South West Regional Skills Enterprise and Employment Analysis 2007/2008

Final Report

4.2 Current Demand for Skills

4.2.4 Skills for Life

The HLMR 2006 found that, despite the overall picture of a well-qualified workforce, evidence suggests that a significant proportion of the adult population lacks Skills for Life(16). The 2003 National Skills for Life Survey, undertaken by the Department for Education and Skills (DfES), highlights the level of literacy and numeracy skills needs on a regional and local LSC basis. According to the report, 14% of people aged between 16 and 64 in the South West are currently Entry Level 3 or below in literacy, equivalent to 421,385 people. The scale of need for numeracy is much greater - 49% of people in the South West are currently Entry Level 3 or below in numeracy, equivalent to 1,474,848 people. The survey also found that 2% of the population (aged 16-64) are people whose first language is not English, equivalent to approximately 60,000 people.

Nevertheless, the South West region is adapting to cater for the different levels of demand for literacy, numeracy and ESOL provision. numeracy is projected to rise from 28% of all Skills for Life provision in 2001 to 37% in 2006/07. Similarly, literacy is projected to reduce from 63% of all provision in 2001 to 43% in 2006/07. ESOL is projected to rise from 8% in 2001 to 20% in 2006/07(17).

Against this potential demand for Skills for Life skills, targets and actual provision represent the tip of the iceberg.

NESS 2005 found that that poor literacy and numeracy was a factor in 17% of SSVs (17% in each case) and, respectively, in 15% and 14% of skill gaps (in existing employees).

Some sectors where the proportions of skill gaps associated with literacy or numeracy difficulties exceeded the 14% average for literacy and/or the 15% average for numeracy included:

• Food and drink (Improve): literacy 31%; numeracy 32%;
• Engineering (SEMTA): literacy 25%; numeracy 26%;
• Construction (ConstructionSkills): numeracy 25%;
• Building services engineering (Summitskills): numeracy 22%;
• Garages (AutomotiveSkills): literacy 21%;
• Care (Skills for Care and Development): literacy 25%.

Clearly, the affected occupations and their stronger proportionate focus within some sectors may give some guidance as to where Skills for Life budgets may be directed.

The vast majority of people with Skills for Life needs are employed in low-skilled jobs. It is this group that has been identified as a priority group in the South West.

It takes time to engage employers in Skills for Life and often it is difficult for employers to relate the messages about Skills for Life to their business. Generally, there is a lack of understanding of the benefits of raising levels of literacy, language and numeracy skills, both individually by employees and economically by employers.

Interestingly, the Sector Analysis shows that Skills for Life/Literacy and numeracy is omitted from the rubric of priorities by a number of sectors, possibly because it is a general issue on which the LSC is seen to be taking a clear lead. People 1st note that relatively few employers surveyed in their sector felt literacy and numeracy skills were lacking, though they saw benefit of embedding these into customer service training.

That said, the issue clearly remains important. Skills for Logistics refer to it as a ‘latent problem’ in the sector, causing lost orders and poor routing, that needs to be ‘surfaced and acted upon’. Automotiveskills meanwhile report literacy and numeracy as too often being inadequate for even the basic requirements of business and a major drag on productivity. Interestingly, a number of sectors which require highly qualified staff have raised the issue of poor numeracy and literacy amongst employees. The financial services sector notes that basic skills are lacking amongst a high proportion of staff. Skills for Justice see an increasing need to complete reports and paperwork to high standards as driving demands on these skills, while Skillsmart Retail identify basic skills as an area for quality ’mass scale’ skills development. For Pro-skills, the emphasis is on literacy skills and more advanced mathematical skills in technical occupations, while basic skills needs are acknowledged but not prioritised by SEMTA.

So whilst this issue is identified by a small number of sectors, these are significant sectors in terms of size of employment.

The Sector Analysis also confirms the importance of skills for life in relation to graduates. The CBI's Employment Trends Survey 2006(18) showed that 23% of employers were not satisfied with graduates' basic literacy and use of English, and 16% were concerned about graduates' numeracy skills.

A survey by the Association of Graduate Recruiters (AGR)(19) shows that, despite a record number of graduates entering the job market, many lack the basic skills needed for employment. Almost half of businesses said that they did not expect to receive "sufficient applications from graduates with the correct skills" in 2006. Managers cite a series of shortcomings in potential recruits, including: “Poor spelling, grammar and mathematical ability which mean that graduates are making basic mistakes, writing illiterate memos and are in need of constant supervision”.

Conclusions

Skills for Life continues to be a major issue of importance for the region. ESOL provision in particular is a hot spot due to the recent and increasing presence of migrant workers. Numeracy is also an issue of significance for the region when compared to other regions in the UK.

Skills for Life issues have been identified by few sectors. However, those which have identified this issue - Retail, Health and Tourism - are significant employers and priority sectors for the region. There is a strong case for targeting specific Skills for Life initiatives within these sectors. There also appears to be a need for more Skills for Life embedded provision.

Whilst the major role in supporting Skills for Life provision rests with the LSC, there is a need to promote the value of Skills for Life and the need for employer investment. The RSP should have a continuing role in monitoring provision and achievement in Skills for Life and in a co-ordinated effort to promote Skills for Life to employers.

(16) Skills for life are defined as “the ability to read, write, and speak in English (or Welsh), and to use mathematics at a level necessary to function at work and in society”. Information and communication technology (ICT) and ESOL (English for Speakers of Other Languages) are also recognised and included within the definition of skills for life.
(17) South West Skills for Life Unit – Balance of Provision Report
(18) CBI's Employment Trends Survey 2006, September 2006, CBI
(19) The Times, February 2006