1. Ambition 2020: World Class Skills and Jobs
The UK Commission for Employment and Skills: Ambition 2020: Towards a new skills strategy
Global Skills Marketplace
WorldSkills Calgary 2009
2 September 2009
Chris Humphries CBE Chief Executive UK Commission for Employment and Skills
(c) UKCES 2009

2. UK Commission for Employment and Skills: A Strategic Advisory Body
The UK Commission for Employment and Skills
05/12/2017
UK Commission for Employment and Skills: A Strategic Advisory Body
Purpose: “to strengthen the employer voice, and deliver greater leadership and influence to achieve the best from the UK’s employment and skills systems”
Principal Roles:
“develop an independent view of how employment and skills services can be improved to achieve increased employment retention and progression, skills and productivity;
“provide advice to inform strategic policy development, analysis and exchange of good practice to drive and shape the skills and employment system to meet the needs of employers and individuals;
“fund and manage the performance of the Sector Skills Councils and advise Ministers on their re-licensing.”
Reporting to:
Prime Minister, Chancellor, Secretaries of State for Business, Schools, Skills, and Employment, and First Ministers of Northern Ireland, Scotland and Wales
© UKCES 2008

3. The Commissioners: A strong and independent employer voice
Chairman, BT Group plc (Chair) - large
CEO, Homes and Comm. Agency - Public
Head, KPMG Fin. Serv. Europe - large
Director General, CBI - trade assoc
CEO, SERCO plc - large
General Secretary, TUC - trade union
Chairman, John Lewis - large
General Sec., Scottish TUC - trade union
CEO, AstraZeneca plc - large
General Secretary, Unison - trade union
CEO, IBM UK Ltd - large
Vice Chancellor, U. Manchester - Uni
HR Director, Crossrail - large
Principal, Warwickshire Coll. - College
CEO, United Utilities - large
CEO, Turning Point - voluntary
Dep. Chair, Wates Construction - large
CEO, RADAR - voluntary
UK MD, BAe Systems - large
Commissioner for Scotland
CEO, Simple Solutions - SME
Commissioner for Wales
CEO, Pyronix Ltd - SME
Commissioner for Northern Ireland

4. Ambition 2020: World Class Skills and Jobs
Productivity and employment in OECD: Where are we now? Where should we be?
High employment/ low productivity
High employment/ high productivity
Employment:
UK 10th place
SETTING A WORLD CLASS AMBITION:
SUSTAINABLE ECONOMIC COMPETITIVENESS & SOCIAL COHESION
2020 Goal: World Class Productivity Levels - in top 8 OECD countries
2020 Goal: World Class Employment Levels - in top 8 OECD countries
2020 Goal: World Class Skill Levels - in top 8 OECD countries
Productivity:
UK 11th place
Employment populations ratio 2007, all persons 15-64
Employment:
Low employment/ low productivity
Low employment/ high productivity
Productivity: GDP per hour worked (US$ at current prices), 2007
Source: UKCES, Ambition 2020: World Class Skills and Jobs for the UK, 2009, pp 21-22
(c) UKCES 2009

5. The UK Qualifications Profile 1997-2007: Good progress over last decade!
Achievements
1997
2007
Change
1997 – 2007 %
Nos (‘000s)
Level 5 3
1087 7
2274
110
+1187
Level 4 18
6101 24
8060 32
+1959
Level 3
5999 20
6738 12
+739
Level 2 21
6865
6912 1
+47
Below Level 2
7074 17
6019
-15
-1055
No Qualifications
5920
4351
-26
-1569
+44%
-26%
Source: Labour Force Survey, 2008 – Note: Working age population 19 – 59/64

6. The UK – leading in some areas: Participation of adults in lifelong learning
Benchmark 2010
Source: Eurostat (EU – Labour Force Survey), (some data 2006)

7. But the competition is global: Improvements are too slow at school level …
UK Position:
15th in OECD for ‘older workers’
21st in OECD for ‘younger workers’
Source: OECD, Education at a Glance 2008, Table A1.2a

8. … and at tertiary level too
Ambition 2020: World Class Skills and Jobs
… and at tertiary level too
UK Position:
12th in OECD for ‘older workers’
15th in OECD for ‘younger workers’
Source: OECD, Education at a Glance Table A1.3a
(c) UKCES 2009

9. … with major skills variations across sectors
Source: Labour Force Survey, 2007

10. Productivity and employment in UK: A regional challenge too
High employment/ low productivity
High employment/ high productivity UK
Employment populations ratio 2007, UK = 74.4%
Employment: 
Low employment/ low productivity
Low employment/ high productivity
Productivity: GDP per hour worked (UK = 100), 2009
Source: UKCES, Ambition 2020: World Class Skills and Jobs for the UK, 2009, pp 21-22

11. … with national/regional skills gaps
Percentage of working age population in employment by qualifications level
Percentage in employment with Level 4 skills and above
Percentage in employment with Level 2 skills or below
Source: UKCES, Ambition 2020: World Class Skills and Jobs for the UK, 2009, Chart 2.1 – ONS Population Survey, Jan-Dec 2007

12. UK employment change 2007-2017: Major growth in high level skills
Over 50% of all job demand
Over 100% of all expansion demand
13,451
Source: UKCES, Working Futures , January 2009

13. UK employment change 2007-2017: Continuing sectoral variations
Source: UKCES, Working Futures , January 2009, Table 2.6

14. UK Current Progress to 2020 Ambitions
Skill Level
2007
Actual
2020 Ambition
Projected Outcome
Size of
gap
High level skills
31%
40%
41%
+1%
Intermediate level skills
20%
28%
17%
-11%
Lower secondary
22%
19%
-3%
Primary (<12) 6%
16%
-10%
No qualifications
12% 4% 7%
Basic Literacy
85%
95% 0%
Basic Numeracy
79%
89%
-6%
Intermediate/Low Level skills & Numeracy – the key UK challenges
Source: Ambition 2020, Tables 4.2 & 4.3, p 58-59

15. Progress towards 2020 Ambitions
Ambition 2020: World Class Skills and Jobs
Progress towards 2020 Ambitions
Skill Level
Low level skills
Intermediate level skills
High level skills
2020 Ambition
Top 8
Actual
2007 17 18 12
Forecast
2020 23 21 10
So shouldn’t the UK be experiencing major skills shortages?
(c) UKCES 2009

16. Ambition 2020: World Class Skills and Jobs
Low UK skills shortages and skills gaps: Over-skilled or under-employed?
Skills Shortages and
Skills Gaps in the UK UK
Skills shortages
%age of establishments 5%
Number of skills shortage vacancies
154,000
Skills shortage vacancies as %age of employment
0.6%
Skills gaps
15%
Skills gaps as percentage of employment 6%
Over-skilled or
under-employed? UK
Over-qualified
39.0%
Comprising:
real over-qualification
16.8%
formal over-qualification
22.2%
Over-skilled
32.7%
Under-qualified
13.8%
Qualification matched
47.2%
Amongst which:
matched but over-skilled
12.3%
Definitions:
Over-qualified: an over-qualified individual has a qualification at a higher level than that currently required to get the job they hold.
Real over-qualification: over-qualified and over-skilled
Formal over-qualification: over-qualified but not over-skilled
Over-skilled: perceived under-utilisation of skills
Under-qualified: an under-qualified individual has a qualification at a lower level than that currently required to get the job they hold.
Qualification matched: neither over-qualified nor under qualified
Source: Drawn from National Employer Skills Surveys, England, 2007; Skills in Scotland, 2006; NI Skills Monitoring Survey, 2005; Future Skills Wales 2005; adapted from Tables 7.2, 7.3 & 7.6 in Ambition 2020, pp
(c) UKCES 2009

17. Slow progress to a high skill economy: Change in skilled jobs between 1998 and 2006
UK Position:
12th place in 2006
Slowest positive growth
Source: Ambition 2020, Charts 7.1 & 7.2, pp OECD, Education at a Glance 2008, Table A1.3a and Table 1.6

18. Difference between skills supply & demand: Change between 1998 and 2006
Source: Ambition 2020, Chart 7.1, p OECD, Education at a Glance 2008, Table A1.3a and Table 1.6

19. A framework for skills and jobs
Ambition 2020: World Class Skills and Jobs
05/12/2017
A framework for skills and jobs
Positive Economic and Social Outcomes
Economic Performance
Employment
Reduced Inequality
Productivity
Supply of Skills
Employment Demand
Match Mismatch
Learning provision
Skills Attainment
Potential Workforce
Required Workforce
Business Strategy
Economy – level/structure
Accredited
(Qualification)
Informal
(Training)
Management & Leadership
Skills Utilisation
Shortages and skills gaps
Unemployment and Inactivity
‘Over-skilled’ / ‘Under-employed
Migration
Negative Economic and Social Outcomes
Skills Investment
Individual, Employer, Government
Industrial Policy
Economic Policy
Other Drivers
Guidance – firms & people
Supply
Jobs
Demand
(c) UKCES 2009

20. Five priorities for world class skills & jobs
Industrial/
Economic
Renewal
Local
Economic
Development
Commission Priorities
Individual
Aspiration
Responsive
Provision
Employer
Ambition

21. Five priorities for World Class skills and jobs
To create a clear and integrated strategy for economic transformation and renewal, aligning policies and practices in industrial policy, employment and skills in order to achieve that transformation.
To support effective economic development in cities and local communities, built upon economic and labour market strengths and opportunities, and maximising the skills of the local working age population.
To build employer ambition and capacity to be World Class, capable of competing globally in the high skills, knowledge driven economy, by optimising the talent and skills of their people.
To transform individual aspiration and skills into a World Class workforce, maximising the motivation and opportunity for all people to develop and exploit their talents and skills to their full potential
To develop more strategic, agile and demand-led skills and employment provision, capable of anticipating and rapidly meeting employers’ evolving skills and job requirements.

22. UK Commission Strategic Priority 1: Increasing employer ambition, engagement and investment in skills
Principal workstreams:
Build a powerful business case for skills to demonstrate and promote the value of employer investment in workforce development;
Advise governments and employers on the UK’s emerging strategic skills needs, particularly in relation to new industries and technological change;
Re-license, fund and manage the performance of Sector Skills Councils (SSCs) to become a highly influential and effective UK employer network;
Devise, with SSCs, and implement a new standard for labour market information reports to identify current and future skills needs across the UK nations and regions;
Undertake research and advise employers on ways to improve skills utilisation and implement high performance workplace practices.
Recommend practical actions to increase the leadership and management skills across UK employers;

23. UK Commission Strategic Priority 2: Maximising individual opportunity for skills and sustainable employment
Principal workstreams:
Prove and promote the benefits of learning to individuals of all ages in order to raise individual aspirations for higher skills and better jobs;
Identify key barriers to employment and skills for individuals, and advise government on ways to increase individual demand for and access to skills and workplace learning;
Utilise, and support the use of, customer journey and satisfaction studies to inform system simplification and improvements, and promote better system integration;
Work with government to identify the best modes for integrating employment and skills services, especially for people in/at risk of social exclusion
Support the development of a flexible and modular qualification system that better enables individuals to build the skills needed for sustainable jobs and progression;
Identify and promote international best practice in employee engagement strategies to employers, supporting the growth in high performance workplaces.

24. UK Commission Strategic Priority 3: Building a more strategic, agile and demand-led employment & skills system
Principal workstreams:
Advise on targets, measures & incentives for employment and skills leading to a more outcome-focused approach to increase relevance, quality and value for money;
Ensure the UK’s employment and skills systems enhance equality and opportunity amongst individuals and groups at greatest risk of labour market inactivity or exclusion;
Improve labour market information, especially on emerging industries and skills needs, to inform learning providers and better align future demand and supply;
Recommend and monitor approaches to simplify all employer facing services in employment and skills, to improve employer engagement and satisfaction;
Trust and empower Colleges/Provider to collaborate on employment and skills services to deliver a more responsive local service for employers and individuals;
Undertake national and international research on best practice in employment and skills services, to enhance provider performance to world class standards.