Skills Strategy 2018 2023 - Association of Colleges
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Skills Strategy 2018 - 2023
2 Contents 3 Foreword 4 Skills Strategy Summary 12 Our Vision 13 Our Ambition 15 Our Changing Policy Landscape 18 Examples of Practice 20 Our Economy and Labour Market 24 Examples of Practice 26 Skills Challenges as Opportunities 28 Our Strategy 28 A Shared Process 28 Our Ambition and Vision 31 Focusing Our Outcomes 32 Examples of Practice 34 Selecting Meaningful and Impactful Actions 38 Reforming Our Skills System 41 Our Strategy: An Overview 42 Implementing Our Strategy
Skills Strategy Plan 2018 - 2020 3
Foreword
Making sure that people have the skills to get a job and progress in work and
employers have people with the right skills they need for growth is a key priority
for the Liverpool City Region Combined Authority. Improving skills levels will help
to improve the productivity and economic output of our employers, as well as
ensuring that they can benefit from this growth.
This Skills Strategy sets out an ambitious programme The priorities identified here set the direction for
of work to help people into work, to ensure they mainstream services, and will require input from
realise their potential and to ensure that businesses many partners to deliver: as such the Households
can access the skills they need now and in the future. into Work Programme will provide vital intelligence
This will enable us to improve productivity and secure and learning in how to deliver public service reform
fair and inclusive growth. As such, it will form the basis to benefit residents and businesses.
for the people pillar of the Local Industrial Strategy.
Working together across the Combined Authority,
The devolution of the Adult Education Budget Councils, the LEP, employers, colleges, training
from 2019/2020 will for the first time enable us to providers, universities, trade unions and public
commission skills outcomes to meet the needs of agencies, we have made great strides in recent years:
individuals and employers. This provision will more but there is more to be done to drive collaborative
closely meet those needs and be in line with the working across providers and employers for the
vision and direction set out in this Strategy. benefit of us all. A sustained collaborative effort is
required to see our ambitions realised.
Steve Rotheram Cllr Ian Maher
Liverpool City Region Metro Mayor Liverpool City Region Portfolio Lead,
Skills and Apprenticeships
4
Skills Strategy Summary
Our Vision
The Liverpool City Region Combined Authority has delivered within a context of uncertainty, created
published a Skills Strategy 2018 – 2023 that sets a by Britain’s exit from the European Union. But they
vision for an improved skills system, able to respond will be driven to also achieve greater labour market
to changing global and local conditions. The Strategy equality and work to eradicate the pockets of
builds on eight years of successful partnership concentrated poverty seen in our communities.
working that has contributed to rising skills levels
among young people and adults and the success Liverpool City Region has a strong foundation to
of high value international sectors generating achieve these goals by putting skills at the centre
wealth in the City Region. of our economic ambitions. This means enhancing
partnership working to create a skills system that is
Part of this success has been taking control of informed by the aspirations of business and is able
a range of powers and budgets from central to supply high quality employees for the jobs being
government to more effectively tailor action that created. It means focusing our efforts on high growth
meets the needs of City Region people and sectors, creating pathways for young people through
employers. This work continues, through the Skills apprenticeships and graduate entry. It means building
Strategy, to address our long-term challenges of on our strengths as an enterprising, flexible and
improving educational performance and expanding resilient City Region to ensure that all our communities
the number and range of high skill jobs located in are included in the opportunities being created.
the City Region. These important objectives will be
Our vision is that in five years’ time Liverpool City Region will have:
An outstanding and effective skills system that meets the needs of
employers, individuals of all ages and communities and drives high
aspirations and attainment, to create a truly global and competitive
City Region at the heart of the Northern Powerhouse
Skills Strategy Plan 2018 - 2020 5
Measuring our Success
The purpose of the Skills Strategy is to create a • Outcome 1 – a higher percentage of our young
framework to co-ordinate the actions of education people have good attainment levels in English,
and training providers, businesses and members of Maths and Digital skills, and higher levels of
the workforce to improve skills and make the most of work readiness.
our collective talents, energy and resources. To make
sure that our partnership is working effectively we • Outcome 2 – a higher percentage of the working
have set five outcomes that reflect the priority issues age population is employed, and good quality
for the City Region. These provide a structure to jobs are a higher percentage of all jobs.
monitor performance across a wide range of • Outcome 3 – across the key growth sectors,
activities and specific targets and will guide City there is higher productivity and a lower incidence
Region investment and decision making. of skill shortages.
• Outcome 4 – across all sectors there are more
effective workforces and fewer local recruitment
difficulties.
• Outcome 5 – employers are investing significantly
more in the quality and quantity of the skills of
The purpose of their workforce.
the Skills Strategy is to create
a framework to co-ordinate the actions
of education and training providers,
businesses and members of the
workforce to improve skills and make
the most of our collective talents,
energy and resources.
6 Sectoral Analysis Liverpool City Region has a wealth of intelligence, expertise, capacity, capability and opportunity in its core business sectors that offer the potential for regional, national and international competitive advantage for indigenous and investing businesses. These flow from the sectoral strengths identified by the Northern Powerhouse in their Independent Economic Review. Figure 1 Summary of growth sectors Source: BRES Regional Accounts Growth Jobs GVA Number of Business Size Sector Businesses (number of employees) No. Proportion Amt. Proportion 0-9 10-49 50-249 250+ (£bn) Advanced 47,200 6.6% 4.3 13.9% 2,265 74.4% 19.4% 4.2%
Skills Strategy Plan 2018 - 2020 7
Changing Economic Performance
Recent performance of the City Region economy has Forecasts for the City Region suggest that the number
been positive, although with significant variation of jobs will grow by some 22,200 up to the year 2025.
across local authority areas – figure 2. In 2015, This could increase by up to 75,000 jobs by 2025,
the City Region generated around £29.5 billion if a series of transformational developments across
of economic output (GVA), or £19,300 per head. the City Region go ahead. Forecasts represent net
Rising productivity has supported an increase in new jobs to the Liverpool City Region economy and
full time jobs, with four key sectors contributing do not take into account the jobs that will require new
the majority of growth: distribution, transport and employees to replace those who retire or otherwise
food sector; manufacturing; business services; leave the workforce. Broad estimates suggest that
and information and communications sector. around 26,000 jobs will need to be filled each year,
on average these will far outweigh newly created
employment. Meeting this replacement demand
with skilled labour is a vital challenge for the City
Region and a key opportunity for local residents.
Figure 2
Summary of selected indicators
Sources: 1 – BRES, 2015; 2 – ASHE, 2016; 3 – ASHE, 2016; 4 – Regional Accounts, December 2016; 5 – APS, 2017.
Employees Change Weekly Gross Total GVA Worklessness
20151 FTE Jobs Earnings (FT (£m) 20154 Rate April 2016
2006 - 16 (%)2 Resident) 20173 - March 2017 (%)5
Halton 55,200 13.8 £497.10 3,380 13.7
Knowsley 64,100 5.5 £511.90 3,652 13.3
Liverpool 230,200 11.5 £509.20 10,907 14.0
St. Helens 59,000 1.0 £498.00 2,810 11.8
Sefton 89,600 -1.4 £524.00 4,042 12.7
Wirral 100,400 -6.1 £529.50 4,661 7.9
LCR 598,400 3.3 £513.20 29,452 12.2
North West 3,140,400 5.1 £514.50 156,872 12.7
England 24,866,600 8.3 £555.80 1,433,164 11.5
Rising productivity
has supported an increase in
full time jobs, with four key sectors
contributing the majority of growth:
distribution, transport and food
sector; manufacturing; business
services; and information and
communications sector.
8
Liverpool City Region has experienced jobs growth A key feature of labour market change has been
between 2000 and 2015 at a rate similar to the growth in higher skilled occupations, with
North West region, but below the national average. management, professional and technical jobs
Since 2010 the number of workforce jobs in the now representing 42 per cent of total employment
City Region has increased by some 43,000 or – figure 3. The City Region now has a higher
6.8 per cent, compared to a national rate of proportion of Professional occupations than the
7.7 per cent. North West region (19.4 per cent compared to
18.6 per cent respectively).
Figure 3
Growth in higher level occupations
Source: ONS Annual Population Survey
20
18
16
14
12
10
8
6
4
2
0
1: managers, directors and 2: professional occupations 3: associate prof & tech
senior officials (SOC2010) (SOC2010) occupations (SOC2010)
Jul 2006-Jun 2007 Jul 2011-Jun 2012 Jul 2016-Jun 2017
The City Region
now has a higher
proportion of Professional
occupations than the
North West region
(19.4% compared to
18.6% respectively).
Skills Strategy Plan 2018 - 2020 9
Changes in occupational structure are also reflected • Poor educational performance limits progression
in levels of qualifications and skills in the City Region, routes into work for individuals and the availability
with 50 per cent more people aged 16 – 64 qualified of skills in the labour market. Achievement at
to level 4 or above than a decade ago. The rate Key Stage 4 varies significant across the City
of improvement is faster than both regional and Region, with Wirral and Halton schools above
national averages, with the gap closing significantly the national average, but other local authority
over the past three years. Despite the significant areas are under-performing, most significantly
progress there remain a number of important in Knowsley.
challenges for the City Region.
With a clear focus on these challenges and strong
• Employers report a tightening of the labour partnerships with employers, the City Region
market, with difficulty filling technical roles has the ability to co-ordinate action to strengthen
due to a shortage of qualified candidates labour market performance. By leveraging demand
and in lower level roles due to job readiness. from key growth sectors, driving improvements in
Labour supply remains a risk for the economy English, maths and digital core skills, cultivating
as forecasts indicate that the working age the enterprise of local residents and improving
population will shrink by some 3.7 per cent employment rates, the City Region can become
(36,000 people) over the period to 2030. an inclusive, high skill, high productivity and high
earnings economy. This is balanced against the
• Inactivity remains a significant challenge, replacement demand of employers, which could
particularly among younger people. If the City reach 230,000 jobs within the next 10 years.
Region reduced inactivity rates to the same level
as regional average, this would bring around
34,500 people into the labour force. Among both
the employed and unemployed, unequal access
to quality work has a disproportionate impact
on people with disabilities, people from minority
ethnic communities, women and those aged 50+.
10
Improving Our Skills System
Working through the Combined Authority and the • Simplify and strengthen our skills system to
City Region’s well-established partnership structures improve responsiveness to changing national
offers an opportunity to tailor national policy and global conditions. Build leadership at all
initiatives to support local growth. In particular levels to embed adaptability and flexibility in
the publication of the national Industrial Strategy commissioning activity to improve focus on
provides a framework to build existing strengths skills needed in the labour market.
in materials chemistry, high performance cognitive
computing and infectious disease control and boost • Place inclusivity at the heart of our actions
the productivity of automotive, digital and clean by sharing best practice and innovation
energy sectors. With a clear Skills Strategy to among providers and employers. Ensure the
inform investment and the targeting of business implementation of new T-Levels and expanded
support, the Strategy provides a framework to work experience programmes improve labour
match skill demand and supply; taking advantage market equality across genders and for BAME
of the new T-Level qualifications, devolution of communities and people with disabilities.
adult education budgets and changes to the • Improve strategic decision making across
national Apprenticeships programme to enhance Combined Authority and partnerships,
labour market performance. recognising the enabling role of health, housing
To realise our goals we need to reform the way and transport for raising skill levels. Maximise
that we plan and deliver education and training and procurement to generate training, work
continue to strengthen partnership working through experience and education outcomes.
the following actions. • Ensure that skills planning and commissioning is
intelligence-led by widening availability of quality
LMI to plan and measure the effectiveness of
the skills system.
• Produce a clear improvement plan that underpins
dialogue across sectors and helps measure
progress, reported at the annual Skills Summit.Skills Strategy Plan 2018 - 2020 11
Implementation
The Skills Strategy provides the starting point to of City Region partners. The headline outcomes,
define the specific actions required to enhance actions and measures in the Skills Strategy,
labour market performance over the next five summarised in the diagram below, require the
years. Leadership will come through the Combined commitment of public sector organisations,
Authority supported by the Employment and Skills businesses and communities to realise the
Board, LEP and Skills Commission and will be full economic potential of the City Region.
woven into the strategic and operational plans
OUTCOMES KEY ACTIONS MEASURES
Multi-agency actions to ∞ NEET rate for 19-24
raise attainment among year olds
Improve attainment young people
in English, Maths ∞ Prior qualifications
of young people
and Digital and
Careers hub improves 16-24 starting an
work readiness
progression pathways apprenticeship
to quality work
Increase flexibility of ∞ Proportion of working
employment and skills age disadvantaged
Raise working age services people employed
employment rate and
increase percentage ∞ Inactivity rates among
of good quality jobs Targeted services to 18-24
improve labour market ∞ Starts and outcomes
inclusion
IMPROVING THE SKILLS SYSTEM
from AEB provision
Develop planned ∞ Proportion of
approach to graduate employers reporting
Higher productivity retention shortages / gaps in
and lower skills technical skills
shortages in
Promote employer ∞ Productivity measured
growth sectors
collaboration to address by GVA / hour
skills shortage areas
With employers design ∞ Proportion of population
More effective skills and jobs plan to tackle with no qualifications
replace demand challenge
workforces and fewer ∞ Employment rate for
local recruitment inclusion groups
difficulties across Improve quality and ∞ Employers reporting
all sectors accessibility of labour hard to fill vacancies
market information
Enhance management ∞ Number of
and leadership skills apprenticeship starts
Employers are in SMEs
∞ Starts on higher / degree
investing more in apprenticeships
the skills of their
Support employers to ∞ Employer investment in
workforces
source skills provision workforce development
tailored to individual
requirements12
Our Vision
Our vision is that in five years’ time Liverpool City Region will have:
An outstanding and effective skills system that meets the needs
of employers, individuals of all ages and communities and drives
high aspirations and attainment, to create a truly global and
competitive City Region at the heart of the Northern Powerhouse
We will deliver this ambition by:
• Strengthening partnership working across • Working towards a more inclusive local economy,
Liverpool City Region to build leadership and where all sections of our community are engaging
innovation and secure commitment to identifying in and sharing the benefits of a growing City
opportunities at all levels to raising employer Region economy.
and individual demand for skills.
• Challenging ourselves and Government to work
• Supporting our people and businesses to be differently together in ways that recognise the
more ambitious, flexible and resilient and better unique strengths of the City Region and fully
placed to take advantage of changing global deliver the skills system we need.
and local markets.
• Working with employers and providers to
co-design our learning system to be more
responsive to individual and business needs.
More people
now have higher
qualification and
skills levels.Skills Strategy Plan 2018 - 2020 13
Our Ambition
In early 2010, the Liverpool City Region Employment • New growth sectors now have a strong foothold
and Skills Strategy and Commissioning Framework in the City Region which offer the potential to
was published and the Employment and Skills Board create better quality jobs with higher earnings
was established. Designed in the early stages of the and more secure employment prospects.
major economic recession, the Strategy has helped
guide investment and actions to drive employment • More people now have higher qualification and
and skills in the City Region. It also introduced the skills levels.
Skills for Growth approach, which has strengthened • Employment opportunities have risen and there
partnership between business, education and is now more evidence of skills shortages and
learning providers and resulted in a series of sector local recruitment problems.
based action plans that identify the current and
future skills needs of employers. • Devolution of a range of powers and funding
to City Regions is now a central feature of UK
However, there have been significant changes over government policy, linked to the increased profile
this period, and looking forward there are both major and effectiveness of the northern city regions
challenges and exciting opportunities. The ambition working together.
set out in the Single Growth Strategy: Building our
Future, the growth potential around Digital, Tidal
Energy and Advanced Manufacturing and the
opportunities from the Science and Innovation
Audit must be realised. This means we need to
think again. In particular:14
However, there are also challenges that we need Transformational change will only occur if Liverpool
to confront: City Region partners build on their long history of
working collectively and collaboratively across public
• Educational attainment levels in the key areas of and private sectors and with the community. Above all,
English, maths and digital have improved – but the future workforce will need to be enterprising,
not enough. flexible and resilient to build on the strengths of
• The uncertainty surrounding Brexit is lowering the local economy, become more confident and
growth rates. outward-looking and exploit the opportunities that
future technological changes will bring. This will
Our new strategy acts as a bridge between two require that this partnership works for employers
key pillars: and employees and especially those excluded
from the benefits of growth to ensure that the City
• It needs to work for our employers by creating a Region makes the best use of all its assets.
workforce which has high levels of appropriate
skills. This will help sustain an expanding and This Strategy has been developed after a consultation
higher quality jobs base, as this is a significant process involving a wide range of partners sharing
determinant of the level of prosperity that our the good practice that the City Region has already
residents can enjoy. developed to face up to the future challenges.
Case study examples are included throughout this
• It must also work for all groups of people document to highlight that many good things are
across the City Region as part of a twin process already underway and show that through partnership
of inclusive growth. For too long, it is the poorest working and co-design with employers, unions,
across our communities who have been hardest voluntary sector, education and training providers,
hit in periods of economic recession and benefited learners and other key players we can create an
insufficiently from periods of sustained economic outstanding and effective skills system to underpin
growth. This must end. a global and competitive City Region.
Our next step is to develop a Skills Action Plan
that will drive the implementation of the strategy.
Working closely with our partners, we will detail our
actions and key performance measures. The Action
Working closely
Plan will draw heavily on the rich ideas garnered
with our partners, through workshops and one to one consultations
we will detail our actions during the strategy development process, as well
as the extensive and constructive feedback on
and key performance
earlier drafts of the strategy.
measures.Skills Strategy Plan 2018 - 2020 15
Our Changing Policy Landscape
The Metro Mayor has set out the ambitious and Young people now entering the labour market are
transformative opportunities open to the Liverpool expected to have multiple jobs through a number
City Region to harness the power of the River Mersey, of different careers during their working life and the
accelerate Digital Connectivity, build enterprise education and skills system needs to build their
and support the roll out of the Fourth Industrial capacity for flexibility and resilience. The skills
Revolution in Manufacturing. These are in addition landscape is part way through significant shifts in
to the global strengths in Materials Chemistry, High policy that are designed to build the quality and
Performance and Cognitive Computing and Infection relevance of technical education in the UK, to better
set out in the LCR+ Science and Innovation Audit. respond to a fast-changing economy. Partnership
Delivery of these opportunities require sustained arrangements, through the City Region, need to
and broad based effort from a wide range of partners, continually adapt to respond to emerging policy
not least building a skills and employment base and changing market conditions and ensure the
able to support a growing economy. future relevance of provision and a coherent
approach to raising attainment across all state
We welcome the new national Industrial Strategy and education providers.
believe that the City Region is particularly well-placed
to drive forward a local industrial strategy, building The production of this Strategy recognises the
on our key sectors in automotive, digital, transport fundamental importance of strong partnerships
and logistics and clean energy. The City Region looks that work both across sectors of the economy
forward to taking advantage of further devolution to and connect public and private investment: it also
make the best use of our local partnerships to build needs to operate ‘vertically’, planning for and
the productivity of all our sectors and, crucially, include integrating provision for pre and post 16 provision,
a wider range of our people in the growth of earnings. workbased training and independent adult learning.
We will be making full use of the Industrial Strategy Realising our skills goals requires leveraging
actions such as the Challenge Fund for sector partnerships in areas that include infrastructure
development, new infrastructure investment in and procurement, health and wellbeing and
critical areas and ensuring that employees can housing as well as with Unions and social sector
access the National Retraining Scheme to develop organisations. These areas are important both to
their interests into new careers: these will need a create the environment for skills to be generated
local input if they are to be successfully scoped and utilised as well as realising opportunities to
and delivered. encourage businesses and workers to invest in
learning. This Skills Strategy provides a framework
for partnerships to strengthen, to focus on key
priorities for the City Region and respond to
changes in the policy landscape.16
Technical Education Apprenticeships
The Government’s Post-16 Skills Plan aims to The recent changes to Apprenticeship funding and
revitalise technical education policy with vocational operation have started to shift the nature and quality
‘T Levels’ at the same level as academic A levels. of learning and present many opportunities at
These T levels will provide progression pathways for a higher quality with Higher and gold standard
young people to achieve their aspirations. The Further Degree Apprenticeships. Valued both by employers
Education sector will need to ensure local readiness and local residents, Apprenticeships have always
to meet the opportunities presented by T Levels prior been a strength of the local economy in Liverpool
to 2020. The ability to offer quality work placements City Region. It is vitally important that employers and
will underpin a shift-change in employer involvement. providers are able to exploit the new opportunities
Transition year developments for learners will be these changes present to secure additional high
of key importance in areas with lower than average quality apprenticeship opportunities. This Skills
GCSE attainment at age 16, if learners are to Strategy should be read alongside the Liverpool
progress to T Levels (at Level 3). City Region Apprenticeship Growth Plan: this Plan
aims to ensure Liverpool City Region will benefit
Institutes of Technology are an additional a way of from the right infrastructure and environment to
addressing skills gaps at Level 4 through to Level 6 be able to overcome the detrimental impacts of
(first degree level). These involve collaborations of reforms and grow apprenticeship volumes locally.
employers, Higher Education Institutes and Further
Education Colleges or independent training providers.
Institutes of Technology will focus on Science,
Technology, Engineering and Maths related skills
areas linked to local needs.
The Government’s
Post-16 Skills Plan aims
to revitalise technical education
policy with vocational ‘T Levels’ at
the same level as academic
A levels. These T levels will
provide progression pathways
for young people to achieve
their aspirations.Skills Strategy Plan 2018 - 2020 17
Adult Education Budget Narrowing gaps
Devolution of the Adult Education Budget to the Some of the skills challenges for Liverpool City
Combined Authority was agreed in the City Region’s Region have arisen from uneven growth. Not all
Devolution Agreement of November 2015. Local areas or groups in the local population have been
devolution will put the Combined Authority in control of able to participate in the successes of the City Region.
what is delivered from this funding from the 2019/20 Varied educational outcomes, health, and disability
academic year. This will enable a much closer link affect an individual’s opportunities to secure stable
to be in place between employers’ needs and the and full-time employment that offers the opportunity
curriculum offer. The Adult Education Budget’s to progress. The City Region will need to build on the
principal purpose is to engage adults and provide Work and Health Programme and the Government’s
them with skills and learning needed for work twin commitments to reducing both the minority ethnic
or further learning, while also recognising that and Disability Employment Gaps. Equal access to
returning to education can improve employability education and learning is a vital part in ensuring that
skills including communication and self-confidence all people from under represented groups can
and enable people to contribute to the social wellbeing participate fully in the labour market. Fair work
of their communities., Adult education enables and a living wage are vitally important to individual
more tailored programmes of learning, which do wellbeing, continuing mental health and family
not need to include a qualification, to help those development as recognised in the recent Stevenson /
furthest from learning or the workplace. Farmer review of mental health and employers and
Improving Lives: Helping Workless Families. Stable
The Post-16 Area Review of Further Education employment at a living wage underpins this and
carried out in the Liverpool City Region reported in boosts the local economy where people can afford
January 2017 and set out a number of structural to buy goods and services.
change and reform recommendations, which are
being progressed. The Review was one of the first Improving the life chances and participation of
nationally to have such a strong focus on both all sections of the labour market is increasingly
curriculum reform and change as well as delivering being recognised as the solution to our long-
on the financial and operationally sustainable standing inability to deliver a fully-productive
institutions required for the future. competitive economy.
Maintaining a stable and high-quality provider base
in Liverpool City Region is vital to ensuring that
learners’ and employes’ needs are met. The role
of the devolved Skills Capital budget in supporting
the implementation of the reform recommendations
and securing cutting-edge facilities and learning
equipment will become increasingly important.18
Examples of practice
DELIVERY: Devolved Skills Capital investment
supporting Growth Sectors
Liverpool City Region Combined Authority awarded The facility has a strong focus on Industry 4.0; the
a Skills Capital grant of £1.509m as a contribution current industry movement of automation and
towards Riverside College’s STEM Centre at their digital data exchange in manufacturing processes.
Cronton site. The centre provides new pathways Students have access to the latest digital fabrication
into advanced manufacturing, life sciences and equipment for prototyping, such as 3D printers.
digital careers on the current 6th Form College There is also a focus on computer science and
site. Facilities include two new laboratories within computer programming, virtual reality technologies,
the existing building and a new build advanced robotics, PLC assembly lines, flow level control
manufacturing centre. systems, pneumatic and hydraulic systems and
sports science.
The IDEA Centre will educate students and
Apprentices using some of the most advanced The IDEA centre has become a focal point for the
industry standard equipment and methods up to promotion of careers in the STEM priority growth
degree level. Students studying various courses sectors of advanced manufacturing, digital and life
including Science, Engineering, Sport, IT, Business sciences. The centre hosted a ‘Women into Rail’
and Health Studies will have the opportunity to event with Alstom for over 70 Year 9 schoolgirls in
work alongside local and national companies to July 2017.
provide them with the up to date skills needed
to gain employment in a variety of industries.
Employers from the City Region are pro-actively
engaged with the curriculum design and content
and can also use the centre to upskill their existing Students
workforce on bespoke programmes. The new centre
have access to the
enables more cross curriculum learning, with
students from all subject areas using its facilities to latest digital fabrication
collaborate on project ideas, produce design concepts equipment for prototyping,
and develop prototype products, encouraging team
building and interaction between courses. such as 3D printers.Skills Strategy Plan 2018 - 2020 19
DELIVERY: DELIVERY: Working Futures
Supported Internships support to young people
There are a number of innovative programmes that Working Futures offers a personalised, flexible
exist to help young people with learning disabilities package of support to help City Region residents,
into work within the City Region. One such example aged 16 to 29 who are not in employment, education
is run by Liverpool City Council, aiming to help or training (NEET), to move towards a better future.
them transition from education in to the world of Using funding from ESF and the Youth Employment
work, so they can live more independently and Initiative, everyone enrolling on to the programme
don’t become socially isolated. The Council has is assessed to identify the help that they require,
teamed up with the Marriott Hotel, Hilton Hotel and with short, medium and longer term interventions
grounds maintenance partner Glendale Liverpool offered, from 2 weeks up to a year in duration.
to offer Supported Internship placements. They Participants are supported in a range of ways to
last an academic year with the pupils working for a help them move in to, or closer to employment,
different department in the organisation each term. Apprenticeships, Further Education, or volunteering.
Pupils from Sandfield Park School, Bank View Led by Greenbank College, in collaboration with
High School and Myerscough College are working VOLA Consortium, it is delivered by a partnership
four days a week and spending the other day in of 18 Voluntary, Community and Social Enterprise
lessons to build employability skills. All the pupils providers across the City Region. From March 2016
are supported by a work coach who helps them get to December 2017, the programme has supported
used to the routine expected when in employment, over 1,200 participants, with nearly 600 having
instructing and supporting pupils to build skills in already moved into work or Further Education.
the work place to complete work tasks to a high level.
Sarah, 25, joined the Working Futures programme,
offered by Youth Fed, with low self-confidence and
a lack of direction for the future. Through the one-
to-one support available on the programme, she
came to realise that she has lots of great skills and
gained enough confidence to join group sessions.
Here, she took a leading role and offered support
for others. Sarah also decided that she wanted to
return to hairdressing. Since September 2017 she
has been undertaking NVQ Level 2 Hairdressing at
West Cheshire College, combining study with the
care of her son. “Working Futures really helped to
motivate me, develop my skills and confidence and
get me to where I am today”.20
Our Economy and Labour Market
A detailed Technical Report has been prepared as Across the City Region, the sectors that contribute
part of the strategy development process. Here we most to GVA growth (82% of all GVA growth in
highlight the key findings emerging from the report. LCR) in the decade between 2005 and 2015 are:
Liverpool City Region has experienced significant • Distribution; transport; accommodation &
jobs growth, at a rate similar to the North West region food which represents 27% of the increase in
but lower than the national average. There has been City Region GVA and just under a fifth of the
some variation within the City Region – growth in economy in 2015;
productivity in Knowsley and Halton has increased at
above the national rate and Liverpool has experienced • Public administration contributed the greatest
significant growth in the decade to 2015. Other areas share of City Region GVA in 2015 (28%) and
have increased total employment, but changing just under a quarter of GVA growth in the decade
patterns of full-time and part-time work have led to to 2015. While the sector remains the largest
marginal growth in St Helens and declines in FTE in the City Region, it does represent a slightly
employment in both Sefton and Wirral. Growth in smaller proportion than in 2005;
productivity has supported growth in full time jobs. • Manufacturing has grown in its share of the local
Liverpool City Region generated £29.5 billion worth economy and is significantly more important
of economic output in 2015, or £19,300 per head. in the City Region when compared to national
The City Region’s average annual rate of economic averages (14% compared to 9.8% nationally).
growth over the decade from 2005 to 2015 was 2.5%. Manufacturing GVA in Knowsley has increased
While growth was achieved throughout the period, 146% over the period but fallen 19% in Sefton
this was at a rate below the England average (3.2%). and 6% in Wirral;
The City Region’s ‘performance gap’ (measured • Business Services grew by 36% which represents
by GVA per capita) is persistent and entrenched. 13% of the total GVA growth in the City Region;
Having been on a downward trend since the early and
2000s, the gap has widened since the recession. • The Information and Communications sector
Productivity (GVA per hour worked) accounts for grew at over 60%, considerably faster than the
the largest proportion of the ‘performance gap’ and national average but still represents just over
is also associated more closely with the widening 5% of the City Region economy in 2015.
of the gap since 2010.
Chart 1
GVA £ per head 2005-15
Source: Regional Accounts, Dec 2015 release. Office for National Statistics
£28,000
£26,000
£24,000
£22,000
GVA per head
£20,000
£18,000
£16,000
£14,000
£12,000
£10,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Halton Knowsley St. Helens Liverpool Sefton WirralSkills Strategy Plan 2018 - 2020 21
Overall, key City Region sectors are adding new Liverpool City Region has made significant
jobs, increasing their GVA and providing full-time improvements in qualifications and skills. The
employment at good rates of pay. City Region now has 50% more people aged
16-64 qualified to Level 4 or above than a decade
Forecasts for the City Region economy suggest ago. This rate of improvement is better than
that jobs will grow by 22,200 by 2025 as a baseline both North West and national averages, with the
but this could increase by up to 75,000 jobs by gap closing significantly over the past 3 years.
2025 if a series of transformational developments Qualification rates at Levels 2 (GCSE) and 4 (First
across the City Region go ahead. These are net year degree) have also improved. Employment in
new jobs to the Liverpool City Region economy senior management, professional and technical
and do not take into account the jobs that will occupations have increased as a share of total
require new employees to replace those who retire employment over the past decade and this now
or otherwise leave the workforce. Broad estimates stands at 42% of total employment. There is now
of these suggest that around 260,000 job openings a higher proportion of Professional occupations
will need filling over a decade – at some 26,000 in the City Region than the North West. However,
a year on average these will far outweigh newly graduate retention rates, at around 31%, are low
created employment. compared to some other northern cities, such as
Glasgow (46%) and Manchester (51%) : there
is enthusiasm from graduates to stay in the City
Region but the graduate jobs are not there in
sufficient scale to retain them.
Chart 2
GVA per hour worked (£)
Source: ONS Regional and Subregional Productivity Jan 2015
34
GVA per hour worked
32
30
28
26
24
22
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
England Liverpool City Region North West
Chart 3
Per cent Working Age Population with NVQ4+
Source: Annual Population Survey
40
38
36
34
Per cent
32
30
28
26
24
22
20
Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec
07 08 09 10 11 12 13 14 15 16
Liverpool City Region North West Great Britain22
Apprenticeship starts have grown steadily to 18,370 • It is clear that employers are already finding it
in 2016/17 since 2013/14 – an increase of 12.6% challenging to recruit appropriate employees.
which is above the national average. At the same To compound this, the City Region’s workforce
time, proportionately more Level 3 (A level) and is forecast to contract by 3.7% (over 36,000
above Apprenticeships have started – just under people) at a time when England’s workforce will
half of starts in 2016/17 with some 9% at Level 4 expand by 4.7%. In some areas, the working age
or above. population will fall by 8% up to the year 2030.
This is due to a combination of a decline of
However, there are challenges: 16-18 year olds entering the workforce and
• This skills gap is thought to be one of the most an increase in the over 50s such that, in some
critical factors in driving the overall ‘performance areas, 50-64s will form 38% of the working age
gap’ as it influences both productivity and population. These shifts will have significant
employment rates. Evidence from the Employer implications in terms of post-50 participation
Skills Survey suggests that more than two-thirds rates due to health problems, increased caring
of employers had at least one vacancy in the responsibilities and the relevance of the skills of
last year, two in five experienced recruitment the age group to future employment opportunities.
difficulties with too few applicants with appropriate • Too many City Region residents are inactive:
skills. Hard to fill vacancies are occurring in both these differentials are across all age groups, but
technical skilled occupations and entry-level inactivity among younger people is particularly
jobs where candidates for the latter often lack high. If the City Region could match regional
basic employability skills and motivation. inactivity rates this would add 34,500 people to
• These recruitment difficulties have a direct the labour force. Using learning and work as one
impact on businesses – increasing the costs route to supporting better wellbeing for people
of recruitment, the workloads for current staff with long-term health conditions or disabilities
and can lead to a loss of contracts. Employers will be a significant challenge.
in the Visitor Economy highlighted that the • Educational performance is mixed across the
nature and standards of professions have City Region. At Key Stage 4, Wirral consistently
changed following the investment made in the out-performs the national average and Halton
local Visitor Economy over recent years. The schools have improved since 2011 to be above
resulting reputational enhancement of the City average. The other areas are below average,
Region as a destination have led to greater particularly in Knowsley. The shift to Progress 8
expectations from visitors and demand for scores in 2015 rates all Council areas as average
higher standards from employees. or below. The proportion achieving grades A*-C
in English and Maths GCSEs has improved but
only Wirral are above national average which will
be an issue for STEM-based technical training.Skills Strategy Plan 2018 - 2020 23
• The impact of this lower educational performance • Evidence from the 2017 Employer Skills
at age 16 means that the time between 16 and Survey suggests that the labour market is
19 can be taken up by ensuring young people already tightening as employers are reporting
achieve Level 2 rather than developing the Level difficulties in filling vacancies – for technical
3 skills that employers require. This opportunity skills roles there is a lack of candidates with
is lost and can result in larger skills gaps than appropriate qualifications and experience while
would otherwise have been the case. those employers offering vacancies with lower
skills requirements report concerns in finding
• Whilst the overall trends for employment, candidates with the right employability skills.
unemployment and skills levels might be moving
in the right direction, there are significant differences • Many vacancies are remaining unfilled and this
within these indicators for male/female, BME is having an impact in terms of business efficiency
groups, those with disabilities and those aged and losing sales to competitors. At present, most
over 50. As well as improving the overall levels, employers are responding by advertising their
these gaps need targeted efforts to close. vacancies more widely but the trends in the City
Region labour force suggest that this is not a
• The City Region has long seen high levels of sustainable solution. As yet, relatively few are
apprenticeship starts, particularly at Level 2. considering changing their approach to training
The introduction of the reforms in May 2017 has existing staff or employing a less-qualified
seen an initial reduction in the number of starts candidate and training them up. Clearly, there is
as these changes bed in and are implemented. a challenge to employers to invest more in their
It is expected that there will be a recovery in workforce and ensure individuals can progress
starts numbers in due course but this picture to meet their potential and consider candidates
may be different for sectors where 20% off the from a wider range of sources.
job training has not previously been a required.
Apprenticeship
starts have grown
steadily to
18,370
in 2016/17 since 2013/14 –
an increase of 12.6%,
above the national
average.24
Examples of practice
DELIVERY: Jaguar Land Rover DELIVERY, TEST AND LEARN:
Apprenticeship Recruitment Youth Employment Gateway
Jaguar Land Rover Halewood welcomed in As part of the Liverpool City Region Local
October 2017 seven new apprentices from across Growth Deal with Government the City Region
the North West to its award-winning Halewood was awarded £5.9m to design and deliver an
factory - which manufactures Range Rover employment programme helping young people into
Evoque and Land Rover Discovery Sport - and work. Delivered by Councils in partnership with
for the first time in the factory’s history there are Jobcentre Plus, the programme provides young
more successful female candidates than men. people with a Personal Advisor providing one-to-
Five of this year’s intake who are about to start one support, a personal budget to help them into
the 4 year-long Automotive Trailblazer Advanced work, supported by mobile app and website.
Apprenticeship are women and at the end of the
programme they will play a key role in helping to This focus on flexible and tailored support to meet
manufacture the next generation of Jaguar Land clients’ needs and aspirations and to improve job
Rover vehicles to be produced at Halewood. readiness is a key success factor. The personal
budget provides an attractive offer to help ‘sell’ the
After completing their apprenticeship, they will programme and maintain engagement, and can
specialise in Mechatronics and Toolmaking; make a crucial difference to removing work barriers
designing, testing, installing and servicing the as well as promoting budget management.
state-of-the-art machinery across Jaguar Land
Rover’s 300 acre factory complex, supporting its Between October 2014 – September 2017, 4,961
4,200 strong workforce. Technology-based careers young people have received support with 2,077
in the automotive manufacturing sector don’t (42%) having found work.
attract many female applicants, despite the fact
they often excel in relevant subjects like design,
engineering, mathematics and IT at school. In
Only 9%
fact, only 9% of the UK’s engineering workforce
is female. However, Jaguar Land Rover, the UK’s
largest car manufacturer, runs a series of initiatives
to address this including their Young Women in the of the UK’s engineering
Know programme. workforce is female. However,
Jaguar Land Rover, the UK’s
largest car manufacturer, runs a
series of initiatives to address this
including their Young Women
in the Know programme.Skills Strategy Plan 2018 - 2020 25
DELIVERY:
Promoting STEM in Schools
Unilever offer an annual “Bright Futures” programme, The students visit site to be briefed on sample
developed in collaboration with Allabout STEM. global, societal challenges, which they will work on
Open to all schools in the greater Mersey and when back in school, and to experience applied
Cheshire area, it provides an opportunity to engage science. They then work in small teams to develop
and inspire students in year 9 and 10 with aspects product and service ideas to meet these challenges.
of applied science, technology, engineering and The programme requires students to research the
mathematics. It exposes students to the everyday needs of consumers in diverse areas; suggest
applications that science has in the personal care formulation and packaging solutions that will meet
and beauty industry to encourage young people these challenges; demonstrate their understanding
(especially females) to choose to stay in science of cost and scale up; and consider the communication
and engineering related disciplines. of benefits and influencing of consumer behaviour.
The programme involves working with local schools, The projects are judged by Unilever experts and
to show teachers the technologies and areas that the winning projects win prizes for both schools
Unilever applies STEM subjects in – consumer and individuals. Examples include
understanding, formulation science, packaging,
digital and manufacturing – and sets out societal • It all adds up - Develop a product that
challenges that students are required to work on. encourages people to use 50% less water when
showering.
• Clean Hands for all -Design products that
encourage children in 3rd world countries to
wash their hands before food and after using
the toilet.
The programme in 2017-18 has attracted 180
students from 35 schools across the area.26
Skills Challenges as Opportunities
As a result of the extensive analysis and, more • In many of our more traditional sectors, such
importantly wide-ranging consultations, carried as construction and engineering, the existing
out as part of the strategy development process, skilled workforce has a high average age.
a large number of pressing issues or challenges When these people retire, they will create
were identified. However, rather than concentrating ‘replacement demand’ that could be met
on problems, we have thought more in terms of through Apprenticeships. The number of job
opportunities that can be grasped as the best way opportunities created will be substantial, and we
to address the challenges ahead. must plan to ensure we have the right number
of people with the appropriate skills to fill these
In terms of converting challenges into opportunities, vacancies when they become available.
we see the following as the key issues where more
action is needed. • The growth of digital industries and small dynamic
businesses across the economy increases the
• The City Region has a comparative advantage importance of enterprise skills. Understanding
and strong potential in a number of key national how businesses operate can a major advantage
and European leading sectors – Advanced to enable young recruits to be ‘ready for work’
Manufacturing, Digital and Creative, Financial and also broaden their options to include new
and Professional Services, Health and Life business start up and self-employment.
Sciences, Low Carbon Economy, Maritime
and Logistics, and Visitor Economy. These will • The introduction of T levels provides a challenge
demand high skill sets to fuel both a growth in to established systems of skills delivery in the
employment opportunities and an expansion of City Region. However, it also creates a practical
higher quality, better paying jobs. We have an opportunity to draw together employers and
opportunity to plan for these jobs by ensuring providers to adapt new frameworks and delivery
our skills providers, including colleges and arrangements to the specific requirements of
universities, are investing in the right courses. City Region employers.
• Digital skills are an enabler of future opportunities • The number of people of working age is going
yet there is no consistently applied digital skills to grow much more slowly in the coming years
framework, to enable employers, learners and as the number of people retiring cancels out the
skills providers to articulate needs and offers. number of young people coming into the labour
market. Additionally, as a result of Brexit, it is
• The City Region produces large numbers of likely that the levels of immigration of people
graduates from higher education institutions seeking work in the UK will fall.
each year but more needs to be done to
increase retention of these graduates from
the region’s universities and attracting back
residents from the North West that have studied
elsewhere in the UK. This will boost the skills
pool and contribute to productivity growth.
The growth
of digital industries and
small dynamic businesses
across the economy
increases the importance
of enterprise skills.Skills Strategy Plan 2018 - 2020 27
If we are to ensure that the job opportunities and lifelong access to education make a significant
created through growth in our key sectors and contribution to individual health and wellbeing. We
replacement demand in our more traditional recognise the significant contribution aleady made
sectors are met, it is our view that our skills system by the unions in promoting workplace learning, and
needs to undergo a step change. This change is they will be key partners in helping implement the
essential to enable the City Region to: strategy as we move forward.
• Move towards a high skill/high productivity/ It is also important to make clear that our ambition
high earnings enterprise economy, a significant cannot be achieved solely with public money.
reversal of the way we currently describe the Clearly, we want our businesses to prosper, but this
economies in the North of England. prosperity needs to spread across the City Region.
We will build a more effective skills system which
• This will be driven by skilling and upskilling our will aid businesses in their quest for productivity
young people, those who are unemployed or and competitiveness, but the business community
economically inactive – and also very importantly needs to co-invest with the public sector more than
our employed population, too many of whom is currently the case to help transform our City Region.
currently sit in poor quality jobs with low pay, The best way to do this is to have more employers
insecure contracts and limited potential for investing in the skills of their workforces, and those
progression. We have the potential here through that currently do invest in workforce development
the skills strategy and its effective implementation should seek to increase their investment. Locally,
to impact significantly on poverty. we must ensure that we create the right context
The key point to grasp in our argument is that the and support to enable this to happen.
changes required to create a more successful City
Region economy should be – and indeed must be
– aligned with the objective of helping many more of
our people to enjoy a more productive and rewarding
experience in work; recognising that improved skills28
Our Strategy
A Shared Process Our Ambition and Vision
We have developed our new Skills Strategy as Liverpool City Region has seen significant capital
an inclusive process aimed at capturing the views investment in infrastructure and buildings over the
of a wide range of stakeholders, consulted often last decade. This creates a major platform to support
1-2-1 but also in small groups and larger workshop and promote key industries that are major employers,
sessions. Informing these discussions has been such as tourism, health and retail. It is also providing
an in-depth analysis of a wide range of statistical a magnet to attract major groupings of businesses
indicators of relevance to the skills agenda and in the growth sectors of tomorrow, such as low carbon
a large-scale survey of our employer base. The and advanced manufacturing. To ensure and enhance
process of engagement and consultation has the competitiveness of these and other sectors, it is
been valuable to share available data, to promote essential to secure a significantly increased level,
debate on important issues for the City Region and an appropriate mix, of education and skills to
and to underline our shared responsibilities for build and maintain a highly productive workforce:
implementing this Skills Strategy. this is in support of the wider sector development work
being undertaken by Local Enterprise Partnership
(LEP) Sector Panels. Realising the full impact of high
value business, growing investment and a strong
Estimates for skills pool could transform the City Region economy;
potential jobs growth making a positive impact across the Northern City
Regions and beyond. Complementary investment
in a transformational in the transport infrastructure will be vital to secure
scenario involve the this growth. Estimates for potential jobs growth in
a transformational scenario involve the creation of
creation of
75,000 jobs by 2025.
75,000
jobs by 2025.You can also read
