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Luton’s Labour Market: Facts, Figures and the Future
TBR’s Skills and Labour Market Team:Jonathan Guest, Research ConsultantMichael Johnson, Senior Research Consultant
15/10/2012
Structure
• Introduction• Luton’s economy & key sectors• Luton’s labour market and trends• Skills supply & demand• Skills gaps and shortages• Young people in Luton• Luton’s Future: the workforce & economy of
tomorrow• Questions
Introduction• TBR – Skills and Economic Development
Consultancy• Remit: Develop up to date evidence for LBC
particularly:– Data to understand and monitor skills & employment
in the local area, now and in the future. – Data that will support the interpretation of indicators
and stimulate discussion.
• Comparison Areas (Coventry, Blackburn, Bradford, Oldham, East of England and England)
• Methodology
Luton’s Economy
• What is the current situation?- Dominance of service industries- Decline of manufacturing- Rise of banking, finance & insurance
• Enterprise in Luton – Strong in new firm formation
Key Sectors• Airport & Aerospace, Engineering & Automotive, ICT and Electronics
(and Software) & Creative Industries
Source: TCR 2012 - TBR Ref: W3/C1
Total number of Firms & Employment
4,650
6,120
2,810
4,470
360
520
360
70
0
100
200
300
400
500
600
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
ICT & Electronics Automotive & Engineering Creative Industries Airport & Aerospace
Employment
Firms
Labour Market Trends in Luton
• Unemployment rate in Luton is 10.3%, which is above the unemployment rate in England (8.2%)
• The economic inactivity rate in Luton has crept up since 2004 by almost 4 percentage points (6.4% to 10.3%).
• Causes:– Individuals being students (32%)– Looking after family/home (36%).
• Unlike other areas, long-term sick does not drive economic inactivity in Luton (13.4% compared with 21.2% in England).
Luton’s Labour Market
• Luton’s population: 199,200 • Working Age Population: 130,500• Compared to England, there is a smaller proportion of
Luton’s working-age population with:– NQF level 2 qualifications or above (62.8% in Luton to 72.7% in
England)– NQF level 3 qualifications or above (42.1% to 52.7%)– NQF level 4 qualifications or above (24.8% to 33.5%)
• Proportion of working age without a qualification in Luton (15.67%) is much higher than England average (9.9%).
Skill Supply • Approximately 6,500 people from Luton attended University in
2010/11 – many in London and the East of England. • The University of Bedfordshire has over 20,000 students studying in
2010/11. • Three main Further Education providers (Barnfield College, Luton
Sixth Form College, etc) maintained the volume of successfully completed programmes by those aged 19 or over between 2005/6 and 2010/11.
• Starts of apprenticeships increased since 2005 but still lower than the comparator areas.
• According to past business surveys, few companies have linkages with local universities.
Skills Profile
No Qualification
27.7%29.3%
35.5%
29.8%
25.6%
36.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Luton Oldham Coventry Blackburn Bradford England
11.7%
10.2%
9.0% 9.4%10.0%
6.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Luton Oldham Coventry Blackburn Bradford England
Level 4 and above
APS 2010 - TBR ref: C15 & C15.1
Skill Demand • Hard-to-fill vacancies are most likely to have been
experienced by firms in:– Manufacturing (12%) – Accommodation & food services (31%).
• Roles include:– Sales Assistants and Retail Cashiers – Other Elementary Service Occupations – Information Technology and Telecommunication – Engineering Professionals
• Reasons include: lack of applicants with the required skills and applicants lacking the qualifications the company demands
Skills Demand
Occupation by SOC VacanciesNotified
OccupationsSought
7111 : Sales and retail assistants 37 2,0909149 : Other goods handling and storage occupations n.e.c. 52 7104150 : General office assistants/clerks 13 5159134 : Packers, bottlers, canners, fillers 0 2758212 : Van drivers 43 2409233 : Cleaners, domestics 38 2106115 : Care assistants and home carers 153 1957212 : Customer care occupations 46 1659121 : Labourers in building and woodworking trades 52 1409223 : Kitchen and catering assistants 25 130
August 2012 – Top 10 Vacancies Occupations Sought (and Vacancies Notified)
JCP (2012) TBR: W1
Skills Gaps & Shortages
Supply & Demand Uncovering Employer Needs
Unemployed Gaps and Shortages
Skills Mismatch
Skills Gaps & Shortages
• Technical, practical or job specific skills: – e.g. Engineering and technician skills, job specific but
also linked to STEM skills.• Sales and marketing
– e.g. Numeracy & Literacy - soft skills (listening, language)
• Customer service skills & communication skills:– e.g. Soft skills, team working, customer service.
• Knowledge of English among non-native speakers
Employment & Young People• NEETs – Rise between 2010 and 2011 of 26%.
– Luton’s proportion of NEETs (7.4%) is higher than the regional (6%) and national average (6.1%).
• GCSEs – Slightly higher proportion of pupils getting 5 A*-C grades
than national average.
• Apprenticeships– In 2012, 7% of businesses employed apprentices.
Sector Enrolments – Higher Level Enrolments – Lower Level Science, Engineering & Manufacturing Technologies 60 20Business Information Technology & Telecommunication 150 20Building Services Engineering 120 20Customer Service & Contact Centre 30 140Total 1,110 880
JCP (2012) TBR: W1:S14.4
Apprenticeship Enrolments in Luton 2012
Future prospects
• Forecasts for 2012, 2017, 2022, 2027 and 2032:– Sector forecasts– Occupation forecasts– Skills forecasts
• Methodology & Data:– APS, Working Futures, EEFM.
Luton’s Future: The workforce & economy of tomorrow
TBR 2012 - TBR Ref: W2/C5
Luton’s Future: The workforce & economy of tomorrow
TBR 2012 - TBR Ref: W2/C7
Luton’s Future: The workforce & economy of tomorrow
TBR 2012 - TBR Ref: W2/C6
Future prospects – Assets
• University & FE Colleges• Growth industries and hubs for hi-tech industries at Butterfield
Business Park and aerospace focusing around the Airport• Regeneration (The Mall, St George’s Square and Railway Station) • Transport links including rail and road networks• Carnival Arts Centre
Questions
Turn on keypad
Press down On/off button for a few seconds and the word Qwizdom will
appear
Slide Button to the rightand your remote number will appear on screen
Turn on keypad
Don’t forget to press send
Just before you go to sleep, you notice a huge spider
on the bedroom wall. Would you
A. Ignore it and go to sleepB. Kill the spiderC. Carefully take the spider outsideD. Get someone else to deal with itE. Panic!
Question 1
• Which of the following issues most inhibits the skills system from delivering better outcomes?A. Lack of employer commitment to trainingB. Information, advice and guidance available to
individuals is inadequateC. Inflexibility of public funding mechanismsD. Quality of the training available too often failing to
meet the required standard
Question 2
• Which sector will do most to drive future economic growth in Luton?A. Airport & AerospaceB. Automotive & EngineeringC. Creative IndustriesD. ICT and Electronics (and software)
Question 3
• What is the biggest challenge facing Luton’s labour market?A. Low aspirations of those seeking employmentB. Long-term unemployment restricting the supply of
work-ready residentsC. Depressed economic conditions leading to employers
not hiringD. Lack of alignment between supply of training and
demand for skillsE. National welfare arrangements providing insufficient
incentive to work
Question 4
• Which of these assets should Luton showcase as its primary economic competitive advantage?A. Transport connectivityB. Education institutionsC. Quality of lifeD. Skilled workforceE. Communications infrastructureF. Value for money (in terms of costs of office space,
relative wages rates etc.)
Question 5
• What area of skills development should Luton prioritise?A. Basic skills provision, to ensure that everyone
seeking work meets basic literacy and numeracy standards
B. Expansion of apprenticeship opportunities, to offer young people the chance to develop practical skills
C. Developing programmes to attract and retain people with high level skills
D. Encouraging lifelong learning to refresh the skills base of the entire adult population