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Skills that Work for Wales

Skills that Work for Wales. A skills and employment strategy. Jon Waters Skills Strategy team, WAG. Overview. Why are skills important? What’s the problem? What are we doing about it? What will success look like?. Why are skills important?.

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Skills that Work for Wales

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  1. Skills that Work for Wales A skills and employment strategy Jon Waters Skills Strategy team, WAG

  2. Overview • Why are skills important? • What’s the problem? • What are we doing about it? • What will success look like?

  3. Why are skills important? • Prosperity depends on employment and productivity – and both depend on skills Source: APS / LFS, Stats Wales June 2008

  4. Why are skills important? • Productivity refers to how well a firm or an economy uses its resources – how much output is achieved for each input. • Training has a bigger impact on business productivity than on workers’ wages. EARNINGS 0.3% increase in wages TRAINING 1% increase inproportion of workers trained in an industry PRODUCTIVITY 0.6% increase in value added per worker Dearden, Reed and Van Reenen (2006) The Impact of Training on Productivity and Wages: Evidence from British Panel Data. Oxford Bulletin of Economics and Statistics.

  5. What’s the problem? • Wales is a relatively low employment and low productivity economy We want to move towards the top right Source: Office of National Statistics- GVA data 2006; Employment data Q4, 2007

  6. What’s the problem? • Poor workforce skills are a big part of the explanation Wales has fewer people qualified to Level 4, and more people without qualifications, than either England or Scotland Wales has worse literacy and numeracy than most English regions Source: National Survey of Adult Basic Skills in Wales (2004), Skills for Life Survey (2003) Source: Annual Population Survey / Local Labour Force Survey

  7. What are we doing about it? • We’ve been making progress, especially on unemployment Source: Annual Population Survey / Local Labour Force Survey Source: Labour Force Survey

  8. What are we doing about it? But two independent reviews have told us that we need to “raise our game” on skills - the Leitch Review... The Review sets out a compelling vision for the UK. It shows that the UK must urgently raise achievements... and recommends that it commit to becoming a world leader in skills by 2020. This means doubling attainment at most levels of skill. Responsibility for achieving ambitions must be shared between Government, employers and individuals.

  9. What are we doing about it? And the Webb Review... More needs to be done, especially for... • people without basic skills • learners aged 14-19 who do not have a full choice of opportunities • employers who don’t find the skills system responsive to their needs • young people and adults who are not in employment, education or training

  10. What are we doing about it? Sir Adrian Webb’s 7 Fundamental Principles include.. • Employer influence must increase greatly in the 14-19 phase, be paramount post-19 and must drive strategy and the performance of providers • New approaches to funding are essential

  11. What are we doing about it? Skills that Work for Wales is our response • It covers the whole spectrum of skills, from the early years to adult learning • We need to ensure that... • children get a better start in life • young people have richer opportunities • and there’s more investment in adult skills • BUT we’re also asking more of individuals and employers

  12. Elements of the strategy #1 • Make sure that young people have better opportunities • Flying Start, Foundation Phase, 14-19 Pathways, Welsh Bac • Target funding on priorities • Post-16 fees policy • Invest in basic skills • New GCSEs, entitlement, Employer Pledge • Help more people into work • Integrated skills & employment services

  13. Elements of the Strategy #2 • Invest in workforce development • Expanding Workforce Development Programme, strengthen apprenticeships, integrate skills & business support, Sector Priorities Fund • Invest in high-level skills • HE review • Shaping the system • WESB, UKCES, SSCs • Transforming the learning network • Quality and Effectiveness Framework • Collaboration and new models of delivery

  14. What will success look like? • We’re working with WESB to develop a new generation of indicators • We’re interested in things like… • Outcomes for individuals • Better skills • Progression into employment • Outcomes for employers • Employer satisfaction • Outcomes for institutions • Success rates • Inspection grades

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