There is an urgent need to raise UK skills levels to help drive productivity, growth and jobs. The skills and capabilities of our people are ultimately.

“There is an urgent need to raise UK skills levels to help drive productivity, growth and jobs.”

“The skills and capabilities of our people are ultimately the

basis for our long-term competitiveness.”

Vince Cable, Secretary of State for Business, Innovation

and Skills

Charlie Mayfield, Chairman, UK Commission for Employment and Skills

The case for investing in skills: Employer ownership and Apprenticeships

Our Commissioners:

FE, HE and Careers

About us: 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 outcomes3

Key LMI resources from the UK Commission

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

Future jobs market: which sectors?

Projected UK employment change by sector (000s) between 2010-2020

(Source: Working Futures)

Change(‘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)

Future jobs market: which occupations?

Most net job creation (2010-2020) expected in high level occupations, but job openings expected in all occupations due to replacement demands

Net Job Openings(‘000s)

Occupation

Managers

Professional

Associate Professional

Admin & Secretarial

Skilled trades

Caring, Leisure etc

Sales

Operatives

Elementary

1,614

2,726

1,742

1,106

930

1,256

779

535

1,117

Projected England Job Openings 2010-2020(Source: Working Futures)

Replacement DemandJob Creation

Future job market: which regions?

While growth will occur almost everywhere, the north-south divide will continue to be exacerbated.

Projected change in total employment across the UK: 2010-2020

6-8%

4-6%

2-4%

0-2%

There are 2.3 million businesses in the UK with 1+ staff...

59% train(1.3 million)

41% do not train(0.9 million)

Of those who do not train:

26%Said they had no training needs

15% Perceived need but met barriers**Also includes small proportion of businesses that

said ‘don’t know’ or ‘no reason’, or that ‘people learnt as they went’

Barriers cited include:

Time

Lack of information

£Cost

…of which:

Training in the UK

Training raises businesses survival and performance rates

Employers who do not train, on average, are twice as likely to fail, opposed to those that do...

The consequences of not training...

Sectors we want to be famous for - industry strategy

Industry strategy sectors to focus on:

•advanced manufacturing including aerospace, automotive and life sciences•knowledge intensive services including higher education, creative industries and professional services•enabling sectors, such as information economy, construction, energy, including green energy

Why ‘employer ownership’?

The skills system: two decades of reform

Less globally competitive: ‘system’ is too complexTwo markets for skills developmentA lack of alignment

Employers need to own the skills agenda

Employer ownership: aim

Businesses working together to deliver game-changing, sustainable ways to improve skills in the workforce to drive productivity and growth.

“By giving businesses the chance to shape and set their own training agenda, we’re giving them the power to enrich their workforce with the skills needed for their future success."

Matthew Hancock,Minister for SkillsBusiness, Innovation and Skills

Employer ownership – key facts (funding)

Two funding rounds – round 1 complete

Total value - £340 million (£90 million added)Around £240 million availableAvailable to financial year 2015 - 2016

Round 2 – open for business

The Pilot project started a year ago to test the vision

* Subject to final due diligence checks

Total funding: £165 million

Progress to date

Received 269 bids

Employers invested: £98 million

Employer Ownership Fund invested: £67 million

Invested in 35 projects*

Investments will fund:

Planned impact to date

45,000 other learning or training opportunities; including work experience and work

placement opportunities

18,500 full time non-apprenticeship training opportunities

11,000 Apprenticeships; including 4500 at age 16 - 18

Employer leadership

Key features to date

Strong employee and employer partnerships

Support and opportunities for young people

Innovative proposals

Collaborative approaches

Case study: Arla Foods

A collaborative project between natural competitors to design and deliver the training the industry needs

Transforming skills in the UK Dairy Industry

Objectives:

• 280 new Apprenticeships (Level 2 - 4)

• 6300 non-Apprenticeship Qualification based training

• 1350 other training opportunities, not leading to a qualification

Funding requested: £2 millionEmployer contribution: £2.5 million

An innovative employer collaboration to tackle skills challenges in the industry.

Case study: Construction Employers

Objectives:

• Introduce a new work experience programme for 1,998 individuals.

• Creating 709 apprenticeships in areas of skills shortage

• Delivering 24,686 skills training interventions to up-skill the workforce.

Funding requested: £8 million

Employer contribution: £8 million

Construction skills for growth

Employer ownership of skills

Extending the ambition

Nurture greater employer and college collaboration

Public investment in work based training to incentivise direct employer investment

Strong employer-led partnerships

The next phase

Proposals which will enable employers to improve the skills of their current and future workforce

Industrial partnerships with genuine employer leadership and governance, and end-to-end responsibility for skills

Apprenticeships and other training/development opportunities

Small and medium sized enterprises

And the skills solutions

Training and skills development to help people into work

Collaboration between employers, colleges and training providers

Productivity and growth driven by improved skills, supported by strong collaboration between employers, trade unions and providers

More private investment in skills

So what are we looking for now?

Responsive colleges and training providers working with employers

Better quality and robust apprenticeships, traineeships and vocational provision

Close work with the British Council in India, China and other countries – education as an export

Participation in and research for the OECD relating to standards, apprenticeships and qualifications

And what about our international work?

Alignment of qualifications systems to support mobility across Europe (EQF)

International best practice – national occupational standards, apprenticeships and qualifications

If you would like to hear more please contact:

[email protected]

07825 522479

www.ukces.org.uk

Thank you very much for listening

Alison Morris, Senior Manager, UKCES