Skills England published its first report. The document’sets the scene’ to the newly-formed government body’s role as ‘the driving power’ in the upskilling the economy, which is sorely needed.
Richard Pennycook, interim chair, said in his foreword: “We have the sixth-largest economy in the entire world and yet, our businesses and services in public service have lagged behind in productivity in the last 30 years.”
He explained that if we want to be successful in the future, we must transform the landscape of skills. Students need to be guided to what they are good at and encouraged to reach their full potential. Employers must know there is a talent pool that can deliver on the opportunities created by them. “Providers need to be recognized and respected for their role in enabling our skills-based economic system,” wrote he.
The report presents a “long-list of challenges” for fixing a fragmented, confusing skills system.
Skills England is aiming to remove significant barriers to growth, including the fact that over a third (35%) of UK job vacancies by 2022 will be due to a skills shortage. This compares to 22% in 2013-2017 according to ‘s official statistics.
The report states that the qualification landscape for employers can be opaque. Skills supply may not match demand and there aren’t enough mechanisms to encourage employers to invest. The report also states that the paths to skilled careers for students are often not clear.
According to the Employer Skills Survey, the report shows that employers have been investing in training less and less over the last decade. In real terms, investment per employee has fallen by 19%.
Skills England states that more research is required, but based on the evidence available, this drop in investment could be due to a variety of causes. They include:
- Employers who perceive that their staff is sufficiently skilled
- Not having the resources to train staff beyond the minimum requirements
- Lack of a clearly defined industrial strategy that provides a basis for a linked skill strategy
- Strong international labour supply with flexible labour market
- A shift in attitude, shifting the responsibility for upskilling employers to the government.
- Low overall business investment
Skills England published a ” Occupations In Demand Index” last week. It used seven labour market indicators, including the Standard Occupational Classification of the ONS, to determine the demand for occupations in the UK. These indicators include visa applications, job ads online and wage growth.
The report identified 39 occupations with “critical” demand and another 128 that had “elevated” demand across the UK labor market.
More than 2,5 million UK workers (7.8%), are employed in occupations in high demand. Another 12,6m (38.5%) workers are employed in occupations in critical demand.
Skills England announced that it would launch a series roundtables and webcasts in the fall to test and fine-tune the initial assessment of the skills needs described in this report. It will consult with employers and key organisations in order to get their initial opinions on the high-value training that should be available through the new Growth and Skills Levy.
It will also work with the devolved governments in Scotland, Wales, and Northern Ireland to spread growth and opportunities across the UK.
It will also work closely with the Migration Advisory Committee, to increase the domestic skills pipeline, and to reduce the reliance upon overseas workers. And the Industrial Strategy Council to ensure that the UK develops a skilled workforce to deliver a long-term, clear plan for the UK’s future economy.
Bridget Phillipson said, “This report represents a first important step in our strategy to reform the education system.” The report, which outlines our vision for meeting skills needs, invites all members of the skills system to use data insights in order to challenge, inform and create a collaborative and responsive skills system that aligns with the future Industrial Strategy.
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