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LIFELONG LEARNING – THE BRITISH
APPROACH
...improving competitiveness
through workforce skills.
Michael Stark
Director, Skills Strategy
UK Learning and Skills Council
Bratislava, 9 December 2003
The LSC vision (2001)
By 2010, young people and adults in England
will have knowledge and productive skills
matching the best in the world.
Skills Strategy vision (2003)
To ensure that employers have the right skills
for business success, and individuals for
employment and personal fulfilment
UK competitiveness
• Productivity gap with US and others.
• Workforce skills a big element (? 40%)
• Main problems: low employer demand
for skills, and inflexible supply.
• More state funding is not the solution!
We need a co-financing approach.
Comparative economic performance
GDP per capita,
2001, US=100
100%
United States
Ireland
(92%, +6.6%)
Switzerland
Canada
Japan
75%
Germany
Hong Kong
France
Sweden
Australia
Netherlands
Finland
UK
Italy
Taiwan
Singapore
New Zealand
Spain
Korea
50%
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
Slovenia
1.5%
2.0%
GDP growth relative to the US, 1995-2001
UK has achieved fast prosperity growth, but a 30% gap still remains
Source: World Development Indicators 2002
Workforce skills
Share of
Workforce with
Qualification by
Level
100%
80%
60%
High
Intermediate
Low
40%
20%
0%
UK
US
France
Germany
• UK behind US in high level skills - and behind France and
Germany in intermediate skills
Source: Mahoney, de Boer (2002)
Adult achievement
Targets:
By 2007: 1.5m more adults to
improve literacy and numeracy
By 2007: 1m more adults with
Level 2 (“good 16 year old”)
skills
By 2010: 3m more adults with
Level 2 skills – and Level 3?
Historic causes of UK skills gap
We focused too much on certain skills:
• high level, at expense of basic /technician.
• young people, at expense of adults.
• academic, rather than vocational.
• schools/colleges, rather than workplace.
• supplier-led, rather than job-led, skills.
Most adults stop learning entirely!
Adult participation in “learning” in previous 3 years
8
m
P
o
p
u
l
a
t
i
o
n
7m
6m
5m
4m
51%
3m
49%
44%
2m
72%
1m
80%
30%
0
18-19
20-24
25-34
35-44
45-54
55-64
Age
Source: ONS and NIACE
Population Estimates, 2002
Participation Rates, 2002
Why don’t adults in UK train / re-train?
Because until now:
• We haven’t offered enough carrots to individuals.
• Nor enough carrots or sticks to employers.
• Our training providers are inflexible.
• Our qualifications are not world-class
• Our subsidies are too generous! but untargeted.
Employers vital to change, because....
• most adults are employed, so have little time;
• alone, 50% fail – but 80% of employer-backed
succeed;
• employers spend £££ on private training – but it
doesn’t join up with the schools / colleges.
Employers are the magic ingredient !
Findings from our sectoral pilots:
• Adult employees whose learning is directly backed by
the employer achieve up to 70% faster, and have up
to three times greater success rates.
• Particularly true of low-qualified adults going for a first
qualification (eg basic skills or Level 2).
What should employers and others pay
for adult training?
• Employers to pay for the job-specific skills for their own
employees....
• ..but the state to deliver basics – also second chances...
• ...and individuals must also contribute. In UK, adults pay
only 5% of their own learning costs.
• Skills Strategy means more targeting and co-financing.
LSC experiences with employer co-financing
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Employer training pilots – generous in cash, but
employer must commit to employee success
•
Sectoral pilots: less cash, but make the training
outcome highly attractive to employers
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Specific programmes for rail, textiles, road
haulage and other sectors
•
New qualifications (IT) - employer pays.
Sectoral training (1)
LSC initiatives begun 2001 :
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Automotive
Construction
Rail
Information Technology.
Sectoral training (2)
Further work 02-03:
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Agency/temporary staff
Care
Childcare
Cleaning
Health, first aid
Hospitality, catering, tourism
Retail, reception, call centres
Management/leadership in small firms
Manufacturing, textiles
Voluntary sector.
Sectoral training (3)
Further work 03-04:
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Aviation, aerospace
Health, social services
Financial/professional services
Film, broadcasting, media
Land-based occupations
Plumbing
Printing, publishing
Road haulage, coach drivers
Sales, customer service
Schools and colleges support staff.
Employer training pilots
• Publicly funded training and advice
• Highly targeted at low-paid, low-skilled,
mainly in small enterprises
• Entry-level and technician skills
• Payable only for completed qualifications.
Tax credit to employers?
Small employers (all sectors)
Low-skilled, low-paid employees
Payable only on qualification
Cash incentive to the learner too?
Save to learn (to earn)
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A savings account?
Tax incentives for the employee
Contribution from the employer ?
Two signatures to unlock the funds
Managed by financial services industry.
Four big issues for Slovakia
• Achieving co-financing
• Subsidies without deadweight
• Motivating small employers
• Flexible but good qualifications.