Wales is set to enter a new phase in the development of its workforce, as it pursues a bold vision to create a strong, sustainable economy, based on full employment and highly-skilled jobs. The Minister discusses the Welsh vision for skills in this piece.
These aspirations are clearly set out in a new skills and employment strategy entitled “Skills that Work for Wales”, which will drive future Assembly Government policy in these crucial areas.
At the heart of the new strategy is a recognition that the skills system must be more responsive to the needs of communities, businesses and individuals, and a commitment to ensure that skills and employment services work together more effectively.
Although Wales has lower unemployment than many EU countries, a relatively high rate of economic inactivity (people who aren’t in work or looking for a job) holds back the Welsh economy. The qualifications profile of the Welsh workforce also compares poorly with many other parts of the UK and the world’s most prosperous countries.
The challenge to address these problems was outlined graphically both in the landmark Leitch Report, which assessed the state of Britain’s skills against rising global competition, and in the subsequent Webb review of post-14 learning in Wales.
Both documents provided stark new perspectives on the scale of the challenge facing Wales.
Lord Leitch concluded that skills in the UK needed to be ‘world class’ in order to sustain the prosperity and lifestyles we’ve come to expect. However, his verdict was that current skill levels fall significantly short of this benchmark.
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In January 2008, the Welsh Assembly Government began consultation on Skills That Work for Wales, an ambitious new strategy designed to deliver the necessary skills at all levels, from basic literacy and numeracy through to the highest-level technical and managerial capability.
The strategy acknowledges that, in order to have a real impact, the Assembly Government must set clear priorities. For example, in order to optimise funding for business, it will prioritise financial support for enterprises:
· in sectors particularly important for the future of the Welsh economy;
· which pursue recognised best practice in the development of people, for example the Investors in People standard; and
· which invest in management and leadership skills vital to the long-term success of the Welsh economy.
More than ever before, the Assembly Government will focus on engaging with employers, giving them a stronger voice on skills and employment policy in return for their commitment to work with us to improve our nation’s skills.
The new strategy will promote more partnerships between employers and learning providers through a major new Sector Priorities Fund, while an expanded Workforce Development Programme will deliver integrated services tailored to meet the needs of different employers and sectors.
However, with responsiveness comes responsibility. Since learners, employers and our nation as a whole will all benefit from better skills, everyone has a role to play. A new contributions policy will set out the balance of responsibilities.
Public funding should ensure that everyone is equipped with a basic platform of skills, while employers and individuals should contribute towards the cost of higher-level skills that earn a good private return.
Investing in skills that improve business productivity is critical for the future success of our economy, but it is only one half of the agenda. The other key challenge is achieving our ambitious long-term aim of an 80% employment rate.
Gaining skills and qualifications are essential for getting a job and securing higher earnings: less than half of people without any qualifications are in employment, compared to nearly 83% of people with a Level 2 qualification.
Although employment policy is not devolved, the Assembly Government works closely with the Department for Work and Pensions to help people into jobs.
Skills that Work for Wales proposes a new concept called ‘Careers Ladders Wales’, a single package of information, advice and support that will help unemployed and economically inactive people back into work, and continue to support them as they consolidate their position and progress in their jobs.
The aim is to ensure that those who re-enter the workforce have the skills and motivation to make a positive contribution to their employers, and the opportunity to progress.
A three-month consultation on the Skills that Work for Wales draft strategy was completed in April following discussions with a wide range of stakeholders including employers, learning providers, trade unions and sector skills councils.
The final version of the strategy is expected to appear in the Summer.
Ultimately the vision is that communities, businesses and individuals should succeed as part of a strong, enterprising Welsh economy with maximum access to high-quality employment.