Graduate ‘brain drain’ – is regional economic growth the solution?

college graduates groupBy Heather Cameron

With the economic performance of cities and regions increasingly reliant on the skills of their workforce, the longstanding issue of graduate ‘brain drain’ to London and the south is something that needs to be addressed.

Although students attend many of the universities spread across the country, a significant number of graduates flock towards the capital at the end of their studies. According to a recent report from Centre for Cities, this deprives other cities of skilled workers and essentially damages the overall economy.

The evidence

A quarter of all new graduates in 2014 and 2015 were found to have moved to work in London within the six months of finishing their degree. And the highest achievers make up a significant proportion. While London accounts for around 19% of all jobs, of the graduates that moved city six months after graduation London employed 22% of all working new graduates, and 38% of those with a first or upper second class degree from a Russell Group university.

Although most cities experience an overall graduate gain, cities outside London don’t retain the majority of students that move to their city to study – the ‘bouncers’ that drive the brain drain overall, overshadowing any gain:

  • Manchester lost 67% of these students upon graduation;
  • Birmingham lost 76%; and
  • Southampton lost 86%.

Other figures show that 310,000 graduates have left the north in the past decade, contributing to a net average deficit of 7,500 highly qualified workers leaving annually, or 75,500 over a decade.

Northern regions have to some extent offset the effect of local brain drain by attracting enough highly qualified foreign workers to fill the gap. But with reductions in immigration, these regions could be left lacking.

Given the UK’s current position regarding the EU, concerns have also been raised over whether Britain faces a further brain drain of academics to Europe, following Brexit. A recent survey highlighted that 42% of academics said they are more likely to consider leaving Britain after the vote to leave.

Why?

While it may seem plausible to assume that higher salaries are the reason for this brain drain, it appears that the main pull for graduates is the availability of jobs and career progression, which London’s vast labour market offers.

However, as recent research from Homes for the North has identified, these are not the only reasons. It highlights the importance of additional non-work drivers of graduate location decisions, including the cost and quality of housing, quality of local amenities and the prospect of home ownership.

Of the graduates polled, 80% said the quality of housing was important, while more than 60% said the cost of housing was important. The quality of green spaces and local amenities was also deemed important by over 60% of graduates.

What can be done to redress the balance?

There have been numerous graduate retention initiatives at the local and regional level aimed at tackling the uneven distribution of graduates, such as graduate wage subsidies and local graduate job matching.  But it seems little has improved. The Centre for Cities research argues that these alone will not tackle the root cause of the graduate brain drain.

It suggests that cities themselves have a vital role to play in ensuring the local job market offers an appropriate number of graduate job opportunities that will allow them to both retain graduates and attract graduates from elsewhere. Policy should therefore broaden its focus to improve local economies by investing in transport, housing and enterprise, rather than focusing solely on graduate retention and attraction policies.

The chief executive of the Centre for Cities commented that the government’s new economic and industrial strategy should be used to strengthen existing devolution deals for city-regions such as Greater Manchester, extending their scope to grow.

Indeed, the industrial strategy green paper, published in January, clearly places emphasis on addressing the economic imbalances across the UK through a number of measures, such as working with local areas to close the skills gap, including new schemes to support the retention and attraction of graduates. However, the strategy has been criticised for providing little clarity on how regional rebalancing and sectoral deals will work in practice.

Final thoughts

While it appears clear that cities outside London need to improve their graduate offer with better job prospects, the evidence on graduate migration suggests it is more complex than this.

As has been argued, the provision of good quality affordable housing could play a role alongside high-skilled job creation and opportunities. With the cost of living in London so expensive, this would make sense, particularly as the average graduate salary in London is not that much higher than the average across other UK cities.


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#BeBoldForChange and the changing world of work: International Women’s day 2017

As women across the world mark the 106th International Women’s Day (IWD17) they are being encouraged to think about their place in the “changing world of work.” Perhaps by coincidence, only a few days earlier toy giant Lego announced plans for it’s latest toy set based on “real life female scientists, engineers and astronauts”. The design was the winner of the latest “Lego ideas” competition and will feature prominent female scientists including Katherine Johnson, a mathematician and space scientist who worked with NASA and was recently featured in the Oscar nominated film Hidden Figures.

Despite attempts to raise the profiles of successful and prominent women in employment, research consistently highlights the persistence of the gender pay gap, albeit more prominent in some professions than others. The “motherhood penalty” still stagnates, or even cripples the careers of many women, and women are still not present in equal numbers in business or politics. Figures show that globally, women’s education, health and violence towards women is still worse than that of men, and that these factors affect their ability to participate fully in employment.

The scale of gender inequalities

A report published by the charity Engender ahead of IWD17 found that of the 3029 top leadership positions across business, politics, public sector, media, culture and sport in Scotland, only 27% of positions are held by women. The report found that, although women make up 52% of the population, they represent only:

  • 35% of Members of the Scottish Parliament
  • 7% of senior police officers
  • 20% of museum and gallery directors
  • 25% of local councillors
  • 16% of local authority leaders
  • 28% of public body chief executives
  • 26% of university principals

Previous research by Engender also found that women still do the majority of “invisible” work including housework, raising children and caring for vulnerable relatives. According to the 2011 census data, 62% of unpaid carers are women and the UK household satellite accounts found that the value of informal childcare in 2010 was £343 billion – equivalent to 23% of GDP. A report published by the Fawcett Society highlighted that inequalities also exists between women. The report found that the gender pay gap was even more exaggerated in black and ethnic minority (BAME) women than in other groups.

Women in Employment

The most recent employment figures for the UK showed that unemployment stood at 4.8%, the lowest level since 2005, and the proportion of women in work reached a record high of 70%. The latest PwC Women in Work Index measures levels of female economic empowerment across 33 OECD countries, based on five indicators. It reported that the UK had rapidly improved since 2000. However it also said that at the current rate of progress it will still take until 2041 to close the gender pay gap in the UK.

In short the picture is improving, but what exactly is being done to help women enter and remain in employment?

Supporting women into work

Supporting women into work was highlighted as a key policy objective for both the coalition and Conservative governments. A number of strategies have been considered to help different groups of women into employment:

  • Supporting women from disadvantaged backgrounds into employment – this includes women who have little to no formal education, victims of domestic violence, disabled women, and female offenders.
  • Supporting young women into traditionally “non female” roles – this includes encouraging young women and girls to take subjects at school and continue these onto university. It also means making apprenticeships open and inclusive, and marketable to everyone.
  • Supporting women to start up their own businesses – recent research highlighted that the annual revenue of women-led companies in the UK is growing at 28 per cent with an average turnover of £3.7 million. Potential support includes making women aware of specific funding they are entitled to, and helping them with the initial start up process. We’ve blogged before about female entrepreneurs if you want to know more.
  • Incentives and increased flexibility for women with children – For many women, the cost of childcare for young children means that working does not make financial sense for them. Employers have been taking steps to make working hours and conditions more flexible, some even providing crèche facilities or credits for childcare to staff to ease the pressure of childcare on working families. Changes to maternity and paternity leave also allow fathers to take a greater caring responsibility for new babies, and can help make the transition back to work easier for some families.
  • Supporting older women – this group has been identified as having been somewhat neglected by back-to- or entry-to-work schemes. Age related conditions, increasing caring responsibilities for elderly parents or grandchildren, and decisions to retrain or change careers can all impact significantly on the professional careers of older women.
  • Supporting women to progress – Women typically still make up the majority of the low-skilled, low pay work force, with many working part time in order to meet childcare needs. However, research has shown that this impacts significant on their ability to progress. While progression is an issue across the board for women in employment, it is particularly noticeable for this group. Research from NPI showed that there were around 5.1 million low paid employees in 2015. 62%, or 3.2 million of them were women and options for progression were significantly lower than for men, which keeps many women in a cycle of low-skilled, low paid, often insecure work.

Supporting women back to work

Many women take career breaks during their professional lives, most commonly to start or look after family. However, when they decide to return they face a number of barriers. These barriers mean that many returners end up in lower skilled jobs, either because their old job does not accommodate new flexible working needs or because extended time away from work is associated with a loss of skill. The UK government have launched a number of strategies and consultations aimed at encouraging and supporting women back to work after a career break. Individual organisations have also developed their own schemes, including the Back to Business scheme developed by PwC and Relaunch your career from MasterCard.

Many schemes include coaching and mentoring, phased returns to work, flexible working options and job shares, where appropriate. Increasingly, organisations now offer childcare options. Employers are also now allowing more staff to work from home, with the increased use of videoconferencing and online document sharing.

Earlier this week, Vodafone announced that it is launching the one of the world’s largest supported return to work programmes, ReConnect to recruit women who have taken a career break, as well as committing to increasing the proportion of women in management and leadership roles.

Final thoughts

Fully unlocking women’s economic empowerment – one of the cornerstones of true gender equality – is reliant upon unlocking the full potential of women in the workplace. As people across the world celebrate the economic, social and political achievements of women, as well as a growing awareness of their collective power to agitate for change, International Women’s Day also provides the opportunity to reflect on the position of women within society, and the steps that can be taken to improve this in the future.

#BeBoldForChange is the official hashtag for this years #IWD17 celebrations. You can submit your #BeBoldForChange action via the IWD website.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other articles on women in employment and women in technology.

Back to the classroom – teacher training and recruitment

Adult Ed - Study Partners

by Stacey Dingwall

Earlier this week, the House of Commons Education Select Committee published a report on the recruitment and retention of teachers in England. Announced in October 2015, the Committee took evidence on whether there was a ‘crisis’ in teacher recruitment, including by region and subject; what the “root causes” of the present situation with regards to teacher recruitment were; and what action the government should take to address issues with teacher recruitment.

“Significant shortages”

The Committee’s report suggests that at present, the government is failing to take “adequate” action to tackle what it describes as “significant” teacher shortages in England. It is noted that the targets for initial teacher training (ITT) courses have been missed for the last five years and that Geography, Biology and History were the only subjects in which the targets for new entrants to postgraduate and undergraduate ITT courses were exceeded. Targets for all other secondary level subjects were missed, with only 68% of Computing ITT places filled, and only 41% of Design and Technology places.

While the report acknowledges the importance of recruiting new teachers to the profession, it also emphasises the importance of retaining the teachers that it already has. Government data shows that more than 10% of teachers leave the profession after a year, and 30% leave within five years. Giving evidence to the enquiry, the National Audit Office (NAO) suggested that the number of teachers leaving rose by 11% between 2011 and 2014.

“Unmanageable” workloads

The Education Committee identified workload as a key driver for those teachers who choose to leave the profession. Last year, 82% of the 4,000 respondents to a Guardian survey described their workload as “unmanageable”. Analysis published by the Education Policy Institute (EPI) in October found that teachers in England work longer hours than their peers in 35 other developed countries, working an average of 48.2 hours per week.

When Nicky Morgan was Education Secretary, three review groups were set up to provide recommendations around the three biggest areas identified by teachers as those that add to their workload unnecessarily: marking, planning and data management. The groups’ recommendations have yet to be progressed following their publication in March 2016 (and Morgan’s replacement).

In Scotland, Education Secretary John Swinney announced his intention to “declutter” the Scottish education system at last year’s Scottish Learning Festival, by reducing teachers’ workload around assessments. In response, teaching union EIS suspended their programme of industrial action over teacher workload in relation to examinations.

Teaching as a second career

Swinney also announced plans to develop new routes into teaching, using funding from the Scottish Government’s Attainment Scotland Fund. These plans were followed by the launch of the ‘Teaching Makes People’ campaign at the start of the month, which is targeted at recruiting more teachers in the STEM subjects.

As well as undergraduates, the campaign is also aiming to attract people from the STEM industries into the profession. In particular, the Scottish Government hopes that it will convince former oil and gas industry workers to retrain as teachers.

The National College for Teaching and Leadership (NCTL) reported in January that more than 6,200 people aged 30 and over started ITT in 2016-17, the highest number since 2012-13.  Entering teaching as a second career has become more common in recent years. In November, Financial Times associate editor and columnist Lucy Kellaway announced that she was leaving her role to become a maths teacher after 31 years in her role.

At the same time, Kellaway set up Now Teach, a charity which works to encourage senior professionals in the business industry to retrain as teachers. Aside from helping with the issue of teacher recruitment, headteachers have also welcomed the benefits of having former professionals in the classroom in terms of their leadership skills and ability to provide careers advice.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other articles on careers guidance.

Is the record high employment rate masking the reality of in-work poverty?

wage-packetBy Heather Cameron

The employment rate may have hit a record high of 74.6%, with unemployment continuing to run at an 11-year low, but in-work poverty has also reached unprecedented levels.

More than half (55%) of people in poverty are living in working households, including millions of children, according to the latest Monitoring poverty and social exclusion (MPSE) report.

And new research for the Joseph Rowntree Foundation (JRF) published last week says four million more people are living below an adequate standard of living and ‘just managing’ at best.

Statistics

The findings of MPSE paint a bleak picture for a substantial share of the UK population. It notes that the proportion of the UK population living in poverty has barely changed since 2002/03, remaining at around 21%. And at 55%, those in poverty in working households has reached its highest level since the data set began in 1994/95.

Of this 55%, four fifths of the adults in these families are themselves working – a total of 3.8 million workers were living in poverty in 2014/15, an increase of around a million since 2004/05.

Female employees make up the single largest group within this group at 1.5 million, followed by male employees at 1.4 million. However, the majority of workers in in-work poverty are male (53%) as there were 620,000 male self-employed workers in poverty in 2014/15, while there were 250,000 female self-employed workers.

The story is different for workless households, however, as the proportion of people in poverty in these households has decreased, with the number in workless or retired families having fallen by half a million. Despite the significant increase in the number of people aged 65 and over, the figures show there are 400,000 fewer pensioners in poverty. There have also been reductions in the number of children in workless households.

While this is clearly encouraging, as the MPSE report suggests, it is difficult to categorise this as progress since there has been little change in the relative poverty measure overall.

Moreover, the new research from JRF warns that millions of just managing families are on the tipping point of falling into poverty as 30% of the population are living below the minimum income standard (MIS). In addition, 11 million people were found to be living far short of MIS, up from 9.1 million, who have incomes below 75% of the standard.

So what is causing these worrying statistics?

Contributory factors

The labour market has undoubtedly had some influence on these figures, with low wages and insecurity. Although average incomes have begun to rise, they are still below their peak. Male weekly earnings are still lower than 2005 levels and female weekly earnings, although now equal to 2005 levels, are still below what they were in 2010.  And with inflation expected to return, it has been suggested that hourly pay is unlikely to reach its pre-recession peak before 2020.

However, this is only part of the issue. There are also a number of other contributory factors, including:

  • increasing cost of living;
  • housing market failures; and
  • cuts in welfare benefits.

The increase in numbers living below an adequate standard of living has been driven by rising living costs while incomes stagnate. The price of a minimum ‘basket of goods’ has risen 27-30% since 2008, and average earnings by only half of this. The JRF analysis suggests the cost of living could be 10% higher by 2020, a period when much state support has been frozen.

Housing is also an important factor. It is often too expensive and of poor quality, particularly in the private rented sector. The MPSE findings show that the number of private renters in poverty has doubled over the last decade, with rent accounting for at least a third of income for more than 70% of private renters in poverty.

Households accepted as homeless and those in temporary accommodation have also increased and landlord evictions are close to a ten-year high.

Added to this, is the four-year freeze on benefits, tax credits and Universal Credit (UC), along with a reduction in the overall benefit cap. The benefit cap mainly affects households with children and will increase the number of families affected, from 20,000 to 112,000.

All this puts those on the lowest incomes at risk.

Way forward

Clearly, strong growth in the number of people in employment does not mean an end to employment-related disadvantage.

To help end poverty, the JRF has called on the government to make a number of changes, including:

  • reversing cuts to the amount people can earn before their benefits are reduced;
  • ending the freeze on working age benefits;
  • extending support to low wage sectors to reduce the productivity gap; and
  • investing in a living rents scheme to provide more affordable housing.

As the MPSE report concludes, “solutions for in-work poverty require more than just more work.”


If you enjoyed reading this, you may also like our previous articles on poverty.

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The disability employment gap – what needs to be done to change employer attitudes to disability?

Disabled parking (1).jpg

By Heather Cameron

‘Employment rates amongst disabled people reveal one of the most significant inequalities in the UK today’ (The work, health and disability Green Paper, 2016)

The government’s recent green paper highlights the extent of the disability employment gap in the UK, showing that less than half (48%) of disabled people are employed, compared to 80% of the non-disabled population.

Despite an increase in the number of disabled people in work, this employment gap between the disabled and non-disabled population has remained largely static at around 30 percentage points for the past decade. There are nearly four million disabled people in work, but research has shown that more disabled people have fallen out of work than moved into work, while the rest of the population has experienced movement in the opposite direction.

The government’s manifesto ambition is to halve the disability employment gap by 2020 – equivalent to 1.12 million more disabled people in work – but at the current rate of progress, it has been suggested that it would take more than 200 years for the employment gap to halve.

At a time when the UK’s employment rate is at its highest level since records began, with almost 75% of the working population in work, this is a disheartening statistic.

Barriers

This suggests that disabled people continue to face significant barriers to work. Some that are regularly cited, include:

  • physical barriers such as access to transport and accessibility within places of work;
  • a skills and qualifications gap between the disabled and non-disabled population, with disabled people only about half as likely to go to university as non-disabled people, and less likely to take up an apprenticeship;
  • insufficient support for disabled people;
  • insufficient support for employers; and
  • employer attitudes.

Employer attitudes have been cited as an ongoing issue which appears to stem from a lack of awareness and understanding.

A recent survey of recruiters found that 95% said companies are ‘fearful’ or ‘unsure’ about hiring disabled people. And analysis from disability charity Scope, suggests that employer attitudes haven’t improved over the last four years.

A new report from the Work and Pensions Committee found that many employers are not sure of their Equality Act duties, or are unwilling to make adjustments for disabled employees. It also suggested that there may be ‘discriminatory or unhelpful attitudes’ about the capabilities of disabled people.

Employers’ views

Indeed, employers themselves have highlighted the challenges of employing disabled people. Recent research from Disability Rights UK, which surveyed businesses from across the UK, reveals that one in 10 businesses believe they are unable to employ disabled people.

It also found that the biggest challenge to employing disabled people is that applicants aren’t always willing to be open about their disability, with around half of respondents (47%) saying that it would help if job applicants were more willing to be open about their health condition. Other challenges highlighted include:

  • fellow staff or line managers not having sufficient training to support disabled colleagues, and the lack of accessibility of some businesses for people with certain types of impairments;
  • concern that disabled people are more likely to take time off work;
  • difficulties in discussing the management of disabilities;
  • the cost of modifying equipment, making it expensive to employ disabled people; and
  • concerns that disabled people will claim discrimination if the job does not work out.

Such concerns are often misplaced, however. The survey indicates that businesses feel constrained by a lack of information about the adaptions they may need to make, and the support available to them. It seems that not enough people are aware of Access to Work, the government scheme that provides grants for adjustments to support people with disabilities or health conditions in employment.

And not all attitudes were negative. The vast majority (84%) of respondents said that disabled people make a valuable contribution to the workplace; and more than four-fifths (82%) considered disabled people as productive as non-disabled staff.

Final thoughts

The research clearly demonstrates that more needs to be done to tackle the disability employment gap. The Work and Pensions Committee report concludes that the government will stand little chance of halving the gap unless employers are fully committed to taking on and retaining more disabled people.

In particular, a transformation in attitudes to disability employment and support for disabled people will be required.

As the government’s green paper argues, “real and lasting change will only come about if we can also address negative cultural and social attitudes about disabled people and people with long-term health conditions.”


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‘Think globally, act locally’ – local job creation

Jobssign2

By Heather Cameron

The Local Government Association (LGA) last week called for greater devolution of employment and skills funding to councils and a ‘radical rethink’ of the way Jobcentre Plus works. Chairman of the LGA’s People and Places Board said:

“Job centres need to engage with more unemployed people for a start and then help more claimants move into sustainable employment. This is crucial to boosting local growth. Councils know best how to do this. We know our local economies, we know our local employers and we know our residents and we can bring local services together in a way central government will never be able to.”

Local solutions

Of course, local solutions for job creation and economic growth is not a new idea. Local development and job creation initiatives first emerged in the 1980s, in response to a ‘new phenomenon of high, persistent and concentrated unemployment that national policies seemed powerless to reverse on their own. Since then they have continued to spread and develop.

Although unemployment is at an 11-year low in the UK, according to recent research many countries, including the UK, are seeing widening gaps in the geographic distribution of skills and jobs. And the importance of local solutions has again been highlighted.

The OECD’s most recent edition of Job Creation and Local Economic Development argues that local development is a key tool for addressing the problem of such unequal distribution. Similarly, in its submission to last year’s Autumn Statement, the LGA argued that local government is central to the delivery of locally tailored solutions to national public policy challenges.

Boosting productivity growth, while ensuring growth delivers improved living standards and distributes the benefits of increased prosperity equally, are highlighted by the OECD as the twin challenges facing all policymakers. Underlined as a crucial but difficult task, it is argued that ‘actions originating at any single governance level or policy area will not be sufficient’.

Whole-of-government approach

The OECD report, therefore, examines how national and local actors can better work together to support economic development and job creation at the local level. In particular, it outlines what both national and local actors can do to improve the local implementation of vocational education and training (VET) and SME and entrepreneurship policies.

Among the recommendations for national actors include:

  • Design VET frameworks that allow local stakeholders to tailor training to local labour market needs while still maintaining a certain level of national consistency
  • Build the capacities needed to make VET systems more agile locally
  • Develop a strong national apprenticeship framework that builds a high quality system, includes strategically-designed incentives for employer participation, and allows for flexible delivery frameworks
  • Maximise the efficiency of SME and entrepreneurship policy delivery by allowing for local tailoring, co-locating services, using intermediary organisations to deliver programmes, and/or developing formal agreements for the division of competences and financing between governance levels
  • Develop national frameworks and strategies to support disadvantaged young people in entrepreneurship, and clearly assign responsibility for this policy portfolio to a single agency or ministry
  • Embed entrepreneurship into national education frameworks, while also providing integrated packages of entrepreneurship support in other settings to reach young people outside of the education system

Among the recommendations for local actors include:

  • Balance the need to meet pressing local labour market demands with ensuring that VET helps to move local economies to higher skilled and value-added products and services
  • Encourage VET teachers and trainers to maintain contact with local employers and industries to keep their skills and knowledge up-to-date
  • Boost employer engagement in apprenticeships
  • Tailor the delivery of apprenticeship programmes so that they work better for a broader range of employers, including SMEs, and disadvantaged populations
  • Forge connections across administrative borders in developing and co-ordinating entrepreneurship and SME policies
  • Work with organisations that have already established relationships with disadvantaged youth to maximise the reach of entrepreneurship programmes
  • To better reach disadvantaged youth, provide integrated packages of support, use hands-on learning methods, and involve entrepreneurs in programme delivery

Decentralisation?

The report concludes that local actors need both flexibility to tailor delivery of national policies to local conditions and the capacity to use this flexibility to ensure informed decision-making.

It is noted that this doesn’t necessarily mean political decentralisation, but rather ensuring the right tools are used to add local flexibility while maintaining national coherence.


If you found this article interesting, you may also like to read our previous blog on Local Enterprise Partnerships

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Modern language learning in a globalised world

Elementary school students raising hands. View from behind.

by Stacey Dingwall

In November, the Teaching Schools Council published Ian Bauckham’s Modern foreign languages pedagogy review, which looked at modern foreign languages teaching practice in key stages 3 and 4 in England.

The EBacc and modern languages

The review was announced in May last year by schools minister Nick Bole, shortly after it was indicated that 3,500 more language teachers would be needed in order to realise the government’s desire for 90% of pupils to sit the English Baccalaureate (EBacc), which includes a language component.

Only 40% of English pupils currently take the EBacc. The Education Datalab’s estimate of the number of additional language teachers needed to increase this to 90% represents an increase of almost 40%. The government has missed its recruitment target for language teachers for the last four years, achieving just 87% of its target in 2015.

The Education Datalab’s latest data on the EBacc, published in October, suggests that the number of pupils who sit the qualification has stalled because there hasn’t been a significant increase in the number of entries in languages.

The Bauckham review

Ian Bauckham’s review emphasises the “clear educational, personal, cultural, social, cognitive, career and business benefits in being able to communicate confidently in another language”. However, it notes that the latest edition of the CBI/Pearson Education and Skills Survey found that over 50% of employers were not satisfied with their employees’ foreign language skills.

Although this is problematic for the country on a variety of levels, the Bauckham review points to the difficult context in which schools find themselves with regards to teaching foreign languages. Aside from recruitment issues, teachers are also dealing with some negative attitudes to foreign language learning from pupils and their parents, who may have had a poor language learning experience themselves. The review highlights that it is much easier for non-native English speakers to acquire the language due to its global dominance.

Schools also have to juggle the competing pressure of increasing the number of pupils taking STEM related subjects. The issue of a shortfall of people with STEM skills in the UK has received a great deal more attention from researchers and policymakers in recent years than a lack of those with language skills.

Language learning in Scotland: the 1+2 approach

In 2012, the Scottish Government published “Language learning in Scotland: a 1+2 approach”. Intended to be rolled out across two parliaments, the approach was included in the government’s 2011 manifesto, which stated their intention to “introduce a norm for language learning in schools based on the European Union 1+2 model – that is we will create the conditions in which every child will learn two languages in addition to their own mother tongue”.

The Scottish Government’s ambition for the approach is that by 2020, all children will start to learn an additional language from P1 that they will continue studying until at least S3. They will also be given the opportunity to start studying a third language no later than P5. This ambition also fits in with the government’s focus on closing the attainment gap during its term, with the language approach working to achieve key goals such as increasing the employability of school leavers.

Overall, the Scottish Government says its key aim in improving and expanding language learning in schools is that “young people are equipped with the skills and competencies they need in our increasingly globalised world” – a prudent ambition in increasingly uncertain times.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you found this article interesting, you may also like to read our other education articles. 

Research Online: Scotland’s labour market hub

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by Stacey Dingwall

As well as the Idox Information Service, the Knowledge Exchange Team manages two other research portals – Research Online and Evaluations Online.

This blog focuses on Research Online, which we developed over 13 years ago and have worked with Skills Development Scotland to maintain and update ever since.

Scottish labour market intelligence

Research Online is Scotland’s labour market hub. The portal provides an authoritative source of labour market research and analysis relevant to Scotland and supports evidence-based policy making in the Scottish labour market.

Before Research Online was created, research suggested that although useful labour market research and analysis was undertaken within Scotland by a large range of organisations, there was no single dissemination source.

Therefore, a requirement existed for a portal that clearly identified current labour market intelligence (LMI), provided a common understanding of current gaps and provision in areas including labour supply and skills, and focused action to ensure LMI met Scottish user needs.

Research Online was conceived to improve access to this wealth of intelligence.

The most comprehensive collection of labour market intelligence

The portal now contains thousands of documents on a range of labour market topics including:

  • Employment;
  • Skills and training;
  • Unemployment;
  • Entrepreneurship;
  • Vocational education and training;
  • Workforce development; and
  • Equal opportunities.

The material available on the portal includes research, policy, analysis, discussion and sectoral and geographic profiles. Our team sources the latest research and policy documents from a wide range of sources, including academic journals, government departments and agencies, labour market research centres and material sent in directly by key organisations in Scotland and the wider UK. The available material includes grey literature, government policy and up-to-date academic research.

Research Online also incorporates a current awareness service that alerts registered users to new material on a fortnightly basis. It also has integrated reading list functionality.

Free to access

Research Online can be accessed by anyone, free of charge. You can browse the material here without registering, as well as create reading lists to be accessed at a later date or shared with colleagues.

If you would like to sign-up for a range of current awareness alerts that keep you up to date on a variety of labour market topics, covering both Scotland and the wider UK, you can do so here.

Our shared vision is for Research Online to be recognised as a key dissemination mechanism by Scotland’s producers of labour market intelligence and to be at the centre of a community of practice for labour market researchers, practitioners and policy-makers.

You can find out more about the projects The Knowledge Exchange team has been involved in, and the consultancy services we offer, here.

 

‘Olderpreneurs’ – the new generation of start-ups?

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By Heather Cameron

Entrepreneurs are often portrayed as bright young things launching start-ups, but does the reality of start-up demographics paint a different picture?

Changing demographics

The UK has certainly witnessed a boom in young entrepreneurship in recent years – the number of under-35s starting businesses in the UK rose by more than 70% between 2006 and 2014.

However, recent research suggests that the boom in young entrepreneurs may be waning. According to research commissioned by Google earlier this year, the majority of young people are “not interested” in starting a business, with four out of five young people surveyed saying they would rather work for a well-established company. Particular concerns were also highlighted over risk and instability.

The UK is, however, still ranked in the top 10 countries with the most favourable conditions for entrepreneurs to start and scale new businesses. And official data suggests that the UK continues to see record numbers of business start-ups, exceeding 600,000 in 2015, up on the previous two years.

So if it isn’t the younger generation heading up this record number, who is it?

‘Olderpreneurs’

Despite media coverage of the entrepreneurial spirit of the younger generation, the average age of an entrepreneur in the UK has actually been estimated at 47.

And according to the latest data from the Global Entrepreneurship Monitor (GEM), the most notable increase in entrepreneurial activity has been amongst the over 50 age group.

Referred to as ‘olderpreneurs’, this group could arguably be the new start-up generation.

There has been a 46.5% increase in freelancers over 50 since 2008, an age group that accounts for 72% of all self-employed people. According to official statistics there are around 1.8 million self-employed people over the age of 50 in the UK.

With an ageing population that is also becoming healthier, perhaps this shouldn’t be such a surprise.

Motivations

Motivations for people starting up their own businesses include redundancy, retirement, family circumstances, growing older and life stage milestones.

As life expectancy increases, many don’t want to give up work at the traditional retirement age, as they still lead active lives. Retirement has been cited as an ‘important tipping point’ for some, with the main motivation not to make money or grow their business, but rather something to keep them occupied or earn some extra money while doing something relatively easy.

The introduction of pension freedoms last year has also led to more over 50s using their pensions to fund new business ventures. The over 55s cashed in more than £4.7billion of their pensions in the first six months after pension freedoms were introduced.

Economic impact

And such activity is good news for the economy. It has been suggested that if the employment rate of 50-64 year olds matched that of the 35-49 age group, the UK economy could be boosted by £88 billion.

Older entrepreneurs have also been shown to be more successful than their younger counterparts. It has been highlighted that businesses run by owner-managers over 50 drive up revenues at their companies three-and-a-half times faster than GDP growth – 11.5% compared with 3.1%.

And older entrepreneurs create jobs at a rate more than seven times faster than the UK economic average.

It has also been suggested by the Prince’s Initiative for Mature Enterprise (PRIME) that start-up failure rates in this age bracket are remarkably low. It recently revealed that 95% of its members were still in business a year or more after starting up, compared to the national average of just 66%.

Final thoughts

A significant percentage of the UK population is past retirement age. And the number of people aged 50 to State Pension age is expected to rise by 3.2 million, while the number aged 16 to 49 will have reduced by 200,000 over the next 10 years.

As a result, keeping this group economically engaged surely has to be a priority.


If you found this article interesting, you may also like to read our previous articles on entrepreneurship and self-employment

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Who’s afraid of the big, bad robot? Preparing the labour market for a future with AI

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By Heather Cameron

Science fiction is slowly becoming science fact”. This is what the interim Chair of the government’s Science and Technology Committee said in their recently published report on robotics and artificial intelligence (AI).

While admitting there is still some way to go before we witness systems and robots like those portrayed in the creative arts such as Star Wars and Ex Machina, the report noted that there have been a series of recent advances across these fields that are beginning to have transformational impacts.

But just what will these impacts look like, particularly in relation to the labour market?

‘Transformational impacts’

Driverless cars and supercomputers that assist with medical diagnoses are highlighted as some of the transformational impacts of AI that have already arrived.  Others include improved automated voice recognition software and predictive text.

The increase in processing power, the wealth of data and the development of techniques such as ‘deep learning’ have all contributed to the recent progress.

However, the report also notes that such advances raise a number of social, ethical and legal questions that require consideration. These include issues about the transparency of AI decision-making as well as privacy and safety.

And while there is much excitement about the potential of AI to improve and enhance our lives, there is also widespread concern over the potential impact of increasing automation on the workplace.

Implications for employment

Fears over increased unemployment as a result of increasing automation are longstanding. The inquiry found conflicting views over the potential impact to the workforce, with some predicting a rise in unemployment, while others anticipate a transformation in the type of employment available.

It is likely that some occupations will become obsolete. Deloitte has warned that 11 million jobs across the UK economy are at high risk of being automated by 2036, with the retail and transport sectors most vulnerable. The research also indicated that almost 750,000 net jobs had been lost in manufacturing since the turn of the millennium, while the wholesale and retail sector saw net job losses of 338,000.

However, it was noted that millions of new roles had also been created in order to meet changing demand. So perhaps it is adaptation within the workforce that is needed.

Indeed, the Committee’s report highlights a need to focus on delivering the skills needed for people to adapt and thrive as new technology continues to emerge. It has been argued elsewhere that cognitive and social and behavioural skills should be made a priority in any skills strategy for the 21st century to “make workers more resilient to technology-driven labor market shocks like automation.”

And of course some sectors may be more susceptible than others.

Recent research by McKinsey suggests that the impact of automation differs dramatically across sectors and activities. It found that:

While automation will eliminate very few occupations entirely in the next decade, it will affect portions of almost all jobs to a greater or lesser degree, depending on the type of work they entail. Automation, now going beyond routine manufacturing activities, has the potential, as least with regard to its technical feasibility, to transform sectors such as healthcare and finance, which involve a substantial share of knowledge work.”

Another common theme highlighted throughout the inquiry was that robotics and AI could increase productivity and efficiency. One recent study estimated that ‘£1.24bn in automation investment could raise the overall value added by the manufacturing sector to the UK economy by £60.5bn over the next decade’.

Future

There are clearly many debates about the potential impact of robots and AI, but it is not yet clear what the actual impact of advances in these fields will be on the labour market.

What is clear is that there is a need for skills to be developed for a world where AI is more prevalent.

But as the inquiry highlighted, the government doesn’t yet have a strategy for developing these new skills or responding to the social and ethical issues it poses. The report therefore recommends that “the government must commit to addressing the digital skills crisis through a Digital Strategy, published without delay.”

Perhaps the future will be similar to the past, as written evidence to the inquiry suggests:

During the industrial revolution, mechanisation did not change long-run equilibrium employment because new jobs emerged which were unimaginable at that time. Similarly, jobs lost to automation today might be replaced by jobs we cannot yet imagine.


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