how well are the skills needs of employers in northern ireland being met? lesley giles, deputy...
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How well are the skills needs of employers in Northern
Ireland being met?
Lesley Giles, Deputy DirectorUK Commission for Employment and Skills
DEL lunchtime seminar16th January 2014
Our Commissioners
What does the UK Commission for Employment and Skills do?
CommissionerInsights
DeliveringInvestmen
t
Research and Intelligence
Our ambition is to transform the
United Kingdom’s
approach to investing in the skills of people as an intrinsic
part of securing growth
Skills matter, skills play a vital role in performance What’s the value of skills?Firms in the UK that don’t invest in training, are on average...
Twice as likely to failAnd this varies by sector...
Manufacturing
Construction
Hotels and Restaurants
Retail and Wholesale
Transport and Comms
Likelihood of business failure2x
2x
2x
4x
9x
Are businesses investing wisely in skills?Are skills needs being met?
There are 59,700 businesses with a headcount of 1+ across Northern Ireland. Of which...
41% do not train(0.9 million)
Of those who do train:
9%
Do not knowif they want to
do more
Would like to do more
training
Do sufficienttraining to
meet needs
No trainingneed
Perceived need but met
barriers
Of those who do not train:
Key Challenge:Training investment is declining in real terms, and only 19% of UK businesses are
adopting High Performance Working practices, is this ambitious enough?
63% train 37% do not train
15%22%31% 23%
Source: UKCESS 2011; Note: Figures relating to whether those who train and would like to do more training come from the skills equilibrium follow up survey, this survey covers employers with 2 or more working proprietors and no employees as well as employers with 1+ employees.
Is skills investment of sufficient quality?What’s the shape of the training market?
Across Northern Ireland
£1.36 BILLIONis spent on training, however:
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£805 million is ondirect costs of training
£558 million is the wages of those being trained
these direct costs include…
£76 million was counted as fees to external providers for courses£228 million was spent on training management
£221 million was spent on training centres*£235 million went on the wages of trainers providing on the job
trainingSource: UKCESS 2011, Investment in Training Survey
* Training centres either on-site or off-site within the same company
Pockets of skills deficiencies persist and are growing
Between 2008 and 2011 there was a small increase in vacancies in Northern Ireland. This was primarily driven by micro businesses (1-4), where the number of vacancies per employee increased almost three-fold.
7
Total 1-4 5-10 11-49 50+
2.4
3.13.4
2.32.1
2.7
8.8
1.92.2 2
2008
2011
Number of vacancies per employee by employer size in Northern Ireland
Source: UK Employer Skills Survey 2011, Northern Ireland Skills Monitoring Survey 2008; Vacancy base: all establishments in Northern Ireland within each size band; Skills-shortage vacancy base: all establishments with vacancies within each size band.
Persistent skills deficiencies impact on NI firmsThere are opportunities to exploit business benefits
Increased operating costs
Lose business to competitors
Struggle to meet customer services
Delay developing new goods or services
Increased workload for other staff
36%
20%
20%
58%
33%
40%
40%
49%
72%
Skills shortage vacancies Skills gaps
8Source: UKCESS 2011; Base: Employers in Northern Ireland with skills shortage vacancies (124 unweighted), Employers in Northern Ireland with skills gaps (618 unweighted)
Are skills programmes being sufficiently used? From two markets for skills to one
UK Northern Ireland
Any private 40 39
Commercial 35 34
Third sector/not for profit
11 13
Any public 14 14
FE College 12 11
HEI 6 7
Proportion of all employers using public or private training providers
Source: UK Commission’s Employer Perspectives Survey
22%Of employee’s trained were
training towards a qualification
Are skills programmes being sufficiently used?
In total 6% of employers in Northern Ireland have apprentices currently on site and a further 7% offer them but don’t currently
have any
Source: UKCEPS; Base: All Northern Ireland employers
6%
7%
87%
Have staff undertakingOffer but don't haveDo not currently have / offer
Are there sufficient career opportunities for young people?
17-18 yr olds leaving school
17-18 yr olds leaving FE
Young people leaving HE
47%
26%
Most businesses found education leavers well prepared for
work
(with preparedness increasing with age)
The minority of employers report issues with education
leavers.
The two key issues were:
•Experience of world of work
•Poor attitude/ Personality
Across Northern Ireland, 28% of businesses had recruited education leavers in the past 2-3 yrs.
16 yr olds
53%
35%65%
74%
80% 20%
32%0.17 0.18
0.25 0.28 0.32
0.63
Total 2 to 4 5 to 9 10 to 24 25 to 99 100+
0.320.25 0.31
0.40.53
0.68
Base: 2 to 4 (221), 5 to 9 (230), 10 to 24 (224), 25 to 99 (219), 100+ (106)
Source: UKCEPS; Base: Primary (55), Manufacturing (67), Construction (84),Trade (341), Business (208), Non-market services (245)
By size
By sector
Work experience – a rare commodityThe extent to which placements are offered to young people by size and sector
Sectors matter to skills investmentA key basis to develop strong collaborations
When we look at investment in training provided by employers across different sectors, there is considerable variation:
Mining & Quarrying 15%
Agriculture 47%
Construction 51%
Transport & Communications 54%
Electricity, Gas & Water 54%
Manufacturing 54%
Community, Social & Personal Services
57%
Hotels & Restaurants 60%
Wholesale & Retail 60%
Business Services 76%
Finance Services 76%
Health & Social Work 83%
Education 91%
Public Administration 92%
Sector Percentage doing training
Future skills considerationsInforming plans for growth in the economy
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Our latest Working Futures report shows that business services are expected to continue to be a key engine of growth in Northern Ireland
Non-market services
Business and other services
Trade, accomod. and transport
Construction
Manufacturing
Primary sector and utilities
-20% -10% 0% 10% 20% 30% 40% 50% 60%
Output Employment
Forecast output and employment by broad sector for Northern Ireland 2010 - 2020
Source: Working Futures
Investment Funds • Employer Investment Fund (UK)• Growth & Innovation Fund (England)• Employer Ownership Pilot (England)
EIF & GIF Investment so far ...• 124 investments• £111m UKCES•£103m employer
EO Pilot investment so far ...• 36 investments• £102m UKCES• £98m employer
Leveraging investment: Employer Ownership of skills
“We want to encourage employers
to take the lead in designing, developing
and delivering the training and
employment solutions they need.”
Charlie Mayfield, ChairmanUK Commission for Employment and Skills
LMI for All will be an online portal where the data is stored
Developers will access LMI for All
to get data to build websites and apps
Data sources will be pulled or pushed into
LMI for All
LMI for All
Thank you!
Find out more…
@UKCES
www.ukces.org.uk