“ There is an urgent need to raise UK skills levels to help drive productivity, growth and jobs.”

1. The case for investing in skills: Employer ownership and Apprenticeships “There is an urgent need to raise UK skills levels to help drive productivity, growth and jobs.” Vince Cable, Secretary of State for Business, Innovation and Skills “The skills and capabilities of our people are ultimately the basis for our long-term competitiveness.” Charlie Mayfield, Chairman, UK Commission for Employment and Skills

2. FE, HE and Careers Our Commissioners:

3. About us: 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 Maximise the impact of employment and skills policies and employer behaviour to support jobs and growth Intelligence 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 Five assets and 100 staff to deliver on outcomes

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. Future jobs market: which sectors? Projected UK employment change by sector (000s) between 2010-2020 (Source: Working Futures) Change (‘000s) Sector Private services expected to be the main engine of job growth (2010-2020) Manufacturing Non-market Services Primary Sector & Utilities Construction Trade accommodation & transport Business & other services -170 -103 -22 237 415 1,195

6. Future jobs market: which occupations? Most net job creation (2010-2020) expected in high level occupations, but job openings expected in all occupations due to replacement demands Projected England Job Openings 2010-2020 (Source: Working Futures) Net Job Openings (‘000s) Occupation Managers Professional Associate Professional Admin & Secretarial Skilled trades Caring, Leisure etc Sales Operatives Elementary 1,614 2,726 1,742 1,106 930 1,256 779 535 1,117 Job Creation Replacement Demand

7. Future job market: which regions? 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%

8. Training in the UK There are 2.3 millionbusinesses in the UK with 1+ staff... 59% train (1.3 million) 41% do not train (0.9 million) …of which: 15% 26% Perceived need but met barriers* Said they had no training needs Of those who do not train: *Also includes small proportion of businesses that said ‘don’t know’ or ‘no reason’, or that ‘people learnt as they went’ £ Barriers cited include: i ¹ Cost Lack of information Time

9. The consequences of not training... Employers who do not train, on average, are twice as likely to fail, opposed to those that do... Training raises businesses survival and performance rates

10. Sectors we want to be famous for - industry strategy • Industry strategy sectors to focus on: • advanced manufacturing including aerospace, automotive and life sciences • knowledge intensive services including higher education, creative industries and professional services • enabling sectors, such as information economy, construction, energy, including green energy

11. Why ‘employer ownership’? The skills system: two decades of reform Less globally competitive: ‘system’ is too complex Two markets for skills development A lack of alignment Employers need to own the skills agenda

12. Employer ownership: aim Businesses working together to deliver game-changing, sustainable ways to improve skills in the workforce to drive productivity and growth. “By giving businesses the chance to shape and set their own training agenda, we’re giving them the power to enrich their workforce with the skills needed for their future success." Matthew Hancock, Minister for Skills Business, Innovation and Skills

13. Employer ownership – key facts (funding) Two funding rounds – round 1 complete Total value - £340 million (£90 million added) Around £240 million available Available to financial year 2015 - 2016 Round 2 – open for business

14. Progress to date The Pilot project started a year ago to test the vision Received 269 bids Invested in 35 projects* Employers invested: £98 million Employer Ownership Fund invested: £67 million Total funding: £165 million * Subject to final due diligence checks

15. Planned impact to date Investments will fund: • 11,000Apprenticeships; • including 4500 at age 16 - 18 18,500full time non-apprenticeship training opportunities • 45,000other learning or training opportunities; • including work experience and work • placement opportunities

16. Key features to date Employer leadership Collaborative approaches Innovative proposals Support and opportunities for young people Strong employee and employer partnerships

17. Case study: Arla Foods Transforming skills in the UK Dairy Industry A collaborative project between natural competitors to design and deliver the training the industry needs • Objectives: • 280 new Apprenticeships (Level 2 - 4) • 6300 non-Apprenticeship Qualification based training • 1350 other training opportunities, not leading to a qualification Funding requested: £2 million Employer contribution: £2.5 million

18. Case study:Construction Employers Construction skills for growth An innovative employer collaboration to tackle skills challenges in the industry. • Objectives: • Introduce a new work experience programme for 1,998 individuals. • Creating 709 apprenticeships in areas of skills shortage • Delivering 24,686 skills training interventions to up-skill the workforce. Funding requested: £8 million Employer contribution: £8 million

19. Employer ownership of skills Extending the ambition Strong employer-led partnerships Public investment in work based training to incentivise direct employer investment Nurture greater employer and college collaboration

20. The next phase Proposals which will enable employers to improve the skills of their current and future workforce Industrial partnerships with genuine employer leadership and governance, and end-to-end responsibility for skills

21. And the skills solutions Apprenticeships and other training/development opportunities Training and skills development to help people into work Small and medium sized enterprises Collaboration between employers, colleges and training providers

22. So what are we looking for now? Productivity and growth driven by improved skills, supported by strong collaboration between employers, trade unions and providers Responsive colleges and training providers working with employers More private investment in skills Better quality and robust apprenticeships, traineeships and vocational provision

23. And what about our international work? Close work with the British Council in India, China and other countries – education as an export Alignment of qualifications systems to support mobility across Europe (EQF) Participation in and research for the OECD relating to standards, apprenticeships and qualifications International best practice – national occupational standards, apprenticeships and qualifications

24. Thank you very much for listening Alison Morris, Senior Manager, UKCES If you would like to hear more please contact: alison.morris@ukces.org.uk 07825 522479 www.ukces.org.uk