Transcript Assessing skills and training needs in the UK

Assessing employer
skills and training
needs in the UK
JORNADA HISPANO BRITANICA SOBRE
FORMACIÓN PARA EL EMPLEO
Fundación Tripartita, Madrid, 23 May 2013
Genna Kik
Senior Manager, UKCES
Outline
Introducing the UK Commission for Employment and Skills
Overview of the UK skills context
A framework for assessing skills needs
Understanding skills demand
LMI for All
Close
2
About the
for Employment
About
theUK
UKCommission
Commission
for
and Skills
Employment and Skills
Aim: Transform the UK’s approach to investing in the skills of people as an
intrinsic part of securing jobs and growth
Impact
Maximise the impact of employment and skills policies and
employer behaviour to support jobs and growth
Investment
Work with businesses to leverage greater investment in skills
Intelligence
More employers
investing in the
skills of their people
Provide outstanding labour market intelligence which helps
businesses and people make the best choices for them
More career
opportunities for
young people
More collective action
by employers through
stronger sectors and
local networks
More employers
taking ownership of
skills
Five assets and 100 staff to deliver on outcomes
Commissioners
4
Skills play a vital role in performance
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
Skills have a role to play in raising future UK
performance
Our global performance is NOT world class and is falling
Source: OECD Employment Outlook 2011 and OECD Productivity Database 2010
Unless we transform the way we work, our
workforce will not be world class
The UK especially needs to address the long tail of individuals with low skills
Projected UK ranking for 2020, out of 33 OECD countries
th
25
st
21
26th
25th
11th
13th
Low Skills
Intermediate Skills
High Skills
Fall in
ranking
Source: UK Commission projections
Fall in
ranking
Improved
ranking
Supporting the challenge:
The role of the UK Commission’s Research
Key resources for decision-makers
Employer Perspectives
Survey
15,000 interviews
To understand employer perspectives
of recruitment and young people
development
Young People
UK Commission’s
Employer Skills
Survey
87,500 interviews
To understand employer investment
and skills challenges
Apprenticeships
Work placements
Working Futures
850,000 time series extrapolations
To understand labour market prospects
for next ten years
Input to careers and skills advice
Monitor employer investment
Assess employer skills needs
Inform policymakers at national & local
levels
Inform curriculum strategies
Understand recruitment
practices
Assessing Skills and Training Needs
Underpinning data
Overarching analysis
Outward facing products
Employer
Skills
Survey
Strategic
LMI
LMI for
All
Working
Futures
National
Strategic
Skills
Audit
Sector
Insights
EPS
Ambition
2020
Almanac
SSAs
Example: The Strategic Skills Audit 2010
Comprehensive approach to assessing skills needs
To provide a systematic overview of England’s current and
future strategic skills needs to inform:
Government
and key
Agencies
Education and
Training
Providers
Employers,
Individuals and
key
Intermediaries
To identify priority sectors, occupations and skills needs, in
order to:
 provide a sense of direction to enable people and providers to
better understand and anticipate skill needs;
 encourage more informed choices and decisions and thus better
align behaviours with desirable outcomes;
 inform future investment strategies
The Structure of the Audit
Employment:
jobs and skills
Skills (mis)matches
Drivers of change
• Projections
• Significant
sectors and their
skill deficiencies
• Emerging
sectors
• Cluster and SSC
studies
Key sectors
Key occupations
Priorities for action
• Projections
• Cluster and SSC
studies
Identifying Priorities
Strategic Skills Audit (2010)
1
Hotels and restaurants
Transport equipment
Agriculture etc.
0.9
Textiles etc.
Vehicle maintenance
Computing
0.8
Food and drink
0.7
Retail trade
Skills deficits
Wood, pulp, etc.
ConstructionElectricity, gas and
water
Miscellaneous services
0.6
Publishing etc.
0.5
Machinery etc.
Metals etc.
0.4
Health and social care
Wholesale trade
Mining etc.
Manufacturing (other)
Transport
Chemicals etc.
0.3
Real estate etc.
Financial services
Post and telecoms Business services
0.2
Education
0.1
Public administration
0
0
0.1
0.2
0.3
0.4
0.5
0.6
Economic significance
0.7
0.8
0.9
1
Skills Audit Priorities(2010)
Priority RED
High priority skill needs with scale and/or long lead time –
for immediate action
Occupation and/or skills
Level
Key sectors, industries or specialisation
Corporate Managers across
many sectors
4+
Retail, business services, computing, digital media, finance and
professional services, health and social care, education, public
administration and hospitality
Managers and professionals
with computing and
software skills
4+
Especially in harnessing the potential of new media, effectively
delivering multi-platform content, successful operation of networks,
exploitation of broader ICTs in manufacturing , and in the service
sectors
Health and social care
professionals
4+
Medical specialisms such as audiological medicine, genitourinary
medicine, haematology, paediatric surgery
Pharmacists
Qualified social workers
Science and technology
professionals
4+
Pharmaceutical and medical technology industries
Traditional and advanced manufacturing
Low carbon and environmental sciences
- with a wide range of specialisms including biology, chemistry,
physics, mathematics and statistics
Teaching and research
professionals
4+
Across further and higher education, especially teacher educators.
Major requirements in all science, technology, engineering and maths
areas, and an emerging need for multi-disciplinary teachers and
researchers across scientific, technical and business areas
What is the story?
Understanding Skills Demand
Significant training investment but long term decline in
training levels
World class performers but are employers investing
wisely?
Strong sector, size and spatial variations, and
structural trends in local labour markets
National picture conceals underlying trends and
persistent concentrated pockets of skill deficiencies
which impact on business performance
We need a new approach to investing in skills...
How can we improve partnerships to ensure future
investment really adds value?
Are businesses investing wisely in
skills?
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 holding up despite the recession overall. But with 44% of businesses wanting
to train or to train more, how do we support this?
What are the messages?
Employers report significant investment sums.
How much training is high quality?
Across the UK,
is spent on training, however:
Half of this (£24.7 bn) is
direct costs of training and only
£2.8 bn was counted as fees to
external providers for courses
Of The
employees
training
towards
other half
(£24.3bn)
is
a qualification
the wages
of those being
Areas for challenge
trained
Is this a reflection on the quality of existing training and qualifications?
Areas forsimply
challenge
Or do current qualifications
not fit business needs?
What balance of investment is right?
Direct investment in training is key. But where employers provide learning
opportunities through high quality jobs, labour costs are important too?
Source: UK Commission’s Employer Skills Survey (2011)
What are the messages?
Sectors matter
When we look at investment in training by
sector there is considerable variation:
85%
Health & Social
Care
69%
Energy
57%
Manufacturing
53%
Construction
52%
Digital &
Creative
Source: UK Commission’s Employer Skills Survey (2011)
UK Average
59%
What are the messages?
Geography matters
Vast amount of data available Example: Proportion of businesses training by
to a very low geographical
local education authority in London (%)
level.
Trends
Welsh
Variance by nation less than
within nation (although Scotland
businesses
A slightly
trains more than the rest of UK)
spend
higher
proportionately
proportion of
lessemployers
per trainee
in
than
the resttrain
of
Scotland
the
UK
their
staff
compared to
the rest of the
UK
KEY:
Source: UK Commission’s Employer Skills Survey (2011)
47-52%
53-58%
59-63%
63-67%
What are the messages?
Size matters
Smaller establishments also:
• Spend less overall and train
less overall than large
employers
• Where they do train they
spend more per employee
• Have higher training
management costs
• Provide more on the job
training
• Less likely to train towards a
qualification
Source: UK Commission’s Employer Skills Survey (2011)
Incidence of training over the last
12 months by workplace size
A single market for skills?
External training Offered:
47% of all establishments
Sources of external training
27%
internal only
UK
36%
provide both
11%
external only
Internal training Offered:
63% of all establishments
Source: UK Commission’s Employer Perspectives Survey (2012)
Any private
40
Commercial
35
Third sector
11
Any public
14
FE College
12
HEI
6
Which partners are key?
UK Commission’s Employer Perspectives Survey (2012)
Skill deficiencies
Across England
skills deficiencies
are not universal
(20% of
establishments
have them) BUT
are concentrated
and persistent
and employers
report significant
impacts.
Source: UK Commission’s Employer Skills Survey (2011)
For example, Skilled
trades occupations
experience a
persistent
concentration of skill
shortage vacancies
(33% of all vacancies
caused by skill
shortages in 2011).
Majority of businesses
facing skill deficiencies
say it impacts on the
way their business
functions, issues cited
include:
• Increased workload
for other staff
• Delays developing
new products and
services
• Losing business to
competitors
Where will the growth come from?
Projected UK employment change by sector (000s) between 2010-202
Sector
Change
(‘000s)
Manufacturing
-170
Non-market Services
-103
Primary Sector & Utilities
-22
Construction
237
Trade accommodation &
transport
415
Business & other services
Source: Working Futures (2011)
1,195
Private services expected to be
the main engine of job growth
(2010-2020)
Where will future jobs come from?
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
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@UKCES