Transcript Future Skills Wales 2003 Progress Update

Generic Skills Survey
2003
DRIVERS OF SKILLS
NEEDS
Introduction
 Drivers of Skills Needs:
 Demand Side – Industrial Structure of Area
 Generic Skills – Communication & Team Working skills
across most sectors
 Industry Specific Skills – Customer Handling & IT skills
 Size of Firms & Markets affect type of skills required
 Human Resource – Aptitude, Motivation & Barriers
Employment Growth In Wales
 Largest sectors in Wales are:
 Wholesale & Retail (16.5 % of total employment) Growth
 Manufacturing (15.3 per cent) – Long-term decline
 Health (13.6 per cent) – Growth
 Other growth sectors - Other services (including
leisure) and other business services
Recruitment of Graduates
 Link between recruitment of new graduates and level of
formal qualifications in the workforce
 Graduate numbers rising – qualifications being used as a
screening device
 Graduates employed for their generic skills
 Larger firms more likely to recruit graduates
 Supply of graduates outstrips demand in some cases
Generic Skills
 Generic Skills highest rated by employers in all sectors:
 Understanding customer needs / Communication skills
 Education system emphasising Essential Skills
 Skills gaps mainly for Communication Skills
 Other generic skills rated as important:-
 Ability to Follow Instructions / Initiative / Team Working
/ Adaptability & Flexibility
 The shift from manufacturing towards a more service based economy
will lead to the increasing importance of these skills.
ICT Skills
 ICT SKILLS – Growing in importance to all Firms
 Current level for most sectors – Intermediate
 Higher skills in Financial & Business Services
 Lower in Construction
 Growth in demand for ICT skills outpacing supply
 Demand expected to rise in all sectors
 Strong growth in Public Services and Utilities
Business Attitudes & Demand for Skills
 Changing Government agenda to stimulate demand
 Marked difference in attitudes across sectors
 Larger firms rate skills more highly
 Of employers who see benefits from investment in skills :
 One third had not funded off the job training in the past
year
 Only 59% of employers with skills gaps had funded off the
job training in the past three years
 Little Regional variation in demand for generic skills
Supply of Skills
 Demographic Changes – rise in Mid Wales population
 Formal qualifications - Mid Wales workforce highest
qualified
 Generic Skills – little regional variation
 Three-quarters say skills levels are increasing
 Two-thirds say they can develop the skills they need at
work…
……..But only half can develop skills for the future
 Individuals can lack motivation to learn new skills
Supply of Skills
I would not like to be involved in learning
40
35
% of residents
30
25
20
15
10
5
0
Mid
North
South East
South West
Source : Future Skills Wale s, 2003 Ge ne ric Skills Surv e y
All Wales
Conclusions & Policy Implications
Drivers of Skills Needs

Largest Recruiters of Graduates are public administration, education, health, finance, insurance and
other services, energy & water.

To fully utilise higher education skills in Wales & to prevent graduates leaving the country to look for
relevant work – Policy should focus on attracting employers within these sectors.

Forecasting above average employment growth in the services sectors – suggests future demand for
graduates likely to increase over the next five years.

Issue – growth in actual graduate jobs or employers taking on graduates for traditional school leavers
jobs.

Policy needs to focus on encouraging employers to fully utilise the skills of graduates.

School Leavers – Skills lacking! Policy should concentrate on ensuring that school leavers skills are
up to standards expected and required by employers.
Conclusions & Policy Implications
Which Skills are Critical

Communication & Customer Handling

39% of employers found Communication skills lacking in school and college leavers

Importance of communication & handling skills increasing as competitive forces lead
firms to use customer service as a way of gaining competitive advantage.

Policy needs to focus on improving communication skills in schools and to a lesser
extent graduates and to address the gaps in the current adult workforce.

IT SKILLS – DEMAND OUTPACING SUPPLY

Policy needs to focus on brining the whole labour force up to a minimum level of IT
know how.
Conclusions & Policy Implications
ATTITUDES TO SKILLS & TRAINING

Cost of Training – Policy needs to encourage and help those employers
improve their investment in skills through recognising the business benefits.

Cost of off the job training – Policy needs to address ways of making this more
accessible and affordable, particularly to micro and smaller businesses.
Conclusions & Policy Implications
REGIONAL VARIATIONS

Little variation in the need for generic skills – main exception Welsh language skills
North & Mid Wales.

Formal Qualifications – only the North does not have a competitive advantage, but has a
relatively high supply of formal qualifications.

North enthusiastic about learning.

Policy specifically needs to encourage firms in the North to fully utilise the local labour
force.

Mid Wales – significant barriers to people furthering their skills – time constraints,
availability of courses in the local area were notable constraints.

Policy needs to address the accessibility of training establishments and promote remote
learning.

South East – Higher average share of people with no formal qualifications.

Employees in this region most likely to feel employers did not give them the opportunity
to develop skills.

Policy in this area needs to be aimed at encouraging employers to recognise the
importance of developing employees skills and the benefits to business this can bring.
futureskillswales.com
sgiliaudyfodolcymru.com