UKCES: Skills for Jobs and Growth
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UKCES: Skills for Jobs and Growth Challenges for Innovative Training: Quality and Competitiveness Fundacion Real Fabrica de Tapices, Madrid 24/25 November 2009 Professor Mike Campbell OBE Director of Research and Policy UK Commission for Employment and Skills. Outline.

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Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

UKCES: Skills for Jobs and Growth

Challenges for Innovative Training: Quality and Competitiveness

Fundacion Real Fabrica de Tapices, Madrid

24/25 November 2009

Professor Mike Campbell OBE

Director of Research and Policy

UK Commission for Employment and Skills


Outline

Outline

  • UKCES: The UK Commission for Employment and Skills

  • Prosperity: Jobs, Productivity and Skills

  • International Benchmarks of Skill Levels: Today and Tomorrow

  • Beyond Skills Upgrading: The importance of ‘Matching’ and ‘Demand’

  • Key Messages: an agenda for action

  • The Way Ahead?


The uk commission for employment and skills

The UK Commission for Employment and Skills

  • Assess (e.g. Ambition 2020)

  • Agenda (e.g. National Strategic Skills Audit)

  • Advise (e.g. Skills Strategy)

  • Advocate (e.g. Now is the time)


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Prosperity = Jobs x Productivity

High employment/ high productivity

High employment/ low productivity

Employment:

Employment populations ratio 2007, all persons 15-64

Low employment/ high productivity

Low employment/ low productivity

Productivity: GDP per hour worked (US$ at current prices), 2007

Source: UKCES, Ambition 2020: World Class Skills and Jobs for the UK, 2009, pp 21-22


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Other Measures of Performance

Measure

Country

Note1 The Global Competitiveness Report 2009-10, World Economic Forum

Note2 World Competitiveness Yearbook 2009, Institute for Management Development


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

(continued)


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

The International Skills Position


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Participation of Adults in Lifelong Learning


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Our Progress and Current Position

  • UK Position:

  • 15th in OECD for ‘older workers’

  • 21st in OECD for ‘younger workers’

Source: OECD, Education at a Glance 2008, Table A1.2a


Our prospects

Our Prospects

Projected International Skills Position 2020


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Projected International Skills Position 2020 …… cont’d


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Beyond Skills Upgrading: The importance of ‘Matching’ and ‘Demand’

  • It is crucial to raise skill levels – more people and to higher levels

  • But: these increased skill levels only make economic sense for people and for business, if there are the jobs available to make use of those skills

Total requirement qualification level, projected change 2006-20, in millions, EU-25+

Past and likely future qualification structure of jobs, shares in %, EU-25+


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Beyond Skills Upgrading: The importance of ‘Matching’ and ‘Demand’

  • Jobs/Skills Mismatch (1) Skill Shortages and Skill Gaps

    • Professional/Technical

    • Employability

  • Jobs/Skills Mismatch (2) Over-Qualification/Under-Employment

    • Unemployment

    • Under-utilisation of skills

  • Jobs/Skills Mismatch (3) The demand for high level skills (skill requirements) exceeds supply (skills availability) BUT:

    • Variations in level of demand for high level skills;

    • Relatively slow increase in demand (skilled jobs/skill requirements);

    • Relatively rapid increase in supply (skilled people/skills available)

  • Demand: Business Ambition


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Slow progress to a high skill economy: change in skilled jobs between 1998 and 2006

Source: Ambition 2020, Charts 7.1 & 7.2, pp 115-116 - OECD, Education at a Glance 2008, Table A1.3a and Table 1.6


Difference between skills supply demand change between 1998 and 2006

Difference between Skills Supply & Demand:Change between 1998 and 2006

Source: Ambition 2020, Chart 7.1, p 115 - OECD, Education at a Glance 2008, Table A1.3a and Table 1.6


Business ambition

Business Ambition

  • We need to go beyond:

    • Skills upgrading; and

    • a better match between skill requirements and skills availability

  • Business Ambition: Skills as a ‘derived’demand

    • Economic Policy

    • Skill Utilisation

    • Management and Leadership

  • The ‘virtuous circle’ of raising skills demand and supply


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Key Messages: An Agenda for Action

Positive Economic and Social Outcomes

Economic Performance

Employment

Reduced Inequality

Productivity

Supply of Skills

Employment Demand

Learning provision

Skills Attainment

Potential Workforce

Required Workforce

Business Strategy

Economy – level/structure

MatchMismatch

Accredited

(Qualification)

Informal

(Training)

Management & Leadership

Skills Utilisation

  • Shortages and skills gaps

  • Unemployment and Inactivity

  • ‘Over-skilled’ / ‘Under-employed

  • Migration

Negative Economic and Social Outcomes

Industrial Policy

Economic Policy

Skills Investment

Individual, Employer, Government

Other Drivers

Guidance – firms & people

Supply

Demand

Jobs


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Maximising individual motivation and opportunity for skills and sustainable employment

The Way Ahead?

For the journey in and on in work


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

The Way Ahead?

  • Raise Skill Levels: Our People

    • Raise Aspirations: The Case for Skills

    • High Quality Provision and Progression

    • High Quality Information, Advice and Guidance (Counselling)

    • Empower Learners: Choice and Personal Learning Accounts


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Increasing employer ambition, engagement and investment in skills

World beating businesses


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

The Way Ahead?

  • Raise Skill Demand: Our Employers

    • Increase Ambition: The Business Case for Skills

    • High Value Added, High Growth Businesses, Leadership and Management

    • Labour Market Intelligence, Foresight and Matching Supply and Demand

    • Employer Networks, Collaboration and ‘High Performance Workplaces’


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

Building a more strategic, agile and labour market led employment and skills system

Invest in the wisdom of customers

Skills Market


Ukces skills for jobs and growth challenges for innovative training quality and competitiveness

The Way Ahead?

  • Improve Provision and the ‘System’

    • Increase ‘Responsiveness’: Trust Providers and use ‘outcome based’ Performance Measures

    • Prioritise Public Funding towards Economically Valuable Skills and increase ‘Co-Investment’

    • Create a flexible, Module Qualifications System relevant/responsive to Labour Market needs


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