Regional Skills Investment Plan for the South of Scotland

ENTERPRISE & SKILLS SOUTH OF SCOTLAND Regional Skills Investment Plan ECONOMIC PARTNERSHIP for the south of Scotland We are pleased to publish this In the interim the south of Developing the Regional Skills • direct engagement with local Structure of the Regional Regional Skills Investment Plan Scotland Economic Partnership Investment Plan businesses and business Skills Investment Plan (RSIP) for the south of Scotland. has recognised the strategic The development of the groups The remainder of this report is This RSIP has been based on a need to establish an RSIP for the underpinning evidence base has formatted as follows: • workshops and focus groups detailed assessment of the south of Scotland as one of its used a wide range of approaches with young people in the 1 economic and skills challenges key early commitments. The RSIP and sources to inform the RSIP • labour market demand in region including school, facing the south of Scotland and sets out our collective and including: the south of Scotland – Introduction on deep engagement with agreed understanding of college and university analysing the current and businesses, people and partners • the development of a detailed students. future demand for labour in • the demand for skills and evidence base report – based the region with a sub-regional in the region. This research provided the basis people in the short and on existing data analysis The RSIP is evidence based – medium term for a set of conclusions and and should be read alongside • one to one interviews and strategic issues which were • labour market supply in the the accompanying south of • current people and skills workshops with stakeholders discussed, prioritised and agreed south of Scotland – analysing Scotland RSIP evidence base supply, and the gaps between across the south of Scotland by the SOSEP. the current and future supply report, which presents a wide supply and current and future of labour in the region range of primary and secondary demand • stakeholder insights from evidence, developed from May to • the people and skills priorities partners, young people and December 2018, and which sets that enterprise and skills employers – analysing key out the main conclusions and agencies and the skills system skills issues from stakeholder strategic insights that have Figure 1.1: Research approach should seek to address. interviews and workshops informed this RSIP and its associated action plan. The RSIP sets out a clear set of Developing the RSIP for south of Scotland • mission, strategic outcomes, commitments and actions that areas for action and The RSIP has been partners will deliver in support of principles – setting out the commissioned by the South of the Skills Investment Plan and also ambitions of the RSIP Scotland Economic Partnership The RSIP development process has been facilitated by SDS and provides: supported and shaped by the SOSEP Education and Skills group (SOSEP) and its Education and • action plan for 2019-22 Skills theme group, prior to the • an agreed baseline to monitor Socio economic – detailing specific actions establishment of the new South future progress baseline and commitments that the of Scotland Enterprise (SOSE) Conclusions RSIP will deliver on in the next • proposals for clear Key partner agency on 1 April 2020. SOSE three years governance, delivery and interviews Action plan will be charged with improving Emerging RSIP implementation productivity, and delivering reporting arrangements. Stakeholder ﬁndings • focus on equalities – outlining engagement and monitoring inclusive economic growth how the plan will seek to Strategic address inequalities in the across the region, and the RSIP Communities of issues will support these objectives by interest south of Scotland addressing key skills challenges Employer • governance – setting out how in the south of Scotland. interviews and the RSIP will be effectively research governed. A detailed description of the organisations and groups that have engaged with the research is presented in Appendix 1. Implications for the Regional • the region is diverse and the Skills Investment Plan appetite for risk amongst small and micro businesses is • the south of Scotland is low. Strong two-way different compared to other engagement is required to 2 parts of Scotland and find creative solutions to Rural context internally within the region address skills challenges • there are a wide range of facing businesses in the of the south of place-specific factors which region Scotland present challenges and • there are several non-skills therefore require a bespoke issues which will indirectly response impact on the region’s labour • the region is particularly market skills challenges vulnerable to changes in the • there are some clear and external environment, which consistent policy messages, have an impact on access to and the RSIP will ensure it is skilled labour, and lacks the consistent with, and necessary levels of resilience supportive of, wider policy to respond effectively to these priorities. challenges • agriculture and land-based industries are crucially important to the economy in the south of Scotland, but are facing a potential reduction in farming subsidies and greater difficulty accessing skills because of Brexit and demographic factors In developing this RSIP, it is crucially important to reflect the specific character and nature of the region, and consequently the research has been undertaken through a ‘rural lens’. This perspective is based firmly on the data and evidence presented later in this report. 1.2% of the region's employers report skills shortages and hard to fill vacancies - higher than the national average A rural reflection • agriculture and land-based • the demographic challenge. In • economic underperformance Other key factors include: The south of Scotland is different industries are crucially Scotland, the rural population of many rural areas in terms of • the need for appropriate not only from urban Scotland but important sectors to the wider is increasing slower and Gross Value Added (GVA) employment opportunities for also from other parts of rural economy, but are facing ageing faster than urban output, wages, scale of spouse/partner Scotland such as the Highlands potential reductions in farming Scotland. This presents a businesses, productivity 2 and Islands. In addition to this subsidies and greater range of skills-related levels, levels of research and • the availability of a range of complexity, it is different within the difficulties in accessing skilled challenges and potentially development/innovation and housing and tenure options Rural context region. For example, there are big labour because of Brexit and opportunities for the future qualification levels compared differences between the northern demographic factors to the Scotland average. • good quality education of the south of • employment patterns are part of the Scottish Borders with facilities for children (including • there is a reliance on major different in rural areas. For These points set a high-level Scotland its links to Edinburgh, and the childcare) employers in certain example, there are higher context within which the RSIP has small towns and villages along the communities, notably public incidences of self- been developed and will be • availability of social and continued Nith Valley or coastal villages in sector and manufacturing employment, part-time delivered. We would also note that leisure amenities Wigtownshire and Berwickshire. jobs, and this can create employment, portfolio the above does not describe • access to mobile and “…..neither a suburb of the Central increased vulnerability for working, and home-working some of the wider social issues broadband of sufficient Belt nor a mirror of the Highlands communities if these compared to urban Scotland such as fuel poverty, remoteness, speed and coverage and Islands - but a place with employers down-size or enter or access to services. • there are higher incidences of distinctive shape, culture, dynamic administration young people moving away Interdependencies Although these are not direct and set of values”. Delegate at a skills issues, they must be • seasonal and part-time from home to work or study There is also a range of wider stakeholder event1 addressed in order to maximise working can act as a due to the (perceived) limited factors, which although not the positive impact of the RSIP in There are some significant disincentive to training local opportunities strictly skills issues, will meeting the themes and actions aspects of the rural nature2 of the nevertheless impact on the • the appetite for risk is low • community learning and outlined later in this document. If south of Scotland that are worth region’s ability to access and amongst small and micro development (CLD) activities they are not addressed then the highlighting: retain individuals. employers, and businesses are crucially important in RSIP will be less likely to be fully • the skills markets tend to be lack the necessary levels of enabling vulnerable or There is a widely recognised4 successful. 'shallow and dispersed', which resilience to respond disadvantaged groups to number of key factors which It will therefore be important that means that there are generally effectively to changes and engage in learning in rural need to be in place to attract and the issues are addressed within small numbers of individuals skills challenges in the areas retain skilled workers in the the wider SOSEP and emerging in

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