BECBC Skills update. 3 September 2014

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1 BECBC Skills update 3 September 2014

2 BBC news item 30 January 2014 Warning of worsening in UK skills shortage By Katherine Sellgren BBC News education reporter Worsening shortages of skills may stop UK businesses from taking advantage of the economic recovery, research says. In a survey of 91,000 employers, the UK Commission for Employment and Skills found more than one in five vacancies were down to a poor skills base

3 FT headline, Sunday 30 March 2014 Sharp drop in training threatens UK economic recovery By Brian Groom, Business and Employment Editor FT The UK has suffered a drop in training four times greater than any other European country during the recession, leading to a skills deficiency that threatens to hold back the recovery, research will show this week.

4 Article in the Telegraph Friday 04 April 2014 Major companies warn engineering skills 'at risk' Business leaders at some of Britain's biggest engineering companies have warned the Government is compounding major skills shortages in the industry and hampering efforts to rebalance the economy following plans to downgrade technical qualifications. Industry heavyweights warn the UK will fail to ramp up its engineering capability unless the Government puts serious effort into developing appropriate technical training for young people.

5 FT article, Monday 30 June 2014 Growth fears surface as Germany faces shortage of skilled labour Germany is facing a severe labour market shortage, which could hit the country s growth rate from as early as Research by Boston Consulting Group suggests that Germany, the eurozone s largest economy, could experience a shortage of up to 2.4m workers by 2020, growing to 10m by 2030 as the labour supply shrinks from 43m people today to an estimated 37m.

6 Whitehaven News 14 th August 2014

7 We seem to be facing a bit of a skills shortage! Engineering UK report The State of Engineering said: over the next decade the UK will need approximately 87,000 engineers per year to meet demand, and that these people will need at least level 4 skills (i.e. HNC and above). In addition a further 1 million skilled and semiskilled operatives/technicians will be required.

8 NIA Timeline August 2014 Hinkley Point C Q Wylfa Newydd Q Moorside Q Sizewell C Q Oldbury Q3 2023

9 Impact of Impact of Moorside on total demand 1, year time to train an advanced apprentice First concrete mid % Operations staff in 2023

10 Engineering demand 600 Engineering - C&I Engineering - Civil & Structural Engineering - Commissioning Engineering - Construction Engineering - Electrical Engineering - Electrical and Inst. Engineering - Mechanical Engineering - Mechanical & Electrical & Non- Specific Engineering - Process Engineering - Ventilation Engineering- Architecture

11 It all adds up to the perfect storm!

12 Cumbria s demographics make the situation worse! By 2017 Conclusion: Cumbria s population will decrease by 1,400 persons - this is the only decrease amongst England s 33 numbers of residents aged 65+ will increase by 12,300 persons. By 2037 Cumbria s net population will decrease by 5,900 persons - the only decrease amongst English counties. Barrow-in- Furness, Copeland and Allerdale populations will decrease; the 2nd, 3rd and 4th greatest decreases of all authorities nationally A declining working age population may constrain counties. numbers future of 0-14 economic year olds growth by impacting on the availability will decrease by of 300 labour persons. and skill. This in turn may put numbers of year olds numbers of 0-14 year will decrease by pressure on business costs will decrease by 13,500 8,400 as firms persons; compete for staff in persons a decreasing. pool of labour which could affect economic output and investment decisions. numbers of year olds in Cumbria will decrease by 52,400 persons, the greatest decrease of all England s counties; numbers of residents aged 65+ will increase by 54,800 persons;

13 Conclusions We know the skills gaps and shortages are getting worse, both locally and nationally. The Labour Market Intelligence is, however, incomplete and appears to throw up some anomalies. The number of young people to entre the job market is declining, whilst the numbers of existing workers leaving through retirement is increasing. Insufficient numbers of young people are taking STEM subjects at school at both years 10 and 12. The current ability of the skills infrastructure in Energus is at full capacity.

14 Short term steps being taken to address skills shortages NDA funded Feasibility Study of Skills Provision and Infrastructure in West Cumbria supporting the Energy Sector being undertaken by Energus. The LEP has commissioned a Skills Plan for Cumbria through ekosgen to assess the true picture of skills demand across the county. The CoNE has established a Skills Sub Group to coordinate activity across the skills providers and develop schemes to increase capacity or fill gaps in provision. BECBC members leading engagement with local secondary schools.

15 Longer term we need to build upon the existing infrastructure