Professor Mike Campbell professormikecampbell.com 1 City Growth Commission RSA 18 th March 2014

 It is an inconvenient truth but, the UK is, and is likely to remain, far from ‘world class’ in comparison to other OECD countries 2  We need to upskill, big time and in quick time Current rankExpected rank 2020 Low Skills19 (below e.g. Poland and Hungary) 20 Intermediate Skills21 (below e.g. Finland, Australia and Netherlands) 21 High Skills12 (below e.g. Korea, Australia and Canada) 11

4 ‘Skill rich’ areas in England include:  Surrey  Sussex  Berkshire, Bucks and Oxfordshire  London  Cheshire

5 ‘Skill poor’ areas in England include:  Parts of Lancashire, Greater Manchester and Merseyside  West Midlands  South Yorkshire and Hull  Tees Valley and Durham  East London and Essex  Notts, Leicestershire and Northants

Rank – High Skilled¹Rank – Low Skilled² Birmingham4357 Bristol1016 Leeds1629 Liverpool5559 Manchester1936 Newcastle2630 Nottingham2630 Sheffield3332 London418 Burnley/Blackburn64 Cambridge/Worthing11 professormikecampbell.com6 Source: Centre for Cities, Notes: 1. % of workforce qualified to Level 4+, rank from highest (1) to lowest (64). 2. % of workforce without any formal qualifications, rank from lowest (1) to highest (64).

7 Note: LCR has lower shares of the ‘top right’ jobs, and higher shares of the others than the UK

Match/Mismatch (Skills and Jobs) Ambition (Demand) Skills Upgrading (Supply) Unemployment Skill Shortages and Gaps Underemployment/Over-skilling In/Out Migration 8 Prosperity - E mployment - Productivity - Equality

 Make the case for skills: raise aspirations  Improve information, advice, counselling  Enhance the quality of provision: vocational education and training; schools; and universities  Develop incentives to upskill: financial; behavioural 9

 Align the skills available and the skills required: tackle shortages, gaps, unemployment and underemployment; manage migration  Establish priorities and ‘economically valuable’ skills:  Transferable and employability, as well as technical and professional skills  Utilise Labour Market Intelligence: insight and foresight  Develop more responsive provision: with a greater focus on transparency e.g. outcomes 10

 The level, growth and balance of the economy combine to drive overall jobs and skill demand: Economic policy is crucial but there’s more to it…  Business Strategy matters: product market strategies drive the level and type of employers’ employment and skill needs and their utilisation in the workplace. We need more ‘economic pull’ from business  We need: more high value added businesses; move up the value chain; higher quality products and services; intense product, process and practice innovation  Employer ambition is ultimately driven by the direction and quality of management and leadership  We need more higher-skilled jobs for higher-skilled people to do. 11

 Establish challenge, vision, objectives and report progress  Connect education, training and the world of work  Create a ‘Virtuous Circle’: Integrate education and training policy with employment and economic development policy  Fiscal Austerity: Go beyond public funding  Change Behaviour: Information, empowerment, incentives and ‘nudges’. 12

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A workforce with poor skills not only makes their own lives poorer, it makes all of our lives poorer… …and a highly skilled workforce will not only make their own lives richer, it will make all of our lives richer Why Bother? professormikecampbell.com