79% of businesses expect to increase the number of higher-skilled roles over the coming years, yet 66% fear that there will be a lack of sufficiently skilled people to fill vacancies. That’s according to the 2018 CBI Education and Skills Annual Report, in partnership with Pearson.
Read the full CBI Education and skills annual report
The report represents 28,000 businesses and reveals that 85% of firms are expecting to maintain or increase investment in training in their workforce. Currently UK employers spend £44.2 billion on training expenditure each year.
When asked about the impact of the apprenticeship levy, the report highlighted a drop in the number of firms offering apprenticeship programmes (from 83% in 2017 to 70% in 2018). Worryingly, 59% of those firms that offer such programmes have experienced difficulty in recruiting apprentices or expect to do so in the next three years. And over a quarter (26%) have taken the decision to absorb the levy as an added cost of doing business.
Business engagement with young people in education reduced from 81% in 2017 to 75% in 2018. Encouragingly, two-thirds of respondents (65%) want to play a greater role in supporting schools and colleges.
John Cope, CBI head of education and skills policy, said: “This year’s survey shows the scale of the challenge to address skills gaps, with two-thirds of businesses deeply worried that there aren’t enough sufficiently skilled people to fill vacancies.
“Yet there’s room for optimism. The vast majority of firms do expect to maintain or even increase their investment in staff training, as well as increase the number of higher-skilled roles over the coming years. This is the first time since 2014 that these numbers have been so positive.
“Policymakers, business, the education sector and the CBI all have their role to play, in helping the two-thirds of companies wanting to support schools and colleges.”
Rod Bristow, Pearson’s president, UK and Core Markets, said: “It is impossible to ignore the primary trend in this report - the gap between what is learned in schools, colleges and universities and what is valued by employers. Qualifications are one part of the mix, as indicators of achievement and ability, but nurturing the right attitudes, behaviours and skills as young people progress through the education system is just as important.”
Firms look forward to working with the Government in the lead up to the Spending Review to agree how the apprenticeship levy can evolve into a more flexible ‘skills levy’.
Key apprenticeship levy survey findings:
The apprenticeship levy must be reformed to include:
“But the end goal remains that the apprenticeship levy should evolve into a more accessible skills levy.”
Mr Bristow said: “We believe that the 16-19 phase should continue to offer young people three quality educational pathways – a purely academic curriculum through the A-Level, a broad career-focussed route through the Applied General, and specialised options that allow students to prepare for a particular occupation through the incoming T-level system. This gives young people a range of options to enable them to go to university, start an apprenticeship or enter skilled employment.”
Survey results show:
“This new evidence shows that while there is no lack of enthusiasm from business, too many still struggle to engage. The CBI will continue working with the Careers and Enterprise Company to help bridge this gap.
“As well as inspiring and providing careers advice, employers can help make sure the curriculum and education prepare young people for work and the modern world.”
Mr Bristow said: “Businesses must engage with young people and open up their doors to give them an insight into the world of work and the different career paths available. It is also vital that education becomes more attuned to the future world of work and skills and becomes more demand-driven.
“It’s disappointing to see progress stalling in this area and we advocate for a renewed focus on engagement from both sides - be this through formal apprenticeship programmes or through other means such as industry workshops, learning days, short courses or work experience.”
Survey findings show:
“Universities and Colleges need to play a critical role in responding to the changing world of work by offering education and flexible training for learners from a variety of backgrounds and circumstances.”
Mr Bristow said: “There is a gap in understanding of the range of options post-18. The traditional three-year undergraduate degree isn’t the only option, and the Government needs to promote greater awareness of all higher education options, so that the full range of choices are understood by young people.”
Survey findings show:
“The Government, the CBI and the TUC have an unmissable opportunity through the National Retraining Partnership to address this.”
Mr Bristow said: “Our nation’s future workforce will need to be ‘always learning’ and to respond and adapt to a dynamic labour market, so it’s encouraging to see that businesses are recognising this and investing more in training and upskilling their employees.”
CBI www.cbi.org.uk