1. Skills & Sectoral Change

2. 2 SKILLS AS A DRIVER OF PRODUCTIVITY What do skills in the region look like?

3. 3 QUALIFICATION LEVELS – Level 4+ Working age population with at least level 4+, South West 2004 Source: DfES, analysis of APS data, 2006

4. 4 SKILLS FOR LIFE & NEETS Despite will qualified workforce there are skills for life issues in the region Skills for Life Survey shows: 14% in South West classified with literacy skills at Entry Level 3 & below 49% in South West with numeracy skills at Entry Level 3 & below Estimated at 15% of young people aged 17 are not in education, training or employment

5. 5 SECTORS What do sectors in the region look like? The industrial profile similar to national: primarily concentrated within service-related industries 1/5 of employment within the wholesale and retail trade Just over 13% in real estate and business-related activities Public sector employment accounts for 27% Manufacturing accounts for 13%

6. 6 SECTORS How does this compare to the national picture? Agriculture, the wholesale/retail trade, hotels & restaurants, and public administration, education, health & social work, are marginally more important to the region Transport & communications, financial intermediation, and the real estate, renting & business activities sector slightly less than the national average

7. 7 OCCUPATIONS What does the occupational structure look like? Occupational profile of the employment of the region is broadly similar to England as a whole Marginally more people employed in skilled trades Fewer plant & machine operatives Marginally more employed in elementary occupations and personal services

8. 8 FORECAST DEMAND How is demand forecast to change? Continue declining in primary, secondary and manufacturing industries Continue increasing across mainly service-related industries Banking & finance and transport & communications show only marginal projected increases. Already have below average employment levels in the region

9. 9 FORECAST DEMAND Nationally, increases for managers & senior officials, professional & associate professionals, personal service, and sales & customer service occupations. South West, increases in managers smaller, only a 0.9% increase in employment share compared with 1.3% nationally. Increase in associate professionals is also smaller with 1.2% in the region compared with 2% nationally.

10. 10 FORECAST DEMAND Decreases in elementary, administration & secretarial, skilled trade occupations, and process, plant & machine operatives The decreases for skilled trades less in the South West (-1.6%) than nationally (-2.3%) Smaller decreases for process, plant and machine operatives and elementary occupations

11. 11 ELEMENTARY OCCUPATIONS Share of employment in elementary occupations is higher in 2 of the 3 main industries of employment in the South West: 1.distribution, hotels and restaurant 2.banking and finance

12. 12 ELEMENTARY OCCUPATIONS Employment within the banking sector, 2002 Source: Demand & Supply report

13. 13 ELEMENTARY OCCUPATIONS Employment within the hotels & restaurants sector, 2002 Source: Demand & Supply report

14. 14 REPLACEMENT DEMAND What is replacement demand? Put simply - …there are not enough people entering the employment market to replace those who are leaving through retirement... It is reported nationally that for all occupations, replacement demand is about 10 times larger than the net changes in employment that are projected for 2002 to 2012. By 2012, there are expected to be 13.5 million job openings principally as a result of retirements.

15. 15 SKILLS & SECTORS So, what does this all mean? Under developed demand from employers Reliance on low productivity sectors Replacement demand significant issue for many industries – more so in region than nationally