EDUCATION AND INDUSTRY – EDUCATION AND INDUSTRY – Taking two steps back and Taking two steps back and

reflectingreflecting

Ewart KeepEwart KeepSKOPESKOPE

Cardiff UniversityCardiff University

A Good Time to ReflectA Good Time to Reflect

• Rising youth unemploymentRising youth unemployment• Large cuts in public spending on E&T Large cuts in public spending on E&T

loominglooming• Educational institutions under pressureEducational institutions under pressure• New definitions and analyses of UK’s New definitions and analyses of UK’s

‘skills problem’ on the table.‘skills problem’ on the table.• Wolf Review – priorities for EmployersWolf Review – priorities for Employers• LSN paper on employer contributionsLSN paper on employer contributions

Two Key ThemesTwo Key Themes

1.1. Long-standing failure to define 3Rs Long-standing failure to define 3Rs (rights, roles and responsibilities) within (rights, roles and responsibilities) within E&T system now becoming critical.E&T system now becoming critical.

2.2. Gap between policy aspiration and Gap between policy aspiration and reality, and between the bargaining reality, and between the bargaining power of employers and individuals power of employers and individuals (students, trainees, workers) is widening.(students, trainees, workers) is widening.

Paper Builds Upon:Paper Builds Upon:

Themes and issues raised in –Themes and issues raised in –

• Huddleston and KeepHuddleston and Keep, 1999 (Ind/Ed), 1999 (Ind/Ed)• Gleeson and KeepGleeson and Keep, 2004 (Ind/Ed), 2004 (Ind/Ed)• KeepKeep, 2009 (incentives to learn), 2009 (incentives to learn)• Keep and JamesKeep and James, 2010 (incentives to , 2010 (incentives to

learn at bottom of labour market, and learn at bottom of labour market, and recruitment and selection practices) recruitment and selection practices)

4 Underpinning Issues4 Underpinning Issues

1.1. E&T’s need to satisfy competing interestsE&T’s need to satisfy competing interests

2.2. Failure to establish who does and pays for Failure to establish who does and pays for whatwhat

3.3. ‘‘National interest’ in a world of globalised National interest’ in a world of globalised capitalcapital

4.4. Education as businessEducation as business

E&T Has Competing E&T Has Competing ‘Customers’‘Customers’

1.1. Students (and their parents)Students (and their parents)2.2. EmployersEmployers3.3. Wider society/stateWider society/state

The interests and needs of these 3 groupings The interests and needs of these 3 groupings are not internally harmonious, nor are not internally harmonious, nor coterminous with one another. E&T ends coterminous with one another. E&T ends up mediating between competing up mediating between competing demands, and taking blame from the demands, and taking blame from the ‘losers’.‘losers’.

Rights, Roles & Rights, Roles & ResponsibilitiesResponsibilities

1.1. IndividualIndividual

2.2. StateState

3.3. EmployersEmployers

Respective 3Rs vague and ambiguous – e.g. Respective 3Rs vague and ambiguous – e.g. no agreed division of responsibility around no agreed division of responsibility around the most appropriate site(s) of learning for the most appropriate site(s) of learning for different types of skill (e.g. team working). different types of skill (e.g. team working).

‘‘British’ Industry Means British’ Industry Means What?What?

E&T policy is based around national interest E&T policy is based around national interest and a national project to ensure the UK and a national project to ensure the UK performs better against overseas rivals performs better against overseas rivals (e.g. Leitch targets).(e.g. Leitch targets).

BUT…….BUT…….• Large swathes of industry foreign ownedLarge swathes of industry foreign owned• Remaining British companies often have Remaining British companies often have

bulk of their activities, turnover, workforce bulk of their activities, turnover, workforce and profit abroadand profit abroad

• We don’t believe in ‘national champions’.We don’t believe in ‘national champions’.

Not-So British Industry…Not-So British Industry…

Share of UK Gross Value Added Share of UK Gross Value Added accounted for by foreign-owned firms accounted for by foreign-owned firms in 2007:in 2007:

• 38% in manufacturing38% in manufacturing

• 70% in mining and quarrying70% in mining and quarrying

• 46% in gas, water and electricity46% in gas, water and electricity

Education AS BusinessEducation AS Business

Increasingly, the business role in education Increasingly, the business role in education is being seen not just as liaison with E&T is being seen not just as liaison with E&T providers, but as direct business providers, but as direct business involvement in E&T outcomes, with involvement in E&T outcomes, with businesses taking over the role of publicly-businesses taking over the role of publicly-funded providers. The CBI is now a funded providers. The CBI is now a consumer advocate consumer advocate ANDAND a lobbyist for a lobbyist for private E&T providers – see CBI, 2010aprivate E&T providers – see CBI, 2010a

Against this backdrop…..Against this backdrop…..

Now is a good moment to review Now is a good moment to review progress in industry/education progress in industry/education collaboration, and to ask where things collaboration, and to ask where things go next.go next.

Old problems are diminished, new ones Old problems are diminished, new ones are arising!are arising!

Skills Crisis – what’s the Skills Crisis – what’s the problem?problem?

A visiting space alien might ask – where is A visiting space alien might ask – where is the crisis? The last 20 years have seen the crisis? The last 20 years have seen huge progress:huge progress:

• Massive rise in HE, massive rise in Massive rise in HE, massive rise in qualification achievementqualification achievement

• Skill shortages small and limitedSkill shortages small and limited• Employer satisfaction with E&T, as Employer satisfaction with E&T, as

measured by NESS, is highmeasured by NESS, is high• More and better Industry/Education liaisonMore and better Industry/Education liaison

Reframing the Problem to Reframing the Problem to Reinvent a Crisis?Reinvent a Crisis?

1.1. Competition between sectors and Competition between sectors and occupationsoccupations

2.2. The ‘War for Talent’ – scarcity in The ‘War for Talent’ – scarcity in abundance!abundance!

3.3. ‘‘Wobbly’ data on employer satisfaction?Wobbly’ data on employer satisfaction?

Competition Between Competition Between Sectors and OccupationsSectors and OccupationsSome employers, sectors and occupations will be Some employers, sectors and occupations will be

more attractive than others to young people. more attractive than others to young people. Those employers who lose out can:Those employers who lose out can:

1.1. Try to alter perceptions of the work/careerTry to alter perceptions of the work/career2.2. Seek labour elsewhere (migrants) or offshoreSeek labour elsewhere (migrants) or offshore3.3. Complain that E&T is ‘mis-directing’ young people Complain that E&T is ‘mis-directing’ young people

or failing to provide enough qualified people – e.g. or failing to provide enough qualified people – e.g. STEM ‘crisis’. Loud complaints as employers try STEM ‘crisis’. Loud complaints as employers try to extract more. Real problems lie inside labour to extract more. Real problems lie inside labour market and the incentives it creates.market and the incentives it creates.

The War for TalentThe War for Talent

Global demand for hyper-talented is rising. Global demand for hyper-talented is rising. Pool of such talent is finite and small.Pool of such talent is finite and small.

• Allows a new scarcity ‘crisis’ in a world of Allows a new scarcity ‘crisis’ in a world of abundance – mass HE, and complaints that abundance – mass HE, and complaints that graduates never have the ‘right’ skills, graduates never have the ‘right’ skills, abilities.abilities.

• Allows employers to argue for uncapped Allows employers to argue for uncapped access to migrant labour.access to migrant labour.

Dodgy Surveys as Basis for Dodgy Surveys as Basis for ClaimsClaims

NESS – 70,000 respondents.NESS – 70,000 respondents.

CIPD – 598 respondents, response rate CIPD – 598 respondents, response rate of 5%!of 5%!

Surveys slide from hard to fill vacancies Surveys slide from hard to fill vacancies to skill shortages (not the same thing).to skill shortages (not the same thing).

A New Kind of Skills A New Kind of Skills DebateDebate1.1. Main problem is demand for skills not Main problem is demand for skills not

supplysupply2.2. Over-qualification and under-employment Over-qualification and under-employment

is growingis growing3.3. Job quality is often poor and this Job quality is often poor and this

weakness the incentives to learnweakness the incentives to learn4.4. Employers’ contributions to skill Employers’ contributions to skill

formation are limited and may be smaller formation are limited and may be smaller than hitherto believedthan hitherto believed

This sets a very different context for This sets a very different context for Industry/Education debates!Industry/Education debates!

Demand Not SupplyDemand Not Supply

Unfortunately, Britain has long been caught in Unfortunately, Britain has long been caught in a low-qualification trap, which means that a low-qualification trap, which means that British employers tend to be less likely than British employers tend to be less likely than in most other countries to require their in most other countries to require their recruits to be educated beyond the recruits to be educated beyond the compulsory school leaving age. Among compulsory school leaving age. Among European countries, only in Spain, Portugal European countries, only in Spain, Portugal and Turkey is there a greater proportion of and Turkey is there a greater proportion of jobs requiring no education beyond jobs requiring no education beyond compulsory school.compulsory school.

Francis Green, 2009 Francis Green, 2009

Over-QualificationOver-Qualification

Skills Survey:Skills Survey:1986 - 29.3% over-qualified for current job1986 - 29.3% over-qualified for current job2006 – 39.6% over-qualified for current job2006 – 39.6% over-qualified for current job

Sutherland, using WERS data, found around 50% Sutherland, using WERS data, found around 50% mis-match.mis-match.

Job crisis will worsen this, as graduates ‘trade Job crisis will worsen this, as graduates ‘trade down’, and stock of high skills jobs is growing far down’, and stock of high skills jobs is growing far slower in UK than in most other OECD countries. slower in UK than in most other OECD countries.

Problems with Job Problems with Job QualityQuality• Digital Taylorism at top endDigital Taylorism at top end• Large raft (22% of workforce, 33% or Large raft (22% of workforce, 33% or

female workers) of low paid work in female workers) of low paid work in UK. Size not reducing, may be UK. Size not reducing, may be growing.growing.

• Stressful, repetitive, boring work, with Stressful, repetitive, boring work, with limited prospects for progression.limited prospects for progression.

• In-work poverty considerable.In-work poverty considerable.• Such jobs limit incentives to learn.Such jobs limit incentives to learn.

Employers’ Contribution to Employers’ Contribution to Skill Formation Open to Skill Formation Open to QuestionQuestion

• Failure to massify the work-based route – Failure to massify the work-based route – from YTS to apprenticeshipfrom YTS to apprenticeship

• Expectations of subsidy have grown – Digby Expectations of subsidy have grown – Digby Jones – problematic in new fiscal Jones – problematic in new fiscal environment!environment!

• Employer spending in the spotlight – NIACE Employer spending in the spotlight – NIACE and LSN reports.and LSN reports.

• Government expects more co-contributionGovernment expects more co-contribution

The Incidence of Employer-The Incidence of Employer-Provided TrainingProvided Training

Work by Mason and Bishop for LLAKES Work by Mason and Bishop for LLAKES suggests that the incidence of employer suggests that the incidence of employer provided training (of all sorts) across the provided training (of all sorts) across the workforce has been falling steadily since workforce has been falling steadily since 2000, and is now back to where it was in 2000, and is now back to where it was in 1993!1993!

Huge blow to government policy and the Huge blow to government policy and the Leitch ‘ambition’.Leitch ‘ambition’.

The Role of Employers?The Role of Employers?

This new debate puts the ball back in the This new debate puts the ball back in the employers’ court in terms of:employers’ court in terms of:

1.1. Helping initial E&T to work – Helping initial E&T to work – apprenticeships and work experienceapprenticeships and work experience

2.2. Overall training spendOverall training spend3.3. Job quality, pay and progressionJob quality, pay and progression4.4. Recruitment and selection practicesRecruitment and selection practices5.5. Skill utilisationSkill utilisation6.6. Corporate strategies and their impact on Corporate strategies and their impact on

the labour marketthe labour market

Time for Some New Time for Some New Thinking?Thinking?

• Traditional debates represent a game Traditional debates represent a game education can never ‘win’ because education can never ‘win’ because employers shift the definition of employers shift the definition of winning over time.winning over time.

• Traditional debates represent an Traditional debates represent an attempt to ratchet up what the public attempt to ratchet up what the public purse pays for and provides. Over-purse pays for and provides. Over-supply is desired.supply is desired.

New Thinking New Thinking continued….continued….• New framing of industry/education debate New framing of industry/education debate

raises issues about 3Rs in ways that are hard raises issues about 3Rs in ways that are hard to duck.to duck.

• Public money will be very limited. Co-Public money will be very limited. Co-contribution and ‘obligations’ on employers contribution and ‘obligations’ on employers loom, as do targets on apprenticeship places.loom, as do targets on apprenticeship places.

• Policy is slowly shifting to the issue of how to Policy is slowly shifting to the issue of how to address demand for skill and how it is used in address demand for skill and how it is used in the workplace.the workplace.

• Issues of power imbalances in the labour Issues of power imbalances in the labour market – e.g. using migrant labour to lower market – e.g. using migrant labour to lower wages and get more for less will not go away.wages and get more for less will not go away.

New Thinking cont….New Thinking cont….

• Policy discourses around social mobility, Policy discourses around social mobility, in-work poverty, unemployment, unpaid in-work poverty, unemployment, unpaid internships, etc make for a new internships, etc make for a new backdrop.backdrop.

• Honest discussions about establishing Honest discussions about establishing respective rights, roles and respective rights, roles and responsibilities might ensue!responsibilities might ensue!