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THEMATIC REVIEW OF THE TRANSITION FROM INITIAL EDUCATION TO WORKING LIFE UNITED KINGDOM BACKGROUND REPORT JULY 1998 DAVID RAFFE,ANDY BIGGART,JOAN FAIRGRIEVE,CATHY HOWIESON (CENTRE FOR EDUCATIONAL SOCIOLOGY,UNIVERSITY OF EDINBURGH), JOHN RODGER,STEPHEN BURNISTON (YORK CONSULTING LIMITED) "The Department for Education and Employment, the Scottish Office and the Welsh 0ffice have granted the OECD permission to include this document on the OECD Internet Home Page. The views expressed in the document are those of the authors and not necessarily those of the sponsoring Departments, the OECD or its Member governments. The copyright conditions governing access to information on the OECD Home Page are provided at http://www.oecd.org/copyr.htm" OCDE OECD TABLE OF CONTENTS Section 1: Contextual and Institutional Factors .............................................................................................1 1.1 The economic context.......................................................................................................................1 1.2 Demography...........................................................................................................................................2 1.3 Employment...........................................................................................................................................3 1.4 Unemployment ......................................................................................................................................4 1.5 Education and training systems .............................................................................................................5 Section 2: The Transition from Initial Education to Working Life: Concepts And Issues........................8 2.1 The concept of transition .......................................................................................................................8 2.2 Current debates ......................................................................................................................................8 2.3 The views of stakeholders ...................................................................................................................10 2.4 The attitudes and expectations of young people..................................................................................11 Section 3: Transition Processes and Outcomes: Patterns, Trends and Concerns....................................13 3.1 A statistical overview of participation, transitions and trends ............................................................13 Issues and concerns................................................................................................................................15 3.2 The last two years of compulsory education .......................................................................................28 3.3 Full-time post-compulsory education below higher education ...........................................................31 Issues and concerns................................................................................................................................34 3.4 The work-based route ..........................................................................................................................35 Issues and concerns................................................................................................................................37 3.5 Higher education..................................................................................................................................38 Issues and concerns................................................................................................................................40 3.6 Part-time employment .........................................................................................................................41 Issues and concerns................................................................................................................................42 3.7 Transitions into and within the labour market.....................................................................................42 Table 3.7.1 .................................................................................................................................................43 Issues and concerns................................................................................................................................48 3.8 The choice process...............................................................................................................................49 Issues and concerns................................................................................................................................51 3.9 Issues and concerns about the transition: an overview........................................................................51 Section 4: Policy Changes ........................................................................................................................53 4.1 Policy strategy .....................................................................................................................................53 4.2 The national policy formation process ................................................................................................55 4.3 Transition Brokers ...............................................................................................................................57 4.4. Developing the qualifications framework ..........................................................................................60 4.5 Reforming educational curricula .........................................................................................................63 4.6 Promoting diversity, responsiveness and quality in educational institutions......................................66 4.7 Reinvigorating the work-based route ..................................................................................................68 i 4.8 Helping unemployed young adults into work......................................................................................70 4.9 Improving information and guidance ..................................................................................................71 4.10 Helping the disadvantaged and disaffected: further measures ..........................................................73 Section 5: Conclusion...................................................................................................................................75 Annex 1: References ...................................................................................................................................77 Annex 2: Comments on Data Sources ........................................................................................................85 Annex 3: Select Glossary of Terms ............................................................................................................87 .......................................................................................................................................................................89 Annex 4: Schematic Representation of Principal Pathways from Secondary Education to Work or Further Study.................................................................................................................................................90 Annex 5: Organisations Consulted in the Preparation of the Report..........................................................92 ii SECTION 1: CONTEXTUAL AND INSTITUTIONAL FACTORS 1.1 The economic context During the last quarter of the 20th Century the UK has encountered significant changes in relative competitiveness. This reflects a variety of economic and social changes in the UK and overseas, and corresponding developments in the structure and performance in the educational and training systems. The transition patterns explored later and issues associated with them are inextricably linked to these trends.1 The 1990s have represented a period of relative stability for the UK economy, compared to the cyclical fluctuations which characterised the 1970s and 1980s. While the decade began with recession, since 1993 the UK economy has been exhibiting solid and consistent output growth. This has been accompanied by falling unemployment, increasing employment, expanding exports, increased fixed investment, and relatively low inflation. A careful policy of achieving sustainable growth has been successful in controlling the economic cycle. Following what might be described as a ‘mini-boom’, the UK economy is now showing signs of slowing down. GDP growth, which stood at 3.1% in 1997 is expected to average 2.2% in 1998 (NIESR 1997), continuing at around 2% in 1999; thus producing a 'softish' landing for the economy. While the rate of employment growth has been running at less than half that of GDP, it has provided a positive stimulus to the labour market, with approximately 1 million being added to the employment stock in the period 1994-97 (ONS 1998). It is also noticeable that full-time opportunities for males have been growing faster than female, reversing the previous trend. This combination of rising employment and falling unemployment reflects a tightening labour market. As yet, there is little evidence of the attendant effects of significant skill shortages, although wage inflation is now showing signs of creeping above the Treasury targets. Manufacturing