Shaw Trust / CDG Merger Plan Support

1. Shaw Trust / CDGMerger Plan Support LMI Why?The impact and value of local labour market information to colleges, local authorities and local enterprise partnerships Youth Employment Convention #yec2013 9 May 2013 P

2. Speakers... • Ben Verinder, Associate Director, PublicCo • Paul Bivand, Associate Director, Inclusion • LovedeepVaid, Senior Statistician, Inclusion • Sue Gidman, Associate Director, PublicCo

3. Avoiding LMI in isolation...student attitudes Nothing in Common: The career aspirations of young Britons mapped against projected labour market demand (2010 - 2020) But – are young people more sensible than the forecasters? 3

4. Avoiding LMI in isolation...employer attitudes • UKCES 2013 4

5. Avoiding LMI in isolation...employer attitudes 5

6. Avoiding LMI in isolation...the environment • Macleod Associates 2013 6

7. Avoiding LMI in isolation...the environment “Giving robust careers guidance while improving student attitudes to work and boosting their basic employability skills are the most important elements in effective training for young unemployed people, according to colleges “Inconsistent rules about what types of courses are funded, the availability of local jobs and the difficulties colleges have in tracking student progress are the biggest barriers to working effectively with the unemployed, say colleges..” “It is particularly important that students are not encouraged by agencies to leave their college course in order to take up very short-term jobs, cutting short their training and their chances of sustainable employment.” 7

8. Job Skills?

9. LMI is required to support a range of college activities and functions College activities / functions Data requirements

10. Rigorous analysis to identify local needs, behaviours and skills mismatches Local provision & employer demand for skills - How well does the college meet the needs of the local labour market, and how does this compare to competitors Strategic analysis of supply & demand in the local economy - How is the labour market changing and what are the qualification requirements for different jobs Future skills and job needs - What is future employer demand for skills and qualifications

11. Local provision & employer demand for skills

12. Strategic analysis of supply & demand

13. Future skills and job needs

14. Example output: subject area opportunities (dummy numbers)

15. Example output: college MI and rivals (dummy numbers) Information can be used to create year on year trajectories

16. Examples of output: occupations and earnings matrix

17. Sustainable Support

18. Beyond the labour market – work experience “Only a minority of employers offer work placements and where they do they tend to be provided for those in education and for schoolchildren in particular.... “The majority of those who are currently engaged are motivated for altruistic or philanthropic reasons.... “It is encouraging, however, that a fifth or employers claim that one of the reasons they are not involved is because no-one has approach them. This does suggest that there will be a significant minority of employers who could be immediately open to the idea of offering work placements.” 18

19. Beyond the labour market - student recruitment . 19

20. Beyond the labour market - internal comms .

21. Beyond the labour market – student absence

22. Beyond the labour market – nursery care

23. What’s required... • Providers have the right offer and incentives to get youth into sustainable work, progress through education or at work. • Customers are informed and able to make the right decisions for themselves or their businesses in full knowledge of the options available and the opportunities that they will open up. • Employers feel that that they have confidence in the system to provide them with the skilled people that they need; are aware of what the skills offer is; and are part of the process that will influence what is provided • Providers operate in a competitive commercial setting and there is no longer an incentive for some providers to promote and provide courses that secure the highest take up and pay the highest rates rather than address the greatest need or deliver the most economic needs.

24. Where are we now... • Fantastic examples of world class provision and employer-led training. • The freedoms and flexibilities introduced means that providers across the system have been freed from regulations and bureaucracy to respond to employers and individuals needs (e.g. Employer Ownership of Skills fund) • But • Some courses have little employer backing, that fail to prepare the learner for work or add value to the economy. • There is duplication of provision, poor performance of contracts, limited oversight of how delivery meets the needs of employers and individuals • Significant disconnect between the skills we produce and the skills we need. • Promise of greater local influence yet little has been delivered.

25. Future direction... • Embed employment and skills at the heart of all commissioning and delivery and demonstrate the impact of provision on sustained employment and career progression, by: • Increasing the proportion of providers’ funding allocation that recognises success in this area; • Extending the rate at which sustainable employment or career progression is be measured; • Promoting the introduction of outcome incentive payments across specific sectors that are determined and agreed locally; • Applying outcome incentive payments across all post-16 vocational learning; in concert with the rollout of Raised Participation Age.

26. Design and Implementation