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Higher Level Skills Needs in London

Higher Level Skills Needs in London. January 2013. Alison Morris Rachel Pinto. About the UK Commission for Employment and Skills . Aim: Transform the UK’s approach to investing in the skills of people as an intrinsic part of securing jobs and growth. Impact. Investment.

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Higher Level Skills Needs in London

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  1. Higher Level Skills Needs in London January 2013 Alison Morris Rachel Pinto

  2. About the UK Commission for Employment and Skills Aim: Transform the UK’s approach to investing in the skills of people as an intrinsic part of securing jobs and growth Impact Investment Intelligence Maximise the impact of employment and skills policies and employer behaviour to support jobs and growth Work with businesses to leverage greater investment in skills Provide outstanding labour market intelligence which helps businesses and people make the best choices for them More employers investing in the skills of their people More career opportunities for young people More collective action by employers through stronger sectors and local networks More employers taking ownership of skills

  3. Our Commissioners

  4. Key LMI resources from the UK Commission Employer Perspectives Survey 15,000 interviews To understand employer perspectives of recruitment and young people development Young People Apprenticeships Work placements UK Commission’s Employer Skills Survey Working Futures 850,000 time series extrapolations To understand labour market prospects for next ten years Input to careers and skills advice Inform policymakers at national & local levels Inform curriculum strategies 87,500 interviews To understand employer investment and skills challenges Monitor employer investment Assess employer skills needs Understand recruitment practices

  5. Are businesses investing wisely in skills? There are 2.3 millionbusinesses of 1+ employers across the UK. Of which... 59% train (1.3 million) 41% do not train (0.9 million) Of those who do train: Of those who do not train: 8% (0.2 ml) 29% (0.6 ml) 23% (0.5 ml) 26% (0.6 ml) 15% (0.3 ml) Do not know if they want to do more Would like to do more training Do sufficient training to meet needs No training need Perceived need but met barriers Key Challenge: Training investment is holding up despite the recession overall. But with only 19% of businesses adoptingHigh Performance Working practices, is this ambitious enough?

  6. Establishments carrying out any training, 2011 Source: UKCES, UK Commission’s Employer Skills Survey, 2011

  7. Unless we transform the way we work, our workforce will not be world class We especially need to address the long tail of individuals with low skills Current international skills position 25th 11th 26th 13th 21st 25th Intermediate Skills High Skills Low Skills

  8. Productivity and employment, UK nations and English regions Employment (% of UK average) Productivity (% of UK average) Sources: Employment: ONS, Annual Population Survey, Jul 2011 – Jun 2012; Productivity: ONS, Headline workplace based GVA at current basic prices

  9. Employment by sector, London Proportion of total employment (London) Source: ONS, Business Register and Employment Survey, 2011

  10. Employment by occupation, London Proportion of total employment (London) Source: ONS, Business Register and Employment Survey, 2011

  11. Hard-to-fill vacancies and skill-shortage vacancies Proportion of vacancies that employers find difficult to fill for any reason, 2011 Proportion of vacancies that are difficult to fill because of lack of skills or qualifications, 2011 Source: UKCES, UK Commission’s Employer Skills Survey, 2011

  12. Where are the future jobs? While growth will occur almost everywhere, the north-south divide will continue to be exacerbated. Projected change in total employment across the UK: 2010-2020 6-8% 4-6% 2-4% 0-2%

  13. Future employment needs - but where will the growth come from in London? Projected UK employment change by sector (% change) in London and England between 2010-2020 Change (‘000s) -13 -137 -7 -80 3 -5 21 194 73 329 279 1,083 % change Sector Manufacturing Non-market Services Primary Sector & Utilities Construction Trade accommodation & transport Business & other services London England (Source: Working Futures)

  14. Where will future jobs come from in London? Projected England Job Openings 2010-2020 Net Job Openings (‘000s) Job Creation Occupation Managers Professional Associate Professional Admin & Secretarial Skilled trades Caring, Leisure etc Sales Operatives Elementary 327 663 464 143 131 169 106 65 170 Replacement Demand (Source: Working Futures)

  15. High level skills in London Proportion of working age population with high level qualifications Source: ONS, Annual Population Survey, Jan-Dec 2011

  16. Young people prepared for work Preparedness of 16 year-old school leavers Preparedness of 17-18 year-old school leavers Preparedness of 17-18 year-old college leavers Preparedness of higher education leavers Well prepared / very well prepared Poorly prepared / very poorly prepared Source: UKCES, UK Commission’s Employer Skills Survey, 2011 (asked to all establishments that had recruited a young person from education to their first job)

  17. How do London employers support young people? 32% of establishments in London have had someone on a paid or unpaid work experience placement or internship in the last 12 months compared to the UK average (27%). A lower share of London establishments (12%) currently have or offer apprenticeships at their site compared to the UK average (15%). Source: Employer Perspectives Survey 2012

  18. Conclusions • London has high productivity and low employment compared to the rest of the UK • Most net job creation is expected in high level occupations • London has a higher proportion of people with high level qualifications than the UK average • London has a lower proportion of hard to fill vacancies than other regions • But a relatively high proportion of these are due to skills shortages • A lower proportion of London employers train their staff than the UK average and a lower proportion arranged training that leads to a qualification

  19. Discussion • Do you recognise this picture of London? • What could the data be used for? • What are the challenges in using data? • How can we support and increase use?

  20. Links and contact details Information about our LMI http://www.ukces.org.uk/ourwork/research/lmi ESS Local Data http://www.ukces.org.uk/local-data Employer surveys http://www.ukces.org.uk/ourwork/employer-surveys Accessing the data employer.surveys@ukces.org.uk Alison Morris – alison.morris@ukces.org.uk Rachel Pinto – rachel.pinto@ukces.org.uk

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