Employment, Learning and Skills
Interlinkages
The employment , learning and skills aspect of the IRS Framwork is not only linked to the economy aspect of the IRS as might be expected but is also linked to the social capital and social cohesion aspects since being employed not only provides economic inclusion but leads to social inclusion. Other aspects of the IRS Framework that relate to health and crime reduction are also positively impacted by employment and the possession of skills.
National Policy Context
In response to the Government’s National Skills Strategy White Paper, ‘21st Century Skills’ (the Regional Skills Partnerships (RSPs) were established to drive forward a skills agenda that is sensitive to regional priorities. The national vision for skills development looks at skills for business and lifelong learning as integrated and continuous processes that begin at the level of compulsory school education, and continue through further and higher education and into the workplace. The Department for Industries, Universities and Skills and the Sector Skills Development Agency in a report titled Skills in England 2007 have stressed the transformational importance of investment in skills:
- for the individual: the possession of higher-level skills, typically measured by formal qualifications or duration of education, increases the probability of being in employment and contributes to higher earnings in employment (as well as conferring various other noneconomic benefits);
- for the employer: other things being equal, highly skilled workforces are more productive. Skills also contribute, critically, to an organisational culture that is adaptable and responsive to change. Skills are also positively related to workplace survival;
- for the state: higher-level earnings and improved profitability of companies generate higher tax revenue and lower expenditure on benefits when unemployment and economic inactivity are reduced. Skills can also be an engine for economic development and growth, as well as being a source of continuing improvement in the quality of life for citizens, and a key contributor to social cohesion.
Key Challenges in the East Midlands
The East Midlands has a lower than average proportion of the workforce with higher level qualifications and an above average proportion with no qualifications. Some 10.2% of the economically active working age population have no qualifications, compared to 9.7% in the UK, and 28.1% of the region’s workforce is qualified to Level 4 (equivalent to a first degree) compared to 31.1% in the UK.
Low skills levels have a negative impact on the productivity and future competitiveness of our economy. The region’s business community needs people with the right skills to take advantage of future employment opportunities. A significant issue for regional labour productivity is the higher proportion of individuals with no qualifications, suggesting serious basic skills needs, alongside a persistent lag in higher level qualifications. This impacts on the other drivers of productivity, as individuals with low skills are less able to respond to the increasing demands of a changing economy whilst a business with a low skilled workforce is less able to innovate and adopt new technologies and processes to be responsive to market demand.
Additionally, higher proportions of individuals with no qualifications are concentrated amongst older workers in the region. This is a key concern, as forecast data suggests that 80% of the workforce needed in 2012 is already in employment, meaning that a substantial numbers of older workers with no qualifications will remain in employment over the next decade.
Lifelong and work-placed learning are key to our future productivity and competitiveness, and as a means to ensure all individuals in the region can play a part in our future success.
The East Midlands labour market is discussed in detail in Section 3 of the RES Evidence Base.
Current Position on Regional Policy
The East Midlands Regional Economic Strategy – A Flourishing Region provides the evidential basis to demonstrate that skills are important both as a driver of productivity and competitiveness, and as a key factor in promoting social inclusion, by ensuring that individuals remain employable throughout their working lives. The Regional Skills Partnership in the East Midlands, which will be responsible for delivering the skills element of the revised RES, explicitly emphasises ‘skills for productivity’ as a concept that directly connects skills development with improved business performance. The partnership for Employment, Skills and Productivity (ESP) was officially launched in April 2005 with the vision of ensuring “more people into better jobs in better businesses.” A detailed action plan was published alongside the launch of the ESP. It sets out six priorities for the region:
- To improve the productivity of businesses through investment in management development, innovation and enterprise;
- To provide integrated business support that is driven by and responds to the needs of customers;
- To use public sector planning and procurement as a lever for improving employment, skills and business productivity;
- To increase the involvement and achievements of people aged from 14-19;
- To target employment and skills support at all levels for adults in the region;
- To improve the infrastructure and responsiveness of skills supply and the co-ordination of provision.
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Case Studies
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Hill Holt Wood is a 34 acre deciduous self sustaining community woodland between Lincoln and Newark. Hill Holt offers a range of vocational training including construction work, horticulture, motor mechanics, woodland skills, office and clerical, landscaping and animal husbandry Citizenship and basic skills are also offered. Providing this education, training and employment preparation advice has a profound effect on the many excluded school-children, young offenders and unemployed or otherwise disadvantaged young people who train at the site, many of whom are now in further education, apprenticeships and other vocational training, as well as full time employment.
The Bulwell Community Garden project creates opportunities to address barriers to work for long-term unemployed residents from local (and neighbouring) estates in gardening services, generating income to fund community garden site maintenance and activities. The project has developed the skills of adults and children, the work experience/training has lead to approximately 50% of participants finding work, and it has created a community amenity, has increased social capital, has maintained gardens on the estate, and has increased bio-diversity of site.
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Links to the relevant sections of the State of the Region Report for 2008
Links to the relevant sections of the East Midlands Integrated Toolkit (EMIT)
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Last updated: 29th July 2008