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Issue 11 May 2009

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Research and policy e-bulletin covering employment and skills issues.

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Spotlight Feature

In this edition's Spotlight Feature we discuss Ambition 2020: World Class Skills and Jobs for the UK, the first progress report to UK governments from the UK Commission for Employment and Skills.

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Content this month includes...

Employment

Wage formation in the EU
Knowledge Workers and Knowledge Work
Recent Migration into Scotland
The Geography of Unemployment
Active Labour Market Policies in International Context
Different Ways of Tackling Worklessness
Support for Those Out of Work in Scotland

Skills

Information to Intelligence: A Common Labour Market Information Framework for Sector Skills Councils
The Effect of Lifelong Learning on Intra-generational Social Mobility
The Impact of Training on Future Entrepreneurial Activity
Record Number of Adults Gain Vocational Qualifications
Skills Development While in Temporary Work
Building Britain's Future - New Industry, New Jobs
Scotland's Skills Strategy Update
Progress in Improving Adult Literacy and Numeracy
A Wales that Works
Learning Revolution White Paper

Digest of Latest Data and Statistical Releases

ONS – National and Regional Monthly Labour Market Statistics

Employment

Research and Evaluation

Wage formation in the EU
A report for the European Foundation for the Improvement of Living and Working Conditions (Eurofound) examines a range of perspectives on wage formation in the European Union. Based on research by the Institute for Employment Studies, it notes variable levels of wage growth across EU countries, along with the widespread use of individualised pay and other variable pay elements at company level. It discusses the various systems and determining factors used in pay bargaining, the main actors involved and how it is monitored. It also describes trends such as the tendency towards pay moderation and progress in decreasing the gender pay gap, noting the continuing need for policy makers and employers to address issues such as occupational segregation, work patterns and work-life balance.

The report also provides descriptions of systems of minimum wage setting for each EU country and discusses minimum wage levels in comparison to average wages and unemployment benefits in several countries. It states that the statutory national minimum wage is supported by trade unions, employers and the government in those countries where it exists.

Finally, the report showcases the IT sector, noting how its employees often earn more than those in other sectors of the economy and how pay is increasing faster than the national average in many countries. It says that pay is usually set at either company-level or by individual agreement, the payment of bonuses is widespread and other benefits and incentives designed to aid recruitment and retention are often used.

Download full details here (pdf)

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Knowledge Workers and Knowledge Work
The Work Foundation has published a report that aims to provide a portrait of work and the workforce in the knowledge economy. Arguing that knowledge work cannot be adequately described just by looking at job titles or education levels, it takes an alternative approach to defining the concept. This involves conducting a survey of the general workforce in order to understand what people actually do at work and how often they perform particular tasks. The report asserts that a key indicator of knowledge work is the cognitive complexity required for work tasks and the extent that 'tacit' knowledge is being used rather than knowledge based on manuals, guides, lists and procedures.

The workforce is then categorised into seven distinct clusters of jobs ranging from the most knowledge intensive to the least knowledge intensive with the two highest knowledge groups described as being 'core' knowledge workers. It is estimated that 30 per cent of jobs have 'high knowledge' content, 30 per cent have 'some knowledge' content, and 40 per cent have 'less knowledge content'.

The report's findings suggest that core knowledge workers tend to cluster in urban areas, are often paid well above average, are almost equally likely to be men and women, are no more likely to be in temporary jobs than those in the least knowledge intensive jobs, have slightly more flexibility at work and are far more likely to do occasional work at home. The report also looks at the numbers of graduates that are in low knowledge content employment, stating that although 20 per cent of graduates are in this type of work, it is often for a relatively short period of time and many feel they are in work appropriate to their current skill level.
The Work Foundation will be publishing a second set of findings later in 2009 that look more closely at how knowledge work can be regarded as 'good work' and how it relates to health and well-being at work.

Download full details here (pdf)

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Recent Migration into Scotland
A recent report from Scottish Government Social Research reviews evidence on the impact of migration into Scotland since the accession of eight Eastern European countries (A8) to the European Union in 2004 led to increased migration to the UK. Its main findings, which are based on sources including datasets, surveys and qualitative studies, incorporate the following:

  • Estimates of migration figures below UK level are not robust and there is little data on the characteristics and outcomes of migrants.
  • Employers value migrants for being reliable, flexible and productive.
  • Most A8 migrants live in private rented accommodation and it is thought that social housing provision may encourage further migration into Scotland.
  • Demand for assistance with English language has increased, but there has been little research on the impact of migration on education and social care.
  • The Fresh Talent Programme has played a pivotal role in attracting international students to Scotland and in encouraging them to stay.

The report identifies gaps in evidence on migration to Scotland including the extent of poor employment practices regarding migrants and information on those migrants who are self employed.

Download full details here (pdf)

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The Geography of Unemployment
A recent paper from the Work Foundation identifies the areas suffering most from rising unemployment during the recession. Using local authority claimant count information, it finds that the areas that have experienced the biggest jumps in the numbers claiming benefits are the 'core cities' of the North, the West Midlands and Scotland. This conclusion is contrasted with previous predictions that the most vulnerable areas during this recession would be London and small cities in the East and South East. The paper also observes that the areas associated with traditional manufacturing and heavy industry that have suffered the most in past downturns are again experiencing the worst impact of the economic difficulties.

Download full details here (pdf)

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Policy Analysis

Active Labour Market Policies in International Context
A report by researchers at Middlesex University for the Department for Innovation, Universities and Skills considers what lessons can be learned for the UK from the implementation of Active Labour Market Policies (ALMPs) in other countries. ALMPs refer to employability programmes that focus on quick re-entry into the labour market and are based on the mutual obligations of Public Employment Services and their customers. The report states that most member states within the Organisation for Economic Co-operation and Development (OECD) now use this approach, with the UK at the forefront of radical activation policies.

It notes how the UK Government in recent years has intensified its efforts to activate all people of working age, including lone parents and those on incapacity benefits. Relative to other countries, the report claims that the UK has had difficulty with providing affordable childcare to enable female participation in the labour market and also that as a percentage of Gross Domestic Product, the UK is among the lowest spenders on ALMPs.

The authors' trawl of evidence of what works in ALMPs in OECD countries has led to the following four key findings:

  • Activation programmes should provide personalised support and early intervention for those in most need;
  • Adequate staff/client ratios are crucial;
  • Specific effort must be devoted to support harder to help customers with care to prevent drop-out;
  • Subsidised work placements combined with on the job training achieve sustainable employment outcomes.

The report concludes with some consideration of the potential impact of the economic downturn, speculating that the deterrence or motivation effects of ALMPs might be more limited in the absence of certain jobs.

Download full details here (pdf)

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Different Ways of Tackling Worklessness
The Centre for Local Economic Strategies (CLES) has produced a report that looks at the problem of worklessness, analyses existing methods of tackling it and introduces a framework of policy approaches. The report is based on past evaluation work of local worklessness projects and observations of the welfare reform and employment policy agendas. It notes the relative stagnation of the number of people claiming Incapacity Benefit and Income Support since 1997 and argues that policies for tackling worklessness should reflect the complexity of the issue and be tailored to the specific needs of clients and localities.

Based on observations of existing programmes, a typology of seven approaches is presented. These are named as outreach, brokerage, training, health and well-being, employer engagement, retention and progression and social marketing. In addition, the characteristics of a successful approach are identified as:

  • A strategic fit with local, regional and national policy.
  • Partnership with other service providers.
  • Effective personal advisors.
  • Neutrality from Jobcentre Plus.
  • Links with the wider local economy.
  • Personalised and individualised approaches.

The report also identifies 11 key challenges for policy makers, including how mainstream services can deliver an individualised approach, whether projects can deliver long-term change in deprived areas and how the workless can be supported during a recession. CLES' own response to these challenges is to call for the reform of Jobcentre Plus, the development of individualised and locally focussed approaches to worklessness and to use qualitative monitoring and evaluation.

Full details and a link to the full report

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Support for Those Out of Work in Scotland
'Training for Work', Scotland's national training programme for unemployed adults, has been made available to those who have been out of work for 13 weeks. This is a change from the previous threshold of 26 weeks out of work. The existing system of providing early entry into the programme for specific groups of vulnerable customers is set to continue. The Scottish Government has also announced the creation of a high level strategic group to look at ways of improving the Partnership Action for Continuing Employment (PACE). It is hoped that the new 'PACE Partnership' will enhance the flexibility and effectiveness of the service which provides support to employees when organisations announce redundancies.

More information online

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Skills

Research and Evaluation

Information to Intelligence: A Common Labour Market Information Framework for Sector Skills Councils

The UK Commission for Employment and Skills has published a new Common Labour Market Information (LMI) Framework for Sector Skills Councils.

The new Common LMI Framework was designed by the Commission as a part of its role in building a strong and credible network of re-licensed Sector Skills Councils. It explains what is expected of SSCs in terms of their role in undertaking robust labour market assessments and collecting and analysing LMI. It also sets out the outputs that SSCs are required to produce, the minimum standards expected, and what constitutes good practice.

It is hoped that the Framework will be a useful resource for SSCs and their key stakeholders, providing clarity on the important role SSCs play in LMI and research. The information in the Framework will be reflected in the new performance management system being developed by the UK Commission for the re-licensed SSCs.

An electronic version of the Framework is also available in the Labour Market Intelligence section of the UK Commission's website.

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The Effect of Lifelong Learning on Intra-generational Social Mobility
A report by researchers from the Universities of Westminster and Surrey for the Department for Innovation, Universities and Skills aims to build on past studies that found mixed evidence of earnings improvements related to studying for qualifications in later life. Their analysis uses a measure of occupationally defined social status known as the CAMSIS scale, an index derived from the observed probabilities of marriage or cohabitation across occupational unit groups in the census. Four different datasets provided a range of perspectives on the effect of lifelong learning on intra-generational mobility. These were the Office for National Statistics Longitudinal Survey (ONS-LS); the British Cohort Study (BCS); the National Child Development Study (NCDS); and the British Household Panel Survey (BHPS).

Among the findings were that:

  • Gaining a new qualification does seem to improve individual social status over the ten year census period.
  • Older workers are less likely to undertake lifelong learning and those that do experience lower social mobility returns compared with the youngest group.
  • Lifelong learning is most prevalent among workers in large and public sector organisations.
  • Although lifelong learning has a positive effect on social status, the effect is larger and more robust for women than for men.
  • For women upward social mobility is evident only when accompanied by a change of employer.
  • Lifelong learning that does not lead to a qualification is limited.

The report states that the four data sources consistently support the view that lifelong learning leads to improvements in occupationally-based social status. However, the size of these returns varies considerably according to gender, the level and type of education and training undertaken, the intended purpose of the training, and the sector within which it was undertaken.

Download full details here (pdf)

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The Impact of Training on Future Entrepreneurial Activity
A working paper from the Institute for Employment Studies (IES) looks at the extent of entrepreneurship training and small business experience and considers what impact they have on the quality of entrepreneurship in the UK. Econometric evidence based on data from the UK 2005 Global Entrepreneurship Monitor adult population survey shows regional differences in the availability of school based enterprise education. It found that pupils in Northern Ireland, London, the West Midlands and the South East have a greater chance of receiving an enterprise education than those in other regions. In the higher education sector, there is more uniform regional provision of enterprise training and education across.

IES' evidence suggests a major, positive effect of such entrepreneurship education. This is in terms of the probability of starting a new business, engaging in entrepreneurial activity within an existing firm or becoming an owner or manager of an existing business. Other findings were that schools based enterprise education and work experience increases the number of jobs created and that college/university and government supported training are associated with greater exporting capacity.

The study also found that work experience in a smaller business does not stimulate future entrepreneurial activity to the same extent, suggesting that this kind of informal human capital development is less relevant to running a business. However, it is argued in the paper that all modes of enterprise support and informal human capital development have a positive role to play.

Download full details here (pdf)

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Record Number of Adults Gain Vocational Qualifications
New figures show that a record number of adults gained vocational qualifications in the past academic year. According to National Statistics from the Data Service, 320,600 adults achieved a full level 2 qualification (equivalent to five good GCSEs) in 2007/08, which is an increase of 36.5 per cent from 2006/07. Furthermore, the number of adults starting a qualification through the Government's Train to Gain service in 2007/08 increased by 67.8 per cent from the previous year to 346,200 and the number of adults starting a qualification through Train to Gain in the first six months of the 2008/09 academic year increased by 132, 600 on the same period in 2007/08 to 386,200. Finally, 187,300 adults achieved a qualification through Train to Gain in 2007/08, over double the number of achievements in 2006/07.

View a summary of the findings online

Download Statistical First Release (pdf)

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Skills Development While in Temporary Work?
An article in the latest edition of the European Journal of Vocational Training investigates the subject of the skills development of people who are often in temporary employment. It notes that more than one eighth of the European workforce is in this type of employment and that compared with the permanent workforce they tend to benefit far less from companies' usual skills development measures. Dr Gesa Münchhausen, of the Federal Institute for Vocational Education and Training (BIBB) in Germany, has investigated how temporary work can be organised so that employees can gain qualifications while working and can then use these new qualifications in a targeted manner.

The research involved case studies of temporary employment agencies in the Netherlands and France and surveys of temporary employment agencies and temporary employees. It found that skills development of temporary employees appears to lie primarily in the ability to adapt to different working contexts. Therefore, opportunities to develop skills are to be found in the work itself. Münchhausen suggests that temporary workers and the companies that employ them should be included to a greater extent in any policies relating to qualifications frameworks for temporary workers.

Download full details here (pdf)

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Policy Analysis

Building Britain's Future - New Industry, New Jobs
The Department for Business, Enterprise and Regulatory Reform (BERR) has launched a strategic plan to invest in Britain's economic and industrial future. This policy statement sets out a number of priorities to secure a larger share of the opportunities afforded by the new technologies and low-carbon economy of the future. These key areas for reform are centred around innovation, skills, finance, infrastructure and trade and include the following:

  • Making sure that high growth, high innovation firms receive the financing that they need
  • Rewarding innovation by increasing support for the Technology Strategy Board
  • Ensuring that the education and training system delivers the skills needed for future success
  • Development of a more joined–up government that appreciates the importance of creating wealth, is better at identifying economic opportunities and uses its buying power to support innovation and skills
  • Devising a coherent strategy for ensuring that Britain has the twenty-first century infrastructure and networks to meet the major global challenges
  • Taking concerted action to back businesses in Britain's strongest markets and sectors, including advanced manufacturing, the digital economy and engineering construction

The report concludes by advocating for a new form of activism, which will focus on the skills system, for the purpose of sustainable international competitiveness for British businesses and people.

View more online

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Scotland's Skills Strategy Update
A section of the Scottish Government's website provides information on progress made since the publication in 2007 of Skills for Scotland: a Lifelong Skills Strategy. This set out the Scottish Government's response to the Leitch Review of Skills and stated its ambitions for skills development in a lifelong learning context. The website describes progress according to key areas of the strategy, namely 'economic improvement', 'supporting individuals', 'further and higher education', 'work based learning', and 'skills for learning, life and work'. It also summarises the Scottish Employers Skills Survey, outlines planned future developments, and provides links to latest news stories that relate to the skills strategy.

In terms of action that has been taken since 'Skills for Scotland' was published, highlights on the website include:

  • Jobcentre Plus and Skills Development Scotland (SDS) testing a range of options for deliver a strategy for integrating employment and skills services.
  • A review of the funding and management of National Occupational Standards (NOS).
  • Plans to ensure that Sector Qualification Strategies reflect the needs of employers in Scotland and that new vocational qualifications are placed in the Scottish Credit and Qualifications Framework (SCQF), facilitating progression to other learning programmes.
  • The development of a protocol to ensure that all Scottish Qualifications Authority (SQA) qualifications have an input from employers.
  • A commitment by the Scottish Government and the Scottish Trades Union Congress (STUC) on Skills Utilisation that commits both parties to investing ways of translating Scotland's good record on skills qualifications into enhanced economic performance.

Planned future developments relate to the strategic use of European structural funding, flexible skills interventions, Modern Apprenticeships, the 'Workforce Plus' employability framework, improved skills services for employers and improved access to information on learning and careers.

View more online

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Progress in Improving Adult Literacy and Numeracy
England still has an unacceptably high number of people who cannot read, write and count adequately, says a report from the House of Commons Public Accounts Committee. The report is based on evidence from the Department for Innovation, Universities and Skills (DIUS) and the Learning and Skills Council (LSC) on efforts to improve the literacy, language and numeracy skills of adults in England. It observes that large numbers of the adult working population of England remain functionally illiterate and innumerate and that far less progress has been made tackling poor numeracy skills compared with literacy skills. Among the other conclusions of the report are the following:

  • In 2007, the government set a target of 95% of the adult population of working age acquiring functional literacy and numeracy by 2020. However, this will only be a level already achieved by the top 25% of OECD member countries.
  • In order to assess accurately the impact of the Skills for Life programme on improving the United Kingdom's skills base, there should be a follow up to the 2003 Skills for Life survey.
  • In order to increase the number of numeracy teachers, DIUS should adopt new approaches to recruitment such as targeting graduates of programmes with substantial maths content and increasing the availability of specialist training routes including distance learning.
  • DIUS, the LSC, Jobcentre Plus and other public services need to put in place clear and easily understood routes by which those eligible can access training.
  • Only one in five offenders with very low levels of basic skills had enrolled on a course that would help them, so there should be more opportunities and incentives to encourage offenders to improve their basic skills.
  • Take-up of Skills for Life courses through Train to Gain has been lower than expected, which suggests that skills brokers need more training and support to help them encourage employers' participation in skills training.

Download more details (pdf)

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A Wales that Works
The Wales Employment and Skills Board (WESB), which advises the Wales Assembly Government on skills, employment, and business support systems held its first major conference recently, to mark its first year after having been established in May 2008. This provided WESB members with the opportunity to hear from employers, key partners and stakeholders on their concerns and priorities for change. A series of key messages emerged from the conference which WESB has now taken forward through their recently published first annual report.

In this report, the board briefly outlines its achievements so far and gives its view on the current and future skills situation in Wales, including a small number of recommendations to Government on the core requirements of a way forward. It calls for a fundamental transformation of the Welsh economy in order to achieve the Government's economic and social objectives. In particular, this means a central focus on fostering a dynamic private sector. It is suggested that this will help to create conditions for an employment and skills strategy that would have the following six elements:

  1. The elimination of the basic skills deficit within the adult population and an emphasis on basic skills and employability among education and skills providers.
  2. The stimulation of the flow of transferable knowledge into the Welsh economy, complemented by targeted support for high level skills and stronger emphasis on areas of strong potential growth.
  3. The raising of demand for and supply of high-quality management and leadership training.
  4. Maximum policy, financial and administrative flexibility given to the Department for Work and Pensions at the Wales level and users' to be placed at the centre not just of policy formation but of policy implementation.
  5. The implementation of strategies in response to the recession to be judged against the criteria of scale, pace, flexibility, simplicity and outcome.
  6. Maximum effort to increase resources allocated the employment and skills agenda during the period of the recession.

Further information about the conference, including a summary report, is available online
Download WESB'S first Annual Report (pdf)

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Learning Revolution White Paper
The Department for Innovation, Universities and Skills has published its White Paper on informal adult learning. In it the Government states its commitment to supporting informal learning through policies such as sponsoring sporting, cultural and creative sectors, working on active citizenship and community empowerment, through a forthcoming strategy for engaging with and communicating opportunities to older people and by directing funding to an infrastructure of adult and family learning in each locality.

The paper goes on to describe plans to work with partners in all sectors to:

  • Build a culture of informal adult learning.
  • Support people to drive their own learning.
  • Link up learning provided by the public, private and third sectors.
  • Make better use of technology to support learning and inform people about what's on offer.
  • Ensure there is a wide choice of high-quality learning opportunities for everyone.
  • Increase access to informal learning for disadvantaged groups.
  • Recognise the leadership role of local authorities.

Four initiatives are outlined that it is hoped will help in achieving these aims:

  • Inviting organisations to sign an Informal Adult Learning Pledge that commits them to promoting participation.
  • Supporting a Festival of Learning and a national campaign promoting the benefits of informal learning.
  • An 'Open Space' Movement where organisations make their facilities available for informal learning at low or no cost.
  • Investing in new approaches to reaching and engaging new learners through a £20m transformation fund.

Download full details

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Digest of Latest Data and Statistical Releases

ONS – National and Regional Monthly Labour Market Statistics
The regional monthly Labour Market Statistics data tables are published by the Office for National Statistics (ONS) in the form of 'zip' files which then open up as separate regional excel spreadsheets.

Within those spreadsheets are data on employment; unemployment; economic activity and inactivity; and vacancy data. The regional data now includes information by local authorities, parliamentary constituencies and travel to work areas.
Latest official statistics show that the number of unemployed people, the unemployment rate and the claimant count have all increased. The unemployment rate was 6.7%, up 0.6 percentage points from the previous quarter, which equates to an increase of 177,000. Meanwhile the number of notified vacancies has fallen by 68,000 on the previous quarter and stands at 462,000. Growth in average earnings was down (1.6 percentage points including bonuses and 0.3 percentage points excluding bonuses).

All the data, including that at national level and from previous months, is all available via a single link, which can be found here

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Spotlight Feature

Ambition 2020: World Class Skills and Jobs for the UK

The UK Commission for Employment and Skills has just published its first annual assessment of the progress towards making the UK a world leader in employment, productivity and skills by 2020.

The report acknowledges that it is published in challenging times: employment is falling and unemployment is rising. But this needs to be placed in a longer term context. Over recent years there has been a sustained growth in jobs (over 3 million in the last 10 years) and these new jobs have, on the whole, been higher skilled. In terms of skills, there has been significant progress over the last ten years: the number of high skilled people (ie those with qualifications at Level 4 or above) has increased by about a third (over 3 million people), whilst the numbers without qualifications have fallen by a quarter, or more than 1.5 million people.

Nonetheless, despite this positive progress, more is needed. It is not sufficient that we make progress in absolute terms, but also that we make progress in relative terms when benchmarked against our international competitors. The aim of achieving World Class employment and skills – to be in the top eight countries of the world – is highly ambitious. The most recent data for which international comparisons are available (2006) shows that we are 11th in the world on productivity and 10th on employment. In terms of skills we are 17th on 'low' level skills, 18th on 'intermediate' level skills and 12th on 'high' level skills.

The report's projections suggest that the UK's relative international position is unlikely to improve by 2020 and the UK will not achieve the ambition to be top-8 in OECD countries in terms of employment and skills. Indeed, overall the UK's relative position my deteriorate slightly may deteriorate slightly: the report estimates that by 2020 we are likely to be ranked 23rd on low level skills, 21st on intermediate skills, whilst we will have improved to 10th on high level skills.
If we translate these international ambitions into what this means for the UK we can compare these to the targets specified in the Leitch Report. The picture here is mixed, in that the report anticipates that in terms of:

  • basic skills we will achieve the ambition of 95% of UK adults to be functionally literate, but we will not achieve the ambition for a similar 95 per cent of adults to be functionally numerate. We anticipate that we will achieve a numeracy outcome of 88 – 90per cent of adults being functionally numerate;
  • Level 2 qualifications, we anticipate that by 2020, 77 per cent of our working age population will be qualified to above Level 2 (as compared to the Leitch Targets of 90 per cent plus);
  • Level 3 qualifications: we will not achieve the desired improvements at intermediate level skills, which is intended to be a 'rebalancing' of intermediate skills to Level 3 (we may achieve 58 per cent qualified to at least Level 3 compared to an ambition of 68 per cent); and
  • Level 4 qualifications: we will achieve (and indeed may just exceed) the Leitch ambition for 40 per cent of the workforce to be qualified at or above Level 4. However, it should be noted that even here, because we expect other countries to improve faster than was originally anticipated, this skills improvement is not quite enough to move us into the top quartile of OECD countries.

Regarding employment, whilst the 80 per cent employment rate is simply an aspiration, established to signal Government commitment to full employment, progress towards this has slipped during the recession. Demographic forces may result in the employment rate actually declining in the longer term.

Of course, these international benchmarks are based on qualifications, which do not fully equate to skills or skill development. The report seeks to explore other measures to further investigate the UK's performance in these areas, and we find that two-thirds of UK employers provide training to their staff and the overall volume seems high. But this training is unevenly and unequally distributed, with low skilled employees and those in lower skilled occupations being less likely to receive training.

Despite, these projected relative shortcomings in our predicted skills levels vis-à-vis our international competitors, evidence suggests that employers can, to a very large extent, source the skills they need from the workforce. In the immediate term, unemployment is rising. Over recent years, despite many years of sustained economic growth skill shortages and gaps (when expressed as a proportion of the overall workforce) have remained relatively low. There is also some evidence that the extent of 'over-qualification' may be growing.

Taken together, these lead the report to the view that the UK's problem at the moment lies largely on the demand side. The UK has too few high performance workplaces, too few employers producing high quality goods and services in high value added sectors and too few employers using high employer skill strategies. This means that to build an internationally competitive economy, the future employment and skills system will need to invest as much effort on raising employer ambition and on stimulating employer and individual demand, as it does on enhancing skills supply. In this way we can create a 'virtuous circle' of skills development.

The report also highlights some priorities some priorities for skills and employment policy.

Download Ambition 2020

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'Intelligence', the employment and skills research and policy e-bulletin, is produced in association with the Policy Research Institute at Leeds Metropolitan University.