The Impact of the Recession on Devon’s Apprentices

DCTPN

The Previous Recession

• Apprenticeship numbers were in long term decline falling to a low of 53,000 average in learning per year by 1990

• There was little public funding linked to them. The frameworks were sector specific

• The scrapping of the Industrial Training Boards in 1982 ending industry contributions

The Results

• A strong move to full time vocational education in FE Colleges.

• New programmes such as the Youth Training Scheme and the Youth Training programme focused more on getting youngsters into work than skills

• Apprentices were made redundant in many sectors in large numbers.

The Consequences of the Actions

• Industry struggled to recruit young skilled workers when it emerged from recession

• Political parties talk of the lost generation.

• There was an obvious need for a new quality work based training programme

• In 1993 the Government funded Modern Apprenticeship Programme was introduced

The scale of the 2009 Problem compared to the 1980’s

Apprentice Numbers in 2008/9

Age Devon Plymouth Torbay

16-18 years 1,202 580 174

19-24 years 1,216 328 171

25+ 475 195 128

Total 4,469

Devon 1,183Plymouth 572Torbay 254Total 2,009

Overall Apprentices & Advanced Apprentice numbers 6,478

Devon’s Advanced Apprentices numbers in 2008/9

Apprenticeships: Exposure to recession

• Can result in a decline in new apprentices being taken on

• Can result in a change in the age profile of apprentices

• Can result in apprentices being made redundant

• Can result in more apprentices moving to new jobs

Starts  2008/09 P15

2009/10 P12

 % Change

Devon 16-18 3,560 4,240 19%

 & 19-24 3,800 5,120 35%

 Cornwall 25+ 2,290 2,660 16%

Key Indicators of changes during the recession : Apprenticeship Starts

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

with training to L2+

locally-recognised trainingwithout training

Key Indicator Changes during the recessionDevon % of 16 – 18s in jobs without training

0

50,000

100,000

150,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

84% of jobs

Jobs. Devon’s Industrial structure DPT

The Key Apprentice SectorsPercentage share of 16-18 year old apprentices in Devon by sector 2008/9

Factors behind continued growth

• Employer’s do value apprenticeships

• Training has been entirely free for under 19’s and part subsidised for over 19’s

• No National Minimum wage for Apprentices

• Employers learnt from the problems of a skills gap after the last recession

16-18 JWT number & proportion, Jul 10

B&NES

B'mouth

Bristol

Cornwall

Devon

Dorset

GloucsN.Soms

Plymouth

Poole

Soms

S.Gloucs

Swindon

Torbay

Wilts

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0 200 400 600 800 1000 1200 1400 1600

How good have Devon’s employers been at training their young staff?

Apprentices being made redundant

• 2008-9 in the entire South West there were 206 apprentices made redundant.

of these

• Exeter College had 49

• City College Plymouth had 63

The vast majority were in Construction

Construction Sector

• The most affected with 94 redundancies.

• Hit worst in 2008/9. Then marked improvement

• Figures do not reveal real impact as a number were made redundant on finishing the apprenticeship and so not recorded

• Those who were found new employers not recorded

Other Sectors Affected

• Engineering

• Hospitality

• Retail

• Estate Agents

Of these 44% did complete their apprenticeship frameworks whilst looking for work

CONSTRUCTION SKILLSApprenticeships at risk of redundancy in

the South West.• We currently have available a limited amount of funding

for providers who will take on an Apprentice from the South West as an employee due to the apprentice being made redundant and unable to immediately find a new employer.

•  The provider will support them at their training centre to complete their skills, EER, Health and Safety as well as the technical Certificate and use the time to find a new employer. 

Other Schemes

• Constructions Skills also took on a company matching member of staff to find new employers for redundant apprentices

• People First SSC for Hospitality, subsidies

• ESF TEAIS Project support of £95 per week for over 25’s maximum 26 weeks

• LSC’s Hardship Fund for under 25’s £95p.w.

Charities

Real Opportunities• A community interest company working

with challenging young people and helping them engage into work or learning.

• Secured private funding to pay any redundant apprentices wages for a further 13 weeks.

Providers Activities

• Many did re settle existing apprentices with new firms.

• This cuts new starts but held up success rates

• Finished off apprentices wherever possible

1.1%72.2%71.1%ALL

-2.9%73.2%76.0%25+

2.2%73.7%71.5%19-24

0.7%70.6%69.8%16-18ALL

2.6%75.9%73.2%SW

-0.1%77.4%77.5%25+

3.2%77.2%74.0%19-24

2.1%73.9%71.7%16-18SW

-3.0%73.8%76.9%25+

2.2%72.5%70.3%19-24

0.1%70.9%70.7%16-18WoE

2.9%78.9%76.0%25+

3.4%77.3%73.9%19-24

1.7%73.6%71.8%16-18G&W

-4.5%74.0%78.4%25+

2.2%76.3%74.1%19-24

1.4%71.3%69.9%16-18D&S

1.9%79.9%78.0%25+

4.2%79.6%75.4%19-24

3.9%77.3%73.4%16-18D&C

2009/10 P12

2008/09 P15Success Rates

1.1%72.2%71.1%ALL

-2.9%73.2%76.0%25+

2.2%73.7%71.5%19-24

0.7%70.6%69.8%16-18ALL

2.6%75.9%73.2%SW

-0.1%77.4%77.5%25+

3.2%77.2%74.0%19-24

2.1%73.9%71.7%16-18SW

-3.0%73.8%76.9%25+

2.2%72.5%70.3%19-24

0.1%70.9%70.7%16-18WoE

2.9%78.9%76.0%25+

3.4%77.3%73.9%19-24

1.7%73.6%71.8%16-18G&W

-4.5%74.0%78.4%25+

2.2%76.3%74.1%19-24

1.4%71.3%69.9%16-18D&S

1.9%79.9%78.0%25+

4.2%79.6%75.4%19-24

3.9%77.3%73.4%16-18D&C

2009/10 P12

2008/09 P15Success Rates

2009/10 Performance Figures reveals the numbers not finishing

Apprentices Changing Jobs

• Marked increase across harder hit sectors especially construction

• Strong link to where there was short time working and wage cuts

• Apprentices switched jobs for more money and usually continued with their training programme

Impact linked to the Level of Programme being understaken

• Biggest percentage of redundancies was on the level 2 apprentice programmes

• Markedly lower on level 3 advanced apprentice programmes

• There was no evidence of a fall in the numbers wishing to progress to level 4

2009/10 the latest statistics

• For Devon and Cornwall learners at Period 12, there were almost 10,500 leavers.

• Only 24 are marked as having left because of redundancy

• 4 subsequently achieved their framework.

• 14 learners are still on programme with a redundant status

Key Conclusions• Apprentices fared far better than in previous

recessions

• Employers were keen to ring fence their jobs and secure their skills for the future

• Support funding did help reduce the worst of the impact

• Overall numbers rose during the period, particularly amongst the 19-25 age range

Questions

craig@trainingprovider.com

DCTPN