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Skills in the West Midlands Closing the
Gap NCFE Conference 1 November 2007 Mike Bell,
Director Black Country LSC
Welcome
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FE Reform Key Policy Driversthe road

• Agenda for Change 16-19
• Foster Review an economic role for FE
• FE Reform White Paper and FE Bill Demand led
  mechanisms powers of intervention in extremis
• Leitch Review of Skills and Government response
  economically valuable skills demand-led systems
  commissioning
• Machinery of Government DCSF/DIUS
• LSC Funding Reform demand-led systems level
  the playing field

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to world class

• A system that is driven by the needs of young
  people, adults and employers
• Delivering high quality
• Ambitious for learners
• Simplified and empowered

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West Midlands Context

• Employment Rate needs to improve
• Employment Change key sectoral shifts
• Employment Growth 90,000 net jobs
• Demography significant replacement demand
  creates nearly 1 million jobs
• Employer investment in training

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Employment Rate
Source APS 2006
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Employment Change 2004-2014
Source Working Futures 11
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Employer Investment in Training

• Remains lowest in all nine regions

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Regional Priorities

• Close the gap on the national benchmark for Level
  2 at 19
• Reducing NEET in areas of the WM above national
  benchmark
• Closing the gap on national benchmark for adults
  qualified to Level 2
• Close the gap on the national benchmark for
  adults with low or no qualifications
• Create an integrated employment and skills system

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Progress Young People 16-18
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Progress Young People 16-18

• Participation
• Year on year overall increase in participation
• 1.5 increase in West Midlands compared to 1.3
  nationally
• Both now at 86 16 yr olds 76 17 yr olds
• Full Level 2
• Increase in participation by 17 in FE compared
  to 16 nationally

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Progress Young People 16-18

• Success Rates 2004-2006
• Full Level 2 at 19
• West Mids 64 - 70 National 66 - 71
• Full Level 3 at 19
• West Mids 39 - 44 National 42 - 47

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Progress Young People 16-18

• NEETs
• January 2007 8.3 compared to 7.5 nationally
  not known figure dropped by 4 to 4.8, which
  has had an impact on NEET

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Progress Adults

• Participation
• Changes to funding policies and increased
  investment in 16-18 meant 12 reduction between
  04/05 05/06
• BUT
• Participation at full Level 2 up by 5 - largest
  volume of any region and a 21 increase in
  success rates

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Progress Adults

• Participation at Level 3
• 30 increase in West Midlands compared to 27
  nationally
• 40 increase in full Level 3 achievements
  between 04/06 and 05/06

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Progress Adults

• Skills for life
• Will exceed contribution to national target
  likely to hit 130 of 2007 target
• Performance variable across the region
• Importance of Train to Gain

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Progress Adults

• Apprenticeships
• Advanced - 60 framework achievement rates
• Apprenticeships 58 framework achievement
  rates
• Train to Gain performing well
• Reduction in proportion of workforce with skills
  deficiencies 3rd lowest in country but still
  skills gaps in key sectors, inhibiting growth
• Employment and Skills boards across the region

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Progress Adults

• Adults in the workforce 2001-2006
• Full Level 2
• West Mids 66- 72 National 69 -74
• Full Level 3
• West Mids National

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Progress vs PSA Targets

• 19 year olds achieving Level 2 ?
• Adults Achieving Level 2 ?
• Skills for Life ?
• NEET ?

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Implications - 1

• Change in employment/sectors demands an even more
  responsive sector and system
• Increasing demand for higher skills LSC to
  focus its Level 3 qualifications to respond, and
  provide progression to Level 4
• Need to access all sources of labour and skills

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Implications - 2

• Still skills gaps and shortages LSC to focus
  its commissioning to address these needs
• Despite good progress, we still have highest
  proportion of working age population with no
  quals, and Level 2 and 3 attainment remains low
  intensify drive to improve all three
• Train to Gain must deliver outcomes and reach the
  hard to reach employers