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South West
Observatory
Skills and Learning
Intelligence Module
South West Regional Skills Partnership
Proposed Gap Analysis
Chris Evans, Director
SLIM
www.swslim.org.uk
South West
Observatory
Skills and Learning
Intelligence Module
Level 3 Review
Part of the Healthy Labour Market Review – Thematic
Review
 Government has charged RSPs with:
– Agreeing level 3 priorities
– Identifying LCS, RDA, European and other budgets
to support level 3 programmes to focus on priority
areas
– Seeking funding contributions from employers

www.swslim.org.uk
South West
Observatory
Skills and Learning
Intelligence Module
2005 Skills Strategy
“We must substantially raise our ambition for the number of people
who gain Level 3 skills and qualifications. By 2012, some two thirds of
all jobs (both new and existing) are expected to require qualifications at
Level 3 or higher. Some of our most pronounced skills gaps relative to
France and Germany are in the crucial category of technician,
advanced craft, skilled trade and associate professional skills requiring
Level 3 qualifications. That is constraining growth in productivity. For
many people, qualifications at Level 3 represent the way to a better
standard of living through gaining highly marketable occupational
skills. We will determine, in the light of the review by Lord Leitch, what
ambition we should set for the future proportion of young people and
adults achieving Level 3 qualifications”.
www.swslim.org.uk
South West
Observatory
Skills and Learning
Intelligence Module
Current Level 3 needs

NESS 2005 shows that sectors experiencing skills
shortages are retail; hospitality; construction; engineering;
and, social care.

There is a concentration, as a proportion of employment
and vacancies, of skill shortages amongst technical, craft
and operative/driver staff in production industries,
manufacturing and transport.
www.swslim.org.uk
South West
Observatory
Skills and Learning
Intelligence Module
Hard to fill and skills shortage vacancies
17
Managers
3
4
10
Professionals
6
9
7
Technical
11
13
13
Admin./Clerical
8
8
Jobs
9
Craft
21
HtFVs
26
SSVs
7
Personal services
11
12
15
Sales
9
12
7
Operatives
9
13
14
Elementary staff
18
7
0
5
10
15
20
25
www.swslim.org.uk
30
South West
Observatory
Skills and Learning
Intelligence Module
Policy Response
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Level 3 policy objectives are squeezed between a focus on
increasing the numbers of entrants to Higher Education
and a concentration of funds for basic skills and level 2
qualifications.
A persistence of the higher status accorded to academic
routes to higher levels of education over vocational
options.
A reliance on voluntarism to achieve policy objectives.
Reluctance on the part of employers to pay for and of
individuals in the workforce to take up level 3 qualifications.
Extensive sectoral variation.
www.swslim.org.uk
South West
Observatory
Skills and Learning
Intelligence Module
Next steps
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Review Level 3 data – demand and supply
Run regional analysis of the Leitch Review Models
Analyse Policy Response
Analyse wider literature
Debate – through the Learning Theme
Interim working papers
Final Report - December
www.swslim.org.uk
Gap Analysis
South West
Observatory
Skills and Learning
Intelligence Module

Where is the employer demand for skills and
where are the skills gaps? This will look at
current and future demand.

Where are the policies and funding of the key
agencies targeted in terms of being able to
plan for or respond to these needs?

Where do the gaps lie and what actions are
needed on the part of the RSP to fill them?
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Skills Gaps
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South West
Observatory
Skills and Learning
Intelligence Module
International, national or inter-regional
comparisons, focusing on where the South West
compares poorly
Expected future changes, identifying key growth
areas and replacement needs – these are areas
where supply will need to be focused to keep pace
with expected future needs.
Market signals, such as rates of pay and rates of
return, which reflect the balance between supply
and demand.
Employers’ perceptions, including recruitment
problems and internal skill gaps – these indicate
those areas where there are the most significant
current skill deficiencies and shortages.
www.swslim.org.uk
South West
Observatory
Skills and Learning
Intelligence Module
Regional priorities
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The analysis will look at priorities and planned
activities of the various strategic partners in the
region. Where are their efforts being focused in
relation to current and future skills needs? We will
therefore be reviewing the plans and targets of
the key partners:
LSC
RDA
HEFCE
Jobcentre Plus
Business Link
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South West
Observatory
Skills and Learning
Intelligence Module
Next Steps
– Confirm the parameters and the methodology
of the gap analysis
– Commission work where necessary
– Progress Report
–
– Interim Report – to be available for December.
– Final Report - presented to Board in January
2007 and to RSP Conference – presentation of
findings.
www.swslim.org.uk
South West
Observatory
Skills and Learning
Intelligence Module
Discussion
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Qualifications are a proxy for skills, but the issue of generic
skills are important. How should we recognise this within
the analysis?
We are proposing to cover the issue of skills utilisation how people deploy their skills within the workplace - is this
something that the Board has views about?
Whilst we know a good deal about public funding of skills,
we know little about employer contributions? How do we
reconcile this issue in the overall analysis?
Whilst the review will look at the data on employer demand,
how do we involve stakeholders, particularly employers in a
debate about regional needs and priorities?
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