The People Bulletin

Employers need more incentives to offer apprenticeships

The launch of the National Apprenticeship Service in April 2009[1] has been one of the reasons for the increased popularity of apprenticeship schemes.  However, youth unemployment, a shortage of university places and government’s determination that every school-leaver will have some sort of job, training or college place have also been contributory factors, and it is a matter of some debate between the parties how effective the government’s scheme has really been.

Gordon Brown’s introduction to National Apprentice Week (1 to 5 February 2010) proudly claims: ‘In 1997, fewer than 70,000 people began an apprenticeship in this country; this year the figure is almost a quarter of a million. Apprenticeships have more than trebled because young people have sought new skills, companies have wanted to train up a top-class workforce and government has supported them both. We have together returned apprenticeships to the heart of the job market.’

Last year the total number of people starting apprenticeships rose by almost 7% to 239,900; something of a miracle given the negative impact of the recession on employment opportunities. There are currently just over 7000 opportunities advertised in the UK in areas ranging from agriculture, horticulture and animal care through to retail and commercial enterprise.  It is possible to begin one of more than 190 different careers as an apprentice.

One problem is that there are not enough apprenticeships on offer.  A recent article in The Economist highlighted a survey by IFF Research published in March 2010 by the Commission for Employment and Skills which found that although more than 90% of employers were aware of apprenticeships, only 8% offered them with only 4% at any given time.

The article goes on to point out the difference between exam-based learning at colleges and learning validated by inspectors that has been completed on the job, pointing out the assessing skills costs the state £6,500 for an outside body ‘to provide a certificate saying that an apprentice hairdresser is qualified to do the job and £9,000 to certify an engineer’s training.’[2]

Employers have to pay apprentices the minimum wage, which is currently £95 a week, but many pay more with £170 per week being the average. According to the National Apprenticeship Service:

  • 8% of employers who employ apprentices believe that apprenticeships lead to a more motivated and satisfied workforce;
  • 83% of employers who employ apprentices rely on their apprenticeships programme to provide the skilled workers that they need for the future; and
  • One in five employers are hiring more apprentices to help them through the tough economic climate.

Whoever wins the election on 6 June is going to have to do rather more to encourage employers to actually get on and offer them – the benefits of government-funded training (even though the employers have to pay the individuals) do not seem to be attractive enough at the moment. 

The wider issue of training and skills for the incoming government forms the message of a new white paper from the Institute of Employment which identifies half a dozen important policy issues with suggested solutions that will be first across the desks of ministers, with briefs relating to education, skills, health, welfare and work[3]. These are:

  • preventing long-term unemployment by incentivising job-seeking;
  • reducing youth unemployment with effective vocational training and personal support;
  • providing effective support and paying for higher education;
  • tackling demographic ageing and the growing dependency ratio;
  • improving health at work; and
  • supporting development of skills for the future.

 

See also the news story in The People Bulletin, 18 June 2009 ‘But it was all her fault, Srallan – I mean Lord Sugar – I mean…Enterprise Tsar?’  

 


[1] www.apprenticeships.org.uk

[2] ‘Another brick in the wall’ The Economist, 3 April 2010.

[3] www.employment-studies.co.uk/press/1009.php