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Enhancing Skills Utilisation in the UK Workforce: Challenges and Opportunities

This report from the UK Commission for Employment and Skills discusses the critical need for effective skills utilisation in light of current labour market demands. With a highly skilled workforce facing under-utilisation, the report highlights the mismatch between skills supply and employer demand. It emphasizes the importance of raising aspirations, improving employer engagement, and adopting high-performance working practices. Key factors influencing skills utilisation are explored, including competition, technology, and workforce development, offering a strategic framework for improvement.

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Enhancing Skills Utilisation in the UK Workforce: Challenges and Opportunities

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  1. Skills Utilisation: does it matter? A perspective from the UK Commission for Employment and Skills Unionlearn Learning & Skills Policy Network Meeting Trade Union Congress 8 November 2010 Lesley Giles UK Commission for Employment and Skills Deputy Director of Research and Policy

  2. The Skills and Jobs Challenge: A strategic framework to explore utilisation • Skill levels not increasing at a sufficient rate relative to international competitors – need to raise individual aspirations: skills upgrading • Is the system responsive enough? Matching supply and demand • mismatch • trust providers • ‘Right skills’ economically valuable • Is Employer Demand Ambitious enough? Raise demandand skills use • high value jobs • High Performance Working • Increase skills utilisation

  3. We have a highly skilled workforce?Significant new growth but massive replacement demand Over 50% of all job demand Over 100% of all expansion demand 13,449 Source: UKCES, Working Futures 2007-17, January 2009

  4. But areas of significant mismatch? Growing under-utilisation and under-employment of skills (Ch 2) (Ch 6) (Ch 3&4) (Ch 5) Policy (Ch 7)

  5. A problem of demand?Changes in high skilled demand and supply (1998-2006) Supply growing 7 times faster than Demand! Source: Ambition 2020, Chart 7.1, p 115 - OECD, Education at a Glance 2008, Table A1.3a and Table 1.6

  6. Individual capability ability:skills, trainingeducation Deployment Development access:resourcingrecruitmentsuccession application:ODproductmarket strategy Organisational capability Is High Performance Working an answer?One means to encourage better skills utilisation attitude:employee engagement/involvement

  7. How and where can we improve take up? Challenges for HPW & skills utilisation? What we have found: • Low take up, varying from a fifth to just over a quarter • Strong sectoral variations e.g. higher take up in manufacturing, public sector • Key influencing factors include: greater international competition/market pressures; advanced technology; greater consumer demand; high value goods and services; firm size. • Wide range of barriers to take up: • Ignorance • Doubts & inertia (perceptions of costs vs benefits & pressures for short term financial returns) • Inability (capacity and capability of M&L) • Wider context – environment e.g. regulation

  8. Developing a New Ambition for Employers:The need for a strong social partnership (Ch 2) (Ch 6) (Ch 3&4) (Ch 5) Policy (Ch 7)

  9. Thank you Questions Further Information: www.ukces.org.uk

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