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Brighton & Hove Economic Partnership Consultation on a new City Employment and Skills Plan 1 December 2015
Brighton & Hove Economic Partnership
Consultation on a new City Employment and Skills Plan
1 December 2015
Understanding the Brighton story
A City Employment & Skills Plan for 2016-20 • Building on Brighton & Hove’s economic strengths
• Putting employers at the heart of the Plan
• Agreeing and tackling what’s not working
• Complementing other related initiatives
• Identifying Brighton & Hove’s contribution to the wider economy
• Making public resources go further in support of the Plan
• Exploiting opportunities of devolution from central government
• Being realistic about what’s achievable
Source: NOMIS annual population survey – economic activity
Employed 140,200
72%
Unemployed 9,000
5%
Economically inactive 45,800
23%
72%
5%
8%
4%
1%
5%
3% 3%
Unemployed, no benefits**, 1.5%
Job seeker***, 1.8%
ESA and incapacity benefits, 6.6%
Lone parent, 0.8%
Others on income related benefit, 0.2%
Other economically inactive people, 17.1%
Brighton and Hove
DW
P W
ork
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Age
Clie
nt
Stat
isti
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ypo
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Reasons for Economic Inactivity:
Student
Looking after family / home
Temporary sick
Long term sick
Retired
Other *
*Other economically inactive people: most of these are not claiming benefits but includes some claiming non-income related benefits or other benefits (carers, disabled, bereaved) ** This figure is based on a UK wide estimate that 33% of unemployed are not claiming benefits (eg if between jobs). Based on 2009/10 national estimate of take-up of JSA(IB), see https://goo.gl/e6dj2t *** This figure includes some people who are not unemployed, but working on average less than 16 hours per week. Sources: Annual Population Survey, Jan 2014-Dec 2014. Averaged quarterly data from DWP Work and Pensions Longitudinal Study, Feb 2014, May 2014, Aug 2014, Nov 2014. More information about statistical groups is found here: https://goo.gl/nqm8aC
Economic activity and out of work benefits among working age (16 - 64) residents
Employed 25,039,400
73%
Unemployed 1,518,100
4%
Economically inactive 7,625,100
22%
73%
4%
6%
6%
0%
5%
3% 2%
Unemployed, no benefits**, 1.5%
Job seeker***, 2.1%
ESA and incapacity benefits, 6.0%
Lone parent, 1.2%
Others on income related benefit, 0.3%
Other economically inactive people, 15.7%
England
DW
P W
ork
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Age
Clie
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Stat
isti
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ypo
logi
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Reasons for Economic Inactivity:
Student
Looking after family / home
Temporary sick
Long term sick
Retired
Other *
*Other economically inactive people: most of these are not claiming benefits but includes some claiming non-income related benefits or other benefits (carers, disabled, bereaved) ** This figure is based on a UK wide estimate that 33% of unemployed are not claiming benefits (eg if between jobs). Based on 2009/10 national estimate of take-up of JSA(IB), see https://goo.gl/e6dj2t *** This figure includes some people who are not unemployed, but working on average less than 16 hours per week. Sources: Annual Population Survey, Jan 2014-Dec 2014. Averaged quarterly data from DWP Work and Pensions Longitudinal Study, Feb 2014, May 2014, Aug 2014, Nov 2014. More information about statistical groups is found here: https://goo.gl/nqm8aC
Economic activity and out of work benefits among working age (16 - 64) residents
Source: NOMIS annual population survey – economic activity
Ensuring no one is left behind . . . supporting the most marginalised
ESA: Generally higher claimant rates in B&H than England
Source: NOMIS annual population survey – workplace analysis
Higher skills - growth of economically active people with degree-level qualifications
0
10
20
30
40
50
60
70
80
90
100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Proportion of economically active people aged 16-64 by highest qualification
% of economically active withdegree or equivalent andabove - aged 16-64
% of economically active withGCE A level or equivalent -aged 16-64
% of economically active withGCSE grades A-C orequivalent - aged 16-64
% of economically active withno qualifications (GCSE) -aged 16-64
Source: Reproduced directly from provided local information “Briefing: English Indices of Deprivation 2015 and the Index of Multiple Deprivation 2015”
Some indication of LSOAs further from city centre becoming relatively more deprived
Supporting young people in their journey from learning to earning
Many young people are not well prepared for work
Source: UKCES Employer Skills Survey 2013
Very well or well prepared, 59%
Very well or well prepared, 33%
Poorly or very poorly prepared, 36%
Poorly or very poorly prepared, 62%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
England
Brighton and Hove
Preparedness for work of 16 year old school leavers
Very well or well prepared, 66%
Very well or well prepared, 47%
Poorly or very poorly prepared, 29%
Poorly or very poorly prepared, 31%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
England
Brighton and Hove
Preparedness for work of 17-18 year old school leavers
Most reported skill gaps are soft skills
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
16 year old school leavers
17-18 year old school leavers
What skill shortages are identified by employers
Lack required skills or competencies Literacy/numeracy skills
Poor education Lack of common sense
Poor attitude / personality or lack of motivation Lack of working world / life experience or maturity
Other
There are fewer Apprenticeships started each year in Brighton and Hove compared to the national average
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
Percentage of working age population starting Apprenticeships every year
Brighton and Hove England Total
Source: ONS mid-year population estimates
Harnessing the employment opportunities in key growth sectors
Brighton and Hove – dominant sectors
46,100, 33%
28,200, 20%
21,800, 16%
18,700, 14%
13,000, 9%
11,600, 8%
Public admin, education and health
Banking, finance and insurance
Distribution, hotels and resaurants
Transport and communication
Other industries
Other Services
Source: NOMIS annual population survey – workplace analysis July 2014 – June 2015
Brighton and Hove has the second highest recorded skills gap in England according to employers
Source: UKCES Employer Skills Survey 2013
Skill gaps are not consistent across occupations
Source: UKCES Employer Skills Survey 2013
3%
4%
5%
5%
5%
4%
8%
5%
7%
4%
4%
2%
6%
3%
3%
13%
4%
16%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Managers
Professionals
Associate professionals
Administrative/clerical staff
Skilled trades occupations
Caring, leisure and other services staff
Sales and customer services staff
Machine operatives
Elementary staff
Density of skills gaps in Brighton and Hove by occupation
Brighton and Hove England
“Not only has the problem not improved, it has actually worsened, and this is in spite
of the one increase in innovation over the last three years: internal staff training. The
provision of skilled talent to work in these high growth businesses is not a simple
process to remedy.”
Brighton Fuse Second Wave Firms Survey
Skill gaps in the Creative, Digital and IT industry
Lowered, 18% Remained the
same, 55% Increased, 27%
0% 20% 40% 60% 80% 100%
…since the last Fuse survey
Skill gaps have.....
Source: NOMIS annual population survey – workplace analysis
Recent shift towards self-employment
10.0
12.0
14.0
16.0
18.0
20.0
22.0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
% in employment who are self employed - aged 16-64
Brighton & Hove Economic Partnership
Consultation on a new City Employment and Skills Plan
1 December 2015
Consultation – nine table topics
Ensuring No One’s
Left Behind
1. 2. 3.
From learning to
earning: transitions
to work
4. 5. 6.
Harnessing
economic growth
7. 8. 9.
In-work Low pay
ESA over 50 m/health
Entry level employer
In school
Year 9/10 18-24 NEET
Group Training
micros/SMEs
Mid Career Changer
Graduate Under-
employed
New investor
Consultation – table discussions
• Each of the nine tables will focus on one of the three priority issues:
Ensuring no one is left behind
Supporting young people’s transition from learning to earning
Harnessing the growth in key sectors of the city-regional economy
• Approach the issue by considering the experience of either the
resident of the City, or the business(es) whose case you have been
assigned
• Describe their situation “as is” at December 2015 . . . ie the current
employment and skills offer for that individual/business
• How does the situation need to change for this individual or
business(es) in the context of this Plan, 2016-20?
• Facilitator will keep you to time, focused on the task and
record the discussion
Employment and Skills Devolution: lessons and implications from Greater Manchester
1 December 2015
Greater Manchester Narrative
Manchester - 511,000 people
Greater Manchester – 2.55m people
Brighton & Hove - 280,000
Greater Brighton – 700,000
Greater Brighton City Region
Greater Manchester Narrative
57% ESA/IB139,540
29% JSA72,280
11% LPIS
27,74057% ESA/IB139,54057% ESA/IB139,540
29% JSA72,28029% JSA72,280
11% LPIS
27,740
11% LPIS
27,740
Across GM, around
227,000 people are
claiming out-of-work
benefits…
The cost of
worklessness and the
impact of low-pay has
now reached over £2
billion
£1.1bn £601.2m £429.0m
£290.3m £114.2m
Working Tax Credits Claimants: 206,500 families
ESA/IB Claimants: 139,540
Out-of-work Tax
Credits
Claimants: 75,200
families
JSA Claimants: 72,280
Lone Parent IS
Claimants: 27,740
What role devolution? • Reduce the fiscal gap and drive productivity through a
devolved, integrated employment and skills eco-system
• Create significantly enhanced performance and impact from
investment in the employment and skills system
• Develop a future workforce with the skills to support growth and
increased levels of productivity
• Shift commissioning strategies to deliver against city region
priorities with local accountability
• Ensure Government agencies and contracted services operate
consistently on the right footprint
Conditions for devolution?
Governance – a Combined Authority (probably)
a pre-requisite for a significant devolution deal
Informed political and officer leadership on the
work and skills agenda
Investment in capacity and capability –
analytical; commissioning; policy; partnerships
Narrative – avoiding a zero sum game ‘give it to
us and it will be better’
Pragmatism – identifying gaps & solutions to
government policy
A consistent development framework
Consistent development framework
Government Asks
Devolution Proposals
1. Joint
Accountability
over decisions /
commissioning
2. Transfer of power
/ decision making
3. Financial
devolution
(transfer existing
budgets)
4. New money
1. Articulate the
system problem(s)
2. Cohort(s)
3. Investment Model
and System CBA
4. Delivery Model
5. Evaluation Model
Devolution Considerations
• Clarity on the end game and roadmap to
get there. What do you want and why?
• Think through the How - What is your
role? Commissioner? Provider?
Integrator?
• Understand government (and your) red
lines and departmental appetite – where
are the opportunities?
• Market engagement to test
assumptions, stimulate interest and bring
providers with you
• Service user voice and innovation in
service design
• Having “skin in the game” and an
appetite for risk = serious player
Devolution delivered?
• Very early days in terms of delivery and impact
on the ground
• 4 levels of devolution – sufficient focus at each
level? What role communities and the VCS?
• Danger of the same delivery models and
providers doing the same things – but
commissioned locally
• Gaps in knowledge and understanding e.g.
Behaviour change models?
• Ongoing investment in evaluation
• More radical and ambitious reform proposals
including Fiscal Devolution?
Whitehall
City Region
Local Authority
Communities
?
?
Potential asks of Government?
No One Left
Behind
• Developing a Health and Work Pilot (£40m fund announced within
Spending Review)?
• Align ESF funds with the Work and Health Programme and co-
commission?
• Pilot programmes that address under-performance with existing
programmes / cohorts?
• Explore public health budget as match and re-design substance misuse
provision alongside ESA focused interventions?
• Explore opportunities to test contribution and connectedness reforms?
• Housing Benefit / Houses with Multiple Occupancy reforms?
Learn to Earn
• Devolution of the AGE grant (short term measure)?
• Devolution of post 19 vocational education, delivered through a shared
outcome based agreement via a multi-year financial settlement?
• Influence over 16-18 vocational education, developing a shared outcome
based agreement with the EFA?
• Vocational pathways, increasing role of local employers from priority local
sectors?
• Tracking and monitoring wage progression (not just job placements)?
Harnessing
Growth Sectors
• Integrate business support, skills and investment funds?
• Explicit alignment of skills funding to economic growth and
creation of “good quality” jobs?
• “Skills Bank” pilot model – more flexible, demand led brokerage
• Differential business rates?
