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Ambition 2020: World Class Skills and Jobs . ANNUAL IED CONFERENCE Bournemouth 7-8 th October 2009 Michael Davis Director of Strategy & Performance UK Commission for Employment and Skills. In a nutshell. Role

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ambition 2020 world class skills and jobs

Ambition 2020: World Class Skills and Jobs

ANNUAL IED CONFERENCE

Bournemouth7-8th October 2009

Michael DavisDirector of Strategy & Performance

UK Commission for Employment and Skills

in a nutshell
In a nutshell
  • Role
    • Our role is to provide independent advice to the highest levels of Government on steps required to achieve world class standing in employment and skills by 2020.
  • Remit to
    • Assess annually UK progress towards becoming a world class leader in employment and skills by 2020, consistent with the aims and priorities of the four nations
    • Advise the highest levels of Government on policies and delivery that will contribute to increased jobs, skills and productivity
    • Monitor the contribution and challenge the performance of each part of the UK employment and skills systems in meeting the needs of employers and individuals, and recommend improvements in policy, delivery and innovation
    • Promote greater employer engagement, influence and investment in workforce development
    • Fund and manage the performance of the Sector Skills Councils as key industry leaders in skills and employment.
ambition 2020 contents and structure
Ambition 2020: Contents and Structure

Progress: How Are We Doing?

Raising Employer Ambition

Jobs:

Today and Tomorrow

The Agenda: Prosperity, Jobs and Skills

Prospects

to 2020:

Where Are We Going?

The Ambition: Skills and Jobs

Mismatches Between Jobs and Skills

Skills and Employment Policy

Other Measures

of Skill Development

the agenda and the ambition
The Agenda and the Ambition

Productivity:

UK 11th place

High employment/ high productivity

High employment/ low productivity

Employment:

UK 10th place

SETTING A WORLD CLASS AMBITION:

SUSTAINABLE ECONOMIC COMPETITIVENESS & SOCIAL COHESION

2020 Goal: World Class Productivity Levels - in top 8 OECD countries

2020 Goal: World Class Employment Levels - in top 8 OECD countries

2020 Goal: World Class Skill Levels - in top 8 OECD countries

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

the agenda routes to prosperity
The Agenda : Routes to Prosperity
  • Employment – the UK ranks 10th
  • Productivity – the UK ranks 11th
  • Inequality – the UK ranks 14th
  • National, Regional and Sectoral variations are critical
  • Skills are central to raising employment and productivity and reducing inequality
skills and employment
Skills and Employment

The Low Skilled experience low and declining employment rates – the only disadvantaged group to do so

Source: UKCES, Ambition 2020: World Class Skills and Jobs for the UK, 2009, Chart 1.5, p 29 – DWP using Labour Force Survey

skills the route to prosperity
Skills: the route to Prosperity

Gross earnings (£000s)

21 24 27 30 33 36 39 42 45 48 51 54 57

AGE

Source: Cabinet Office, Getting On, Getting Ahead: A Discussion Paper: Analysing the Trends and Drivers of Social Mobility, 2008

the uk qualifications profile 1997 2007 good progress over last decade
The UK Qualifications Profile 1997-2007: good progress over last decade

+44%

-26%

Source: Labour Force Survey, 2008 – Note: Working age population 19 – 59/64

progress towards 2020 ambitions
Progress towards 2020 Ambitions

Sir John Rose, CEO Rolls-Royce (May 2006)

There are only three ways of creating wealth. You dig it up, grow it, or convert it to add value, anything else is merely moving it about. In a high-wage economy you must focus on high converted-value activities. To achieve high converted value you need good education and differentiating skills

our prospects
Our Prospects

Basic Skills

  • We will achieve our basic literacy objective of 95%
  • We will not achieve our basic numeracy objective of 95%
demand jobs mismatch and employer ambition
Demand: jobs mismatch and employer ambition
  • growth of skilled jobs and decline of low skill jobs stalled;
  • no real evidence of deep seated shortages;
  • over qualification … or underemployment;
  • evidence that the UK’s excess demand over supply is low relative to other countries;
  • slowest positive growth in skilled jobs, yet fast growth in skilled workers
employer ambition
Employer Ambition
  • We need to go beyond:
    • raising skill levels; and
    • a better match between skill requirements and skills availability
  • Skills as a ‘derived’demand
    • Economic Policy
    • Skill Utilisation
    • Management and Leadership
  • The ‘virtuous circle’ of raising skills demand and supply
key messages to government a new policy framework
Key Messages to Government: a new Policy Framework

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

moving forward
Moving forward

If we keep on doing what we’ve always done, we’ll keep on getting what we’ve always got!”

W.L. Bateman

“The world we have created is a product of our thinking.

If we want to change the world we first have to change our thinking”

A Einstein

skills jobs growth emerging thoughts
Skills, Jobs Growth – emerging thoughts

Actively signal

For the journey

Focus

on outcomes

Empower Customers

HPW

Personal Accounts