#Skills2030 - 6M People Could Be Left Behind By £120 billion #SkillsMismatch Caused By Centralised #SkillsSystem

Six million people in England risk being without a job or in work they are over-qualified for by 2030, new research for the Local Government Association suggests today (16 Jan).

A new report commissioned by the LGA, which represents councils in England, estimates that not meeting the skills needs of employers could lead to a potential loss of £120 billion in economic output by the end of the decade.

The report "Local Skills Deficits and Spare Capacity" aims to model potential skills gaps and skills mismatches in England by 2030, with particular focus on eight areas within England.

These are:

  1. Essex, Southend and Thurrock
  2. Nottingham City
  3. Staffordshire
  4. Gloucestershire
  5. Greater Lincolnshire
  6. Lambeth, Lewisham and Southwark
  7. North Tyne
  8. Southampton and Portsmouth

The research for the LGA by the Learning and Work Institute (L&W) also reveals that by 2030 there could be:

  • 5.1 million low-skilled people chasing 2 million low-skilled jobs – a surplus of 3.1 million low-skilled workers;
  • 12.7 million people with intermediate skills chasing 9.5 million jobs – a surplus of 3.1 million people;
  • 17.4 million high-skilled jobs with only 14.8 million high-skilled workers – a deficit of 2.5 million.

Brexit is an opportunity to improve the current centrally-governed skills and employment system, which sees £10.5 billion a year spent by eight government departments or agencies across 20 different national schemes.

The LGA says this is creating a confusing, fragmented, untargeted and ineffective system. 

It said that councils, combined authorities and their partners can help the Government tackle skills gaps and more effectively reduce long-term unemployment and the number of young people out of work by being able to target support locally.

The LGA is calling for the Government to use the Budget to devolve all back-to-work, skills, apprenticeship, careers advice, and business support schemes and funding to the local areas in which they are used.

This would see groups of councils across England given the power and funding to deliver a one-stop ‘Work Local’ service for skills, apprenticeship, employment, careers advice and business support provision.

It would bring together local skills planning, oversee job support including Jobcentre Plus and the Work and Health Programme and coordinate careers advice and guidance for young people and adults.

Sector Response

Cllr Kevin Bentley, Chairman of the LGA’s People and Places Board, said:

“Millions of people face a future where they have skills mismatched for jobs at a huge cost to people’s lives and the local and national economy.

“Councils are ideally placed to lead efforts to help the Government bring growth and jobs to all parts of the country and ensure everyone is fully equipped with the skills they need to compete for future jobs.

“For that to happen, our complex and fragmented national skills system needs to adapt to a changing jobs market.

Advertisement

“Better local coordination of services would provide better opportunities for young people to increase their skill levels and adults retrain and upskill for future jobs. This is key to driving up productivity, closing local skills gaps and boosting local economies.”

Stephen Evans Dec 2018 100x100Stephen Evans, Chief Executive of Learning and Work Institute, said:

“Improving skills is central to making the 2020s a decade of growth.

“Other countries have continued to invest in skills, while progress in England has stalled over the last decade, the result of large cuts in England’s adult education budget which has left us lagging behind other countries and the number of adults improving their skills at a record low.

“We now need a decade of investment, in order to boost life chances, economic prosperity and to level up the country. That investment needs to be delivered through a partnership between national and local government, employers and trade unions. The cost of inaction is large and growing: it is time for action and investment in lifelong learning.”

Paul Swinney 100x100Paul Swinney, Director of Policy and Research at Centre for Cities, said:

“A lack of skilled workers in many cities and large towns outside the Greater South East is the biggest thing holding back this country’s productivity and prosperity. It is no coincidence that northern cities such as Burnley, Bradford and Blackburn have among the highest proportions of people without any qualifications, and also the weakest local economies in the UK.

“Where appropriate,  powers to tackle this skills crisis should be devolved to the local level. But this is set to a background of longer term cuts to FE budgets. So this must be matched with extra funding to help left-behind places upskill their workers.”

Tom Bewick July19 100x100Tom Bewick, Chief Executive of the Federation of Awarding Bodies (FAB), said:

“This is an excellent report, which exposes sharply, the massive mismatch of the skills available and the skills UK plc will need in future. In the last decade, we have seen employers invest about £5 billion less per annum in workforce training, despite the Apprenticeship Levy raising approximately £2.4 billion in England. With the cuts to 16-19 and adult education in FE — as detailed by the Augar Review — and a decline of about 2.2 million adult learning opportunities since 2015; it is no exaggeration to state our skills and workforce training system is currently in crisis. 

“FAB members stand ready to play our part in plugging the skills gaps identified by this report. We already work closely with employers and local communities to identify skills needs and, often, tailor bespoke qualifications and industry credentials to meet specific workforce needs.

"The Chancellor’s Budget on 11th March is a once-in-a-generation opportunity to put investment in the British workforce back on track, and to fix the Apprenticeship Levy, once and for all. The Department for Education also needs to proceed with caution in terms of its planned review and rationalisation of qualifications at Level 3 and below. We are in danger of throwing the baby out with the bathwater. 

"In a post-Brexit scenario, with a new points based system for immigration being muted, we need to recalibrate our whole skills system to one that is focussed more clearly on growing the domestic pipeline of talent. Such a model does not have to be in contradiction to being open to the rest of the world, where we should continue to address specific skills gaps and shortages via fair immigration, particularly where demand can’t easily be met by British workers. What this report shows, however, is the importance of devolving decision-making to local delivery areas, while maintaining a national framework of adult learning and workforce training entitlements, to avoid a postcode lottery." 

Rog Gorman 100x100Roger Gorman CEO Founder of Workforce optimisation Vendor ProFinda, said:

"We know from working with UK plc organisations to help them understand their internal skills inventory that there is a large skills deficit in many areas and this is massively hampering growth.

"Now post Brexit we believe it is the number one challenge for many companies and sectors. We welcome all initiatives to align the skills of the workforce with the demand from UK plc."

Matthew Fell 100x100Matthew Fell, CBI Chief UK Policy Director, said:

“Adult learning is heading in the wrong direction at precisely the wrong time for our economy and our society. Technology is rapidly changing the world of work and driving up demand for new and higher skills. This is a huge opportunity – which is why we need the partnership of the century between business, government, the education sector and workers to deliver the retraining essential to ensuring everyone benefits.”

kirstie donnelly 100x100Kirstie Donnelly, CEO City & Guilds Group said:

“This report is just another warning for Government to stop deprioritising adult education and start making skills a priority. Our Sense & Instability report last year highlighted the issues with our disjointed skills system and the real risk to people who are falling through the cracks of an underinvested system.

"Devolving skills budgets to local councils would be a step in the right direction but what we really need is better intelligence about local labour market needs and for employers and colleges/training providers to work together to focus on developing the most needed skills.”

Case studies of discretionary schemes run by councils can be found here

You may also be interested in these articles:

Advertisers

Latest Education News

Further Education News

The FE News Channel gives you the latest education news and updates on emerging education strategies and the #FutureofEducation and the #FutureofWork.

Providing trustworthy and positive Further Education news and views since 2003, we are a digital news channel with a mixture of written word articles, podcasts and videos. Our specialisation is providing you with a mixture of the latest education news, our stance is always positive, sector building and sharing different perspectives and views from thought leaders, to provide you with a think tank of new ideas and solutions to bring the education sector together and come up with new innovative solutions and ideas.

FE News publish exclusive peer to peer thought leadership articles from our feature writers, as well as user generated content across our network of over 3000 Newsrooms, offering multiple sources of the latest education news across the Education and Employability sectors.

FE News also broadcast live events, podcasts with leading experts and thought leaders, webinars, video interviews and Further Education news bulletins so you receive the latest developments in Skills News and across the Apprenticeship, Further Education and Employability sectors.

Every week FE News has over 200 articles and new pieces of content per week. We are a news channel providing the latest Further Education News, giving insight from multiple sources on the latest education policy developments, latest strategies, through to our thought leaders who provide blue sky thinking strategy, best practice and innovation to help look into the future developments for education and the future of work.

In May 2020, FE News had over 120,000 unique visitors according to Google Analytics and over 200 new pieces of news content every week, from thought leadership articles, to the latest education news via written word, podcasts, video to press releases from across the sector.

We thought it would be helpful to explain how we tier our latest education news content and how you can get involved and understand how you can read the latest daily Further Education news and how we structure our FE Week of content:

Main Features

Our main features are exclusive and are thought leadership articles and blue sky thinking with experts writing peer to peer news articles about the future of education and the future of work. The focus is solution led thought leadership, sharing best practice, innovation and emerging strategy. These are often articles about the future of education and the future of work, they often then create future education news articles. We limit our main features to a maximum of 20 per week, as they are often about new concepts and new thought processes. Our main features are also exclusive articles responding to the latest education news, maybe an insight from an expert into a policy announcement or response to an education think tank report or a white paper.

FE Voices

FE Voices was originally set up as a section on FE News to give a voice back to the sector. As we now have over 3,000 newsrooms and contributors, FE Voices are usually thought leadership articles, they don’t necessarily have to be exclusive, but usually are, they are slightly shorter than Main Features. FE Voices can include more mixed media with the Further Education News articles, such as embedded podcasts and videos. Our sector response articles asking for different comments and opinions to education policy announcements or responding to a report of white paper are usually held in the FE Voices section. If we have a live podcast in an evening or a radio show such as SkillsWorldLive radio show, the next morning we place the FE podcast recording in the FE Voices section.

Sector News

In sector news we have a blend of content from Press Releases, education resources, reports, education research, white papers from a range of contributors. We have a lot of positive education news articles from colleges, awarding organisations and Apprenticeship Training Providers, press releases from DfE to Think Tanks giving the overview of a report, through to helpful resources to help you with delivering education strategies to your learners and students.

Podcasts

We have a range of education podcasts on FE News, from hour long full production FE podcasts such as SkillsWorldLive in conjunction with the Federation of Awarding Bodies, to weekly podcasts from experts and thought leaders, providing advice and guidance to leaders. FE News also record podcasts at conferences and events, giving you one on one podcasts with education and skills experts on the latest strategies and developments.

We have over 150 education podcasts on FE News, ranging from EdTech podcasts with experts discussing Education 4.0 and how technology is complimenting and transforming education, to podcasts with experts discussing education research, the future of work, how to develop skills systems for jobs of the future to interviews with the Apprenticeship and Skills Minister.

We record our own exclusive FE News podcasts, work in conjunction with sector partners such as FAB to create weekly podcasts and daily education podcasts, through to working with sector leaders creating exclusive education news podcasts.

Education Video Interviews

FE News have over 700 FE Video interviews and have been recording education video interviews with experts for over 12 years. These are usually vox pop video interviews with experts across education and work, discussing blue sky thinking ideas and views about the future of education and work.

Events

FE News has a free events calendar to check out the latest conferences, webinars and events to keep up to date with the latest education news and strategies.

FE Newsrooms

The FE Newsroom is home to your content if you are a FE News contributor. It also help the audience develop relationship with either you as an individual or your organisation as they can click through and ‘box set’ consume all of your previous thought leadership articles, latest education news press releases, videos and education podcasts.

Do you want to contribute, share your ideas or vision or share a press release?

If you want to write a thought leadership article, share your ideas and vision for the future of education or the future of work, write a press release sharing the latest education news or contribute to a podcast, first of all you need to set up a FE Newsroom login (which is free): once the team have approved your newsroom (all content, newsrooms are all approved by a member of the FE News team- no robots are used in this process!), you can then start adding content (again all articles, videos and podcasts are all approved by the FE News editorial team before they go live on FE News). As all newsrooms and content are approved by the FE News team, there will be a slight delay on the team being able to review and approve content.

 RSS IconRSS Feed Selection Page