Skills and qualifications

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1 Oxfordshire Labour Market Information Issue 4: Spring 2016 Skills and qualifications Produced by the Oxfordshire Local Enterprise Partnership Contact:

2 Number of jobs % Working Oxfordshire in Oxfordshire Labour Market Information Introduction Oxfordshire has a highly skilled, well-qualified workforce and is well placed for the future growth predicted in high-skill occupations While Oxfordshire is a highly qualified and highly skilled workforce, there are occupation types and sectors where shortage of skills are and will continue to be a challenge for employers in the region, as employers struggle to find suitably skilled workers including those with specialist knowledge. This section of the LMI bulletin looks at skills and qualification related areas of the labour market and shows where skills gaps are and will be. 59% of Oxfordshire residents are in the high-skilled 1 occupations well above the national average (44%) High-skill Middle-skill Service-intensive Labour-intensive Oxfordshire England Not only does Oxfordshire have a highly-skilled workforce, the largest numbers of job vacancies posted online are for high-skilled jobs ,147 Source: Labour Insight, Burning Glass Technologies Occupational structure, 2015 Skill level of job postings, Q ,582 5,548 1,302 High-skill Middle-skill Service-intensive Labour-intensive 1 High-skill occupations include Managers, Directors, Senior Officials; Professional and Technical; Associate Professional. Middle-skilled are Admin and Secretarial and Skilled Trades. Service-Intensive occupations are Caring, Leisure; Sales and Customer Services and Labour-Intensive are Process Plant and Machine Operatives; Elementary roles. Skills and Qualifications: Working in Oxfordshire 1

3 % of job postings in Oxfordshire by sector and skill level, Q Agriculture, Education, Engineering, Health, ICT and Science Professionals are sectors that advertised most for high-skill jobs at the end of Care, Office Admin, Elementary, Retail and Transport and Logistics are all areas that required more service-intensive jobs. Skill level definitions are shown overleaf. Sector High-skill Middleskill Serviceintensive Labourintensive Agriculture and animal care 64% - 36% - Care, social work, young people, community 17% 28% 54% - Cleaning, caretaking, security % 82% Construction 25% 40% 6% 30% Education and training 56% 21% 22% - Engineering 68% 32% - - Health 88% 8% 4% - ICT 86% 14% - - Legal, financial, property, other business 42% 49% 9% - Office Admin % 2% Other Elementary and operatives % 26% Other skilled trades - 100% - - Protective services - 100% - - Recreation, culture, sports, media 8% 68% 2% 22% Retail 27% 22% 51% - Science Professionals 87% 13% - - Transport/logistics, warehousing, storage 6% 24% 51% 19% Total 44% 30% 22% 5% Source: Labour Insight, Burning Glass Technologies Did you know? The skill level of an occupation has a correlation with salary. Commonly, the more skill and responsibility in the role, the higher the salary. Job adverts posted quarter 4, 2015 show average starting salaries for each level: 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Source: Labour Insight, Burning Glass Technologies Skills and Qualifications: Working in Oxfordshire 2

4 ONS Skill level definitions Skill Level Usual Education/Training Competence Typical occupations High-skill A significant amount of knowledge and experience of the production processes and service requirements associated with the efficient functioning of organisations and businesses. Or a degree or equivalent qualification, with some occupations requiring postgraduate qualifications and/or a formal period of experience-related training. Or an associated high-level vocational qualification, often involving a substantial period of full-time training or further study. Some additional task-related training is usually provided through a formal period of induction. Managers, directors, senior officials and professional and associate professional occupations Middle-skill A good standard of general education. Certain occupations will require further additional vocational training to a well-defined standard (e.g. office skills). Or a substantial period of training, often provided by means of a work based training programme. Administrations and skilled trades Serviceintensive Labourintensive A good standard of general education. Certain occupations will require further additional vocational training, often provided by means of a work-based training programme. Or a general education and a programme of work-based training related to sales procedures. Some occupations require additional specific technical knowledge but are included in this major group because the primary task involves selling. The knowledge and experience necessary to operate vehicles and other stationary machinery, to operate and monitor industrial plant and equipment, to assemble products from component parts according to strict rules and procedures and subject assembled parts to routine tests. Most occupations will specify a minimum standard of competence and will have a related period of formal training. Or occupations classified at this level will usually require a minimum general level of education (i.e. that which is acquired by the end of the period of compulsory education). Some occupations at this level will also have short periods of work-related training in areas such as health and safety, food hygiene, and customer service requirements. Caring, leisure, sales and customer and other services Process, plant and machine operatives and elementary occupations: Postal workers, hotel porters, cleaners and catering assistants. Skills and Qualifications: Working in Oxfordshire 3

5 % pupils % pupils Working Oxfordshire in Oxfordshire Labour Market Information Current qualifications 5 A*-C grades including English and mathematics GCSE On average, 59.7% of pupils 2 gained 5+ A*-C GCSEs in While results for the county have improved recently, and are now ahead of the England average (53.8%), Oxfordshire still falls behind other South East counties coming 46 out of 152 local authorities. For example, in Buckinghamshire, 68.9% of pupils achieved 5 A*-C grades in In Berkshire this was 63% / / / / / /15 3 Source: Department of Education SFR01/2016 GCSE and equivalent results in England, 2014/15 England South East Oxfordshire The future looks bright. Children continue to make good progress in English and mathematics between Key Stage 2 and Key Stage 4 in Oxfordshire, above both regional and national averages in % if pupils making expected progress in English and mathematics between KS2 and KS4 English Maths / / / / / /15 Source: Department of Education SFR01/2016 GCSE and equivalent results in England, 2014/15 2 Data is for students who took GCSEs and those in state funded schools only. 3 State funded schools only Skills and Qualifications: Working in Oxfordshire 4

6 Destinations 4 KS4 and KS Destinations of Years 11 to 13 Year 11 Year 12 Year 13 Education - School Sixth Form 46.0% 40.1% 5.7% Further Education 38.8% 34.8% 22.0% Education - Sixth Form College 6.5% 6.4% 1.6% Higher Education 24.7% Apprenticeships 4.1% 7.4% 11.0% Employment 0.8% 4.8% 19.2% Current Situation not known 1.4% 1.8% 5.0% NEET Seeking 1.3% 2.3% 4.2% Gap Year 3.1% Other 1.1% 2.4% 3.3% Source: Children, Education and Family, OCC, 2015 Did you know? You can leave school on the last Friday in June if you ll be 16 by the end of the summer holidays. At the end of year 11 in 2015, over 90% of young people stayed in learning. School sixth form is most popular at this stage. Students have a duty to stay in learning until their 18 th birthday and 54% continue to do so beyond this, with just shy of a half of these going to University. About a fifth of the whole cohort went into employment. The blocks below show the sectors they were employed in: Employment destinations of Year 13 leavers who entered employment, % 90% 80% 70% 60% 50% Agriculture 3% Catering 3% Vehicle Trades 4% Engineering 4% Child care 5% Hairdressing 5% Other personal services 5% Health 5% Construction 7% Clerical 9% You must then do one of the following until you re 18: stay in full-time education, e.g. at a college start an apprenticeship or traineeship work or volunteer (for 20 hours or more a week) while in part-time education or training 40% 30% 20% 10% Unknown 20% Retail and Sales 23% 4 State funded schools only 0% Source: Children, Education and Families, Oxfordshire County Council, 2015 Skills and Qualifications: Working in Oxfordshire 5

7 Number of jobs Working Oxfordshire in Oxfordshire Labour Market Information Future Qualifications The Working Futures project predicts 180,000 jobs available through net job growth and replacement demand. What are QCF (Qualification and Credit Framework) levels? 57% of future jobs are predicted to require higher level qualifications with around 189,000 jobs at levels 4-6, 48,000 at level 7 and 7,000 at level 8. 44% of jobs required level 4 and above in 2014 and 49% of year olds resident in Oxfordshire were qualified to at least level 4 5. This has risen to 52% in , , ,000 80,000 60,000 40,000 20,000 0 Expansion and replacement demand by qualification level Source: UKCES Working Futures ONS Annual Population Survey, 2014 Source: Skills and Qualifications: Working in Oxfordshire 6

8 Skills: What skills are required for current jobs? Skills necessary to fulfil job vacancy requirements can be defined as hard and soft. Hard skills refer to the specific knowledge and technical skills set that are often obtained through a period of study or learning. The word cloud shows some of the common hard skill requirements in Oxfordshire based on an analysis of a range of current job vacancies. Hard skills required by employers for job postings, 4 th quarter 2015, Oxfordshire 6 Did you know? 26% of hard-to-fill vacancies are in Professionals roles. 16% are in skilled trade occupations like Plumbers, Electricians, Chefs, Technicians and Mechanics and Caring occupations. Machine operatives are also sought after. Source: Employer Skills Survey, 2015 Source: Labour Insight, Burning Glass Technologies 6 The size of the skill recorded is proportionate to the number of job postings that require that skill Skills and Qualifications: Working in Oxfordshire 7

9 Soft skills, also known as employability skills refers to the personal attitudes and behaviours required in the workplace. Soft skills are reckoned to be worth over 88 billion in Gross Value Added to the UK economy each year, underpinning around 6.5% of the economy as a whole 7. Lacking these skills can not only hold people back but can cause major problems for business and result in diminished productivity, competitiveness and profitability. Furthermore, the UK Commission for Employment and Skills identifies that soft skills are associated with between 33%-40% of all reported skills-shortage vacancies. 8 Soft skills required by employers for job postings, 4 th quarter 2015, Oxfordshire Five times as many job vacancy postings in Oxfordshire ask for communication skills above all else. Planning, customer service, writing and being detail-oriented also feature highly. Every employer rates a positive attitude as an important asset to have. 9 Did you know? A fifth 0f Oxfordshire employers said a poor attitude /personality or lack of motivation was the skill most lacking among 16 and year old school leavers recruited in the last 2-3 years. Source: Labour Insight, Burning Glass Technologies Only 6% of employers felt this about FE college leavers, and 2% for University leavers. UKCES ESS The Value of Soft Skills to the UK economy report, January 2015, p.3 %20of%20Soft%20Skills%20to%20the%20UK%2 0Economy.pdf 8 The Value of Soft Skills to the UK economy report, January 2015, p.10 %20of%20Soft%20Skills%20to%20the%20UK%2 0Economy.pdf 9 What Employers want report, p.4, content/uploads/2014/10/what-employers-want- FINAL.pdf, [Accessed 16 July 2015] Skills and Qualifications: Working in Oxfordshire 8

10 Skills Clusters 1 in 5 employees say they struggle to sell their soft skills - yet 97% of businesses say soft skills are vital to the success of their business. While soft skills can cover a huge range of attitudes and abilities six key skill clusters have been identified: The Value of soft skills to the UK economy, January 2015 Skills and Qualifications: Working in Oxfordshire 9

11 What skills shortages or gaps are there? In Oxfordshire there are both skills shortage vacancies, and skills gaps. Did you know? A skills shortage is where a business fails to recruit due to applicants not having the right skills or work experience. Employers state this is due to a number of factors, not least changes to the structure of the economy with more jobs becoming higher skilled and the advances in technology causing jobs to change rapidly. Skills shortages are important to the careers agenda because if companies are unable to recruit then they can t function properly and grow and this can result in less output. Nearly 4 in 10 vacancies are deemed hard-to-fill and most of these are due to skills shortages 10. This is above national average. The main reason given for not filling the role is a low number of applicants with the required skills and skills shortages hit the skilled trade occupations hardest. In Oxfordshire, the impacts of skills shortage vacancies are: Increase in workload for other staff (90% of establishments 11 said this) Difficulties in meeting customer service objectives (54%) Experiencing increased operating costs (54%) Delay in developing new products or services (42%) Difficulties introducing new working practices (40%) Difficulty meeting quality standards (40%) 10 UKCES Employer Skills Survey, An establishment has 2 or more employees Skills and Qualifications: Working in Oxfordshire 10

12 Did you know? A skills gap is defined as when an employee does not have the right skills to be fully proficient in their role. The top 5 reasons for skills gaps in Oxfordshire are: New to the role (72% of establishments said this) Training only partially completed (64%) Training completed but performance not improved (34%) Staff lack motivation (33%) They have not received the appropriate training (29%) Skills shortages and gaps are concerning for employers nationwide. A recent education and skills survey conducted jointly by CBI and Pearson education 13 has determined: 16% of Oxfordshire establishments have staff that are not fully proficient in their role 12 and this is most prominent in administrative and professional occupations. Over two-thirds of establishments say this has an impact on how the establishment performs. Demand for more people with higher-level skills is expected to be particularly strong in sectors central to growth such as construction (+73%), manufacturing (+69%) and engineering, science and hi-tech (+52%) 55% of business are not confident there will be enough people available in the future with the necessary skills to fill their high-skilled jobs There are currently widespread difficulties in recruiting people with STEM skills at every level, from new entrants to train as apprentices (20%) to people with more than five years experience of STEM related work (32%) 52% of businesses expect to see a shortfall in experienced STEM-skilled staff While most businesses view the overall skill levels of their present workforces as satisfactory or good, half of businesses report they are aware of problems among at least some of their employees in basic literacy (50%), numeracy (50%) and IT skills (46%). 12 UKCES Employer Skills Survey, Inspiring growth: CBI/Pearson education and skills survey 2015, Chapter 3, p.18 Skills and Qualifications: Working in Oxfordshire 11

13 60% GCSE pupils who achieved A*-C grades (including English and mathematics) 46% 54% Year 13 leavers that continue learning 57% Future jobs that will require at least a level 4 (HNC) qualification and above 59% Workforce in high-skilled occupations 52% Current working age population qualified to at least level 4 (HNC) Job vacancy postings that asked candidates for communication skills 24% Vacancies that are hard to fill due to skill shortages Skills and Qualifications: Working in Oxfordshire 12

Skills and qualifications

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