Learning + skills: social inclusion and economic competitiveness Paul Convery Director, Center for Economic and Social Inclusion London, July 18th 2001

A skills crisis? þ þinvestment in human capital replacing old patterns of capital investment þ þpressures of competitive globalisation þ þshortage of workers who can adapt to advancing technology and to new working patterns þ þpeople without skills are being left behind – stuck in precarious jobs that are poorly paid þ þsuccessful firms are learning, innovative businesses þ þimproving employability throughout working life

Improving employability: economic rationale þ þnearly ¾ of employers face recruitment problems; þ þ1 in 4 now report skill shortage blockages; þ þ1¼ million vacancies but 1 in 4 employers unable to recruit because of skill shortages; þ þaverage productivity gap with EU and US of between 20 and 40 per cent; þ þ38% of owner managers have qualification levels below VQ2; þ þ40% of 16 year olds leave school and give up on any further learning.

Social case Improving employability: Social case þ þearnings for level 3 skilled are 25% higher þ þunskilled earn 30% less than average þ þemployment rates for: – – those with level 3 at least - 78% – – those with no qualifications - 52% þ þskills must unlock exclusion from work by: – – tackling problems early in education system – – equipping the non-employed – – boosting employability of individuals in work

Skill shortages and gaps þ þ7 million (1 in 5) lacking basic literacy/numeracy þ þintermediate level technical skills þ þgeneric skills þ þmathematics skills þ þIT skills þ þmanagement and leadership

Learning system lopsided þ þexcellent learning system at the top end of the labour market þ þabout 33% are significantly over-educated þ þa fifth of the labour force is totally unqualified þ þskilled people tend to get even more trained: 20% of degree qualified workers regularly receive employer funded training - compared with only 8% of those qualified to VQ2

Government response: young people þ þvocational GCSEs, vocational A-levels and foundation degrees þ þ50% of young people to enter higher education by 2010 þ þ60 per cent of 21 year-olds to have A-levels by 2004 þ þan extra 80,000 more year olds in full-time learning from 2004 þ þgrowth and quality targets for Apprenticeships þ þdespite the youth population gradually shrinking

Government response: adults þ þfree basic skills training: 750,000 by 2004 þ þinformation advice & guidance þ þbetter job matching and broking services þ þindividual learning commitment þ þnew mechanisms & institutions: þ þunion learning fund þ þNTO development þ þICT learning centres þ þadult and community education þ þworkplace and employer initiatives - responsive to need

Improving participation and attainment þ þbasic skills and core competences þ þstrengthening vocational learning þ þintegrating academic and vocational þ þculture: institutions, employers & individuals þ þnew entitlements e.g. all ages level 2 þ þflexible forms of delivery - “where, when & how” þ þtargeted support for the disadvantaged þ þhigher standards: employers and institutions