gross replacem ent dem and (000s, 2008-2020) Indicative 'education' requirem ent (000s, 2008-2020) 205 28 43 130 132 108 30 56 23 5 5 26 42 54 16 14 PfG achievement - skills implications Catch up “convergence” scenario NVQ Level 0 Other qualifications NVQ Level 1 NVQ Level 2 NVQ Level 3 NVQ Level 4 NVQ Level 5 Whole econom y (annual average) Gross replacem ent dem and (000s, 2008-2020) Indicative 'education' requirem ent (000s, 2008-2020) 211 28 45 133 134 108 30 57 37 7 8 33 50 55 16 17 PfG achievement - indicative graduate subject implications Restructuring “convergence” scenario Medicine & dentistry Subjects allied to medicine Biological sciences Veterinary science Agriculture & related subjects Physical sciences Mathematical sciences Computer science Engineering & technology Architecture, building & planning Social studies Law Business & administrative studies Mass communications and documentation Languages Historical and philosophical studies Creative arts & design Education Combined Total Whole econom y (annual average) Indicative 'education' graduate requirem ent (000s, 2008-2020) % total 1.4 -1.0 2.8 0.0 0.6 1.0 0.3 2.1 2.8 2.3 4.9 2.0 35.1 0.4 0.9 0.7 1.0 12.8 0.2 70.3 5.9 2% -1% 4% 0% 1% 1% 0% 3% 4% 3% 7% 3% 50% 1% 1% 1% 1% 18% 0% 100% - PfG achievement - indicative graduate subject implications Catch up “convergence” scenario Medicine & dentistry Subjects allied to medicine Biological sciences Veterinary science Agriculture & related subjects Physical sciences Mathematical sciences Computer science Engineering & technology Architecture, building & planning Social studies Law Business & administrative studies Mass communications and documentation Languages Historical and philosophical studies Creative arts & design Education Combined Total Whole econom y (annual average) Indicative 'education' graduate requirem ent (000s, 2008-2020) % total 1.4 -0.4 3.2 0.0 0.7 1.1 0.3 1.9 2.4 2.2 5.5 2.2 33.2 0.5 1.1 1.0 1.4 12.8 0.2 70.9 5.9 2% -1% 5% 0% 1% 2% 0% 3% 3% 3% 8% 3% 47% 1% 2% 1% 2% 18% 0% 100% -