Apprenticeship starts halved due to impact of Covid-19

UK apprenticeships see a 50% decline due to coronavirus 

Small Business Prices has created a study looking at the best industries for apprentices. The data analyses the number of apprenticeship starts and completions for different courses, the best and worst salaries offered in each industry, as well as the top-rated companies for apprenticeships. It also examines the impact Covid-19 has had on apprenticeships and reveals which industries have been affected the most by the pandemic.

Small Business Prices’ research also identified the best employers for apprenticeships in the UK. RateMyApprenticeship analysed feedback from over 4,000 apprentices in 2018 to determine the best companies for apprenticeships.

These include:

1. MOTUS Commercials – Business
2. BAE Systems – Engineering/ Manufacturing
3. Mitchells & Butlers – Hospitality, Leisure and Tourism
4. M&G – Insurance, Asset and Investment Management
5. BT – IT & Consultancy

As Universities become increasingly expensive to attend, and the job market particularly competitive in the current climate, prospective students may consider other career paths, such as an apprenticeship.

However, with so many options, it can be difficult to choose which industry is the most suitable. The table below shows the top 5 industries for apprentices:

The five best industries for apprenticeships:

Rank	Industry	Apprenticeship Starts (2018/19)	Apprenticeship Completions (2018/19)	Salary
1	Health & Social Care	58,286	29,658	£14,795.39
2	Engineering	20,960	8,575	£21,426.63
3	Administration	45,202	26,762	£15,252.93
4	Accounting & Finance	22,002	5,948	£14,496.94
5	Business Management	48,990	12,427	£18,267.58

Health and Social care rank top of the list and has the highest number of completions across all industries. On the other end of the scale, Animal Care and Veterinary Science, Media and Communications, and Marketing don’t rank well, due to low salaries, as well as having notably fewer apprenticeship starts and completions.

Small Business Prices has evaluated the average salaries prospective apprentices can expect in each industry, revealing both the best and the worst paying.

The top and bottom industries for apprenticeship salaries:

Rank	Best salaries	Worst salaries
1	Direct Learning Support – £27,669	Animal & Veterinary Science – £8,476
2	Teaching & Lecturing – £24,143	Media & Communications – £10,438
3	Hospitality & Catering – £22,072	Horticulture & Forestry – £11,500
4	Engineering – £21,427	Publishing – £11,789
5	Transport & Maintenance – £21,329	Marketing & Sales – £13,257

When solely considering salary, apprenticeships in Direct Learning Support (which provides support to teachers) and teaching perform particularly well, with an average salary between £24,000-£27,000. Although animal and veterinary science offers the worst salary, it is important to consider the expected earning potential, as a fully qualified vet can earn between £40,000-£70,000.

The effect of Covid-19 on apprenticeships 

The world is continuing to feel the effects of the coronavirus as we try to navigate through these uncertain times. With the most recent restrictions, job security is a concern once again, especially for apprentices who particularly felt the effects of the first wave of Covid-19. This raises the question, which industries have suffered the most? 

Rank	Industry	Apprenticeship starts (March-May 2019)	Apprenticeship starts (March-May 2020)	Covid-19 difference
1	Health and Social Care	14,926	7,439	7,487
2	Administration	9,834	3,879	5,955
3	Business Management	11,049	6,757	4,292
4	Child Development	5,943	2,561	3,382
5	Hospitality and Catering	4,836	1,606	3,230
6	Manufacturing	3,744	1,278	2,466
7	Retailing and Wholesaling	2,932	1,099	1,833
8	Service Enterprises	2,197	707	1,490
9	Accounting and Finance	3,642	2,155	1,487
10	Engineering	2,028	845	1,183
	Total	79,588	39,827	39,761

Overall, the number of apprenticeship starts between March and May in 2020 dropped by 50% (39,761) compared to the same period last year. Health and Social Care was the worst-hit industry, with 7,487 fewer starts in 2020 than 2019 (down 50%). But other industries have also seen a decline in apprenticeships: Administration (61%), Business Management (39%), and Child Development (57%) have all felt the effects of the pandemic. 

Ian Wright, Founder of Small Business Prices comments:

“Not only are Universities becoming increasingly expensive, but due to Covid-19 the ‘traditional’ University experience has shifted. As a result, students may want to explore different career paths and this research aims to provide insight into the options available, to help students make informed decisions.

“But it’s also important to consider the drastic impact of the pandemic, as apprenticeship starts have decreased by 50% compared to last year. PM Boris Johnson has already stressed the importance of apprenticeships, with his pledge to offer an ‘opportunity guarantee’, promising young people opportunities for work. It’s important younger generations are not negatively impacted from this situation and companies are given appropriate support to ensure apprenticeship starts increase again.”

This study from Small Business Prices has analysed the best industries for apprenticeships, the highest-rated employers for apprenticeships, as well as how these have been affected by Covid-19

Methodology: The apprenticeships have been ranked according to a series of metrics and ranked from the highest to the lowest overall index score.

Figures on UK apprenticeship starts and completions were collected from the UK Department for Education data between 1.9.-4.9.2020. The Covid-19 impact was calculated as May 2020 – May 2019.

Salary data was collected from Indeed between 1.9.-4.9.2020 and an average created.

The best companies were taken from a seedlist from RateMyApprenticeship, based on research they carried out of over 4,000 apprentices.