Because People Matter
June 26th, 2006June 26th, 2006
Philip RoePhilip Roe
BMG ResearchBMG Research
Because People MatterBecause People Matter
The National Employer Skills Survey2005Main findings for the South West RegionThe National Employer Skills Survey2005Main findings for the South West Region
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Main survey themesMain survey themes
•Demand for skills – vacancies
•Availability of skills – recruitment difficulty,skill shortages, and skill gaps
•Recruitment of young people
•Workforce development by employers
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Demand for skills - vacanciesDemand for skills - vacancies
•17% of SW employers had a vacancy attime of survey
•2.9% of SW jobs were vacant
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Vacancy concentrationsVacancy concentrations
SECTORS
Retail, hospitality, financialservices, construction, care
SIZE OFESTABLISHMENT
Small establishments (<25 jobs)have 53% of vacancies but onlya third of employment
LOCATION
No great variation but marginallyhigher in West of England
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Occupational biasOccupational bias
•Intermediate and lower, not managerial/professional….
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‘High intensity’ vacancies‘High intensity’ vacancies
•Skilled trades and operators in engineering,general manufacturing, construction, foodprocessing, and garages
•Sales staff in the retail sector
•Low grade staff in hospitality
•Care workers
•Technical staff in financial services and ITsector
•Teachers
•Nurses and technical staff in the health sector
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Recruitment difficultyRecruitment difficulty
•Under a third of all vacancies in the SouthWest (31%) were hard-to-fill
•55% of these were hard-to-fill for ‘skillshortage reasons’ – applicants lackrequired skills, experience, and/orqualifications
•Overall, 18% of vacancies were ‘skillshortage’ vacancies
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Relation of recruitment difficulty tooccupationsRelation of recruitment difficulty tooccupations
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Top ten ‘hard-to-fill’ and ‘skill shortage’vacanciesTop ten ‘hard-to-fill’ and ‘skill shortage’vacancies
Hard-to-fill
Low skill hospitality staff
Skilled construction trades
Sales staff in retail
Care assistants
Chefs
Admin/clerical in financialservices
Garage mechanics
Skilled engineering trades
Skilled retail trades(butchers, bakers, etc.)
Skilled land-based workers
Skill shortage
Skilled construction trades
Chefs
Care assistants
Garage mechanics
Bus drivers
Admin/clerical in financialservices
Skilled land-based workers
Skilled retail trades
Civil engineers
HGV drivers
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Trends in vacancies and recruitmentdifficulties, 2003-2005Trends in vacancies and recruitmentdifficulties, 2003-2005
South West
England
Vacancies
- 16%
- 16%
Hard-to-fillvacancies
- 44%
- 25%
Skill shortagevacancies
- 14%
+ 6%
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South West compared with England,2005South West compared with England,2005
South West
England
Vacancies as %of employment
2.9
2.7
Hard-to-fillvacancies as %of vacancies
31
35
Skill shortagevacancies as %of hard-to-fillvacancies
57
70
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Broad labour market changes in SouthWest, 2003-2005Broad labour market changes in SouthWest, 2003-2005
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Skills gapsSkills gaps
2003
2005
SW
England
SW
England
% ofestablishmentswith skills gaps
23
22
15
16
Skills gaps as % ofemployment
10
11
5
6
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Location of skill gapsLocation of skill gaps
•108,000 people in SW identified as notfully proficient
•A third of total in retail and hospitality
•Construction, engineering and care nexthighest sectors
•Fairly evenly distributed across differentsizes of establishment
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Skills gaps in relation to occupationsSkills gaps in relation to occupations
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Recruitment of young peopleRecruitment of young people
•Percent of employers recruiting….
South West
England
16 year oldschool leaver
9
7
17-18 school/College leaver
12
11
New graduate
9
9
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Prepared for work?Prepared for work?
•Percent of recruiting employers sayingpoor or very poorly prepared for work….
16 year olds24%
17-18 year olds19%
New graduates10%
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Why?Why?
16 year olds
17-18 year olds
New graduates
Lack motivation/work ethic
Lack of life/workexperience
Poor education/generalknowledge
Lack motivation/work ethic
Lack of job-specific skills
Lack of life/workexperience
Lack motivation/work ethic
Lack of business/practicalexperience
Lack of job-specific skills
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Training by employersTraining by employers
•Percent of employers supplying training….
•Percent of employees trained is the samefor SW and England – 35% off-the-job,50% on-the-job (not additive)
2003
2005
South West
62%
65%
England
59%
65%
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Pattern of trainingPattern of training
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Who gets trained and how?Who gets trained and how?
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Use of Further Education CollegesUse of Further Education Colleges
•Fewer employers which supply trainingused FE Colleges in 2005 than in 2003(30% down from 33%)
•More users satisfied with provision
•But….
–More significant dissatisfaction with constructionand vehicle maintenance courses
–Twice as many employers use private providers
–Levels of satisfaction with private providershigher than for FE
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Overview: lessening of pressure onskillsOverview: lessening of pressure onskills
•Slowing of growth, in-migration, and skillsdevelopment combining to reduce pressureon skills
•An opportunity to concentrate onimprovements in supply in key area….
•Which is technical/practical skills inconstruction, manufacturing, catering,retail
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Overview: within-region disparitiesOverview: within-region disparities
•Evidence of weaker labour markets inSouth and West of the region….
–More vacancies
–Less training
–More recruits seen as de-motivated
•Supports the need for regional policy focusin least prosperous sub-regions
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Overview: support to SMEsOverview: support to SMEs
•Small employers (with fewer than 25 staff)
–Have disproportionate numbers of vacancies,hard-to-fill vacancies, and skill shortagevacancies
–More frequently see young recruits as ill-prepared for work
–More likely to say that skills problems causeloss of business
–Less likely to train staff
•Supports the need for policy focus on small‘hard to reach’ businesses
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Overview: Further EducationOverview: Further Education
•Some negative messages on FE….
–Falling proportion of training employers using FE
–Significant dissatisfaction in some sectors
–1 in 5 employers recruiting a 17-18 year old aredissatisfied with them
–Half of training employers say FE courses arenot relevant
•Supports policy to make FE provision moreclearly ‘demand-led’
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Because People MatterBecause People Matter
For further information, please contact:
Philip Roe, Account Director
Tel No : 0121-333-6006
E-mail : philip.roe@bmgresearch.co.uk