The Skills Gap

Lord Baker of Dorking C.H.

The economy is changing

Science

, engin

eering a

nd tech

nolog...

Science

, engin

eering a

nd tech

nology t..

.

Skille

d agricu

lture

L3

Skille

d metal, e

lectrica

l, electr

o...

Skille

d constr

uction L3

-200

-150

-100

-50

0

50

100

150

200

250Net growth in job numbers, 2010-20 (thousands)

An even bigger story: the baby boomers are retiring

SET pro

fessionals

SET te

chnici

ans (Le

vel 4

)

Agricu

lture

(Leve

l 3)

Metal/e

lectrica

l (L 3)

Constructi

on (L 3)

-200

0

200

400

600

800

1000

Replacement demandNet growth

(Thousands)

Huge numbers of people will be needed by 2020

• Between 2012 and 2020, we need ––830,000 SET professionals (degree level)–450,000 SET technicians (levels 3 and 4)

• SET = science, engineering and technology• Figures include growth + replacement demand (mainly to

replace baby boomers planning to retire)

But supply won’t meet demand

• Demand for science, engineering and technology graduates: 104,000 per year between 2012 and 2020

• Number of new graduates taking UK jobs in SET occupations: 64,000 per year

• Shortfall: 40,000 graduates per year

Education is out of step with the economy.

Schools, further education colleges, training providers and universities are failing to deliver the skills we need today, let alone tomorrow.

Higher education has grown rapidly – but not in all subjects

Computer science

Engineering/technology

Physical sciences

Creative arts/design

Business/admin

Humanities

0 10 20 30 40 50 60 70 80 90

% Increase in first degrees 2002-12

Many graduates are under-employed

Creative arts & design

Law Engineering & technology

Subjects allied to medecine

05

10152025303540

% in non-graduate jobs in December 2011, 30 months after graduating

Apprenticeships have grown – but the numbers are unbalanced

Number of 16-24s starting

apprenticeships in 2011/12

% change since 2010/11

Business, admin and the law 80,320 14.5%

Retail and commercial enterprise 63,670 7.6%

Health, public services and care 49,910 10.5%

Engineering and manufacturing 38,100 6.8%

Britain’s plight

Only 4% of 15 year olds in the UK want careers in engineering and computing ...

… placing the UK 35th out of 37 countries in an OECD survey.

Other countries value vocational education more highly …

Hungary UK Denmark Germany Netherlands Austria0

102030405060708090

% young people on vocational courses

…and have lower youth unemployment

Hungary UK Denmark Germany Netherlands Austria0

5

10

15

20

25

30

% of under 25s who are unemployed

The connection is obvious

Hungary UK

Denmark

German

y

Netherla

nds

Austria

0

20

40

60

80

% young people on vocational courses% youth un-employment

UK and AustriaUK Austria

Participation in vocational upper secondary education, 2010

32.1% 76.5%

Under 25s unemployment rate, 2010

19.6% 8.8%

We are wrong to delay technical education

• In Austria, technical education starts at 14.• In England, most technical education starts at

16 – two years behind.

Too many young people start – rather than finish – level 2 at 16

Level 20

20,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000

Number of QCF Level 2 qualifications achieved by 17 and 18 year olds, 2011-12

Age 17Age 18

QCF: Qualifications and Curriculum Framework

The time has come to rethink 14-18 education

What is a UTC?• Independent state school• 14-18 age range• All-ability intake• Sub-regional• Commitment of a local university• Employers involved from the start in shaping

and delivering the curriculum

Curriculum14 - 16

60%General & bridging

40%Technical

Post-16

40%General & bridging 60%

Technical

Key characteristics of UTCs• Technical and academic education are integrated• Practical work is as highly valued as academic work• Longer days (8-30 to 5) and school years (36-40

weeks)• Enrichment for all• Curriculum projects devised by employers and

universities• Progression routes include HE, FE, Apprenticeships

and employment

What’s more …

• Every student who left the JCB Academy last summer had somewhere to go –– Apprenticeships– Further education– University– Work

Four types of 14-18 college:–UTCs– Liberal arts colleges–Career colleges–Performing arts and

sports colleges

Thank you