Assessing employer skills and training needs in the UKJORNADA HISPANO BRITANICA SOBRE FORMACIÓN PARA EL EMPLEOFundación Tripartita, Madrid, 23 May 2013
Genna KikSenior Manager, UKCES
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Overview of the UK skills context
Close
Introducing the UK Commission for Employment and Skills
A framework for assessing skills needs
Understanding skills demand
LMI for All
Outline
About the UK Commission for Employment and Skills
More employers investing in the
skills of their people
More employers taking ownership of
skills
More career opportunities for
young people
More collective action by employers through stronger sectors and
local networks
Provide outstanding labour market intelligence which helps businesses and people make the best choices for them
Maximise the impact of employment and skills policies and employer behaviour to support jobs and growth
Work with businesses to leverage greater investment in skills
Aim: Transform the UK’s approach to investing in the skills of people as an intrinsic part of securing jobs and growth
Five assets and 100 staff to deliver on outcomes
About the UK Commission for Employment and Skills
Commissioners
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Skills play a vital role in performanceFirms in the UK that don’t invest in training, are on average...
Twice as likely to failAnd this varies by sector...
Manufacturing
Construction
Hotels and Restaurants
Retail and Wholesale
Transport and Comms
Likelihood of business failure2x
2x
2x
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
Low Skills Intermediate Skills High Skills
21st 25th 13th
25th 26th 11th
Source: UK Commission projections
Projected UK ranking for 2020, out of 33 OECD countries
Fall in ranking
Fall in ranking
Improved
ranking
Supporting the challenge:The role of the UK Commission’s Research
Key resources for decision-makers
UK Commission’s
Employer Skills Survey87,500 interviews
To understand employer investment and skills challenges
Monitor employer investment
Assess employer skills needs
Understand recruitment practices
Working Futures
850,000 time series extrapolations
To understand labour market prospects for next ten years
Input to careers and skills advice
Inform policymakers at national & local levels
Inform curriculum strategies
Employer Perspectives
Survey15,000 interviews
To understand employer perspectives of recruitment and
young people development
Young People
Apprenticeships
Work placements
Assessing Skills and Training Needs
Employer Skills Survey
Working Futures
Almanac
EPS
Strategic LMI
Ambition 2020
National Strategic Skills Audit
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Sector Insights
Underpinning data Overarching analysis Outward facing products
SSAs
Example: The Strategic Skills Audit 2010 Comprehensive approach to assessing skills needsTo provide a systematic overview of England’s current
and future strategic skills needs to inform:
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
Government and key Agencies
Education and Training
Providers
Employers, Individuals
and key Intermediari
es
The Structure of the Audit
Employment:jobs and skills
Skills (mis)matches
Drivers of change
Priorities for action
• Projections• Significant
sectors and their skill
deficiencies• Emerging
sectors• Cluster and
SSC studies
• Projections• Cluster and
SSC studies
Identifying Priorities Strategic Skills Audit (2010)
Skills Audit Priorities(2010)
Priority REDHigh priority skill needs with scale and/or long lead time – for immediate actionOccupation 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 surgeryPharmacistsQualified social workers
Science and technology professionals
4+ Pharmaceutical and medical technology industriesTraditional and advanced manufacturingLow 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?
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...
Strong sector, size and spatial variations, and
structural trends in local labour markets
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)
41% do not train(0.9 million)
Of those who do train:
23%(0.5 ml)
29%(0.6 ml)
8%(0.2 ml)
Do not knowif they want to
do more
Would like to do more
training
Do sufficienttraining to
meet needs
26%(0.6 ml)
15%(0.3 ml)
No trainingneed
Perceived need but met
barriers
Of those who do not train:
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
The other half (£24.3bn) is the wages of those being
trained
Areas for challengeWhat 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?
Of employees training towards a qualification
Areas for challengeIs this a reflection on the quality of existing training and qualifications?
Or do current qualifications simply not fit business needs?
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
UK Average59%
Source: UK Commission’s Employer Skills Survey (2011)
What are the messages?Geography matters
Vast amount of data available to a very low geographical
level.
Trends
Variance by nation less than within nation (although Scotland trains more than the rest of UK)
A slightly higher
proportion of employers in Scotland train
their staff compared to
the rest of the UK
Welsh businesses
spend proportionately less per trainee than the rest of
the UK
Example: Proportion of businesses training by local education authority in London (%)
47-52% 53-58% 59-63% 63-67%KEY:Source: UK Commission’s Employer Skills Survey
(2011)
What are the messages?Size matters
Incidence of training over the last 12 months by workplace size
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)
Internal training Offered:
63% of all establishments
27% internal only
36% provide both
11% external only
Source: UK Commission’s Employer Perspectives Survey (2012)
External training Offered:
47% of all establishments
A single market for skills?
Sources of external training
UK
Any private 40
Commercial 35
Third sector 11
Any public 14
FE College 12
HEI 6
UK Commission’s Employer Perspectives Survey (2012)
Which partners are key?
Skill deficiencies
For example, Skilled trades occupations
experience a persistent
concentration of skill shortage
vacancies (33% of all vacancies
caused by skill shortages in 2011).
Across England skills
deficiencies are not universal
(20% of establishments
have them) BUT are
concentrated and persistent and employers
report significant impacts.
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
Source: UK Commission’s Employer Skills Survey (2011)
Where will the growth come from?Projected UK employment change by sector (000s) between
2010-202Change(‘000s)
-170
-103
-22
237
415
1,195
Sector
Manufacturing
Non-market Services
Primary Sector & Utilities
Construction
Trade accommodation & transport
Business & other services
Private services expected to be the main engine of job growth
(2010-2020)
Source: Working Futures (2011)
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
Net Job Openings
(‘000s)Occupation
Managers
Professional
Associate Professional
Admin & Secretarial
Skilled trades
Caring, Leisure etc
Sales
Operatives
Elementary
1,850
3,184
2,000
1,309
1,153
1,457
939
633
1,344
Projected UK Job Openings 2010-2020
Replacement DemandNet job growthSource: Working
Futures
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