because people matter june 26 th, 2006 philip roe bmg research because people matter the national...
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Because People Matter
June 26June 26thth, 2006, 2006
Philip RoePhilip RoeBMG ResearchBMG Research
Because People MatterBecause People Matter
The National Employer Skills The National Employer Skills SurveySurvey20052005
Main findings for the South West RegionMain findings for the South West Region
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Main survey themesMain survey themes
• Demand for skills – vacancies
• Availability of skills – recruitment difficulty, skill shortages, and skill gaps
• Recruitment of young people
• Workforce development by employers
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Demand for skills - vacanciesDemand for skills - vacancies
• 17% of SW employers had a vacancy at time of survey
• 2.9% of SW jobs were vacant
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Vacancy concentrationsVacancy concentrations
SECTORSRetail, hospitality, financial services, construction, care
SIZE OF ESTABLISHMENT
Small establishments (<25 jobs) have 53% of vacancies but only a third of employment
LOCATIONNo great variation but marginally higher in West of England
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Occupational biasOccupational bias• Intermediate and lower, not managerial/professional….
14
7
15
7
9
13
7
10
17
15
11
16
9
10
12
16
7
5
0 2 4 6 8 10 12 14 16 18
Elementary staff
Operatives
Sales
Personal services
Craft
Admin./Clerical
Technical
Professionals
Managers
Vacancies
Jobs
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‘‘High intensity’ vacanciesHigh intensity’ vacancies
• Skilled trades and operators in engineering, general manufacturing, construction, food processing, and garages
• Sales staff in the retail sector
• Low grade staff in hospitality
• Care workers
• Technical staff in financial services and IT sector
• Teachers
• Nurses and technical staff in the health sector
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Recruitment difficultyRecruitment difficulty
• Under a third of all vacancies in the South West (31%) were hard-to-fill
• 55% of these were hard-to-fill for ‘skill shortage reasons’ – applicants lack required skills, experience, and/or qualifications
• Overall, 18% of vacancies were ‘skill shortage’ vacancies
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Relation of recruitment difficulty Relation of recruitment difficulty to occupationsto occupations
7
13
9
11
26
8
13
9
4
18
9
12
12
21
8
11
6
3
14
7
15
7
9
13
7
10
17
0 5 10 15 20 25 30
Elementary staff
Operatives
Sales
Personal services
Craft
Admin./Clerical
Technical
Professionals
Managers
Jobs
HtFVs
SSVs
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Top ten ‘hard-to-fill’ and ‘skill Top ten ‘hard-to-fill’ and ‘skill shortage’ vacanciesshortage’ vacancies
Hard-to-fillLow skill hospitality staffSkilled construction tradesSales staff in retailCare assistantsChefsAdmin/clerical in financial servicesGarage mechanicsSkilled engineering tradesSkilled retail trades (butchers, bakers, etc.)Skilled land-based workers
Skill shortageSkilled construction tradesChefsCare assistantsGarage mechanicsBus driversAdmin/clerical in financial servicesSkilled land-based workersSkilled retail tradesCivil engineersHGV drivers
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Trends in vacancies and Trends in vacancies and recruitment difficulties, 2003-recruitment difficulties, 2003-20052005
South West England
Vacancies - 16% - 16%
Hard-to-fill vacancies
- 44% - 25%
Skill shortage vacancies
- 14% + 6%
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South West compared with South West compared with England, 2005England, 2005
South West England
Vacancies as % of employment
2.9 2.7
Hard-to-fill vacancies as % of vacancies
31 35
Skill shortage vacancies as % of hard-to-fill vacancies
57 70
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Broad labour market changes in Broad labour market changes in South West, 2003-2005South West, 2003-2005
Employment Net growth of 20,000 jobs or less.
Employment rate Stayed constant.
Net migration Added around 30,000 or so workers to the stock of workers in the region.
Vacancy rates Fell from 3.6% to 2.9% of employment.
Hard-to-fill vacancies
Fell from 47% to 31% of vacancies.
Skill shortage vacancies
Fell in terms of absolute numbers by 14% but rose as a proportion of hard-to-fill vacancies (because the number of the vacancies which were hard to fill for reasons other than skill shortage fell proportionately faster than skill shortage vacancies).
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Skills gapsSkills gaps
2003 2005
SW England SW England
% of establishments with skills gaps
23 22 15 16
Skills gaps as % of employment
10 11 5 6
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Location of skill gapsLocation of skill gaps
• 108,000 people in SW identified as not fully proficient
• A third of total in retail and hospitality
• Construction, engineering and care next highest sectors
• Fairly evenly distributed across different sizes of establishment
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Skills gaps in relation to Skills gaps in relation to occupationsoccupations
14
7
15
7
9
13
7
7
17
21
7
25
6
9
11
3
8
11
0 5 10 15 20 25 30
Elementary staff
Operatives
Sales
Personal services
Craft
Admin./Clerical
Technical
Professionals
Managers
Skills gaps
Employment
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Recruitment of young peopleRecruitment of young people
• Percent of employers recruiting….
South West England
16 year old school leaver
9 7
17-18 school/ College leaver
12 11
New graduate 9 9
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Prepared for work?Prepared for work?
• Percent of recruiting employers saying poor or very poorly prepared for work….
16 year olds 24%
17-18 year olds 19%
New graduates 10%
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Why?Why?
16 year olds 17-18 year olds New graduates
Lack motivation/ work ethic
Lack of life/work experience
Poor education/ general knowledge
Lack motivation/ work ethic
Lack of job-specific skills
Lack of life/work experience
Lack motivation/ work ethic
Lack of business/ practical experience
Lack of job-specific skills
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Training by employersTraining by employers
• Percent of employers supplying training….
• Percent of employees trained is the same for SW and England – 35% off-the-job, 50% on-the-job (not additive)
2003 2005
South West 62% 65%
England 59% 65%
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Pattern of trainingPattern of training
Below average % of off-the-job training
Above average % of off-the-job training
Below average % of on-the-job training
Lantra Cogent Proskills Improve Skillfast-UK SEMTA Construction Skills SummitSkills Automotive Skills Goskills e-skills Skillset Creative and Cultural Skills
Above average % of on-the-job training
Skillsmart Retail People 1st
Energy and Utility Skills Financial Services Skills Asset Skills Government Skills Skills for Justice Lifelong Learning UK Skills for Health Skills for Care and Development SkillsActive
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Who gets trained and how?Who gets trained and how?
43
46
52
66
41
41
55
52
31
25
31
31
62
36
29
49
55
27
0 10 20 30 40 50 60 70
Elementary
Machineoperatives
Sales
Personalservices
Crafts
Admin./Clerical
Technical
Professionals
Managers
Off-the-job
On-the-job
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Use of Further Education Use of Further Education CollegesColleges• Fewer employers which supply training
used FE Colleges in 2005 than in 2003 (30% down from 33%)
• More users satisfied with provision
• But….
– More significant dissatisfaction with construction and vehicle maintenance courses
– Twice as many employers use private providers
– Levels of satisfaction with private providers higher than for FE
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Overview: lessening of pressure Overview: lessening of pressure on skillson skills
• Slowing of growth, in-migration, and skills development combining to reduce pressure on skills
• An opportunity to concentrate on improvements in supply in key area….
• Which is technical/practical skills in construction, manufacturing, catering, retail
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Overview: within-region Overview: within-region disparitiesdisparities
• Evidence of weaker labour markets in South and West of the region….
– More vacancies
– Less training
– More recruits seen as de-motivated
• Supports the need for regional policy focus in least prosperous sub-regions
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Overview: support to SMEsOverview: support to SMEs
• Small employers (with fewer than 25 staff)
– Have disproportionate numbers of vacancies, hard-to-fill vacancies, and skill shortage vacancies
– More frequently see young recruits as ill-prepared for work
– More likely to say that skills problems cause loss of business
– Less likely to train staff
• Supports the need for policy focus on small ‘hard to reach’ businesses
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Overview: Further EducationOverview: Further Education
• Some negative messages on FE….
– Falling proportion of training employers using FE
– Significant dissatisfaction in some sectors
– 1 in 5 employers recruiting a 17-18 year old are dissatisfied with them
– Half of training employers say FE courses are not relevant
• Supports policy to make FE provision more clearly ‘demand-led’
Because People MatterBecause People MatterBecause People Matter
For further information, please contact:Philip Roe, Account Director
Tel No : 0121-333-6006E-mail : [email protected]