Apprenticeships: Skilling the Regions?

The regional distribution of Apprenticeships in England

Introduction Boosting the number of high quality, employer based Apprenticeships is increasingly on the agenda, particularly following the recommendation of the Leitch Review of Skills that the number of Apprenticeships should be doubled by 2020. In England, the Government has accepted a target of 400,000 Apprenticeships by 2020. The role of the English regions in delivering the required increase in Apprenticeships will be very important. This report considers the distribution of new Apprenticeship places across the English regions, and as a proportion of all employment. It also considers equality in Apprenticeships by considering the gender balance of the most popular frameworks. The report finds there are significant variations in the distribution of Apprenticeships across the English regions. It also highlights that Apprenticeships form a small proportion of all employment, with Apprenticeships in all regions comprising less than 1 per cent of employment. Within that however there are still noticeable regional variations. The report concludes that radical action will be needed to reach the target of 400,000 Apprenticeship places by 2020, particularly in London. Employers need to raise their game and offer more Apprenticeship places, and the report also makes a number of recommendations for Government to facilitate improved access to Apprenticeships.

1.1

Apprenticeships – a regional overview Most popular Apprenticeships nationally and by region Apprenticeships are available across England, with over 180 different programmes ranging from Accounting to Youth Work. The ten most popular Apprenticeship frameworks nationally are outlined in Table 1 below. Table 1 – 2006/07 Starts in Top 10 Apprenticeship Frameworks - national

Apprenticeship framework Construction Hairdressing Business Administration Customer Service Hospitality and Catering Children's Care Learning and Development Engineering Vehicle Maintenance and Repair Retail Electrotechnical

Starts 2006/07 19,651 16,568 15,280 15,258 13,422 13,025 11,417 8,412 8,167 6,247

Source: www.apprenticeships.org.uk, sourced 2007 HU

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Appendix 1 includes the top 10 frameworks in all English regions during 2006/07. The most popular Apprenticeships are broadly similar across regions and reflect the national position, although there are some slight differences. For example, plumbing Apprenticeships are among the 10 most popular frameworks in the East Midlands and Greater London but not elsewhere. In the West Midlands, accountancy was the tenth most popular Apprenticeship in 2006/07, while in the East of England, Equine Apprenticeships were the tenth most popular.

Identifying the most popular Apprenticeship frameworks helps dispel some of the common myths about Apprenticeships – in particular that Apprenticeships are only available in traditional areas. Half of the most popular Apprenticeship frameworks are in the service sector – business administration, customer service, hospitality and catering, children’s care learning and development, and retail. Apprenticeships in business administration are among the ten most popular Apprenticeships in all regions except Greater London. Customer service, hospitality and catering, children’s care learning and development and retail were all among the ten most popular Apprenticeship frameworks in the English regions. Regional Distribution of Apprenticeships There are marked regional differences in the distribution of Apprenticeship places in England. Chart 1 below graphically demonstrates the distribution of new Apprenticeship places, including both the English regions and the National Employer Service 1 during 2006/07. F

F

Chart 1 – Proportion of Apprenticeship places by English Region, and the National Employer Service 2006/07

Apprenticeship Starts by Region 2006/07 East Midlands (EM) 7.7%

YH 9.0% WM 9.4%

East of England (EE) 7.4%

EM 7.7% EE 7.4% GL 5.1%

Greater London (GL) 5.1% National Employer Service (NES) 20.0% North East (NE) 5.5%

SW 8.6% North West (NW) 15.7% South East (SE) 11.6%

NES 20.0% SE 11.6%

South West (SW) 8.6% West Midlands (WM) 9.4%

NW 15.7%

NE 5.5%

Yorkshire & Humber (YH) 9.0%

Source: LSC unpublished data, 20060/07 The chart demonstrates that the largest proportion of Apprenticeship starts came from the NES. However the best performing region was the North West, providing 15.7 per cent of all Apprenticeship starts. A case study from the North West is at Appendix 2. By 1. The National Employer Service caters for national employers operating over multiple regions, with over 5,000 employees. It is unclear from the data in which geographical location apprentices employed by NES employers are situated, therefore the regional figures will be an underestimation of the total Apprenticeship places offered in a particular locality.

contrast, London provided only 5.1 per cent of Apprenticeships in the English regions during 2006/07. The North East provided 5.5 per cent, however it is important to also take into account the relative sizes of particular regions. Indeed, as discussed below, the North East fares well in terms of Apprenticeships as a proportion of overall employment. Changes in Apprenticeship starts The period between 2005/06 and 2006/07 saw an overall increase in Apprenticeship starts of 13,030. A regional breakdown of the Apprenticeship starts, and the NES is outlined in Table 2 below. The number of Apprenticeships starts increased in most areas, with the most significant increases occurring in the NES (6,586 additional starts), followed by the North West (3,137 additional starts) and the South East (2,228 additional starts). These figures translate into a 21.7 per cent increase in Apprenticeship starts between 2005/06 and 2006/07 in the NES, a 12.1 per cent increase in the North West, and an 11.6 per cent increase in the South West. These compare favourably to the 4.4 per cent increase across the country. However in three English regions, the number of Apprenticeship starts decreased between 2005/06 and 2006/07. The most significant drop was in the North East (1,034 less Apprenticeship starts), the West Midlands (371 less starts) and Greater London (78 less starts). In percentage terms, these figures represent a 9.2 per cent decrease in the North East, a 2.1 per cent decrease in the West Midlands and a 0.8 per cent decrease in Greater London. The reasons for a decline are likely to be complex, however it is important to remember that the decision to take on an apprentice rests with employers. Table 2 – Changes in Apprenticeship starts 2005/06 – 2006/07 Region

East Midlands East of England Greater London National Employer Service North East North West South East South West West Midlands Yorkshire and Humber Total

Apprentice starts 2005/2006 13,708 12,757

Apprentice starts 2006/2007 14,219 13,564

Growth in apprentice starts 511 807

Growth in apprentice starts (%) 3.7 6.3

9,391 30,311

9,313 36,897

-78 6,586

-0.8 21.7

11,183 25,895 19,202 14,677 17,701 16,485

10,149 29,032 21,430 15,768 17,330 16,638

-1,034 3,137 2,228 1,091 -371 153

-9,2 12.1 11.6 7.4 -2.1 0.9

171,310

184,340

13,030

4.4

Source: www.apprenticeships.org.uk, Reports 2005/06, Report 2 – Quarterly Cumulative Starts and unpublished LSC data, 2006/07. HU

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Apprenticeships – a small proportion of all employment It is also insightful to consider Apprenticeships as a proportion of all employment on a regional basis. This provides a slightly different picture in terms of Apprenticeship distribution than looking at the Apprenticeships data alone. However it is a good way to take account of the differing relative sizes of the regions. Table 3 below shows that so far, Apprenticeships are failing to comprise a major proportion of employment, with Apprenticeships comprising less than 1 per cent of all employment across all English regions.

However there are differences by region. The North West again fares best in terms of provision of Apprenticeship places, with Apprenticeships comprising just under 1 per cent of all employment (0.91 per cent). The North East also performs well when compared to overall employment in the region, with Apprenticeships forming 0.86 per cent of employment. Again London performs most poorly, with Apprenticeship starts in 2006/07 comprising only one quarter of a per cent of all employment. The East of England also has a comparatively low ratio of Apprenticeships to overall employment, at 0.48 per cent, with the South East at 0.51 per cent. Table 3 - Apprenticeships as % of all employment, by English Region

Region

Apprenticeships as % of all employment

East Midlands East of England Greater London North East North West South East South West West Midlands Yorkshire & Humber

0.66 0.48 0.25 0.86 0.91 0.51 0.61 0.69 0.68

Source: LSC unpublished data and Office of National Statistics, First Release, Labour Market Statistics, February 2008 These figures are also broadly in line with patterns of trade union density – the regions that fare best, the North West and North East have the highest union density in the UK, and those that fare worst, Greater London and the East of England, are towards the lower end of union density (Department of Trade and Industry 2007, Trade Union Membership 2006). A case study from Corus (Appendix 3) highlights how high quality Apprenticeships benefit both learners and employers, and the role that unions can play in supporting Apprenticeships.

Apprenticeships and Gender by Region Overall, there are slightly more men on Apprenticeship programmes than women. During 2006/07, 54.2 per cent of people starting Apprenticeships nationally were men, and 45.8 per cent were women. When considering gender and Apprenticeships by region (see Appendix 1), the data on Apprenticeship starts from 2006/07 demonstrates some variation in overall gender distribution. For example in the ten most popular frameworks in the West Midlands, 56.2 per cent of apprentices were women, the highest proportion of women in all regions. By contrast, the South East had the lowest proportion of women apprentices, at 47.7 per cent. However when considering Apprenticeships by sector, there are distinctly gendered patterns. This was discussed in detail in a recent TUC report, Still More (better paid) Jobs for the Boys (March 2008). For example nationally, only 1.3 per cent of construction, and 2.5 per cent engineering apprentice starts were women in 2006/07. At

the other end of the scale, women comprised 97.1 per cent of childcare and 91.7 per cent of hairdressing Apprenticeships. Appendix 1 also contains the proportion of women apprentices in the 10 most popular Apprenticeship frameworks by region. The data shows that the patterns of gender segregation in the sectors are also replicated across the regions. However there are cases of a slight narrowing of the gender divide in some regions that are worth noting. For example in Greater London, 4.9 per cent of construction apprentices are women, and 4.3 per cent of engineering apprentices are women, which is noticeably above the national average for both frameworks. It would be useful to explore the potential reasons for this.

Recommendations It is clear that there is a significant diversity in the distribution of Apprenticeships between regions, and much remains to be done in order to meet the target of 400,000 Apprenticeship in England. Increasing employer engagement in Apprenticeships is the key to achieving the targets. In addition to the measures set out in its Apprenticeship Strategy in January this year, the Government should:  Introduce mechanisms to lever in both public and private sector employer involvement to offer high quality employer based Apprenticeships, for example through sector levies, targets in Sector Skills Agreements and licence to practice arrangements;  Make more effective use of public procurement to promote Apprenticeship places; 

Introduce statutory rights to collective bargaining over training, which would help unions support the expansion of Apprenticeships;



Develop regional Apprenticeship strategies through Regional Development Agencies and regional Learning and Skills Councils, actively engaging both employers and trade unions; such strategies should include boosting equality in Apprenticeships as a key measure;



Support the further expansion of Adult Apprenticeships; and



Urgently address the issue of Apprenticeships in Greater London, including through major development projects such as the Olympics and Crossrail.

Conclusions This report has identified the regional differences in the availability of Apprenticeship places. It has shown for example that the North West has the highest proportion of Apprenticeships, both in terms of Apprenticeship starts (at 15.7% of all Apprenticeships, and in relation to regional employment (where Apprenticeships equate to 0.91 per cent of all employment in the region. By contrast, London has fared worst in terms of Apprenticeships provision, with only 5.1 per cent of Apprenticeship starts in London, and Apprenticeships form only 0.25 per cent of all employment. There is an urgent need to increase overall Apprenticeship numbers, particularly in London.

Appendix 1 – Apprenticeship starts in ten most popular frameworks National Construction Hairdressing Business Administration Customer Service Hospitality and Catering Children's Care Learning and Development Engineering Vehicle Maintenance and Repair Retail Electrotechnical TOTAL

Number % women 19,651 1.3 16,568 91.7 15,280 79 15,258 67 13,422 50.7 13,025 97.1 11,417 2.5 8,412 8,167 6,247 184,340

1.5 66.6 1.3 46%

East Midlands Hospitality and Catering Children's Care Learning and Development Business Administration Customer Service Hairdressing Construction Engineering Retail Plumbing Health and Social Care TOTAL – ALL SECTORS

Number % women 1,791 57.5% 1,593 97.3% 1,424 82.0% 1,416 72.4% 1,280 93.2% 970 1.5% 892 1.6% 591 64.8% 531 2.3% 415 89.9% 14,059 55.5%

East of England Customer Service Hairdressing Hospitality and Catering Business Administration Construction Retail Children's Care Learning and Development Engineering Health and Social Care Equine Industry TOTAL – ALL SECTORS

Number % women 1,580 67.8% 1,552 91.8% 1,360 50.7% 975 82.6% 965 1.8% 863 67.3% 711 97.9% 638 87.8% 588 76.3% 464 76.3% 13,412 52.6%

Greater London Children's Care Learning and Development Hairdressing Customer Service Hospitality and Catering Construction Vehicle Maintenance and Repair Retail Plumbing Electrotechnical Engineering TOTAL – ALL SECTORS

Number % women 1,398 96.4% 1,154 87.7% 991 69.1% 454 45.8% 453 4.9% 391 1.0% 365 66.3% 296 2.4% 273 0.0% 232 4.3% 9,224 55.3%

North East Business Administration Hairdressing Engineering Construction Customer Service Retail Hospitality and Catering Children's Care Learning and Development Health and Social Care Vehicle Maintenance and Repair TOTAL – ALL SECTORS

Number % women 1,794 80.8% 1,048 94.0% 990 1.7% 833 1.7% 794 68.8% 554 69.7% 525 48.8% 512 96.9% 433 89.8% 389 1.3% 10,069 51.8%

North West Business Administration Construction Hairdressing Customer Service Children's Care Learning and Development Hospitality and Catering Health and Social Care Engineering Retail Vehicle Maintenance and Repair TOTAL – ALL SECTORS

Number % women 3,369 77.2% 2,888 0.8% 2,739 93.7% 2,478 69.1% 2,474 97.3% 2,145 47.2% 1,447 89.8% 1,374 1.7% 1,120 67.8% 1,072 1.3% 28,482 52.3%

South East Hairdressing Engineering Children's Care Learning and Development Hospitality and Catering Customer Service Retail Business Administration Health and Social Care Construction Vehicle Maintenance and Repair TOTAL – ALL SECTORS

Number % women 2,575 91.8% 2,338 3.5% 1,964 97.8% 1,804 47.6% 1,642 68.1% 1,112 71.2% 1,085 79.1% 1,005 88.8% 986 0.7% 880 2.0% 21,279 47.7%

South West Hairdressing Hospitality and Catering Customer Service Business Administration Vehicle Maintenance and Repair Construction Children's Care Learning and Development Health and Social Care Engineering Retail TOTAL – ALL SECTORS

Number % women 1,734 92.2% 1,525 48.1% 1,106 69.3% 1,062 83.2% 1,057 1.8% 999 1.7% 952 96.8% 913 90.5% 758 1.8% 727 68.1% 15,394 48.3%

West Midlands Business Administration Children's Care Learning and Development Hairdressing Hospitality and Catering Customer Service Construction Engineering Retail Health and Social Care Accountancy TOTAL – ALL SECTORS

Number % women 2,167 77.5% 1,852 96.1% 1,726 91.1% 1,634 55.9% 1,541 71.3% 1,077 1.6% 886 2.1% 870 67.4% 723 89.3% 520 56.5% 17,091 56.2%

Yorkshire and Humber Business Administration Hairdressing Children's Care Learning and Development Customer Service Hospitality and Catering Construction Health and Social Care Engineering Retail Vehicle Maintenance and Repair TOTAL – ALL SECTORS

Number % women 2,010 80.6% 1,774 92.5% 1,434 97.4% 1,382 70.9% 1,251 51.9% 1,244 1.4% 998 92.8% 949 1.5% 712 69.4% 708 1.0% 16,275 54.0%

Appendix 2 – Stephen Cross and Merseytravel - Dedicated to Learning Stephen joined Merseytravel in March 2004 on Merseytravel’s apprenticeship scheme, and worked in a variety of sections across the organisation to help development his skills, knowledge and experience of working in a business environment. “All my placements were interesting and enjoyable, as the work was so diverse from department to department. I learnt lots of new skills throughout my placements and gained more and more confidence in my own abilities. “I wanted to be an apprentice because it gave me the opportunity to not only gain experience within the world of work, but also give me the opportunity to develop my skills by doing NVQ qualifications. It also had the added bonus of a wage along side the training, which is not normally available in other jobs”. During Stephen’s first 12 months at Merseytravel, he successfully completed his NVQ Level 2 in Business Administration, along with many short courses organised by Learning and Development. In July 2006 Stephen started a long-term placement in Personnel, and decided to advance his business skills further by progressing onto his NVQ Level 3 in Business Administration. “The level 3 NVQ course was a lot more challenging then the level 2 course, but it was the next step I needed to take to develop my career, and I was ready for the challenge. I picked units that fitted in with the work I was doing in Personnel, and with the help and support of my Supervisor, Lynne Gogerty, I completed my studies in February 2008. I was made up to have completed this qualification, but felt that I didn’t want to stop there”. Stephen contacted the Learning & Development Team, and after talking through his opportunities, decided to apply to complete a Foundation Degree course through Merseytravel’s Further Education Scheme. “ I was made up when I was given the go ahead to enrol onto my Foundation Degree. It was a feeling of both excitement and also nervousness. I have now completed 8 months of my Degree programme and I’m really enjoying it. Its hard work though, as I have to attend college two nights a weeks in my own time, but know that this will pay off in my future career, so its worth it. “Being an apprentice has allowed me to gain a greater understand of the world of work, and the different career opportunities on offer to me. It has allowed me to build up my skills and knowledge so that I will have the experience and qualifications needed to reach my goal of being a manager.” Roger Irvine, Unison Branch Secretary for Merseytravel says: “The trade unions fully support the Apprenticeship programme. The apprentices receive structured and effective training and are paid the proper rate for the job and enjoy the full range of conditions of service. All apprentices are encouraged to use Merseylearn to develop their skills. I was absolutely delighted to see Stephen win the Organisational Learner of the Year at our recent staff wards. All of our Union Learning Representatives will also provide help and support to all our apprentices”.

Neil Scales, Chief Executive and Director General of Merseytravel sums up the importance of Apprenticeships:

“It is imperative that we create a platform to unlock the potential of each and every individual; enabling all of our staff to be grown and developed. “I started life as an apprentice in the North East; I was the last engineering apprentice taken on by the old Sunderland corporation and spent a large chunk of my life studying whilst working. “I am triple chartered, have gained two Masters degrees and membership to numerous professional organisations, but also gained an insight into the difficulties of juggling study and work. “Apprentices are given this platform to add value to our business and the success rate has been superb. This is about developing the skills and knowledge we need for the future. The investment in our apprentices is an investment in our own future as an organisation. “Giving our apprentices the chance to realise their potential and the resources to support them, plus their own personal drive and commitment, they can achieve what they want to achieve with us. I'd encourage all organisations to seize the same opportunities as we have.”

Appendix 3 – Corus, Yorkshire and Humberside Over the past few years, Corus has recognised that an aging workforce has created a need for new blood to be brought into the company. Unions onsite, including UNITE, Community and the GMB, have supported Corus in increasing it’s apprentice intake over the last 4 years. This year Corus is recruiting around 50 apprentices. This figure will continue to increase over the next 3-4 years to meet the demand. Corus view apprentices as one of the key factors in their success. The programme is based on providing high quality training, which will enable apprentices to develop excellent craft skills and it is hoped that some will go on to be Team Leaders and Engineers in the future. The training meets the Advanced Apprenticeship Framework but also fulfills the Company needs. The experience of apprentices demonstrates the value of Apprenticeships at Corus, and also the key role that unions play. Luke Jackson explains: “I first took up an apprenticeship aged 20, it was a choice between university or the apprenticeship. It was an easy choice once I found out that Corus would pay me through a degree as well as provide lots of other training opportunities and work based learning. I am constantly gaining new qualifications as well as great experiences of different workplaces and the people within them”. Charlotte Childs also tells of her experience at Corus: “I applied for my apprenticeship because I am a very active learner. I enjoy learning things by doing them and this is a very practical course. I also did it because of the money. I knew that if I went and did ‘A’ levels that I wouldn’t be able to afford to go to university and this course will eventually lead me into a degree if I choose to do so. I also get paid to do my apprenticeship, this is good because it means I don’t need to get a part time job and can focus on my course”. “Being a female in engineering can be difficult at times and sometimes at a new placement they don’t have correct facilities for females, because there hasn’t been any before me. My Unite union representative, Bill Gray, sorts this kind of issue out for me. We have the trade union learning centre (T.U.R.T.L.E centre) which has been organised by the union for apprentices to go and use computers to do our course work and NVQ 3, this is great for people who don’t have things like the internet at home, and there is always someone there to give a helping hand. I would definitely recommend Apprenticeships to others - think it’s a really good scheme, I learn a trade, earn money, make friends and have a job at the end of it”. Brett Smith, Corus 3rd year electrical apprentice, says: “The unions have been great in mentoring me throughout my apprenticeship, from day one they have been there for me when I have needed them. I now represent the Apprentice Electricians in my year group, which is organised by the trade unions on the site. This group meets monthly and discusses all the issues which affect our training, workplace and social activities. I have also been attending some Unite union youth weekend schools in the past six months which have taught me more about what the unions do and how young people can get involved”. “I have gained a lot of knowledge about myself, being an apprentice has given me confidence and basic skills that I can use, not only in the workplace, but in the outside world. Not only am I hopeful of securing a job with my company when I’m ready to come out of my time but I feel I can quite quickly climb the ladder in my company and become part of the management sooner rather than later”.