WELCOME
‘Education and Career Decisions – Routes to Employment and Social Engagement’
1st June 2011 Greenmount College, Antrim
Hotel Housekeeping
Health & Safety Procedure Welcome and Introduction
ETI Preparing for Success Implementation Report
DE & DEL Economy and Skills Update
Victor Dukelow Analytical Services – DEL
Education and Careers Decisions
The Economic and Skills Context
Victor Dukelow Greenmount College Department for 1 June 2011 Employment and Learning Background
Purpose of Presentation
How has local Economy Performed
The Impact of the Downturn
Future Prospects
Current and Future Skill needs
Longer Term Trends
Relatively Strong Economic Performance prior to latest economic downturn
NI and UK Annual Output (GVA) Growth (1990 - 2009)
Annual Average NI Growth 1990 – 2007 = 2.9%
Source: ONS and HMT Longer Term Trends
One and a half Decades of Strong Growth
Around 150,000 extra people in employment during period 1992 – 1997 (up 25%)
Employment growth dominated by the Private Sector
Particularly strong growth in Retail, Business Services, Hotels/Restaurants and Construction
Element of growth generated by catch-up in local economy ... But also fuelled more recently by unsustainable domestic demand. Longer Term Trends
But prosperity levels here remain lower than the EU …..and persistently lower than the UK
GDP per Head – Latest Position GDP per Head - Trends 140 105 RoI 130 100 95 UK=100 120 UK
UK 90
110 EU 27 85 100 EU NI 80
GDP headper (2009) 90
27 head (UK=100) GVA per 75 NI Northern Ireland 80 70
70 65
60 60
1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Source: Eurostat Source: ONS Longer Term Trends
And Challenges Remain
Low Employment rate
High levels of Sickness and Disability
Weak Private Sector
Low productivity and wages
The Downturn
A Global Downturn
Global GDP Growth 10 Key Causes: Developing Economies 8 Rising Commodity Prices 6 Global Growth Asset Price Bubble Bursting 4 % Credit Crunch / Banking 2 Crisis Developed Economies 0 1995 1997 1999 2001 2003 2005 2007 2009
-2
-4 Source: IMF, April 2011 The Downturn
…But impact being felt locally
Northern Ireland Manufacturing and Services Output down over 13% since their respective peaks.
Unemployment (Claimants) up around 150% since beginning of 2008.
A three fold increase in Long term Unemployment and Youth Long term Unemployment up by an even greater factor (albeit from low base).
Those that worked in Retail, Construction and Business Services Occupations most affected but now starting to impact more overtly on public sector and elementary occupations.
Future Prospects
Growth Returning but Risks Remain
Global economic Growth of 4.4% expected for 2011 (IMF)
UK growth for 2011 forecasted at +1.7% (OBR) – lower than long term average and unlikely to generate significant employment growth. RoI growth +0.9% (Central Bank of Ireland)
Local economic forecasters suggesting that economic growth here will be more sluggish than UK.
NI economy particularly exposed to public spending constraint, a squeeze on disposable incomes and exposure to difficulties in Irish economy Future Prospects
Positioning Ourselves for Growth
Draft Priorities for new Economic Strategy:
Future Growth export driven With improved productivity supported by: Innovation and creativity Employability and skills Business growth Economic Infrastructure Competing in Global Economy Improving and promoting employment
Also current HMT Consultation on Corporation Tax issues Skills Needs
… Despite improvements, the Skills Profile of the workforce remains relatively weak.
Highest Qualification Attained (25-64 year olds)
Czech Republic
EU19 average OECD average
United Kingdom
Northern Ireland
Portugal
0% 20% 40% 60% 80% 100%
Low /No Quals Intermediate Quals Tertiary Quals
Source: OECD, 2010 and UKCES Skills Needs
… and higher skills are required to underpin growth.
Persons in Employment: Highest Qualifications (NQF) NI 2010
Level 1 and below Level 2 Level 3 Level 4 and above
NI 2020 - If Productivity Gap with UK to be addressed
Level 2 Level 3 Level 4 and above
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Oxford Economics Skills Needs
Increasing the skills base locally will be vitally important
New Skills Strategy highlights need for:
Increasing skills levels - Over half the local jobs in 2020 will demand higher professional and technical/tertiary level qualifications …. up from about a third currently.
STEM Skills – particularly ICT
Strong literacy and numeracy a foundation for growth.
Improved Management and Leadership Skills Skills Needs
Particular skills are and will be in demand
Outcomes from recent study into Priority Skill Areas by NI Employment and Skills advisor point specifically to:
• Business and Financial Services (including accountancy, corporate recovery, financial analysts) • ICT (particularly software development skills, database development, systems architecture and internet specialist skills) • Agri Food Sector (including lab technicians, food scientists, biotech, machine operatives) • Advanced Manufacturing and Engineering (CAD skills; CNC machine operatives; mechanical and electrical engineering skills including at technician level; strategic marketing) Skills Needs
But remember: there will be Job Opportunities across the economy - not just in growth areas
Occupational Demand over decade to 2020
120 Expansion Demand Replacement Demand 100
80
60
('000) 40
20
0
-20 Sales
Managerial Operatives Elementary Professional Skilled Trades Associate Prof Administrative Personal Serv
Source: Oxford Economics Skills Needs
Important to ensure Labour Market Information helps shape career choices Final Thoughts
Challenges – but opportunities too
Local economic conditions remain challenging
But real opportunities for growth if we can succeed in export markets
Having the right skills in the right areas critical to drive future success
Some very clear messages about current and future skill needs.
Important that Labour Market Information harnessed and used to help people shape career decisions
But other factors important too including employer engagement/ Career attractiveness agenda Tea/Coffee Break 11.00 – 11.30
Business Leader – What Employers Want
Gordon Parkes Business Alliance EDUCATION AND CAREER DECISIONS
WHAT EMPLOYERS WANT
Gordon Parkes HR Director, Northern Ireland Electricity Member of CBI Employment Affairs Committee
1 June 2011 Connecting for the benefit of pupils/students
Level of engagement England (schools) None or limited 30% Intermediate (some) 36% Advanced 28% Exemplary 6%
Some questions:-
In which category does your school/college/university/ training organisation sit?
Where do employers sit? - Micro ? - SME ? - Large ?
Are we connected?
Do we currently provide informed life choices and a career path which suits the individual?
26
Connecting for the benefit of pupils/students
• So much has been written about this subject • So many good initiatives taking place • So much effort • Why have we not solved the basic issue -
“There is still a mismatch between the demand for skills and the supply of skills”
27 In many sectors the problem is -
Issues Problems
The economic downturn - Less recruitment – fewer jobs + - Legislation - People can work longer and do not have to retire +
Employer practices - Experienced employees need to change should be used to mentor the next generation (succession management)
28 Sectors offering potential
Integrating labour market information with the career pathway for pupils/students
Agri-food Manufacturing Health technologies ICT sector and creative industries Specialised business services Retail Tourism Energy
29 The NIE experience
• We have just gone through 10 years of cost cutting and efficiency improvement
• Our employer brand weakened
• We maintained our own apprentice training facility and apprentice recruitment
• Did not do enough to engage with education providers
• Graduate intake difficulties
30 The Future for the Energy Sector
• Research carried out by the National Skills Academy for Power
- 28,200 leavers within sector - if current recruitment is maintained – 38% shortage of people with the right skills
• In NI - - Market opening – new employers in this sector
• NIE - we will need c.700 new employees over the next 5 years
• How does this information get to students to inform their career decisions?
31 Apprentice and graduate intake during a difficult period
Apprentices Graduates Year Number Number Shortfall Year Number Required Recruited 2006 10 2006 3 2 1 2007 10 2007 3 2 1 2008 10 2008 4 2 2 2009 0 2009 4 3 1 2010 20 2010 6 3 3 This Year 40 This year 8 5 11
Minimum Entry Requirements Minimum Entry Requirements 4 GCSE @Grade C including BSc 2.2(hons) in Electrical Engineering
Maths & English or related discipline
32 What do employers want?
“An integrated easily understood approach”
What employers want • A single point of contact
33 The current position
Lots of good initiatives
but
- Fragmented - Confusing and lacking clarity - Disconnected and confusing
The Result
Employers Skills Gaps
Students Not maximising opportunities or potential
34 How do we connect better?
Employers need to
Education needs to
Government needs to
Parents need to
35 Education Providers – consider your approach to the answers to these questions
Who is your customer?
- the student? - the employer? - both? - none – don’t believe in pupils/students as customers?
Do you really know what your customer wants?
- student - employer
Are your students your customers or your products?
36 Student options beyond education
5 career paths 3 outcomes
Apprenticeship Employment
Employment
Self-employment Pupils/ Schools F.E. Students
H.E. Unemployment
Unemployment
• The focus has to be based on the pupil/student
37 Potential employees need employability skills and not just a qualification
- CBI’s recent research findings (Education and Skills Survey 2010) - 10% of employers have concerns about basic skills in graduates What employers - 24% of employers dissatisfied with graduates’ problem want solving skills - 26% of employers dissatisfied with graduates’ self- management skills - 22% of employers have concerns about the limited career awareness, while 40% feel graduates should have more relevant work experience - 65-75% of employers believe gaining practical experience is the most valuable step young people can take to improve their prospects, while 10-15% cite better preparation of job applications
38 Potential employees need employability skills and not just a qualification
Universities want to produce students Employers want the following with the following attributes: attributes in their employees:
Critical thinking Critical thinking Adaptability Adaptability Intellectual flexibility ? What Enquiring ? employers Capacity to challenge ? want Ability to work in teams Team working Enterprise & entrepreneurship ? Business Awareness Business & Customer Awareness Leadership Leadership An international dimension ? ? Problem solving ? Communication & Literacy & Numeracy ? IT skills ? Positive attitude
39 Employers want the following employability skills and not just a qualification
Critical thinking Adaptability Intellectual flexibility Enquiring What Capacity to challenge employers Team working want Enterprise & entrepreneurship Business & Customer Awareness Leadership An international dimension Problem solving Communication & literacy & numeracy IT skills
Positive attitude
40 The difficulty in connecting
• The difficulty in setting up partnerships
- UK Survey by KMPG - 60% of schools found it difficult to set up partnerships
• Employers want to be able to be involved with as little distraction as possible
41 The benefits of connecting
Benefits for students/educational providers
- Employer involvement adds relevance to academic work
- Students become aware of options for employment/self- employment earlier
- Students have additional interest in the learning process
- Increased motivation for students who can see what they are working towards
42 The benefits of education - Employer Partnerships
Benefits for Employers
- Feel they are putting something back into the community
- Employees enjoy taking time out of their normal role
- It is an inexpensive development and learning tool
- Improves the employer brand/marketing
43 The Challenges
• Make up of NI Economy
- public sector vs private sector
- make up of private sector – large numbers of micro businesses & SMEs
44 The Challenges
• Changing the Mindset
- Employers - invest time & effort
- Schools - focus on the right outcomes
- F.E. & H.E. - more flexible approaches to learning in partnership with employers
- pupils/students - employability skills & attitude
- Government - a joined up approach between departments - single point of contact for employers
45 What is needed
1. A joined up approach - connected
2. Simplified processes which provide clarity
3. A single information point to which employers and education providers can turn for advice on setting up partnerships
4. A brokerage system - a single point of contact
5. Guidance for employers - Health & Safety - Insurance
46 How can we connect better?
Employers need to:
• Make time to engage with education providers
• Appoint an academic engagement officer (portfolio/development role for an existing employee)
• Provide quality work experience for pupils
• Provide quality work placements for students
• Provide teachers, lecturers and careers advisors with knowledge/awareness opportunities (placements etc)
• Promote the attractiveness of their sector by attending open days, careers fairs etc and facilitating visits to their premises
47 Apprentice of the Year 2010 My Story
Stacey Sharples
Entrepreneurship – I Did It My Way
Andrew Ferris Smalltown America Records smalltownamerica Jetplane Landing Video MORE THAN CONQUERORS VIDEO LAFARO VIDEO FIGHTING WITH WIRE VIDEO ASIWYFA VIDEO smalltownamerica 101
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smalltownamerica Summary
ETI Lunch 2.00pm Tour of the Campus
Thank you for attending Safe Journey Home