South West Observatory Skills and Learning Intelligence Module

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Young People in Employment Without Training

November 18th, 2005

Ben NeildSLIM

South West Observatory Skills and Learning Intelligence Module

www.swslim.org.uk

‘A one percentage point increase in the number of workers with higher education qualifications raises GDP by 0.5%.’Estelle Morris 23 May 2002

The more education you have….the less likely you are to be unemployed the healthier you will beyou will have better developed social values

It is socially and economically desirable to support continuing participation and qualification post-16

Policy Drivers

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Male earnings by highest qualification: f/t employees after 20 years

0 10 20 30 40 50 60 70 80 90 100

C&G other

Other qualifications

CSE/GCSE below C

Trade apprenticeship

C&G Craft

C&G Advanced Craft

1-4 O Levels/GCSE C+

SCE Higher

Nursing

OND/ONC BTEC Nat.

Diploma in HE

5+ O Levels/GCSE C+

1 A Level

Other higher qualification

Teaching

HND/HNC, BTEC Higher

2+ A Levels

Other degree

First degree

Higher degree

Percentage points relative to no qualifications

Source: Robinson (1997)

Source: Robinson 1997

South West Observatory Skills and Learning Intelligence Module

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OECD - Participation at age 17

n

10

20

30

40

50

60

70

80

90

100

South West Observatory Skills and Learning Intelligence Module

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Rates of participation in education and WBL at age 16

Full-time education

Work Based Learning

Part-time education

Education & WBL

England 66 8 5 79South West 68 8 5 81

BDP 68 9 4 81Devon & Cornwall 67 9 5 81Gloucestershire 69 8 4 81Somerset 69 9 4 82West of England 68 7 5 80Wiltshire & Swindon 70 7 4 81

Source: DfES, 2005 (2003 data)

South West Observatory Skills and Learning Intelligence Module

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Rates of participation in education and WBL

Full-time education

Work Based Learning

Part-time education

Education & WBL

Bath & NE Somerset 76 6 5 87Cornwall 68 9 6 84Dorset 70 10 4 84Somerset 69 9 4 82Gloucestershire 69 8 4 81Swindon 68 7 6 81Wiltshire 71 7 3 81Devon 67 9 4 80Plymouth 63 11 6 80North Somerset 68 6 6 80Poole 67 7 4 78Bristol 66 7 5 78Bournemouth 65 7 5 78South Gloucestershire 64 7 5 76Torbay 62 8 4 74

South West Observatory Skills and Learning Intelligence Module

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Destinations of 16 & 17 year olds

Education 75.20%Government Supported Training 6.60%Employment with no Training 9.10%Not settled (NEET) 5.90%Moved out of contact 1.90%No Response 1.00%Refused to Participate 0.10%Source: Moving On, Connexions 2004

South West Observatory Skills and Learning Intelligence Module

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% 17 year olds employed and not in education

Mexico 29.0 Italy 8.7

Turkey 24.2 Switzerland 8.0

Portugal 20.3 Sweden 7.0

United Kingdom 16.2 Greece 6.9

Iceland 14.8 Slovak Republic 5.8

Netherlands 14.7 Luxembourg 5.7

Ireland 13.6 Czech Republic 5.7

Australia 13.3 Germany 5.2

Austria 12.1 Finland 4.7

Norway 11.5 Hungary 4.5

Spain 11.0 Belgium 3.6

Canada 10.8 France 1.9

Denmark 8.9 Poland 1.0

Source: OECD, 2002

South West Observatory Skills and Learning Intelligence Module

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Movement into work without training doubles the chances of young people becoming NEET at 18, when compared to young people who had spent 2 years in work with training.

The risk of becoming NEET from work with no training was reduced either by movement at 17 into work with training or full time education.

Those in jobs with training were the most stable people, in terms of becoming NEET at 18  ‘Young people not in education, employment or training’

Report to DfES, Centre for Research in Social Policy, 2005

Employment w/out Training and NEETs

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A NEET dropping out of education at 16 will cost the taxpayers an average of £97k during their lifetime….

A single 157,000 strong cohort of 16 to 18 year old NEET would cost the country £15 billion by the time they died prematurely in 2060.

They are 22 times more likely to be teenage mothers; 50% more likely to suffer poor health; 60% more likely to be involved in drugs and 20 times more likely to become criminals. Sunday Times, March 2005

Cost of being NEET

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34% those with no qualifications are NEET17% those with Level 17% of those with Level 2 There are close associations with truancy and disaffection while in school.

Only 1% with 5 or more GCSEs at A* to C become NEET Those achieving fewer than 5 GCSEs made up 92% of NEETs  

‘Young people not in education, employment or training’

Report to DfES, Centre for Research in Social Policy, 2005

NEET & Learning

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More likely to be in work without training if you are white, less well qualified (but not unqualified), from poorer backgrounds

But 65% live in homes that are owned by parents or carers

70% say that their jobs are permanent

A significant proportion (46%) receive on-the-job training; a smaller proportion (about 12%) off-the-job training

Generally this training does not lead to qualifications

  Geoff Hayward, SKOPE, July 2005

Work w/out Training

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Five most common jobs

Sales AssistantsClerks, not otherwise specifiedCleaners and domesticsCounter hands and catering assistantsWaiters and waitresses Geoff Hayward, SKOPE, July 2005

Jobs without Training

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Financial rewards to work without training - wages higher than apprentices

EMAs encourage people to stay on in School

Child Benefit is only paid to age 19 if children continue in full time Education

Lack of quality apprenticeships

Parity between academic and vocational routes isn’t there yet in terms of Government policy, let alone public perception.  POLICY RESPONSES£80m new Negotiated Learning Agreement for 16 to 17 year olds – testing range of financial incentives to encourage employers and employees to take up Apprenticeships £60m pilot offering NEETs financial support in return for a commitment to return to formal learning / training in work

Financial Issues

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WBL is very poorly presented to young people in schools: It is seen as a poor relation to academic studies post 16, for the less able

There is limited understanding among teachers and tutors of the WBL landscape

There is widespread suspicion that WBL routes are not pushed by teachers in schools with sixth forms because they are seen as competitors to their own offer

Parents are seen as crucial influences but have little knowledge of the learning routes and so little confidence in advising young people  

Other Issues

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Campaign to promote work-based learning (are issues of image etc) to young people

The poor image of WBL deters young people from pursuing opportunities that exist.

Campaign to promote benefits of WBL to employers

Need more apprenticeship opportunities (working with employers)Use skills Brokerage model to raise employer awareness of the role of WBL (apprenticeships)

Need to reduce inequalities in pay between training allowances and higher wages

    

Responses

South West Observatory Skills and Learning Intelligence Module

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Improve opportunities for work experience in Schools, helping young people to make informed choices

Improve our knowledge and understanding of the cohort, their backgrounds, work experience, decision making, destinations, wages and outcomes Identify young people at risk of disengagement and provide additional support  Families exert huge influence. Is a need for Connexions to work with teachers and parents to raise awareness, understanding (and esteem) of WBL routes and opportunities

Ensure effective collaboration between Brokers and Connexions  

Responses