Sector Skills Councils and 2012 – Developing an Olympic Workforce Stephen Studd CEO, SkillsActive

The Skills for Business Network 25 SSCs covering 90% of the economy Employer-led organisations, licensed and recognised by Government across UK Increasing productivity through a demand-led qualification system Core responsibilities: –Labour market and skills analysis –National Standards –National Qualifications Framework

Responding to the 2012 challenge - SSC Clusters 1.Researching and Identifying the Skills Needs for Communication and Co-ordination 3.Creating an Action Plan for Delivery 4.Maximising the Opportunity OLYMPIC BOARD LOCOG Sector Skills Councils and SSDA DCMS, DfES, DWP, DTI. LDA, GLA. Job Centre Plus. LSC Built Environment Cluster Skills Legacy Cluster ODA

The London Challenge Proportion of the working age population in employment Employment shortfall to London Employment shortfall to England and Wales Greenwich65.8%5,84413,842 Hackney56.0%19,97427,611 Newham58.7%18,55927,413 Waltham Forest62.4%11,45119,721 Tower Hamlets57.5%17,35524,813 London proportion of working age population in employment 69.6% England and Wales proportion of working age population in employment 75.4% 5 Borough Gap73,813113,400

Key Outcomes of Cluster Work Programme London Employment and Skills Taskforce (LEST) Taskforce Proposals: 1.Connecting job seekers to Games Related job opportunities 2.Extended outreach to support more integrated brokerage and training services, to engage “hard-to-reach” groups 3.An Employer Accord to provide leadership and commitment 4.Pre-Volunteering Programme for excluded individuals 5.Pre Employment Training for disengaged and disadvantaged groups and Enhancing Skills and Training in Games-related sectors 6.Employment and skills planning for young people 7.Encouraging micro-enterprise 8.Communicating the vision, the plans and the achievements

Key Outcomes of Cluster Work Programme 1.“What skills by when” : Baseline and Challenge Scenarios at construction, implementation and legacy phases Baseline scenario for 2012: Increase 1.2m jobs UK-wide (240k London) A further 1.8m jobs UK-wide (440k London) Challenge scenario: A further 55,000 jobs over baseline UK-wide (27k London) A further 54,000 jobs over baseline UK-wide (28k London)

Chart 1: Changes in London employment

Chart 2: Changes in UK employment outside of London

“What skills by when” Meeting the Challenge – 3 key assumptions: 1.Improved External Environment - new and alternative transport routes (improved availability of labour); successful regeneration of the Lower Lea Valley (private investment, new jobs, spending increase). 2.Community Benefits – employment opportunities and up-skilling of local residents. 3.Increased demand for skills – increase in tourism/tourist spending UK job increases above baseline: Manufacturing (15,000), financial & business services (9,000), distribution, hotels & catering (9,000), construction (9,000), government & other services (6,000), and transport & communications (5,000) job increases above baseline: Financial & business services (13,000), distribution, hotels & catering (12,000).

Key Outcomes of Cluster Work Programme Research reports: 2. Skills needed to improve visitor experience London’s reputation Recruitment difficulties in past Games: live performers, chefs, catering managers, bus drivers, elite coaching and supporting roles. Identified skills currently lacking in the workforce: team working, customer service, complaint handling, communication skills, management skills. New skills that will be required: games knowledge, cultural awareness, disability awareness, language skills

Key Outcomes of Cluster Work Programme Customer Service Project Analysis of customer service training in the UK Development of a 2012 specific ‘Gold Standard’ training programme for those working in Hospitality, Leisure, Travel, Tourism, Retail, Transport, Security, Cultural and creative, Public services Flexible qualification to support learner and employer needs

SkillsActive Priorities Increasing participation in sport and physical activity Creating a stronger infrastructure to deliver legacy for the sports sector Sector Skills Agreement Themes: 1. Improve the Quality and Range of Services 2. Improve Recruitment and Retention 3. Professionalise and Upskill the Existing Workforce 4. Match Supply to Demand 5. Redirect Funding for Training 6. Increase Sector Investment in our People Result: increased employment, better qualified people, increase in volunteering.

Olympic Focus Implications for the Sports Sector: 1.More coaches in the community (levels 1-3) – with new skills e.g. communication/customer care/engaging the hard to reach 2.Improved technical skills and support from NGBs (UKCC) 3.Competitive and International Coaching (levels 4-5) - UK Coaching Framework 4.Support for athlete development - Advanced Apprenticeship in Sporting Excellence 5.More volunteering Games Delivery 1.Officials – higher level skills and new sports 2.Facility Management – customer care, sponsorship management 3.Stewards - cultural awareness, customer service, language skills 4.Pre Volunteer Programme leading to Games Volunteers

SkillsActive Developments Responding to Employer Demand National Skills Academy Skills Passports (including volunteers) Sector Qualification Strategy qualification reform Qualification and Credit Framework - populated to meet employment needs 14 – 19 Diploma Foundation Degrees

The Challenge for Skills from the London 2012 Games A presentation to the Skills for Business network and external partners Saxon Brettell, Cambridge Econometrics 18 th May 2007

Objectives of study Identify the skills gaps that employers are currently facing and shortages in the workforce that may have a negative impact on the staging of a successful Olympic and Paralympic Games Identify the qualification levels that are required to host a successful Olympic and Paralympic Games and the lessons on this that can be drawn from previous Olympic and Paralympic Games and other relevant events Identify the categories of employment that people will / can move onto after the Games

Method of study Review of previous work Assessing the need Modelling scenarios – baseline and challenge Interviews and workshops to test understanding

Taking advantage of opportunities - the Baseline and Challenge Scenarios The Baseline Scenario –committed Olympic Games expenditures as at submission –other contracted infrastructure projects as of start of project The Challenge Scenario –higher spending captured with the Games new direct spending estimates enhanced tourism offer –infrastructure projects triggered by the Games Crossrail Thames Gateway success –enhanced legacy effects tourism offer enhanced through better skills more responsive labour market in London supporting FBS more investment in North East London enhanced overall London competitive global offer

Projections of Skills Demand Projections of employment by occupation –expansion demand –replacement demand –9 aggregate occupation categories –12 countries and regions of the UK –SSC footprints – Skills –measured by 5 qualifications levels

Conclusions Significant albeit relatively small gains to be made from skills enhancements taking advantage of the opportunities generated by staging the Games in all regions –challenge scenario change is 12% above baseline change for London by 2012 and 7% by 2021 –proactive policy can generate gains in other regions The legacy effects can be secured –regeneration of North East London offers clear benefits to London’s labour supply and image –upskilled workforce available for next generation of jobs –direct benefits for hospitality-related services and transport & communications readily providing spill over benefits post 2012 –providing a focus and incentive for skills uplift for all sectors of the economy

SSC involvement to date –Olympic Objectives/links to key partners/LEST/PVP/Accord –Current projects –Research Creating a stronger infrastructure to deliver legacy for the sports sector –Passports –Volunteers –SSA priorities –NSA