DC-EM Doc 2 MINISTER FOR WELSH LANGUAGE AND LIFELONG LEARNING

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1 MINISTER FOR WELSH LANGUAGE AND LIFELONG LEARNING KEYNOTE SPEECH AT THE LEARNING AND WORK INSTITUTE, WELSH EMPLOYABILITY AND SKILLS CONVENTION 6 DECEMBER 2017, SWALEC STADIUM SPEAKING NOTE Welcome/Croeso Bore da a chroeso. Diolch am y gwahoddiad. Thank the chair for the welcome and introductions. Thank the Learning and Work Institute for the invitation. Delighted to address the forum in my new role as Minister for Welsh Language and Lifelong Learning. Can I start by saying how excited I am about this brief, and to underline my commitment to delivering a strong employability and skills agenda? I am particularly pleased that we are going to making a much more concerted effort to work Cross-Welsh Government and cross-departmentally in order to make a real difference to people s lives. Introduction Whilst the future of our country and place in the world has never been more unclear, the good news is that we gather at a time when Welsh unemployment levels are lower than in any other part of the UK. But, the impact of a bad BREXIT on Wales can t be overstated. There are some significant challenges for Wales as we look ahead. We mustn t forget that Brexit is just one of the challenges ahead, but changes to the way we work.. the implications of automation, the end of jobs for life, the ageing 1

2 population, the shift to self-employment means, that we need to rethink our current attitudes and ways of working fundamentally and adapt our training provision so it s genuinely about Lifelong Learning. In September the Welsh Government published Prosperity for All: our national strategy. This forms the backbone of all policy development. Its aim is to make a real difference to people s lives as well as responding to the Wellbeing of Future Generations Act. We have recognised that, in order to support long-term prosperity, we need to do things differently and, quite possibly, to do different things. As a part of our National Strategy, we have identified Skills and Employability as of one of our key priorities. Today I want to focus on three key areas: Skills for Inclusive Growth Working Wales - helping people into work Skills for the future Skills for Inclusive Growth We know that increasing productivity and competitiveness are central to our economic future. Having high quality skills, supporting cities and regions as the engines of growth, but having a distinct approach in rural areas, in addition to ensuring the right digital and transport infrastructure will all help in achieving this goal. Getting the correct building blocks in place is fundamental to success in this area. 2

3 Over the past decade we have seen a steady increase in the number of adults with qualifications at Level 3 and above. But we need to go further, so that we build the high skilled and productive workforce of the future. This, not only means addressing the supply of skills into the workforce from schools, colleges, work-based learning and Universities, but it also means looking differently at how we engage and work with employers so that they invest in skills. We must of course consider the challenges of Brexit. Brexit will impact on all aspects of our skills and employability policy. We need to be clear of the impact of BREXIT on the funding availability and support for training in Wales. Over 200,000 people have received training thanks to EU funding. That will come to an end in (check) So I am pleased that, as the Welsh Government, we have been proactive in our response to Brexit. Just this month, the First Minister signed the "Cardiff Declaration" which calls on the European Commission to "open the possibility for the UK devolved administrations to participate directly in future EU programmes and co-operation" in the event of a no-deal scenario, but let s be clear, whilst that might keep the possibility open to us still participating the Research Programmes like Horizon 2020, after all if Israel can be a part of it, why can t we? But we cannot replace the ESF funding that we have come to depend on in the training area in Wales via the EU. We will therefore continue to put pressure the UK Government to make sure that they make good on the promises made in the referendum, that Wales will not lose out when we leave the EU and ensure that we are central to any new regional approach developed within the UK. I believe (unlike some in the UK Government) that we need to listen to experts and our key stakeholders, especially those on the front line. So I am very open to speaking and engaging with stakeholders and businesses across Wales so that they can advise on, and challenge our plans and priorities for the future. 3

4 One area where the Welsh Government has consulted upon recently is the reform to post-compulsory education and training in Wales. This consultation ended last month and focuses on the plans for a new authority to oversee skills, the higher and further education sectors in Wales and funding for research. (Hazelkorn review) We are now in the process of analysing those responses and we will be issuing a technical consultation early in the new year. Yet another example of where we are working closely and constructively with business is our work with the three Regional Skills Partnerships (RSPs) who have recently published their Regional Employment and Skills Plans for These regional plans will drive our future skills investment in order to steer provision towards the skills that employers need in each region. The partnership between Government, employers and our institutions across Wales is key to ensure that we offer people quality training that is relevant. We are also continuing to invest in learning while at work and have set an ambitious target of at least 100,000 all-age Apprenticeships over the current Assembly term. Our plans include giving a stronger focus to the higher level learning that employers require - specifically Higher Apprenticeships and Degree Apprenticeships. We will also continue to work to break the silos which exist between vocational and academic routes into high skilled occupations. This will be a key priority for me as Minister. But it s not just highly qualified people we need to develop. Our GDP in Wales will remain stubbornly low as long as we have large numbers of people who are economically inactive. Working Wales- helping people into work The Welsh Government clearly has a key role in supporting the employability of people across Wales, and we should be proud of the fact that we have seen significant improvements in the employment rate in Wales over recent years. 4

5 But we still have work to do to support those who are economically inactive, and those in insecure employment. We need to provide the support, training and good quality jobs they need in order to develop and provide for themselves and the people they care for. Employability is not just about jobs and skills. It is about getting every aspect of Government policy education, health, housing and communities working together to support people into sustainable jobs. So we have established a Ministerial Employability Working Group. This Group will ensure that each of these policy areas is working together to improve how we support people into sustainable employment and I believe it could make a difference to thousands of people s lives. The Programme of Government -Prosperity for All committed the government to providing tailored community outreach for those furthest from the labour market. Our programmes, Communities for Work; Parents, Childcare and Employment (PaCE); and Communities for Work Plus provide this outreach and we will ensure they are fully integrated in a joined-up approach to supporting people into employment. But we need to go further it s not just a tailored community approach we need to provide, but a tailored individual approach. Some of those furthest from the jobs market need delicate hand holding to build confidence, remove barriers and sensitive support, and we are already streamlining and reconfiguring our current employability supportfocused on the needs of the individual. We need to raise the aspirations and understanding of individuals to believe in themselves and to fulfil their potential. I was brought up in Ely, a suburb in Cardiff and we had an open house. Every day a couple of lads from the community used to come in for breakfast every morning before heading off for school. They were really bright lads. One day the cleverest of them came and boasted, that today was his last day in school. It was weeks before his 5

6 O levels. My mother said, yes but you ll be going back to sit your exams. I can honestly say that the thought had not even crossed his mind. He had a job lined up with his father and he was out of there! My mother begged him to discuss this with his father, and he came back announcing that his father had told him that exams are not for the likes of us. I think that culture has changed a bit today, but raising people s aspirations is central to what we need to achieve. Prosperity for All also committed the government to improve health outcomes by ensuring that employers, health services and employment services, work together more effectively, including supporting employees who are at risk of long-term sickness to stay in work. Our In-Work scheme will provide this support. I will elaborate further on these areas in the new year when we will publish an Employability Delivery Plan with a specific programme attached to it - Working Wales which will begin delivery from April Working Wales: Will replace our current suite of employability skills programmes with an employability programme that focuses on the individual; It Will identify and address barriers to employment; It Will provide a range of support that moves people into sustainable, quality employment And it Will be flexible to meet the specific needs of individuals, regions and the prevailing labour market. I am keen to engage closely with you on how we best align our Working Wales offer with the excellent work that many of you are already doing across Wales to help individuals back into the labour market. I am delighted that my officials will be getting that feedback directly from you during breakout sessions today. In May, the Fair Work Board was established to define the scope of Fair Work and identify key practices that impact on this work. 6

7 This is a hugely important agenda. We must lead by example, and ensure that Working Wales aligns with policy emerging from the Fair Work Board. Working with employers is critical to the success of Working Wales. The Wales Employment and Skills Board has already discussed our employability approach, and I look forward to engaging with the Board which allows employers, unions and Regional Skills Partnerships to continue to provide strategic direction and challenge. Again we will be listening to the experts. Integral to the success of Working Wales will be the introduction of a new Employment Advice Gateway. This will be a gateway to employability and skills support. It will provide independent advice and guidance as well as referral to the right support, and I am pleased that Careers Wales has been instrumental in helping us to develop this system. My primary focus, however, is on what is happening on the ground today, next month and next year. I am not prepared to sacrifice people struggling to find a job today in order to prepare an ideal new structure for the people looking for a job in the future. During the transition period between now and the introduction of Working Wales I am glad to say that we are running pilots within the Valleys Taskforce Area as part of our strong employability and skills response to the Valleys Task Force. The Access programme provides enhanced employability support for job ready individuals, - this is already underway and I look forward to seeing its impact. Better Jobs Closer to Home pilots are aligning a range of commercial pilots with other interventions to support the creation of meaningful employment in communities with high levels of joblessness. 7

8 So, as well as responding effectively to the Valleys Task Force, this gives us an excellent opportunity to test our employability approach, and to use the evidence to inform our Working Wales programme. Skills for the Future In looking at skills for the future, evidence tells us that we need to foster the development of transferable skills that are difficult to automate, such as creativity and critical thinking competencies, alongside skills for the digital economy, technical skills, and in STEM subjects -Science, Technology, Engineering and Mathematics. We need to help people develop the skills they will need to take advantage of automation and a de-carbonised world. Mark Carney the Governor of the Bank of England recently warned that more than 15 million jobs in Britain could be automated within the next twenty years. 1 It is a terrifying prospect, but we must prepare. The average person in future is expected to have to change jobs 12 times in their lifetime, so we need to get ready through preparing people and organisations for change in the future by helping them to get and maintain the skills they will need. 2 Another emerging pattern is a shift to self-employment. It is estimated that in the US by 2020 more than 40% of the US workforce will be so called contingent workers. That s more than 60 million people, and where the US goes very often the UK follows. There has already been a significant increase in the UK and we need to think through what we can do to support these new forms of work. 3 For example we must continue to help people in rural communities to deal with possible changes to agriculture policy after Brexit by giving them access to superfast and ultrafast broadband and 4G so they can take part in the growing digitisation and computerisation of business

9 We need to ensure that we equip our future workforce with the skills for a low carbon economy. As a Government, we are committed to reducing our emissions and benefitting from the transition to a low carbon economy. We must also consider the skills needed by an ageing population with more people combining work with caring responsibilities. We will continue to challenge employer attitudes and encourage employers and individuals to think differently about working into their later years. I will be encouraging the Regional Skills Partnerships to continue to map out the skills we need in the next 5-10 years and beyond in each region - it is even more vital, with Brexit, that we plan a strong employability and skills agenda for Wales for the future. Closing Remarks In closing, thank the Learning and Work Institute for the opportunity to speak today and their commitment to the employability and skills agenda. Hope you all have an excellent and productive Conference. Diolch am y cyfle i siarad. 9