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 the basis for our long-term competitiveness. Vince Cable, Secretary of State for Business, Innovation and Skills Charlie Mayfield, Chairman, UK Commission for Employment and Skills The case for investing in skills: Employer ownership and Apprenticeships

Our Commissioners: FE, HE and Careers

About us: 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 UKs approach to investing in the skills of people as an intrinsic part of securing jobs and growth Five assets and 100 staff to deliver on outcomes 3

Key LMI resources from the UK Commission UK Commissions 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

Future jobs market: which sectors? Projected UK employment change by sector (000s) between (Source: Working Futures) Change (000s) ,195 Sector Manufacturing Non-market Services Primary Sector & Utilities Construction Trade accommodation & transport Business & other services Private services expected to be the main engine of job growth ( )

Future jobs market: which occupations? Most net job creation ( ) expected in high level occupations, but job openings expected in all occupations due to replacement demands Net Job Openings (000s) Occupation Managers Professional Associate Professional Admin & Secretarial Skilled trades Caring, Leisure etc Sales Operatives Elementary 1,614 2,726 1,742 1, , ,117 Projected England Job Openings (Source: Working Futures) Replacement Demand Job Creation

Future job market: which regions? 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%

There are 2.3 million businesses in the UK with 1+ staff... 59% train (1.3 million) 41% do not train (0.9 million) Of those who do not train : 26% Said they had no training needs 15% Perceived need but met barriers* *Also includes small proportion of businesses that said dont know or no reason, or that people learnt as they went Barriers cited include: Time Lack of information £ Cost …of which: Training in the UK

Training raises businesses survival and performance rates Employers who do not train, on average, are twice as likely to fail, opposed to those that do... The consequences of not training...

Sectors we want to be famous for - industry strategy Industry strategy sectors to focus on: advanced manufacturing including aerospace, automotive and life sciences knowledge intensive services including higher education, creative industries and professional services enabling sectors, such as information economy, construction, energy, including green energy

Why employer ownership? The skills system: two decades of reform Less globally competitive: system is too complex Two markets for skills development A lack of alignment Employers need to own the skills agenda

Employer ownership: aim Businesses working together to deliver game- changing, sustainable ways to improve skills in the workforce to drive productivity and growth. By giving businesses the chance to shape and set their own training agenda, were giving them the power to enrich their workforce with the skills needed for their future success." Matthew Hancock, Minister for Skills Business, Innovation and Skills

Employer ownership – key facts (funding) Two funding rounds – round 1 complete Total value - £340 million (£90 million added) Around £240 million available Available to financial year Round 2 – open for business

The Pilot project started a year ago to test the vision * Subject to final due diligence checks Total funding: £165 million Progress to date Received 269 bids Employers invested: £98 million Employer Ownership Fund invested: £67 million Invested in 35 projects*

Investments will fund: Planned impact to date 45,000 other learning or training opportunities; including work experience and work placement opportunities 18,500 full time non-apprenticeship training opportunities 11,000 Apprenticeships; including 4500 at age

Employer leadership Key features to date Strong employee and employer partnerships Support and opportunities for young people Innovative proposals Collaborative approaches

Case study: Arla Foods A collaborative project between natural competitors to design and deliver the training the industry needs Transforming skills in the UK Dairy Industry Objectives: 280 new Apprenticeships (Level 2 - 4) 6300 non-Apprenticeship Qualification based training 1350 other training opportunities, not leading to a qualification Funding requested: £2 million Employer contribution: £2.5 million

An innovative employer collaboration to tackle skills challenges in the industry. Case study: Construction Employers Objectives: Introduce a new work experience programme for 1,998 individuals. Creating 709 apprenticeships in areas of skills shortage Delivering 24,686 skills training interventions to up-skill the workforce. Funding requested: £8 million Employer contribution: £8 million Construction skills for growth

Employer ownership of skills Extending the ambition Nurture greater employer and college collaboration Public investment in work based training to incentivise direct employer investment Strong employer-led partnerships

The next phase Proposals which will enable employers to improve the skills of their current and future workforce Industrial partnerships with genuine employer leadership and governance, and end-to-end responsibility for skills

Apprenticeships and other training/development opportunities Small and medium sized enterprises And the skills solutions Training and skills development to help people into work Collaboration between employers, colleges and training providers

Productivity and growth driven by improved skills, supported by strong collaboration between employers, trade unions and providers More private investment in skills So what are we looking for now? Responsive colleges and training providers working with employers Better quality and robust apprenticeships, traineeships and vocational provision

Close work with the British Council in India, China and other countries – education as an export Participation in and research for the OECD relating to standards, apprenticeships and qualifications And what about our international work? Alignment of qualifications systems to support mobility across Europe (EQF) International best practice – national occupational standards, apprenticeships and qualifications

If you would like to hear more please contact: Thank you very much for listening Alison Morris, Senior Manager, UKCES