Traineeships in Greater Manchester

23rd May 2014

Welcome

Purpose of the day

•Disseminate findings from the interim review

•Review the recommended actions

•Endorse and take forward to action

Purpose of Research

• Provide a picture of Traineeships in GM

• Qualitatative and Quantitative

• Provide evidence for developing the programme in GM

Key Questions

• How many trainees are there in Greater Manchester?

• What is the demand for Traineeships in Greater Manchester?

• Are traineeships working?

• Who is offering traineeships- match to apprenticeship opportunities?

• What are the barriers to participation / provision?

Approach

• Surveys - trainees, employers, providers

• Interviews - stakeholders

• Focus groups - stakeholders

• Desk research

Traineeships

• Partnership between employers and training providers

• Prepare young people for apprenticeships or jobs

• Motivated, underqualified 16 – 24 year olds

• 16 – 18 : no level 3 19 – 24 : no level 2

• Work experience + core skills + IAG

• 6 weeks - 6 months

Traineeships

• Positive outcome: either

• Young person moves into employment, apprenticeship, or FE

• All elements of agreed training complete, or

• Young person completes 6 months on programme

• Core Skills: English, Maths and ICT level 2 where missing, usually Functional Skills.

• “Raising the Participation Age” to 18

Context• 19.0% unemployment

among 16-24s

• More 16-24s in Greater Manchester claim JSA (6.3%) than England average (4.8%) (June 2013 data)

• Youth Unemployment is a key labour market challenge for Manchester (Greater Manchester Strategy 2013)

16 – 24s in the UK labour market (ONS May 2014)

Context

• Huge rise in apprenticeship starts across UK and in GM

• Increase driven by over 25s

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/130

5000

10000

15000

20000

25000

30000

35000Apprenticeship starts in Greater Manchester

under 19 19 - 25 25 +

Key findings

The Target Audience

• Unemployed • No level 2/3 qualifications • No significant work experience • Motivated to work • Ready for an apprenticeship in 6 months

• Approximately 130,000 young people (16-24) in Greater Manchester fit the qualification criteria for Traineeships

• Approximately 8,250 young people (16-24) in Greater Manchester claim JSA

The Apprenticeship Market

• Competition for Apprenticeship places is rising across the UK in all sectors

2008 2009 2010 2011 2012 20130

5

10

15

20

25

30

Competition for Apprenticeships by Sector

Agriculture, Horticulture and An-imal Care

Arts, Media and Publishing

Business, Administration and Law

Construction, Planning and the Built Environment

Education and Training

Engineering and Manufacturing Technologies

Health, Public Services and Care

Information and Communication Technology

Leisure, Travel and Tourism

Retail and Commercial Enterprise

Science and Mathematics

Ap

pli

cati

on

s p

er v

acan

cy

The Apprenticeship Market

• Apprenticeship sectors are changing20

01 -

200

2

2002

- 2

003

2003

- 2

004

2004

- 2

005

2005

- 2

006

2006

- 2

007

2007

- 2

008

2008

- 2

009

2009

- 2

010

2010

- 2

011

2011

- 2

012

0

5

10

15

20

25

30

35

Business, Administration and Law

Construction, Planning and the Built Environment

Engineering and Manufac-turing Technologies

Health, Public Services and Care

Retail and Commercial En-terprise

Apprenticeship starts by sector

Axis Title

%

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/120

5,000

10,000

15,000

20,000

25,000

Apprenticeship completion in Greater Manchester

Completed Not completed

The Apprenticeship Market in Manchester

• More people are starting Apprenticeships in Greater Manchester, but still a significant portion are left unfinished

• Are young people unprepared for apprenticeships?

Sector match

• Are traineeships offered in the right sectors?

GM traineeship and apprenticeship vacancies, March 2014

Over-supply in healthcare, particularly childcare

Under-supply in construction

TraineeshipsIntermediate Apprenticeships

Advanced Apprenticeships

HigherApprenticeships

Take-up of Traineeships

• Take-up of traineeships has been slow• Few traineeships offered

• 430 vacancies in GM Aug 2013 – Feb 2014• 15 of 47 eligible providers in GM delivering

• Few applicants• “we’ve had more ”

Issues around implementation

• Confusion over benefit rules• Discretionary wages / expenses • Negative press• Compensation of trainees

• Flexibility / quality assurance trade-off• Flexible duration

Barriers for young people

• Lack of financial reward• Confusions over benefit entitlement• Classroom phobia• Lack of marketing• Eligibility criteria (qualifications)

Barriers to delivering traineeships- providers

• Awareness among employers• Concerns over viability• Concerns about undermining Apprenticeships• Delays: eligible providers choosing to “wait and see” or

still developing offer

• 24% of providers consulted already “keen and delivering”

Barriers to delivering Traineeships- employers

•Apprehension as a new scheme•Subdued economic climate•Lack of available staff to mentor/train•Lack of understanding of scheme and how it fits with their needs•Preference towards more traditional routes – Apprenticeships•Investment: What is in it for them?•Health and Safety

Marketing Traineeships

• Proactive stance providers:

• Networking with referral agencies• Marketing via NAS, JCP, connexions• Soliciting interest from employers• Positive media coverage• Plans for “Graduation Ceremonies”

Delivery models

4 weeks classroom 6 weeks placementREVIEW

2 weeks classroom 6 weeks placement

6 weeks classroom 6 weeks placement2 weeks split

4 weeks classroom 8 weeks placement 2 weeks classroom

6 + weeks placement1 day

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1 day

1 day

1 day

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8 weeks alternating

Recommendations

• Policy• Marketing and Awareness• Support

Recommendations - Policy

• That GM to DWP that each JCP district has a target for referrals to Traineeships and Apprenticeships which should be discussed with the LEP to ensure that it fully takes into account local economic need.

• That an Apprenticeship conversion rate should be established from Traineeships to Apprenticeships to help support young people to make this transition.

• The SEP could very usefully liaise with SFA / EFA to ensure that providers are aware of indicative funding allocations for traineeships, to ensure that they are able to plan, and promote, delivery.

Recommendations – Marketing & Awareness

• Work with stakeholders to raise awareness of the key messages and eligibility of traineeships.

• Employers should be encouraged to increase Apprenticeship offers alongside offering Traineeships, and view Traineeships as an ‘apprenticeship pipeline’.

Recommendations – Support

• The creation of regular and rigorous data collection from young people, employers, providers on what worked well / less well.

• Support Providers with a work experience quality standard • Co-ordinate work with Job Centre Plus and IAG providers to brief frontline

staff, ensuring that key messages and eligibility criteria are understood enabling appropriate referrals to traineeship providers.

• Arrangements should be made for a ‘travel offer’ to young people on a traineeship, where the costs of travel are supported by the provider or by the employer whilst on the Traineeship.

• Ensure that Traineeships vacancies are clearly visible on the apprenticeships vacancies website.

Next Steps

• Review the recommendations • Review proposed actions• Gaps ?• Develop this as a GM Traineeship Action Plan

Closing remarks