Young People in Employment Without Training November 18 th , 2005

1. Ben Neild SLIM Young People in Employment Without TrainingNovember 18th, 2005 South West Observatory Skills and Learning Intelligence Module

2. Policy Drivers ‘A one percentage point increase in the number of workers with higher education qualifications raises GDP by 0.5%.’Estelle Morris 23 May 2002The more education you have….the less likely you are to be unemployed the healthier you will beyou will have better developed social values It is socially and economically desirable to support continuing participation and qualification post-16 South West Observatory Skills and Learning Intelligence Module

3. Male earnings by highest qualification: f/t employees after 20 years South West Observatory Skills and Learning Intelligence Module Source: Robinson 1997

4. OECD - Participation at age 17 South West Observatory Skills and Learning Intelligence Module

5. Rates of participation in education and WBL at age 16 South West Observatory Skills and Learning Intelligence Module Source: DfES, 2005 (2003 data)

6. Rates of participation in education and WBL South West Observatory Skills and Learning Intelligence Module

7. Destinations of 16 & 17 year olds South West Observatory Skills and Learning Intelligence Module

8. % 17 year olds employed and not in education South West Observatory Skills and Learning Intelligence Module

9. Employment w/out Training and NEETs Movement into work without training doubles the chances of young people becoming NEET at 18, when compared to young people who had spent 2 years in work with training. The risk of becoming NEET from work with no training was reduced either by movement at 17 into work with training or full time education.Those in jobs with training were the most stable people, in terms of becoming NEET at 18 ‘Young people not in education, employment or training’Report to DfES, Centre for Research in Social Policy, 2005 South West Observatory Skills and Learning Intelligence Module

10. Cost of being NEET A NEET dropping out of education at 16 will cost the taxpayers an average of £97k during their lifetime…. A single 157,000 strong cohort of 16 to 18 year old NEET would cost the country £15 billion by the time they died prematurely in 2060. They are 22 times more likely to be teenage mothers; 50% more likely to suffer poor health; 60% more likely to be involved in drugs and 20 times more likely to become criminals.Sunday Times, March 2005 South West Observatory Skills and Learning Intelligence Module

11. NEET & Learning 34% those with no qualifications are NEET17% those with Level 17% of those with Level 2There are close associations with truancy and disaffection while in school. Only 1% with 5 or more GCSEs at A* to C become NEETThose achieving fewer than 5 GCSEs made up 92% of NEETs‘Young people not in education, employment or training’Report to DfES, Centre for Research in Social Policy, 2005 South West Observatory Skills and Learning Intelligence Module

12. Work w/out Training More likely to be in work without training if you are white, less well qualified (but not unqualified), from poorer backgrounds But 65% live in homes that are owned by parents or carers70% say that their jobs are permanentA significant proportion (46%) receive on-the-job training; a smaller proportion (about 12%) off-the-job training Generally this training does not lead to qualificationsGeoff Hayward, SKOPE, July 2005 South West Observatory Skills and Learning Intelligence Module

13. Jobs without Training Five most common jobs Sales AssistantsClerks, not otherwise specifiedCleaners and domesticsCounter hands and catering assistantsWaiters and waitressesGeoff Hayward, SKOPE, July 2005 South West Observatory Skills and Learning Intelligence Module

14. Financial Issues Financial rewards to work without training - wages higher than apprenticesEMAs encourage people to stay on in School Child Benefit is only paid to age 19 if children continue in full time Education Lack of quality apprenticeshipsParity between academic and vocational routes isn’t there yet in terms of Government policy, let alone public perception. POLICY RESPONSES£80m new Negotiated Learning Agreement for 16 to 17 year olds – testing range of financial incentives to encourage employers and employees to take up Apprenticeships£60m pilot offering NEETs financial support in return for a commitment to return to formal learning / training in work South West Observatory Skills and Learning Intelligence Module

15. Other Issues WBL is very poorly presented to young people in schools:It is seen as a poor relation to academic studies post 16, for the less ableThere is limited understanding among teachers and tutors of the WBL landscapeThere is widespread suspicion that WBL routes are not pushed by teachers in schools with sixth forms because they are seen as competitors to their own offerParents are seen as crucial influences but have little knowledge of the learning routes and so little confidence in advising young people South West Observatory Skills and Learning Intelligence Module

16. Responses Campaign to promote work-based learning (are issues of image etc) to young peopleThe poor image of WBL deters young people from pursuing opportunities that exist. Campaign to promote benefits of WBL to employersNeed more apprenticeship opportunities (working with employers)Use skills Brokerage model to raise employer awareness of the role of WBL (apprenticeships)Need to reduce inequalities in pay between training allowances and higher wages South West Observatory Skills and Learning Intelligence Module

17. Responses Improve opportunities for work experience in Schools, helping young people to make informed choicesImprove our knowledge and understanding of the cohort, their backgrounds, work experience, decision making, destinations, wages and outcomesIdentify young people at risk of disengagement and provide additional support Families exert huge influence. Is a need for Connexions to work with teachers and parents to raise awareness, understanding (and esteem) of WBL routes and opportunitiesEnsure effective collaboration between Brokers and Connexions South West Observatory Skills and Learning Intelligence Module