Growing People Opportunities in the South-East Midlands November 2017 V1.2
Introduction This document gives an overview of the labour market for the South-East Midlands area and the opportunities both now and in the future Included are: u Introduction u The labour market u The need for skills u Attainment pathways u The future
Introduction
Introduction South East Midlands Local Enterprise Partnership The South East Midlands is a recognised national growth area with a population of 2 million people covering Aylesbury Vale, Bedfordshire, Cherwell Valley, Luton, Milton Keynes and Northamptonshire By bringing together the private and public sectors, universities and education providers and not-for profit sectors, SEMLEP focuses on building a strong economy to achieve sustainable growth and prosperity for the benefit of our local communities
Introduction Currently Over 85,000 businesses
Gross Value Added (GVA) of ÂŁ50 billion
Over 1,000,000 in employment
Over 16,800 apprenticeships per year Gross value added (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy
The Labour Market
South East Midlands - Growth Sectors TRANSFORMATIONAL FOR GROWTH
High-Performance Technology
Advanced Manufacturing
Logistics & Supply Chain
Cultural & Creative
KEY SECTORS WITH GROWTH AND/OR HIGH REPLACEMENT NEED Health/Social Care
Retail/Wholesale
Education
Accommodation/Food
Business & Financial Services
Construction
South East Midlands – challenges equals opportunity u Skills gap and mismatch of skills needed by employers – capture evidence of attainment, experience and skills development u Be prepared - businesses with vacancies: § 33% state they have ‘low quality’ applicants § education leavers that are not work ready are quoted as school 12%, college 11% and university 8% u We have an ageing workforce – opportunities for young people u See through the preconceived ideas of others about the opportunities that the businesses have to offer, listen to people who know, preferably those working in the sector u Investigate and take the education and training pathway that will be right for you and your chosen career u Digital skills are used everywhere
South-East Midlands – people who are economically active and full or part-time employment u We have high employment rates within the South-East Midlands u We have more people in full-time employment than the national average South East Midlands
England
Economic activity 16-64 vs same age population
81.3%
78.2%
Full-time employment
77.2%
74.7%
Part-time employment
22.8%
25.1%
High number of people Central Bedfordshire, Milton Keynes, Northampton, Luton, Aylesbury Vale Central Bedfordshire, Milton Keynes, Northampton, Luton, Aylesbury Vale Central Bedfordshire, Milton Keynes, Northampton, Luton, Aylesbury Vale, Bedford
South-East Midlands – employment by business sectors u Largest employment sectors are Retail and Wholesale, Health and Social Care, Administration and Support Services and Advanced Manufacturing
South East Midlands People in Employment by Sector Employment and High GVA Growth
Employment and GVA Employment Replacement Need Growth
High Performance Technology
67,000
Retail and Wholesale
163,000
Administrative and Support Services
90,000
Advanced Manufacturing
87,000
Health and Social Care
96,000
Public Administration and Defence
31,000
Cultural and Creative
69,000
Education
79,000
Other Service Activities
23,000
Logistics
63,000
Business and Finance
68,000
Utilities
7,000
Construction
39,000
Mining & Quarrying
Gross value added (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy
250
South-East Midlands - Employment u The density figures represent the ratio of number of jobs per person resident in the area aged 16-64, i.e. where are the jobs compared to where people live u Milton Keynes has more jobs than residents aged 16-64 u Northampton nearly has a job per resident u The more rural areas have less jobs per person Jobs per resident population aged 16-64 SEMLEP England
0.82
0.84
Range within SEM
From Milton Keynes (1.09) Northampton (0.99) Cherwell (0.89) Daventry (0.87)
To Luton (0.71) South Northamptonshire (0.71) Central Bedfordshire (0.64) East Northamptonshire (0.62)
South-East Midlands – diversity u The employment rates of people from ethnic groups within SEM is higher than the national average and at higher skill levels u Opportunities exist in construction and food and accommodation Sector Participation
South Occupational East England Skill Level Midlands
Manufacturing
6.9%
6.3%
Construction
3.1%
3.3%
Food and Accommodation
19.8%
21.9%
Logistics
15.7%
13.6%
Business and Finance
19.3%
18.6%
Education, Health and Social Care
30.9%
30.9%
Other Services
4.2%
4.5%
South East Midlands
England
51.8%
50.5%
Skilled
28.6%
28.1%
Lower Skilled
19.7%
20.3%
Professional, Skilled Trade
South-East Midlands – equality u The employment rate for women within SEM focus sectors is higher than the national average u More opportunities in the professional and skilled trades for young women Sector Participation
South Occupational East England Skill Level Midlands
Manufacturing
6.3%
4.9%
Construction
2.2%
1.8%
Food and Accommodation
16.8%
19.3%
Logistics
6.4%
4.8%
Business and Finance
16.7%
16.5%
Education, Health and Social Care
42.9%
44.2%
Other Services
7.1%
6.7%
South East Midlands
England
42.2%
44.7%
Skilled
28.8%
27.9%
Lower Skilled
29.0%
27.4%
Professional, Skilled Trade
The Need for Skills
South East Midlands – Skills needed by employers u79% of the people working within, reside in the SEMLEP area uOnly 5% commute to London uUnderstanding local employers’ needs is directly relevant to labour market information for people living and working in the South-East Midlands uEmployers need skills with evidence uQualifications on their own are not enough
South East Midlands – Skills needed by employers SEMLEP analysis skills required by employers Key employability skills
Those specific to a job, technical and practical skills, digital/advanced IT and customer service
Core competencies
Communication, confidence, initiative, planning and organisational, problem solving, resilience, teamwork and basic IT (spreadsheets, word processing)
Basic skills
Literacy, numeracy and English
Main skill requirements for recruiting in growth sectors Job specific, technical and practical skills, digital/advanced IT, sales and marketing, core competencies, managerial
South-East Midlands – skills needed by employers u The skills that are in most demand do vary depending on the area u Job specific, technical and practical are in demand everywhere and can only be developed through apprenticeships, work experience, volunteering or internships Main skills needed for recruiting within local authority area Technical and practical, job All specific Aylesbury Vale, Central Bedfordshire, Communication Kettering, Luton Digital/Advanced IT Bedford, Northampton Customer service Cherwell, South Northamptonshire English for speakers of other Bedford languages Literacy Daventry
South East Midlands – Skills and Attainment u Most occupations within the South-East Midlands are either at a high skill level or a skilled trade u Only 21% are occupations with low skill levels Occupations by Skill Level - 2017
Low Skilled 21%
Skilled 24%
Professional, Skilled Trades 55%
South East Midlands - Employment by Occupation Type u The number of occupations requiring skills are increasing u Low skilled occupations are reducing 600,000 550,000 500,000 450,000
Occupations by Skill Level with Trends
400,000 350,000 300,000 250,000 200,000 150,000 2010
2011
2012
2013
2014
Professional, Skilled Trades
2015
2016
Skilled
2017 YTD
2018
2019
Low Skilled
2020
South-East Midlands – vacancies For businesses with vacancies: u 23% of businesses have had at least one that was difficult to fill u Employers state the key factors in filling these vacancies is § not having applicants with the required skills § a small number of applicants § applicants lacking the required attitude, motivation or personality Sectors reporting the most difficulty in filling vacancies Retail and Wholesale Construction Accommodation and Food Business and Financial Manufacturing High Performance Technology
South-East Midlands – vacancy shortages by occupation and sector u There is a high demand for young people to enter ‘technical’ occupations Manufacturing Engineering and planning/process/ production technicians Metals, tools and instruments manufacturing Electricians and electronic trades/technicians Manufacturing operatives
Transport & storage
Wholesale and retail trade Mechanical technicians and maintenance
Construction
Information and Accommodation communications and Food
Electricians and electronic trades/ technicians
IT engineers and technicians
Chefs
Manufacturing Manufacturing operatives operatives
Plumbers and pipe fitters
Metals, tools and instruments manufacturing
Catering and bar managers
Engineering and production technicians Accountancy and finance technicians
Accountancy and finance technicians
Carpenters, joiners and craft woodworkers
Manufacturing operatives
Public services associate professionals
IT engineers and technicians
Bricklayers and masons
Accountancy and finance technicians
Electricians and electronic trades/ technicians
Skilled drivers
Attainment Pathways
SEMLEP Skills Plan – multiple pathways u No ‘better’ or ‘worse’ pathway just the relevant route for a career Vocational /Technical
Higher Education
Employment & Career
+19 A-Level
+16 GCSE
14-16
Vocational
Vocational /Technical
Study Programme
SEMLEP – new places to gain skills and attainment u New facilities to gain skills and qualifications for growth sectors Bedford College Advanced Engineering Centre (2018) Milton Keynes Hospital Academic Centre University of Buckingham (2018)
Northampton College Daventry Campus (open) Food & Drink Innovation Centre, Moulton College (2018)
Central Bedfordshire College Engineering and Construction Skills Centre (open)
SEMLEP – new places to gain skills and attainment u New Higher Education facilities
University of Northampton Waterside Campus (2018)
University of Bedfordshire STEM Building (2018)
Cranfield University Digital Aviation Research and Technology Centre and Multi-User Environment for Autonomous Vehicle Innovation (2018/19)
SEMLEP Skills Plan – apprenticeships u Growing list of opportunities through apprenticeships in the South-East Midlands u New Higher and Degree Levels apprenticeships u Earn whilst you learn Apprenticeship Starts (under 19) 5000 4500 4000 3500 3000 2500 2000
2013/14
2014/15
2015/16
The Future
SEMLEP continued growth For the future Increase levels of private sector and foreign direct investment into the area
Double the GVA by 2050 Growing jobs by 10% by 2025 Increase apprenticeships to 170,000 by 2025
What labour market trends are predicted for the future? u The workforce will be older on average, with women playing a stronger role u As workforce sizes continue to reduce to a minimum with flexible staff to cover shortfalls, fewer employees will have long-term contracts u Those with low skills are at risk with the drive for flexibility and cost reduction u Traditional jobs which have occupied the middle skills band are declining due to changes driven by leaner management, technology and globalisation. There are roles emerging but these will have different entry routes and skill requirements and will carry more responsibility for tasks and processes
What labour market trends are predicted for the future? u Digital and technological development is likely to continue to increase the flexibility that employers demand from their employees u Employees will be expected to be responsible for skills development u Self-management as part of the core competencies will be essential u Resilience and the ability to embrace change is important, need to be open minded to new technology, ways of learning and change u Young people will be competing for jobs with those that stay in employment longer
South East Midlands - projected qualification levels Projected Net Jobs in the future by qualification level up to 2024 (thousands) Levels 7-8 Levels 4-6 Level 3
Jobs requiring higher and degree level qualifications will see greatest growth
Level 2 Level 1 No Qual -50
0
50
100
150
200
250
South-East Midlands – projected increase in occupations Occupation requirements in SEMLEP, 2014-2024 Caring personal service occupations Elementary administration and service occupations Corporate managers and directors Business and public service associate professionals Administrative occupations Business, media and public service professionals Sales occupations Science, research, engineering and technology professionals
Projected percentage increase in occupation types by 2024
Transport and mobile machine drivers and operatives Health professionals Other managers and proprietors Teaching and educational professionals Leisure, travel and related personal service occupations Skilled construction and building trades 0%
2%
4%
6%
8%
10%
12%
14%
Summary u There is an excess of opportunity within the South-East Midlands u We need more young people with higher skill levels u We need young people wanting to work within the growth sectors u Young people need the key employability skills and core competencies and have evidence of attainment u Young people need to secure the relevant qualifications through having taken the appropriate pathways to start the careers they desire u There is opportunity for all
Contacts
SEMLEP – Building a Talent Pipeline For more information contact your local Enterprise Coordinator Luton and Milton Keynes Deb Foster T 01234 436100 M 07712 673318 Northamptonshire Vikki Morton T 01234 436100 M 07568 428162 Bedford and Central Bedfordshire Peter Rayner T 01234 436100 M 07568 428159