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Learning + skills: social inclusion and economic competitiveness

Learning + skills: social inclusion and economic competitiveness. Paul Convery Director, Center for Economic and Social Inclusion London, July 18th 2001. A skills crisis?. investment in human capital replacing old patterns of capital investment pressures of competitive globalisation

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Learning + skills: social inclusion and economic competitiveness

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  1. Learning + skills: social inclusion and economic competitiveness Paul Convery Director, Center for Economic and Social Inclusion London, July 18th 2001

  2. A skills crisis? • investment in human capital replacing old patterns of capital investment • pressures of competitive globalisation • shortage of workers who can adapt to advancing technology and to new working patterns • people without skills are being left behind – stuck in precarious jobs that are poorly paid • successful firms are learning, innovative businesses • improving employability throughout working life

  3. Improving employability: economic rationale • nearly ¾ of employers face recruitment problems; • 1 in 4 now report skill shortage blockages; • 1¼ million vacancies but 1 in 4 employers unable to recruit because of skill shortages; • average productivity gap with EU and US of between 20 and 40 per cent; • 38% of owner managers have qualification levels below VQ2; • 40% of 16 year olds leave school and give up on any further learning.

  4. Improving employability: Social case • earnings for level 3 skilled are 25% higher • unskilled earn 30% less than average • employment rates for: • those with level 3 at least - 78% • those with no qualifications - 52% • skills must unlock exclusion from work by: • tackling problems early in education system • equipping the non-employed • boosting employability of individuals in work

  5. Skill shortages and gaps • 7 million (1 in 5) lacking basic literacy/numeracy • intermediate level technical skills • generic skills • mathematics skills • IT skills • management and leadership

  6. Learning system lopsided • excellent learning system at the top end of the labour market • about 33% are significantly over-educated • a fifth of the labour force is totally unqualified • skilled people tend to get even more trained: 20% of degree qualified workers regularly receive employer funded training - compared with only 8% of those qualified to VQ2

  7. Government response: young people • vocational GCSEs, vocational A-levels and foundation degrees • 50% of young people to enter higher education by 2010 • 60 per cent of 21 year-olds to have A-levels by 2004 • an extra 80,000 more 16-18 year olds in full-time learning from 2004 • growth and quality targets for Apprenticeships • despite the youth population gradually shrinking

  8. Government response: adults • free basic skills training: 750,000 by 2004 • information advice & guidance • better job matching and broking services • individual learning commitment • new mechanisms & institutions: • union learning fund • NTO development • ICT learning centres • adult and community education • workplace and employer initiatives - responsive to need

  9. Improving participation and attainment • basic skills and core competences • strengthening vocational learning • integrating academic and vocational • culture: institutions, employers & individuals • new entitlements e.g. all ages level 2 • flexible forms of delivery - “where, when & how” • targeted support for the disadvantaged • higher standards: employers and institutions

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