Skills and employability - the

new challenge23 April 2009

Anne-Marie Mountifield

Current EconomicConditions

Update on the downturn

A further weakening of economic conditions in January.

Marginally higher volume of export orders

Lower employment levels and an increase in unemployment.

Lower input and consumer prices.

Profit margins and cashflow positions have worsened.

Investment remains mostly lower.

Source: SEEDA 2009, Regional Intelligence Snapshot for the South East – January

35

40

45

50

55

60

65Business Activity (Output)

Q1 Q2 Q3 Q4 Rising F

alling

South East

UK

UK recession starts (NIESR)

50=

no

chan

ge o

n pr

evio

us m

onth

35

40

45

50

55

60

65

Q1 Q2 Q3 Q4

South East

UK

Source: RBS PMI 2008

50=

no

chan

ge o

n pr

evio

us m

onth

Rising F

alling

New Orders (incoming new business)

Unemployment in the SE

Economic climate 142,000 JSA claimants in SE 20% increase in the past month, 104% over the year 25,000 JSA claimants have been unemployed for 6 months

plus Increase of 25% in claimants aged 16-24 in a month Over 20,000 have managerial and professional skills 26,000 plus notified redundancies from Oct - Feb 37,000 vacancies: down over 30% in the year And 855,000 in the SE do not have a Level 2 qualification

Economic climate

…but consider the new world order and the G20 pledges

A fiscal package for jobs and growth Financial regulation and financial repair An inclusive, green and sustainable recovery package

Impact ???

Case studies‘The Skills for Business initiative’

and‘The Eco Advantage Project’

Tim SmithTherese Lawlor and Irene Heller

Skills for Business

Recommendation (2):Train to Gain should be offered more flexibly to

Reading businesses to address skills gaps in key

areas like customer service, communication, sales/

marketing and IT, and subsidies used as an incentive

to get more employers engaged

Our response: Skills for Business campaign; skills

co-ordination

What is Skills for Business?Response to skills gaps identified:

 Skill area%

employers

Customer service skills 14

Communication skills 14

Sales/marketing skills 12

IT – user skills 11

IT – professional/ technical skills 10

Skills for Business targets50 companies signing Skills Pledge, and:

Academic yr 08/09 starts

150 training places (Skills for Life, Level 2, Level 3

and Apprenticeships)

Academic year 09/10 starts

60 training places (Skills for Life, Level 2 and

Level 3)

What will we achieve?• Better strategic alignment of training to

business need – now and into the future

• Influence and shape provision

• Challenge outcomes to improve quality

• Lobby government for additional investment

• Improved skills, better business, impacting on

the ‘bottom line’

www.livingreading.co.uk

Skills for climate change

For Climate Change and Sustainable DevelopmentHelping individuals, organisations and communities

Need for new skills and innovative new routes out of the recession and to tackle the challenges of climate change.

Need for a bottom up approach benefiting individuals, organisations and communities

Builds on innovative good practice developed under the Equal funded projects:

i-WORK Prime Advantage CEMENT

Transnational partnership Finland, Germany, Estonia

Development, piloting and mainstreaming of innovative Eco-advantage short training programmes aimed at lower skilled frontline staff and unemployed.

Generic introduction training to ECO-Advantage issues

Sector specific skills Construction Sector Hospitality Sector Retail Sector

Gives individuals an “ECO” advantage on the labour market

Use of the Wheel of Life tool Identifying individual needs and distance travelled in

programme Individuals given social incubation support

Holistic support breaking barriers to learning, employment and active citizenship

Access to the Work Ability tools Supporting workers adaption in the workplace

Engagement of volunteers Access to new skills and the labour market

Access to a “Job Ready” database Identification for employers of a work ready pool of staff

with ECO-Advantage skills Training programmes will foster a more flexible,

motivated workforce Supporting business competitiveness in recession

Matching local employer needs to local people Maximising local recruitment to new employment

opportunities Competitive advantage through “Green

Awareness” Cost savings, Customer relationships, Green procurement

Building Eco awareness in communities Supporting Sustainable Community Strategies

Developing local pools of volunteers Supporting local community initiatives

Supporting the development of local environmental businesses

Start-ups, social and voluntary enterprises Keeping local people engaged

Developing skills and employability in times of recession

Diamond Areas

◦ Medway◦ Reading◦ Basingstoke◦ High Wycombe◦ Milton Keynes

Mainstreaming potential across the SEEDA region.

Lead Organisation Medway Council

◦ Irene Heller - Project Manager irene.heller@medway.gov.uk

Partners Reading Borough Council

◦ Anne Pearce Anne.Pearce@reading.gov.uk

Basingstoke Council◦ Therese Lawlor

therese.lawlor@basingstoke.gov.uk Cementaprise

◦ Robert Morrall robert.morrall@cementaprise.org

Summary

A prospectus for prosperity – Skills Priorities

Support for businesses – Skills for business Focus on key and emerging sectors – The Eco

Advantage project Align priorities and funding – Bidding as a Diamond

partnership Partnership working and structures – spreading

expertise and good practise Labour market intelligence – the role of new research