Edinburgh Business Assembly 3rd June 2009 Skills, Productivity and Talent

2. Why is it important? Improving the quality of life for the people in the city and spreading the benefits of economic growth Reducing the costs on business and maintaining the competitive advantage of the city Future proof the economy through the active development of the city�s workforce and skills base So why is it important to have a focus on the labour market skills level (soft and hard skills)? Helping people get a tangible benefit from Economic Development employment, earning capacity, and the self-worth this brings is important in generating support for development. Similarly without concern for the workforce needs of business it is difficult for them to maintain their competitiveness and opportunities would dry up. This is underlined in the recent key sectors study undertaken by Economic development where 60% of employers considered skills availability as very important and 40% that labour supply very important so it clear this is not just our view. It can also have a benefit to the Council. Numerous studies show that economic activity can improve an individuals health and wellbeing. This in turn can lead to a reduced call on social or health related services with knock on savings to Council Services. Quantifying this indirect benefit is the subject of considerable research and something we will be looking at further, but work to date from Scottish Government highlighted that for every �1 invested �2 is realised in Social return. Finally economies don�t stand still so if we are to continue enjoying the benefits of economic wealth it requires an investment in capacity of the workforce to meet current and future needs. Importantly in this regard it is not only about people possessing job specific skills, but about softer employability skills and how they put them to best productive use. So why is it important to have a focus on the labour market skills level (soft and hard skills)? Helping people get a tangible benefit from Economic Development employment, earning capacity, and the self-worth this brings is important in generating support for development. Similarly without concern for the workforce needs of business it is difficult for them to maintain their competitiveness and opportunities would dry up. This is underlined in the recent key sectors study undertaken by Economic development where 60% of employers considered skills availability as very important and 40% that labour supply very important so it clear this is not just our view. It can also have a benefit to the Council. Numerous studies show that economic activity can improve an individuals health and wellbeing. This in turn can lead to a reduced call on social or health related services with knock on savings to Council Services. Quantifying this indirect benefit is the subject of considerable research and something we will be looking at further, but work to date from Scottish Government highlighted that for every �1 invested �2 is realised in Social return. Finally economies don�t stand still so if we are to continue enjoying the benefits of economic wealth it requires an investment in capacity of the workforce to meet current and future needs. Importantly in this regard it is not only about people possessing job specific skills, but about softer employability skills and how they put them to best productive use.

3. Edinburgh�s Age Profile (2007)

4. Edinburgh�s Qualification Profile

5. An International City (In-ward migration 2002- 2008)

6. A Productive City

7. Skills Match & Utilisation Research: Work Skills in Scotland (Future Skills Scotland March 2008) Two-fifths of workers say that they have qualifications over and above that necessary to get and do their current job. Employer initiative is key in training decisions amongst lower-skilled individuals, but higher-skilled more likely to receive training For those workers who receive training, the impact on their work performance was generally high Emerging stronger: Education and Skills Survey 2009 (CBI April 2009) Almost two thirds (61%) of employers see increasing productivity and performance as their main priority Employers report that more than a third of positions (36%) within their workforce require degree-level skills (65% in science, high-tech).

8. Demand for Labour in Edinburgh (Vacancies notified to JCP)

9. Unemployment: 2006-2009

10. Competition for Jobs

11. Challenges for Edinburgh Equality of Opportunity: Increasing competition for jobs means young and other vulnerable groups disproportionately affected Talent Retention: Retaining highly skilled and mobile individuals in the local Economy Our Reputation: the perception of Edinburgh as a Financial Services city badly impacted could dissuade investment that would help recovery In-work poverty: 6 in 10 poor households in UK have someone in work and in Edinburgh 16% of workforce earn less than 60% of the median wage Return on investment: Maintaining a high skill economy and making best use of it Future Demand: By 2017 due to growth and replacement demand anticipated to be requirement for additional 100K workers Wealth Generation: Productivity per head compared with competitor cities

12. Economic Development Unit

13. Our Expertise Good track record in delivering employability training Typically 60-65% of those completing programme of support gain a positive outcome (Job, Enterprise, Education or Job focused training) Experience at working in partnership to deliver best service to jobseekers and employers Core Partner in Regional Economic Strategy and City Jobs Strategy Experience in the sourcing, collation and analysis of economic and performance data to inform policy Economy Watch, Labour Market Bulletin, Capital Review: Key Indicators It is clear that the City of Edinburgh Council has a key role in helping the city weather the economic storm and planning for the future It is already showing leadership with the Economic Resilience Action Plan, but it is important that Council Services align their existing service and expertise to support the resilience effort. Economic Development has a good track record in the delivery of programmes that support individuals back into the labour market and this expertise will be key in maintaining a healthy labour market and planning for the future labour market The interconnected nature of employability has required us to work effectively in partnership with other organisations to co-ordinate services and make the best use of resources. This will be even more important as the volume of people who need support increase and the job of helping people with significant barriers to employment becomes harder. In adding value it is also recognised that as a large employer of 16,000 people there are considerable number of opportunities that we generate that can be targeted at those who find difficulty in accessing employment. Through the Public Sector Academy we are helping to open up those opportunities to for example school leavers and ethnic minorities. This position as an employer may also become important in supporting continued opportunities for employment and placements during the downturn. It is clear that the City of Edinburgh Council has a key role in helping the city weather the economic storm and planning for the future It is already showing leadership with the Economic Resilience Action Plan, but it is important that Council Services align their existing service and expertise to support the resilience effort. Economic Development has a good track record in the delivery of programmes that support individuals back into the labour market and this expertise will be key in maintaining a healthy labour market and planning for the future labour market The interconnected nature of employability has required us to work effectively in partnership with other organisations to co-ordinate services and make the best use of resources. This will be even more important as the volume of people who need support increase and the job of helping people with significant barriers to employment becomes harder. In adding value it is also recognised that as a large employer of 16,000 people there are considerable number of opportunities that we generate that can be targeted at those who find difficulty in accessing employment. Through the Public Sector Academy we are helping to open up those opportunities to for example school leavers and ethnic minorities. This position as an employer may also become important in supporting continued opportunities for employment and placements during the downturn.

14. Focus on Poverty Reduction External Review of employability services Refocusing, Streamlining and aligning services to Single Outcome Agreement Development of a cross partner anti-poverty unit Targeting those not benefiting from Economic Opportunities Examine Skills needed for future Examine how individuals utilise their Skills to best effect

15. An Employment Pathway Approach As mentioned previously there is a need to look at a pathway approach which seeks to effectively move people from inactivity and disadvantage to employment As mentioned previously there is a need to look at a pathway approach which seeks to effectively move people from inactivity and disadvantage to employment

16. Competitiveness: Attracting Talent DEMA has a remit of attracting talent to the city (Visit, Live, Study, Invest) Generation Y: 'Emergent Intelligence' the under 35's and our next generation of knowledge workers Destination Promotion Strategy filter/layer approach will help to identify our�core target audience Layer 1 -�Edinburgh residential profiles - as defined by Mosaic Layer 2 -�Edinburgh Visitor Profiles Layer 3�- Target key migration life stages Layer 4�- Build on existing student recruitment networks Layer 5-� Identify attitudes appropriate for talent in key industry sector

17. Redundancy Response Partnership Action for Continuing Employment National initiative: Information gathering, advisory & signposting to relevant services Council Economic Resilience Action Plan Economic Action Resilience Network (E.A.R.N): Local network that to co-ordinate the city�s response to the downturn

18. Building a Stronger Economy Re-deployment, Re-employment, Self-employment, Alternative (Voluntary)

19. What next? Global Talent: Are there problems in attracting people with the right skills. What is our unique selling point? Under-employment: fully utilising the skills of the workforce to boost productivity Upskilling: Growing staff through investing in those with lower skills to increase earning capacity and satisfaction Diversity: Focus on attracting people with varied backgrounds to bring new ideas and opportunities Obstacles: Do systems and work patterns create blockers to growth and progress?

20. What next? Welfare reform and the devolution of employability services to local labour market level Level 1: local partners having active involvement in DWP commissioning processes. Level 2: co-commissioning and joint investment planning. Level 3: full joint commissioning in some areas, and devolution of some funding decisions in others. Partnership between employers and public/ not for profit sectors on; Service design Future Demand Developing a picture of the dynamics of the Labour Market Early intervention to combat the impacts of recession