ambition 2020: world class skills and jobs
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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 - PowerPoint PPT PresentationTRANSCRIPT
UK COMMISSION FOREMPLOYMENT AND SKILLS
Ambition 2020: World Class Skills and Jobs
ANNUAL IED CONFERENCE
Bournemouth7-8th October 2009
Michael DavisDirector of Strategy & PerformanceUK Commission for Employment and Skills
2
UK COMMISSION FOREMPLOYMENT AND SKILLS
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.
3
UK COMMISSION FOREMPLOYMENT AND SKILLS
Ambition 2020: Contents and Structure
The Agenda:
Prosperity, Jobs and
Skills
The Ambition: Skills and
Jobs
Jobs: Today and
Tomorrow
Other Measures
of Skill Developmen
t
Progress: How
Are We Doing?
Prospects to 2020:
Where Are We Going?
Mismatches Between Jobs and
Skills
Raising Employer Ambition
Skills and Employment
Policy
4
UK COMMISSION FOREMPLOYMENT AND SKILLS
The Agenda and the Ambition
30 50 70 90 110 130 150 170 190 21050
55
60
65
70
75
80
85
90
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
KoreaLuxembourg
Mexico
NetherlandsNew Zealand
Norway
Poland
Portugal
Slovak Republic
Spain
Sweden
Switzerland
UK USA
High employment/ high productivity
High employment/ low productivity
Low employment/ low productivity
Low employment/ high productivity
Productivity: GDP per hour worked (US$ at current prices), 2007
Empl
oym
ent:
Em
ploy
men
t pop
ulat
ions
ratio
200
7, a
ll p
erso
ns 1
5-64
Employment:UK 10th place
Productivity:UK 11th place
SETTING A WORLD CLASS AMBITION:
SUSTAINABLE ECONOMIC COMPETITIVENESS & SOCIAL COHESION2020 Goal: World Class Productivity Levels - in top 8 OECD countries2020 Goal: World Class Employment Levels - in top 8 OECD countries
2020 Goal: World Class Skill Levels - in top 8 OECD countries
Source: UKCES, Ambition 2020: World Class Skills and Jobs for the UK, 2009, pp 21-22
5
UK COMMISSION FOREMPLOYMENT AND SKILLS
The Agenda: Productivity and employment in the Nations and Regions of the UK
5
6
UK COMMISSION FOREMPLOYMENT AND SKILLS
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
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UK COMMISSION FOREMPLOYMENT AND SKILLS
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
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UK COMMISSION FOREMPLOYMENT AND SKILLS
Skills: the route to Prosperity
21 24 27 30 33 36 39 42 45 48 51 54 57AGE
Source: Cabinet Office, Getting On, Getting Ahead: A Discussion Paper: Analysing the Trends and Drivers of Social Mobility, 2008
Gro
ss e
arni
ngs
(£00
0s)
9
UK COMMISSION FOREMPLOYMENT AND SKILLS
The UK Qualifications Profile 1997-2007: good progress over last decade
UK QualificationAchievements
1997 2007 1997-2007 Change
1997 – 2007 % Nos (‘000s) % Nos (‘000s) % Nos (‘000s)
Level 5 3 1087 7 2274 110 +1187
Level 4 18 6101 24 8060 32 +1959
Level 3 18 5999 20 6738 12 +739
Level 2 21 6865 20 6912 1 +47
Below Level 2 21 7074 17 6019 -15 -1055
No Qualifications 18 5920 12 4351 -26 -1569
+44%
-26%
Source: Labour Force Survey, 2008 – Note: Working age population 19 – 59/64
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UK COMMISSION FOREMPLOYMENT AND SKILLS
Progress towards 2020 Ambitions
Skill Level
Low level skills
Intermediate level skills
High level skills
Today (2006)
17
18
12
2020 Forecast Outcome
23
21
10
2020 Ambition
Top 8
Top 8
Top 8
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
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UK COMMISSION FOREMPLOYMENT AND SKILLS
Our Prospects
Basic Skills
• We will achieve our basic literacy objective of 95%
• We will not achieve our basic numeracy objective of 95%
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UK COMMISSION FOREMPLOYMENT AND SKILLS
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
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UK COMMISSION FOREMPLOYMENT AND SKILLS
Employer Ambition
• We need to go beyond:(i) raising skill levels; and(ii) a better match between skill requirements and skills
availability
The ‘virtuous circle’ of raising skills demand and supply
Skills as a ‘derived’demand– Economic Policy – Skill Utilisation – Management and Leadership
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UK COMMISSION FOREMPLOYMENT AND SKILLS
Key Messages to Government: a new Policy Framework
Match
Mismatch
Positive Economic and Social Outcomes
Supply of Skills Employment Demand
Negative Economic and Social Outcomes
Economic Performance
Employment Reduced Inequality Productivity
Required Workforce
Business Strategy
Management & Leadership
Skills Utilisation
Economy – level/structure
Industrial Policy
Economic Policy
Other Drivers
Potential Workforce
Skills Attainment
Learning provision
Accredited(Qualification)
Informal(Training)
Skills InvestmentIndividual, Employer,
Government
Guidance – firms & people
DemandJobsSupply
•Shortages and skills gaps•Unemployment and Inactivity•‘Over-skilled’ / ‘Under-
employed•Migration
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UK COMMISSION FOREMPLOYMENT AND SKILLS
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
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UK COMMISSION FOREMPLOYMENT AND SKILLS
Skills, Jobs Growth – emerging thoughts
Raise employer ambition
Motivate individual
s
Agile skills system
World class
jobs, skills and
growth
Actively signal
HPW
For the journey
Personal Accounts
Empower Customers
Focuson
outcomes
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UK COMMISSION FOREMPLOYMENT AND SKILLS
Empowering customers at point of purchase