White Paper

In 2017 there was overhaul to the apprenticeships system in England: large firms were required to pay 0.5 per cent of their wage bill into an apprenticeship levy, while regulations on training and delivery were firmed up. Two years on, this briefing note takes stock of the system, looking at what’s changed, why and where policy makers should consider moving next. The system today is smaller: there were 25 per cent (124,000) fewer apprenticeship starts in 2017/18 than there were in 2014/15, and this fall was primarily driven by a reduction in starts at lower levels (i.e. GCSE-equivalent) of study, which nearly halved. On the other hand, there was a rise in starts at higher levels of study: overall, the number of apprenticeship starts at Levels 4 and above (higher-education equivalent) more than doubled (to 48,000) from 2014/15 to 2017/18. Critics of the levy are quick to blame it for the overall fall in starts, but this briefing note finds that levy-paying firms are just as likely as non-levy payers to invest in the types of lower-level programmes that have experienced substantial reductions in numbers. Instead, it looks as though regulatory reforms, which required more training (and more money), offer a more convincing explanation for the reduction in numbers. The types of programmes that experienced the largest falls were, on average, at lower-levels of study, in lower-paying sectors. Apprentices in these areas spent fewer than average hours in formal training and a higher-than-average share of them were unaware of the fact they were classed as an apprentice. While there is little evidence to suggest that the levy was responsible for the fall in lower-level starts, there is some evidence to suggest it encouraged growth at higher-levels. On average, levy payers were more likely than non-levy payers to invest in these areas. Worryingly, starts at these higher levels are not typically undertaken by those at the beginning of their careers. In fact, a Department for Education survey published in 2017 found that 83 per cent of all higher-level apprentices aged 25 and over said they were employed by the same firm prior to beginning their apprenticeship. Given projections that the apprenticeships budget could be overspent by as much as £1.5bn in 2021, policy makers are considering how to prevent an overspend, while stakeholders wrangle for position. This briefing note argues that they should hold firm on their recently implemented training rules, and put into place strong monitoring and enforcement systems. They should also ensure that the system offers a clear route to a good career for young people and new starters. To that end, they should consider requiring levy payers to dedicate at least half of their levy expenditure to the under-30s and an overlapping half to new starters to the firm.

A cross-system lens is used to identify how different government systems, such as the education and welfare systems, are experienced by a particular group. In the case of this Action Plan, this approach recognises that young people can often require a range of services from across the different systems and aims to highlight where there are opportunities to improve how the systems work together to support better outcomes. Young people (15 – 24-year-olds) have amongst the highest levels of unemployment and non-participation in education or training of all age groups. We also know that early education, training and employment experiences have long-lasting effects on wages later in life, adult employment and life satisfaction. Māori, Pacific peoples, disabled people and people with caring responsibilities have amongst the highest levels of unemployment and/or non-participation in education or training in this age group. The Action Plan highlights the strengths of New Zealand’s system of education, training and employment supports already in place, but also areas that we need to work on. This Action Plan sets out the actions that government agencies are committed to undertaking, together with community partners, to build on and improve the pipeline of support we have in place to: › prevent young people from falling into unemployment and/or non-participation in education or training and put in place the building blocks for success through earlier identification and effective interventions to better build labour market preparedness › support young people to make informed choices and good transitions in a complex environment through better careers guidance and job brokering; creating better incentives to employ and train people with challenges; strengthening partnerships with whānau, hapū, iwi, and community; expanding effective pastoral care/mentoring to those that need it; promoting more collaboration and connectivity across services; and scaling effective interventions › ensure young people have employment opportunities and access to the support they need to overcome barriers and get back on track through increasing driver licence uptake and creating employment opportunities.

The 2019 Workforce Skills Survey shows a significant increase in the number of vacancies due to skills shortages across the state in the last two years, increasing from 54,000 in 2017 to 82,000 in 2019. The number of businesses experiencing a skills shortage has decreased slightly since 2017. However, more than half of businesses are still unable to recruit people with the skills they need. More than 1 in 5 of those businesses reported that they were facing significant negative impacts as a result, such as losing customers and missing opportunities. The key recommendations from the survey’s findings are: Double the number of school-based apprenticeships delivered in NSW each year. Make industry-based careers advice available for students and parents from year 9 in all schools across NSW. Increase the utilisation of existing TAFE facilities and resources to boost training outcomes.

The world of work is changing significantly, and how New Zealanders learn needs to adapt to stay ahead of these changes. Experts estimate around one-third of jobs in New Zealand will be significantly affected by automation. Today people over the age of 65 are three times more likely to have jobs than in 2001. The trends driving the future of work will change the skills needed in all jobs, see people changing jobs and careers more frequently over the course of their working lives, and see people working beyond the traditional retirement age. People with no or lower level qualifications are most likely to see their jobs become increasingly automated, and many may find it difficult to adapt to new jobs and new technologies. Workers will need to either upskill to do new aspects of a job, or reskill to adapt to technological change or to new fields.

This study reviews lessons learned about independent apprenticeship programs and offers a framework for incorporating them into a broader, more robust U.S. apprenticeship system.

This report examines effective approaches nontraditional technology training programs take to become trusted providers of IT talent.

The aim of this Fellowship project was to understand the interplay between career construction in the 21st century, future work, and the perceived risks of going to university for young people from low socioeconomic status (SES) backgrounds. Making career decisions is becoming increasingly complex and fraught with risk. Perceived risks are endemic in the decision to go to university and this Fellowship project drilled down into the role of perceived risks in light of the contemporary career context where traditional ways of planning careers no longer work. We live in uncertain times with the rise of the gig economy, job automation, career mini-cycles and an erosion of the sense of security that going to university will “guarantee” access to a defined, stable occupation. With more occupations to choose from than ever before, young people experience confusion or even decision paralysis. With predictions that jobs in the future are more likely to need a university education, there is a need to accelerate efforts to increase participation of people from low SES backgrounds to prevent the further deepening of social inequalities. Indeed, stemming the deepening of social inequalities was the impetus for this Fellowship project. In brief, this project: focused on the role of perceived risks in the decision to go (or not to go) to university for secondary school students from low SES backgrounds outlined the decision-making processes of low SES secondary school students introduced risk tolerance as a characteristic that can explain differences in how low SES secondary school students respond to the decision dilemma of whether to go (or not to go) to university. The underpinning research question and objectives were: How do the perceived risks of going to university influence the decision to participate in Australian higher education by young people from low SES backgrounds? To identify the types of perceived risks that young people from low SES backgrounds associate with going to university. To develop and test a model of the influence of perceived risks on the decision to go to university by young people from low SES backgrounds.

This Youth Jobs Gap report uses the Longitudinal Education Outcomes data to reveal how disadvantaged young people are accessing and progressing in apprenticeships, including differences between regions in England.

The UK has suffered a long-term and substantial decline in employer investment in training over past decades. Figures show declining employee participation in workplace training, and that a substantial portion of the training done is only induction or compliance-based. As part of an attempt to reverse the trend, the government introduced the Apprenticeship Levy in 2017. The focus of the levy was to increase both the quantity of UK apprenticeships and the quality of new apprenticeships, in addition to spurring employer spending on training. Yet the initiative is not having the desired effect. It is clear that the levy in its current form should be reviewed and revised. To this end, the CIPD recommends: Reforming the existing levy into a broader, ringfenced Training Levy. It’s increased scope will include other forms of accredited training, aligned to sector priorities. Ensure the levy is sustainably funded, allowing it to responsively address local skills supply and demands.