Tag Archives: skills shortages

“Talent without Limits”: the impact of apprenticeships in Scotland

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by Scott Faulds

Over the past six years, Skills Development Scotland has been working to increase the number of people starting apprenticeships across Scotland. Recent statistics have revealed that they are on track to meet their target of 30,000 new apprenticeship starts by the end of the financial year 2020. The provision of apprenticeships has been a key element of the Scottish Government’s youth employment strategy , which highlights the government’s belief that apprenticeships are an excellent opportunity for young people to gains skills, experience and a qualification while in employment.

This week (2nd March to 6th March) Skills Development Scotland has launched Scottish Apprenticeship Week 2020, with the theme “Talent without limits”, designed to celebrate the benefits apprenticeships bring to businesses, individuals and the economy. This blog will explore the impact of apprenticeships on business, education providers and young people in Scotland. It will also consider the benefits of work-based learning, graduate apprenticeships and workplace diversity.

Work-based learning

The availability of good-quality apprenticeships allows those who may not be interested in pursuing further education an alternative route in which to gain a formal qualification whilst gaining experience in the world of work. This is known as work-based learning, which is widely considered to be beneficial to the apprentice, education provider, employer and the wider economy.

According to research conducted by the European Training Foundation, workplaces where employees are constantly learning new skills tend to be more productive, more profitable and have lower staff turnover. A recent survey conducted by Skills Development Scotland found that 83% of modern apprentice employers agree that apprenticeships have improved productivity, whilst 79% said that employing apprentices improved staff morale.

Additionally, work-based learning has been found to improve the job prospects of learners, allowing them to build relationships with employers who may offer them full-time positions on completion of their apprenticeship.

The development of apprenticeship programmes allows employers and education providers to develop a close working relationship, which enables a better understanding of the skills required by the labour market. This allows for the creation of educational programmes that are more relevant to the demands of all employers, not just those who operate apprenticeship schemes. As a result, the skills developed by apprentices will be directly relevant to the skills required by the labour market. This could potentially improve the likelihood of securing a job following the completion of an apprenticeship. Thus, it can be said that work-based learning features benefits for apprentices, education providers, business and the wider economy.

Skills, growth sectors and graduate apprenticeships

Apprenticeship schemes provide the government with an opportunity to improve the collective skill base of Scotland by encouraging the development of apprenticeship opportunities in key sectors and areas which have the potential to generate economic growth. For example, analysis conducted by Oxford Economics has found that there will be a 4% growth in science, technology, engineering and mathematics (STEM) related roles in Scotland from 2015 to 2027. This equates to the creation of approximately 42,600 skilled jobs.

Therefore, it is of no surprise that the Scottish Government has been focused on trying to increase the number of apprenticeship opportunities available in STEM roles. In the past year alone, four out of ten modern apprenticeship starts, and the vast majority of all graduate apprenticeship starts, have been in STEM occupations.

Traditionally, securing a STEM role would require a formal qualification secured via an academic route, which can often be costly and take up to four years. Research conducted by Ekosgen has revealed that there has been a decline in the number of pupils studying and passing STEM-related subjects at schools and a decline in STEM enrolments in Scottish colleges. As a result, the traditional academic route in which to secure a STEM role may not be able to produce enough STEM-qualified individuals to meet the demands of industry.

In order to meet the demand for skilled workers, Skills Development Scotland has worked with industry and education partners to develop graduate apprenticeship schemes. These apprenticeships offer people the opportunity to gain up to a Master’s degree qualification in subjects such as civil engineering, data science and software development. The development of this model of apprenticeship has been praised by organisations such as PwC, Aegon and Universities Scotland, as a vital way in which to develop a highly-skilled workforce that will meet the demands of the growing STEM sector.

Diversity and equality

A key theme identified by the Scottish Government within their youth employment strategy is the need to develop clearer routes into apprenticeships for those from previously under-represented groups. The strategy explicitly discusses the need to increase the number of apprenticeship starts from minority ethnic communities, young disabled people, looked after children and a desire to improve the gender balance of apprenticeships (particularly those in male-dominated sectors).

According to Skills Development Scotland’s recent Apprenticeship Equality Action Plan, efforts to improve under-represented groups’ access to apprenticeships have had mixed results. Over the past four years, the number of disabled and BME (Black and minority ethnic) individuals starting modern apprenticeships has risen year on year. However, 72% of modern apprenticeship frameworks continue to have a gender imbalance of 75:25 or worse. This is particularly prevalent within the construction sector where only 2% of participants are female. Additionally, there has been a slight decrease in the number of care experienced people starting modern apprenticeships. Therefore, it is evident that whilst some progress has been made at improving the diversity of individuals starting an apprenticeship, there is still work to be done, particularly when it comes to improving gender balance.

Recent research has highlighted that diversity is essential for organisations who are looking to foster a culture of sustainable innovation. As previously discussed, future jobs are likely to be created in innovative STEM-related sectors, and therefore the need to improve under-represented groups’ access to apprenticeships will be vital to ensure that the quality of the Scottish workforce is able to meet the demand of growing innovative industry.

Final thoughts

In summary, the provision of apprenticeships has had a great deal of impact across Scotland. From developing the skill base of Scotland’s workforce to helping to improve the relationship between industry and education providers, the impact of apprenticeships goes far beyond providing young people with access to work-based learning and a formal qualification.

However, work still needs to be done to improve under-represented groups’ access to apprenticeships. Diversity has repeatedly been shown to increase workplace creativity and performance. Both of these traits will be critical in ensuring that Scotland is able to develop a workforce that can meet the needs of the innovative industries set to experience growth in the future.  

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Finding answers to the teacher supply challenge

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Earlier this year, the NFER published its first annual report on the state of the teacher workforce.

Among its key findings were that “the secondary school system is facing a substantial teacher supply challenge over the next decade, which requires urgent action.”

Unfortunately, this ‘teacher supply challenge’ – also referred to as the ‘teacher recruitment crisis’ – is not a new development.  Back in 2017, the House of Commons Education Select Committee published a report on the recruitment and retention of teachers in England which concluded that the government was failing to take “adequate” action to tackle what it describes as “significant” teacher shortages in England.

In this blog, we will provide a brief overview of the extent of teacher shortages, as well as outlining the key ways in which the government’s teacher recruitment and retention strategy seeks to address them.

 

Teacher numbers have fallen since 2010

The Department for Education (DfE) forecasts that secondary schools will need 15,000 more teachers between 2018 and 2025 to meet a 15% increase in pupil numbers.

However, despite this, teacher numbers have been falling.

This is due in part to increasing numbers of both primary and secondary teachers leaving the state sector – particularly those in the early stages of their career.  Indeed, the retention rates of early-career teachers (between 2-5 years into their careers) fell significantly between 2012 and 2018.

In addition, targets for the required number of secondary teacher trainees have been missed for six years in a row – resulting in insufficient numbers of new teachers entering the secondary sector.

These factors have led to an overall decline in the number of secondary teachers, and a doubling of secondary post vacancies, since 2010.

The secondary teacher shortage has been particularly acute in certain subjects, such as maths, science and languages.  For example, recruitment to teacher training in physics in 2018/19 was more than 50% below the numbers required to maintain supply.

In addition to this, earlier this year, a poll by the National Education Union found that nearly 1 in 5 (18%) teachers expect to leave the classroom in less than two years, and nearly two-fifths want to quit in the next five years.

 

Making teaching ‘attractive, sustainable and rewarding’

The stats paint a bleak picture.  The government’s response has been to publish their first ‘Teacher recruitment and retention strategy’.

This strategy aims to make sure that careers in teaching are “attractive, sustainable and rewarding” by addressing some of the key issues within the profession that have hindered both recruitment and retention.

The strategy focuses on four key priorities:

  • Creating more supportive school cultures and a reduced workload
  • Transforming support for early career teachers
  • Expanding flexible working and career progression opportunities
  • Simplifying the process of becoming a teacher and encouraging more people to try it out

Central to the new strategy is the launch of the ‘Early Career Framework’ – a funded two-year support package for all new teachers.  The Early Career Framework aims to address the high numbers of new teachers leaving the profession by providing them with additional support, including mentoring, training programmes, free curriculum and training materials, and a reduced timetable to enable them to focus on their training.

There have also been a range of additional initiatives put in place to encourage the recruitment and retention of teachers.

As well as plans to increase salaries, teacher trainees can now access bursaries – with the level of bursary granted varying depending on the subject and the degree class of the teacher trainee applicant.  For example, trainees with a first class degree in physics are eligible for £28,000.

There has also been a pilot of ‘early career payments’  where trainees in mathematics receive £5,000 each in their third and fifth year of teaching.  This payment will be increased to £7,500 for teachers in the most challenging schools in specific areas.

 

Retraining opportunities for later life career changers

As well as financial incentives for trainee teachers, the government has also pledged £10 million to encourage business leaders, boardroom executives and high-flying graduates to take up teaching.

The charity Now Teach is one of three organisations that will benefit from this funding.

Now Teach encourages people who already have successful careers to retrain as maths, science and modern foreign languages teachers.  It was set up in 2016 by journalist Lucy Kellaway, who – after over 30 years at the Financial Times – has since qualified as a teacher herself.  Through the Now Teach programme, experienced professionals can achieve Qualified Teacher Status (QTS) either through a school or university-based route.  It has so far encouraged over 120 professionals to retrain as teachers – including a former Nasa scientist, an investment banker and a corporate lawyer.

As well as working to recruit new trainees, Now Teach also aims to support their retention – noting that older trainees are generally more likely to drop out of teacher than their younger counterparts.  Now Teach also works towards improving part-time and flexible working options within schools.

 

Unmet demand for flexible working

Indeed, support for flexible working is another key aspect of the government’s teacher recruitment and retention strategy.

At present, far fewer teachers work flexibly than the workforce as a whole – only 17% of secondary school teachers work part-time, compared with 27% of workers nationally.  The gap is even more pronounced when you consider that teaching is a female-dominated profession – 42% of women nationally work part-time.

A recent NFER research paper found that there is unmet demand for part-time working, particularly in secondary schools.  They found that, as well as helping to improve teacher recruitment and retention, increased levels of part-time work within schools may also help to improve staff wellbeing.

The government has made a number of commitments to promote flexible working within schools, including plans to update its guidance on flexible working and to promote flexible working opportunities via its new Teacher Vacancy Service.

 

“It’s not the answer, but it’s an answer.” 

While improving flexible working opportunities and encouraging later life career changes may not in themselves be sufficient to address the wider teacher supply crisis, they are important as part of the government’s wider drive to encourage more people into the teaching profession.  As Lucy Kellaway observes: “It’s not the answer, but it’s an answer.”

Addressing the poor status and perception of the teaching profession, by improving key factors such as salary, workload and work-life balance, is undoubtedly key to encouraging more people to enter and remain in the profession.

It will be interesting to see whether and how the various initiatives set out within the government’s Teacher Recruitment and Retention Strategy impact upon recruitment and retention levels over the next few years.

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How can the UK Government support our rural entrepreneurs?

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Rural Wales, house by a river

By Steven McGinty

Rural businesses play a significant role in the UK economy. Yet, policymakers often overlook their contribution and, as such, have failed to realise the economic opportunities in many of our rural areas.

Last year, University of Essex researcher Anupriya Misra presented an insightful webinar (register to hear a recording of the webinar) outlining some of the key challenges facing rural entrepreneurs, as well as the likely drivers of growth.

The make-up of the rural economy

Research by the House of Lords Library shows that the rural economy accounts for approximately 20% of England’s total economic activity, an estimated £229 billion.

Unsurprisingly, one of the key differences between city and rural economies is the size of the agriculture, forestry, and fishing sectors. In England, they amount to 2% of the Gross Value Added (GVA) of the rural economy. However, in rural areas classed as ‘sparsely populated’ this figure significantly increases, with these industries accounting for 32% of registered local businesses.

In Scotland and Northern Ireland, agriculture, forestry, and fishing play a more prominent role in the rural economy. In Scotland, 13 out of its 32 local authorities have more than 50% of their population living in rural areas, with these councils contributing 20.6% of Scotland’s GVA. In Northern Ireland, 25% of VAT registered businesses are involved in agriculture, forestry, and fishing, and outside of Belfast, it’s the largest industry in each local authority area.

The challenges for rural entrepreneurs

Many rural businesses have a strong entrepreneurial spirit, and the products they sell make up a significant proportion of UK exports. For example, 25% of Britain’s goods exporters are registered in rural areas. Nevertheless, these rural entrepreneurs can face barriers their counterparts living in cities are far less likely to experience. This includes:

  • Slow broadband – Online rural businesses can be particularly affected by slow broadband speeds. In addition, businesses involved in the tourism industry are affected, as free wi-fi is becoming an increasingly important part of the visitor experience.
  • Skills shortages – Rural businesses in sparsely populated areas can struggle to recruit the right staff, and their existing staff can experience challenges accessing training and development opportunities.
  • Poor transport infrastructure – Poor infrastructure can make it challenging for rural businesses to recruit, as well as connect to suppliers and customers in larger urban centres.
  • Difficulty accessing finance – Lower land values in rural areas can also limit a business’s ability to provide collateral for loans.

Why do some rural areas do better than others?

An interesting question raised by webinar presenter Anupriya Misra is why do some rural areas outperform others? In her view, a mixture of supply and demand factors impact on an area’s economic performance. For instance, having access to high skilled labour, good transport links to cities, beneficial planning laws, and business support are very important for supporting rural economic growth.

Additionally, rural areas which have a wealthy local population or have products with strong global demand are also likely to be high performing.

Business advice and networking

A key theme to emerge from the webinar was the important role business advice and networking plays for rural entrepreneurs. Fledgling rural businesses will often need a range of support, including help to develop their business management skills (such as basic accountancy skills), legal advice, as well as guidance on grant writing and the funding opportunities available to them.

Entrepreneurs looking to grow their business, will need other forms of support, from help to develop an online marketing strategy to advice on providing great customer service. Informal networks, and opportunities to connect with other business owners, can also be an invaluable resource.

In 2012, the Department for Environment, Food and Rural Affairs (Defra) set up the Rural Growth Network (RGN) Pilot Initiative to help rural areas overcome the barriers they faced.  This included projects in Cumbria, Heart of the South West (HotSW), North East, Swindon and Wiltshire, and Warwickshire. In practice, this involved creating a network of ‘enterprise hubs’, offering rural businesses a mix of premises, business, and infrastructure support.

An evaluation of the initiative highlighted that introducing enterprise hubs brought several benefits to rural entrepreneurs. 70% of start-up founders surveyed reported an improvement in their business skills and half reported that they improved their networking with other firms. In financial terms, the net economic impact of the RGN pilots, in terms of Gross Value Added (GVA), was estimated to be around £16.5 million, with £56.6 million expected over a further three years. And, for every £1 invested by Defra, £1.50 was created in net GVA.

Researcher Anupriya Misra concluded the seminar by suggesting that the rural economy could be improved by following Defra’s evidence and creating a new network of rural enterprise hubs, which provide business skills and support that meets the needs of local communities.

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You may also be interested in Research Online, a valuable resource for research and analysis, covering topics such as entrepreneurship, employment, learning and skills, and careers education. 

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

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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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Rise of the Datavores … showing no fear of data, it takes skills

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Datavores infographicPrevious work by NESTA highlighted companies with apparently no fear of data. They called them ‘datavores’. When making decisions about how to grow their sales, they rely on data and analysis over experience and intuition.

Does being data active have an impact?

According to a new NESTA report published this week Skills of the datavores: talent and the data revolution, those organisations which are more ‘data-active’ perform better than those that are not, as the infographic above illustrates:

  • Datavores are 10% more productive
  • But, only 18% of companies are datavores
  • If all “dataphobes” became “datavores” it would add a 3% uplift in productivity
  • Data-driven firms are 40% more likely to launch new products and services.

What does a skilled data workforce look like?

The research suggests that the biggest issue facing the industry is the lack of skilled data analysts/scientists, where demand has grown 41%. Businesses are using a combination of actions to solve this lack of supply of skilled people, including off-shoring the roles, recruiting best fit and using a combination of inhouse, on the job and external training to grow their own.

Many organisations are also developing inter-disciplinary teams to create a data literate workforce because the skills needed within a data scientist are so rare; as the report says, as rare as “unicorns”. Our own experience of recruiting a data scientist would support this.

The workforce which is emerging is one focussed on adaption and flexibility, based on data sciences across the board, such as qualitative researchers, mathematicians, statisticians, developers and business analysts. Within this mix of skills, the new workforce also needs to have a creative flair and business knowledge that enables them to use the data in the organisation’s best interest and to add value.

What does it mean for skills suppliers?

As an emerging profession, it is difficult to pin down the exact skills an employer needs which in turn makes it difficult for schools, colleges and universities to supply the right type of education. The accompanying policy briefing from NESTA and Universities UK, Analytic Britain: securing the right skills for the data-driven economy, makes a number of recommendations, highlighted in the infographic above, many of which focus on the skills suppliers.

Universities are both a supplier and user of these skills and have a unique opportunity to really enage with the market. The focus on metrics in both the proposed Teaching Excellence Framework and Research Excellence Framework means that universities themselves are in need of the same skills and have an opportunity to supply based on experience.

For universities these recommendations have a number of impacts, and data issues are increasingly at the forefront of policy thinking. Universities UK has reviewed how data analytics are taught across disciplines and reflects on the shortage of academic staff who are confident in teaching data analytics in this way and the varying skills of students entering higher education.

The pervasive nature of the data revolution explains why a variety of disciplines and skills are being brought together. No one can argue against the need for more and better data to improve policy making and business planning. Plenty of data is now being captured but not used, and in the words of John Lennon “you say you want a revolution” and “we all want to change the world” … data is changing our world significantly but are you equipped for it?

The Idox Information Service can help you access further information on the use of data science, and the skills needed. To find out more on how to become a member, contact us.

Download the Datavores Infographic.

Further reading on the topics covered in this blog and infographic*:

Skills of the datavores: talent and the data revolution

Are you a Datavore? Insights on the use of online customer data in decision-making

UK data capability strategy: seizing the data opportunity

Information economy strategy

Inside the Datavores: how data and online analytics affect business performance

Employer insights: skills survey 2015

Big data analytics: assessment of demand for labour and skills 2013–2020

UK corporate perspectives: new technologies – where next?

*Some resources may only be available to members of the Idox Information Service

Higher apprenticeships – the way forward?

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apprentices in workshopBy Heather Cameron

With the mounting costs associated with higher education study, it isn’t any wonder that young people are looking for alternative routes to their chosen career.

A recent survey has found that 4 in 10 of the first students to pay the higher tuition fees of up to £9,000 per year, say university is not good value.

Opinion varied between students doing different types of courses however. Two-thirds of those studying science, technology, maths and engineering – where a lot of practical teaching and staff time is required – said their courses had been good value.

It would seem that employers are also looking for more than just academic qualifications. It has always been something of a catch-22 situation for graduates who can’t get a job because they don’t have the required work experience, despite having relevant qualifications.

A recent study by the Institute for Public Policy and Research revealed that graduates and A-level students are three times more likely to be jobless a year after finishing their courses than apprentices. It also found that unemployment rates have risen at all levels of education, except within apprenticeships.

Higher apprenticeships

According to a study by ICM Research in 2013, those with a higher, degree-level, apprenticeship were rated by employers as the most employable, ahead of those who had university degrees. The top six qualifications rated the most valuable were:

  • Higher Apprenticeship
  • University degree
  • Advanced Apprenticeship
  • Intermediate Apprenticeship
  • Level 3 vocational qualification
  • A-Levels

Indeed, the many benefits to businesses of higher apprenticeships have been recently highlighted. They enable employers to gain links with universities and colleges which can help them to develop learning programmes based on the skills they need. The National Apprenticeship Service says that higher apprenticeships are critical to the economy as they:

  • respond to employers’ higher level skill needs;
  • support business growth;
  • meet individuals’ career aspirations;
  • and enhance opportunities for social mobility.

Higher apprenticeships, created in 2009, offer a work-based learning programme which includes the achievement of academic and vocational qualifications and learning from level 4 up to bachelor’s and master’s degrees at levels 6 and 7 respectively. Degree apprenticeships are the latest model to be developed as part of the higher apprenticeship.

Research by the Centre for Economics and Business Research (CEBR) has estimated that the lifetime benefit of undertaking an intermediate apprenticeship is extra earnings of between £48,000 and £74,000, and an advanced apprenticeship between £77,000 and £117,000.

This figure rises to over £150,000 for a higher apprenticeship, comparable to university graduates.

Roll out and take-up

In 2011 the government announced a £25 million fund to support up to 10,000 advanced and higher apprenticeships in order to help businesses, particularly small and medium sized enterprises (SMEs), gain the high level skills they need to grow.

The Higher Apprenticeship Fund (HAF) aimed to develop a range of higher level apprenticeships, and fund 20,000 apprentices by 2015. The fund was awarded to 29 higher apprenticeship projects, in sectors including accountancy, engineering and law. The government has announced an additional £40m to fund places up until July 2015, and an extra £20m to fund the higher educational element to the end of March 2016.

Following the introduction of the fund, the number of higher apprenticeship starts rose by 68% in 2011/12. There were almost 10,000 starts during 2012/13, representing growth of 165% on the previous year.

In the last academic year over 9,000 people started a higher apprenticeship, with numbers continuing to grow.

Role of universities in providing vocational education

With the growth in higher apprenticeships, universities and other higher education institutions (HEIs) have an important role to play in this provision. The 2015/16 academic year is the first time that there will be a substantial group of HEIs in the apprenticeships delivery network.

A collection of recent think pieces have made a strong case for greater vocational education through universities and colleges. One contributor notes that governments around the world widely accept that vocational education is the way to meet growing industry needs and fill identified skills gaps. But policy makers in the UK are faced with the obstacle of an old-fashioned education system.

It is clear that the traditional form of higher education is not going to supply businesses with the higher level skills needed for economic growth. According to research by the UK Commission for Employment and Skills (UKCES), by 2022, two million more jobs will require higher level skills. More than one in five of all vacancies are ‘skills shortage’ vacancies – where employers cannot find people with the skills and qualifications needed.

The research highlights the importance of collaborations between employers and universities in the supply of highly skilled people to meet this demand. It argues that universities and employers need to be innovative, and engaged in promoting different and non-traditional routes into higher skill roles.

Good practice evidence of such collaboration already exists in the UK, as showcased by the 12 case studies, which explore the reasons for and benefits of collaboration in six industrial sectors – Advanced Manufacturing, Construction, Creative and Digital, Energy, IT and Life Sciences.

Across a wide range of collaboration with employers, universities contributed more than £3.5 billion to the UK economy in 2012/13, a 5% increase from the previous year. Significant volumes of courses and continuing professional development (CPD) are also provided by UK HEIs directly to employers, with £423 million worth of business completed in 2012/13, of which £19 million was with SMEs.

Nevertheless, there is still much room for improvement. Policy makers, HEIs and businesses all need to work together if the drive towards higher level vocational education is to succeed.

The Idox Information Service can give you access to a wealth of further information on vocational education – to find out more on how to become a member, contact us.

Further reading

Polytechnics-plus: releasing the potential of colleges, IN Graduate Market Trends, Spring 2015, pp12-13

Higher apprenticeships better than university, IN Workplace Learning and Skills Bulletin, No 120 14 Jul 2014, pp2-3

Economic impact of apprenticeships: a Cebr report for the Skills Funding Agency. Centre for Economics and Business Research (2014)

Improving employability skills, enriching our economy: case study report. National Foundation for Educational Research (2014)

Tomorrow’s growth: new routes to higher skills. Confederation of British Industry (2013)

The potential for higher apprenticeships: research report. Learning and Skills Improvement Service (2013)

Some resources may only be available to members of the Idox Information Service

A story with a happy ending? The UK labour market and the future of skills

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Skills, Knowledge, Abilities

by Laura Dobie

Last week the UK Commission for Employment and Skills published The Labour Market Story, a series of reports exploring how the UK labour market is working following recession. In this article, we take a closer look at the results and key findings.

The reports reviewed research from the UKCES, other UK organisations and international sources to investigate:

The research revealed that while the UK economy is returning to sustained recovery, this has taken longer than before. There has been sustained growth in self-employment, and a rise in precarious forms of work, such as casual and short term work, and zero hours contracts. Youth unemployment is four times the rate for those aged 24 to 64.

There has been a long term reduction in administrative and secretarial work in many industries, typical middle level jobs, which has led to increasing polarisation in the labour market. Those with higher skills and qualifications are more likely to remain in employment and have considerably greater earnings prospects, highlighting the importance of skills in individuals’ labour market outcomes.

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The barrier that could put the brake on growth

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skills gap

by James Carson

As the UK economy shows signs of recovery from the longest and deepest recession since the 1930s, more employers are starting to think once again about recruiting new staff. But many are finding it hard to fill vacancies because of a shortfall in skills.

The latest survey of employers by the UK Commission for Employment and Skills (UKCES) has found that nearly a quarter of UK vacancies went unfilled because of a shortage of much-needed skills. Continue reading →