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

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There is an urgent need to raise UK skills levels to help drive productivity, growth and jobs. The skills and capabilities of our people are ultimately.
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Presentation transcript:

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

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

Our Commissioners

Key LMI resources from the UK Commission UK Commission’s Employer Skills Survey 87,500 interviews To understand employer investment and skills challenges Monitor employer investment Assess employer skills needs Understand recruitment practices 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 Employer Perspectives Survey 15,000 interviews To understand employer perspectives of recruitment and young people development Young People Apprenticeships Work placements

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

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

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

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

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

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

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

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

Future employment needs - but where will the growth come from in London? Projected UK employment change by sector (% change) in London and England between Change (‘000s) ,083 Sector Manufacturing Non-market Services Primary Sector & Utilities Construction Trade accommodation & transport Business & other services 13 (Source: Working Futures) % change London England

Where will future jobs come from in London? 14 Net Job Openings (‘000s) Occupation Managers Professional Associate Professional Admin & Secretarial Skilled trades Caring, Leisure etc Sales Operatives Elementary Projected England Job Openings Job Creation Replacement Demand (Source: Working Futures)

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

Young people prepared for work 16 Well prepared / very well preparedPoorly 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) Preparedness of 16 year-old school leaversPreparedness of year-old school leavers Preparedness of year-old college leavers Preparedness of higher education leavers

How do London employers support young people? Source: Employer Perspectives Survey % 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%).

Conclusions 18 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

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?

Links and contact details Information about our LMI ESS Local Data Employer surveys Accessing the data Alison Morris – Rachel Pinto – 20