Lutons Labour Market: Facts, Figures and the Future TBRs Skills and - - PowerPoint PPT Presentation

Luton’s Labour Market: Facts, Figures and the Future

TBR’s Skills and Labour Market Team: Jonathan Guest, Research Consultant Michael Johnson, Senior Research Consultant 15/10/2012

Structure

• Introduction
• Luton’s economy & key sectors
• Luton’s labour market and trends
• Skills supply & demand
• Skills gaps and shortages
• Young people in Luton
• Luton’s Future: the workforce & economy of

tomorrow

• Questions

Introduction

• TBR – Skills and Economic Development

Consultancy

• Remit: Develop up to date evidence for LBC

particularly:

– Data to understand and monitor skills & employment

in the local area, now and in the future.

– Data that will support the interpretation of indicators

and stimulate discussion.

• Comparison Areas (Coventry, Blackburn,

Bradford, Oldham, East of England and England)

• Methodology

Luton’s Economy

• What is the current situation?
• Dominance of service industries
• Decline of manufacturing
• Rise of banking, finance & insurance
• Enterprise in Luton

– Strong in new firm formation

Key Sectors

• Airport & Aerospace, Engineering & Automotive, ICT and Electronics

(and Software) & Creative Industries

Source: TCR 2012 - TBR Ref: W3/C1

Total number of Firms & Employment

4,650 6,120 2,810 4,470 360 520 360 70 100 200 300 400 500 600 1,000 2,000 3,000 4,000 5,000 6,000 7,000 ICT & Electronics Automotive & Engineering Creative Industries Airport & Aerospace Employment Firms

Labour Market Trends in Luton

• Unemployment rate in Luton is 10.3%, which is above

the unemployment rate in England (8.2%)

• The economic inactivity rate in Luton has crept up since

2004 by almost 4 percentage points (6.4% to 10.3%).

• Causes:

– Individuals being students (32%) – Looking after family/home (36%).

• Unlike other areas, long-term sick does not drive

economic inactivity in Luton (13.4% compared with 21.2% in England).

Luton’s Labour Market

• Luton’s population:

199,200

• Working Age Population:

130,500

• Compared to England, there is a smaller proportion of

Luton’s working-age population with:

– NQF level 2 qualifications or above (62.8% in Luton to 72.7% in

England)

– NQF level 3 qualifications or above (42.1% to 52.7%) – NQF level 4 qualifications or above (24.8% to 33.5%)

• Proportion of working age without a qualification in

Luton (15.67%) is much higher than England average (9.9%).

Skill Supply

• Approximately 6,500 people from Luton attended University in

2010/11 – many in London and the East of England.

• The University of Bedfordshire has over 20,000 students studying in

2010/11.

• Three main Further Education providers (Barnfield College, Luton

Sixth Form College, etc) maintained the volume of successfully completed programmes by those aged 19 or over between 2005/6 and 2010/11.

• Starts of apprenticeships increased since 2005 but still lower than

the comparator areas.

• According to past business surveys, few companies have linkages

with local universities.

Skills Profile

No Qualification

27.7% 29.3% 35.5% 29.8% 25.6% 36.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Luton Oldham Coventry Blackburn Bradford England

11.7% 10.2% 9.0% 9.4% 10.0% 6.7%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Luton Oldham Coventry Blackburn Bradford England

Level 4 and above

APS 2010 - TBR ref: C15 & C15.1

Skill Demand

• Hard-to-fill vacancies are most likely to have been

experienced by firms in:

– Manufacturing (12%) – Accommodation & food services (31%).

• Roles include:

– Sales Assistants and Retail Cashiers – Other Elementary Service Occupations – Information Technology and Telecommunication – Engineering Professionals

• Reasons include: lack of applicants with the required skills

and applicants lacking the qualifications the company demands

Skills Demand

Occupation by SOC Vacancies Notified Occupations Sought

7111 : Sales and retail assistants 37

2,090

9149 : Other goods handling and storage occupations n.e.c. 52

710

4150 : General office assistants/clerks 13

515

9134 : Packers, bottlers, canners, fillers

275

8212 : Van drivers 43 240 9233 : Cleaners, domestics 38 210 6115 : Care assistants and home carers 153 195 7212 : Customer care occupations 46 165 9121 : Labourers in building and woodworking trades 52 140 9223 : Kitchen and catering assistants 25 130

August 2012 – Top 10 Vacancies Occupations Sought (and Vacancies Notified)

JCP (2012) TBR: W1

Skills Gaps & Shortages

Supply & Demand Uncovering Employer Needs Unemployed Gaps and Shortages

Skills Mismatch

Skills Gaps & Shortages

• Technical, practical or job specific skills:

– e.g. Engineering and technician skills, job specific but

also linked to STEM skills.

• Sales and marketing

– e.g. Numeracy & Literacy - soft skills (listening,

language)

• Customer service skills & communication skills:

– e.g. Soft skills, team working, customer service.

• Knowledge of English among non-native speakers

Employment & Young People

• NEETs – Rise between 2010 and 2011 of 26%.

– Luton’s proportion of NEETs (7.4%) is higher than the

regional (6%) and national average (6.1%).

• GCSEs

– Slightly higher proportion of pupils getting 5 A* -C grades

than national average.

• Apprenticeships

– In 2012, 7% of businesses employed apprentices.

Sector Enrolments – Higher Level Enrolments – Lower Level Science, Engineering & Manufacturing Technologies 60 20 Business Information Technology & Telecommunication 150 20 Building Services Engineering 120 20 Customer Service & Contact Centre 30 140

Total

1,110 880

JCP (2012) TBR: W1:S14.4

Apprenticeship Enrolments in Luton 2012

Future prospects

• Forecasts for 2012, 2017, 2022, 2027 and 2032:

– Sector forecasts – Occupation forecasts – Skills forecasts

• Methodology & Data:

– APS, Working Futures, EEFM.

Luton’s Future: The workforce & economy of tomorrow

TBR 2012 - TBR Ref: W2/C5

Luton’s Future: The workforce & economy of tomorrow

TBR 2012 - TBR Ref: W2/C7

Luton’s Future: The workforce & economy of tomorrow

TBR 2012 - TBR Ref: W2/C6

Future prospects – Assets

• University & FE Colleges
• Growth industries and hubs for hi-tech industries at Butterfield

Business Park and aerospace focusing around the Airport

• Regeneration (The Mall, St George’s Square and Railway Station)
• Transport links including rail and road networks
• Carnival Arts Centre

Questions

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Question 1

• Which of the following issues most inhibits the

skills system from delivering better outcomes?

• A. Lack of employer commitment to training
• B. Information, advice and guidance available to

individuals is inadequate

• C. Inflexibility of public funding mechanisms
• D. Quality of the training available too often failing to

meet the required standard

Question 2

• Which sector will do most to drive future

economic growth in Luton?

• A. Airport & Aerospace
• B. Automotive & Engineering
• C. Creative Industries
• D. ICT and Electronics (and software)

Question 3

• What is the biggest challenge facing Luton’s

labour market?

• A. Low aspirations of those seeking employment
• B. Long-term unemployment restricting the supply of

work-ready residents

• C. Depressed economic conditions leading to employers

not hiring

• D. Lack of alignment between supply of training and

demand for skills

• E. National welfare arrangements providing insufficient

incentive to work

Question 4

• Which of these assets should Luton showcase as

its primary economic competitive advantage?

• A. Transport connectivity
• B. Education institutions
• C. Quality of life
• D. Skilled workforce
• E. Communications infrastructure

F . Value for money (in terms of costs of office space, relative wages rates etc.)

Question 5

• What area of skills development should Luton

prioritise?

• A. Basic skills provision, to ensure that everyone

seeking work meets basic literacy and numeracy standards

• B. Expansion of apprenticeship opportunities, to offer

young people the chance to develop practical skills

• C. Developing programmes to attract and retain people

with high level skills

• D. Encouraging lifelong learning to refresh the skills

base of the entire adult population