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COMMITTEE FOR EMPLOYMENT AND LEARNING Report on the Inquiry into Education and Training for Industry (Continued) Report 01/01R
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Recommendation 29 - Support the
continuing development of the Northern Ireland Credit Accumulation and Transfer
System (NICATS) initiative.
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Recommendation 30 - Include international
industry-standard qualifications as components of vocational qualifications.
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Recommendation 31 - Facilitate
an inter-departmental focus to ensure parity of esteem for vocational and academic qualifications. Higher National Diplomas (HNDs)/Higher
National Certificates (HNCs) and Foundation Degrees The Committee encountered differing views regarding the comparative value of HNDs/HNCs and the new foundation degrees. Support for retaining the HNDs/HNCs largely came from industry, while support for the foundation degrees was generally strong within the further and higher education sectors.
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Recommendation 32 - Initiate and fund, as a matter of urgency, a research project
to evaluate the three types of qualifications. Removing barriers to education In the light of what is known about the demand for skills and current trends in supply, it is clear that increasing access to good quality education and training programmes is of paramount importance. All current funding mechanisms across FE and HE need to be continuously reviewed to ensure they are not a barrier to access. We agree with the view that it would be desirable for all young people to aim for at least a level 3 (craft/technician level) academic or vocational qualification and to acquire positive attitudes to lifelong learning.
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Recommendation 33 - In principle, the Committee supports the UK Skills Task
Force recommendation that learning to level 3 (craft/technician level) should
be free of charge to all up until their twenty-fifth birthday, and asks the Department
to provide costings in order to determine its feasibility.
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Recommendation 34 - Continue to develop the Individual Learning Accounts scheme
with greater targeting and financial support for those in most need without creating
excessive administrative costs.
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Recommendation 35 - The Committee supports the further development of initiatives
to assist with childcare and those with educational special needs and disabilities
in order to facilitate increased access to all education and training. Careers education and guidance The Committee stresses the crucial importance of this service. We are concerned that, although a review was conducted in the mid-1990s, there have only been limited improvements since that time. We would recommend that the Department completes its consideration and response to the "Fulton Report" (2001) with some urgency. Contrasting policies in other areas (e.g. Wales and Scotland) should be considered and emulated where appropriate. Both Wales and Scotland have opted for career guidance to be delivered to national standards, to counteract the fragmented range of services at local level. The Committee would be keen that the Department promotes a system in Northern Ireland that delivers a centrally co-ordinated, independent, high quality service that reflects the new curriculum and the economy. Quality must be monitored centrally, but access to the service must be across all ages and as close to the customer as possible. Teachers must receive experience in the range of careers relating to their specialist subjects using a partnership approach with local industry, and the new industrial development agency. A model of good practice is the Lecturers into Industry Initiative. To date, Northern Ireland has significantly lagged behind other parts of the UK in this respect. The influence of parents over the career choices of their children must not be underestimated.
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Recommendation 36 - The Department must give priority to the implementation
of an enhanced independent, comprehensive and up-to-date, careers education and
guidance service based on best practice and extensive use of Information and Communication
Technology.
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Recommendation 37 - Greater work
related experiences for all teachers, students and lecturers for substantive periods
based on the Northern Ireland Business and Education Partnership (NIBEP) model.
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Recommendation 38 - Increase funding to NIBEP in order that it can further
its work in developing links between business and education. Developing the enterprise culture The Committee for Employment and Learning consider that a stronger culture of entrepreneurship, innovation and creativity is a vital ingredient for the successful development of the knowledge-based economy in Northern Ireland. As an incentive to promoting closer links between higher education and industry, the Committee would support the Northern Ireland Economic Council (1999) suggestion, that the Department of Enterprise, Trade and Investment should provide full or part matching funding of that acquired by the higher education sector in Northern Ireland from commercial and industrial sources. The Committee welcomes and supports the recent initiatives undertaken by the Department for Employment and Learning, and put in place by the Queen's University of Belfast and the University of Ulster. Experiences from elsewhere demonstrate that if university staff are given adequate personal incentives which allow them to share in the profits emanating from their research, this can provide an incentive for entrepreneurship. However, we fully recognise that more support is needed to ensure that Northern Ireland gains maximum benefit from innovation and new technology. We commend and support the initiatives of Young Enterprise Northern Ireland and the Northern Ireland Business Education Partnership (NIBEP), and recommend further developments in this area. It is vital that the culture of innovation and creativity is developed as a core theme throughout our entire education system. A high quality and internationally recognised Research and Development base is an essential platform for the successful development of the enterprise culture.
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Recommendation 39 - Urgent completion and effective implementation, at the
inter-departmental level, of the Research, Development and Innovation Strategy
for Northern Ireland.
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Recommendation 40 - Substantial
funding increases for Research and Development (R&D) to counteract the current
and previous low levels of financial support in comparison to our international
competitors. Whilst the majority of university R&D funding should be linked to the
university Research Assessment Exercise, 10% as recommended by the
Northern Ireland Economic Council, should be earmarked for research that is of
particular relevance to Northern Ireland.
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Recommendation 41 - Establish a single unit to co-ordinate and promote government
funded R&D in Northern Ireland, including individual bids for Research and
Development for all government departments, and develop well-designed research
collaboration and technology transfer schemes with other countries.
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Recommendation 42 - Implementation
of a clear structure to give academic staff sufficient incentives and flexibility
to take research ideas, and even company start-ups, to commercial fruition.
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Recommendation 43 - The Department
for Enterprise Trade and Investment to match, at least in part, any research funding raised by higher education from the private sector
through business-university links, as an incentive to promoting closer links between
higher education and industry. Education and Training for Industry Dr Hilary Steedman September 2000 Introduction This paper tries to provide an overview of the main challenges facing Northern Ireland in the field of education and training for skill and competence development in the coming decade. Perhaps the most important general point to make at the outset of this paper is that a respected body of research now maintains that raising skill levels of the population produces a 'win win' situation for the country concerned. Countries such as Germany or Sweden, where over 80 per cent have a recognised skill, have higher productivity and less income inequality than the UK (Nickell and Layard 1999). Firms benefit from higher skill levels because they then experience less difficulty in moving up-market and/or into new product areas (Prais 1995), but individuals and society as a whole also benefit . Problems of social exclusion are fewer and less extreme. In the UK, by contrast, although in many respects the economy is one of the more successful in Europe, the incidence of poverty is vastly higher than in the rest of Northern Europe. Many UK citizens are being left behind while average living standards continue to improve. Low pay at the bottom end of the workforce is a direct reflection of low productivity. Raising the skill levels of the whole population will therefore not only help firms to prosper but will help to address the problems of social exclusion. This paper is structured as follows. Section 1 presents some evidence of how technology is driving and changing the demand for skills and competence within advanced industrialised economies. Section 2 situates the skill stock in the UK (including Northern Ireland) within a wider international context. Section 3 summarises the implications of changing demand and briefly reviews some of the critical areas and responses identified by the UK government in the recent Final Report of the Skills Task Force. 1 The skill and competence implications of technological and organisational change in working life The problem for policy makers in confronting the challenge of raising skill levels is first - What skills? And second - What level? Answering these questions has become all the more difficult because advanced economies find themselves in an unprecedented period of technological change. Furthermore, Lundvall (2000) maintains that the rate of change is currently accelerating - as anyone who aims to fully exploit the potential of the Internet and other new information and communication technology knows to his or her cost. The pervasiveness of electronic control, information and communication technology in all areas of economic activity has led to the characterisation of the emerging pattern of activity as 'the knowledge economy' (OECD 1996). Our understanding of the full implications of the knowledge economy is still very imperfect. We can be sure, however, that the pace of the changes unleashed by the potential of ICT will not slow in the short and medium term. We can also, therefore, be sure that countries which aim to benefit to the full from exploiting the potential of the knowledge-based economy must continually expand the skills of their population. What then, are those skill implications? The emerging knowledge-based economy offers an increasing supply of well-paid abstract job tasks, often under flexible labour market contracts, requiring significant education and training (Eliasson 2000). The potential of technological advance and change intensifies and complements competitive pressures which affect both the traded goods sector of the economy (globalisation) and the non-traded goods sector (privatisation leading to competitive pressures and heightened consumer expectations). Soete (1996) warns that important policy challenges arise from this shift in the focus of the economy towards knowledge- based products. In particular, he warns that it is likely that large parts of the labour force will be excluded from the process of wealth generation by virtue of their inadequate levels of skill and competence. The extent to which this process is already underway can be shown from the following table (Table 1) Table 1:
Source: OECD.Employment Outlook June 1999 Statistical Annex Table D Table 1 shows a recent 'snapshot' of the labour market position of the 'at risk' (of unemployment) group defined as the 'less than upper secondary¢ group. In every country they have the highest unemployment rate and a lower activity or labour force participation rate than the more skilled groups. In five out of the six countries surveyed, barely half are in employment. This compares well with around three-quarters of the 'upper secondary' group in employment and an even higher proportion of the 'tertiary level¢ group. The group most 'at risk' of social exclusion is the group with no further education or training after compulsory education. Upper secondary education or training reduces the probability of labour market exclusion even where a large proportion of the population has achieved this level (Sweden and Germany). Understanding of the practical implications of these changes can be helped by concrete examples based on recent case studies. Houtkoop (1999a) analysed a series of case study visits made to firms in Sweden, the UK and the Netherlands employing a predominantly low-skilled workforce. In the newly-privatised UK Railway Company visited for the project - whose staff were predominantly without formal qualifications - intensive training in social and communication skills was being provided for staff with direct contact with customers (formerly passengers!). In a privatised UK Water Company, new EU water quality standards required the introduction of IT equipment on a very large scale in an industry where the workforce was also predominantly without formal qualifications. This precipitated redundancies and early retirement and significant investment in the training and upgrading of the remaining employees. In the Netherlands one of the case studies concerned a major brewery. Over the past seven years the brewing process has become more complex because of automation and centralized process management. In earlier times, employees merely carried out routine tasks, connecting tubes, closing valves, or, in packaging, loading cardboard into the machine. Now, the brewing process is monitored and directed from a central process terminal. In packaging, the employee not only loads cardboard but has operates the machine as well. Parallel to these technological developments, the company initiated organisational change in a push for more cost-effective production. As a consequence the organization moved away from a line organization, and individual workers had to assume more responsibility themselves. Employees had to learn how to work as a self-directing team whereas before there had been one responsible supervisor for each team who told them what to do. The number of supervisors was halved. Thanks to the profitability of the company and the possible negative repercussions of mass lay-offs, the company decided to massively upgrade the skills of the existing workforce. In the TSER-NEWSKILLS programme of research, Mellander (1999a and 1999b), in a study of manufacturing in Sweden, found that technical change is the single most important factor influencing the decline in demand for the low-skilled group, while (unfavourably developing) relative wages was the second most important factor . The TSER-NEWSKILLS programme concluded that, with the exception of Portugal, labour-market demand for individuals with no education or training beyond compulsory schooling (henceforth ISCED 0-2) has continued to fall - relative to the average of demand for all skill levels - in the European countries included in the study (McIntosh and Steedman 2000) [361] This continuing fall has been accompanied in all countries by continuing reduction in the supply of skills at the ISCED 0-2 level. It therefore seems clear that the supply in the workforce of individuals with low skill levels continues to exceed demand and, on most predictions will continue to do so over the coming decade. As a consequence the OECD has set the International Standard Classification of Education Level (ISCED) 3 standard as the minimum level with that new entrants to the labour market should aim at achieving (OECD/CERI 1997).The demand for individuals with qualifications at Level 3 and above has increased over the past two decades in the UK and demand appears to have kept pace with or even outstripped the increase in supply over this period. The gap between the lowest paid and the highest paid workers widened dramatically over the 1980s and has not lessened in the 1990s. The relative employment share of non-manual workers increased in the 1980s and pay of non-manuals also increased relative to manual workers. These combined movements strongly suggest an increased demand for higher level skills (Machin 1996). In the Final Report to the UK government of the National Skills Task Force (DfEE 2000) three main areas of growing skill demand were identified.
2. The supply of skills and the implications of changing demand It has already been explained that the past decade and a half has seen a substantial fall in the proportions of the UK population having no education or training qualifications beyond those of the compulsory school ie individuals at ISCED Level 2 or below [362] The UK is not the only country to have experienced such a fall. In other European countries a fall has also taken place over this period; in most countries the rate of decrease has been faster than in the UK. This fall is almost exclusively the result of more educated younger people entering the working age population and older less educated individuals leaving. Table 2 shows the position of the UK and four other European countries over the past 13 years (eight years for France and the Netherlands). The UK continues to have a much higher proportion of the population without further education and/or training after the end of compulsory schooling at age 16. Table 2: Percentage of working age population (16-64) without general or
vocational upper
Source: Labour force survey statistics. Sweden, population statistics. (Murray & Steedman, 1998) Notes: For explanation of levels used see Appendix A Yet the countries with low proportions of low skilled in 1985 (Germany and Sweden) had made greater progress than the UK in reducing these to quite low levels by 1998. We can look at changes in the 'skill profile' of the UK population by three separate levels in Figure 1. Figure 1 Notes: For explanation of levels used see Appendix A Figure 1 shows the reduction in the proportion with no qualifications obtained after 16 noted in Table 2 above but also shows remarkably strong growth in the proportion gaining qualifications from higher education. The crucial 'intermediate skills' category (A-level and/or some further training) has grown much less. This is the category singled out in the Skills Task Force employer survey as causing concern because of skill shortages. How closely does the 'skills profile' of Northern Ireland correspond to that of the UK - and how do these compare with other countries? A study carried out at the CEP to update the 1994 Skills Audit (DfEE 1994) has been extended here to show separate figures for Northern Ireland [363] Figure 2 Notes: For explanation of levels used see Appendix A Figure 2 shows that the profiles of the two populations are very similar. In particular, both populations share the tendency to low proportions in the intermediate skills category (Level 3). Northern Ireland is slightly below the whole of the UK in proportions at Levels 2, 3 and > Level 3. However, it is well-known that the UK lags behind other European countries in proportions with education and/or training beyond the compulsory school level. Table 3 shows proportions in the UK and NI at Level 2 and above and at Level 3 and above in comparison with France and Germany. Table 3:
Notes: For explanation of levels used see Appendix A (1) Population aged 16-64 (men) and 16-59 (women) (2) Former Federal Republic of Germany only It can be argued, of course, that qualifications do not tell us what the skills of the population are in reality. For one thing, they tell us nothing about what additional skills may have been acquired in the course of adult life but which have not been formally certificated. Although for Table 2 a special analysis has been used to try to allocate qualifications having the same standard to the same level in each country, we can still doubt whether comparisons based on categorisation of qualifications alone tells us accurately where we stand in relation to other countries. This is where the International Adult Literacy Survey (IALS) initiated jointly by Statistics Canada and the OECD can prove helpful in comparing the consistency of international comparisons and in assessing how GB and NI stand in relation to other countries. In each country, a randomly selected national sample of adults aged 16 and over completed tests designed to assess literacy on a scale ranked 1-5. Level 1 denotes a very basic level and 5 denotes the sort of literacy skills that might be associated with a university graduate. In keeping with this more sophisticated definition of literacy - viewed as a continuum rather than as a condition that adults either do or do not have - three separate literacy scales were used to assess how well adults could 'use printed and written information to function in society'. The prose scale tested the ability to extract information from a piece of continuous prose - for example, at Level 1 the task was to interpret instructions on a box of aspirin; the document scale tested ability to cope with the sort of text found in the workplace; the quantitative scale tested ability to apply arithmetic operations to numbers embedded in printed materials. At Level 1 the task was to perform a single operation such as addition for which the problem is already clearly stated or the numbers are provided. In Figure 3 below, the sample in each country surveyed has been divided according to the highest education/ training level attained using the ISCED scale (see Appendix A) For each ISCED grouping the average literacy score on the IALS prose literacy scale was calculated. Figure3: Average prose literacy score of 26-35 year olds by ISCED category,
Ireland, Figure 3 shows two things. First, when the population is grouped by ISCED levels, the greatest differences between countries occur at below ISCED Level 2. This group, defined in GB and NI as those with no qualifications, has a much lower average score than those at this level in Ireland, the Netherlands and Sweden. At the higher levels, however, the differences in average literacy score between the European countries are rather small. We can, therefore, have some confidence that by measuring populations according to their stock of qualifications held, we are also measuring increases in skills that are useful in employment. To gain an idea of how NI stands on literacy and numeracy skills we can also compare NI directly with GB and a range of other leading industrialised countries. Table 4 shows this comparison Table 4: Population (16-65) by IALS Literacy levels (prose literacy scale)
Germany, Netherlands,
Note (1) German-speaking Switzerland only Source: CEP calculations from IALS data supplied by Statistics Canada Table 4 shows that the literacy levels of NI and GB are very similar, in fact, allowing for sampling error, there are no significant statistical differences between them. However, where differences between countries are of the order of 5 per cent or more, the difference is highly likely to be significant, and this will be even more likely for differences greater than 5 per cent. It can be seen that the US, GB, NI and German-speaking Switzerland have the highest proportions at the lowest literacy level, Level 1. German-speaking Switzerland compensates by having high levels at Levels 2 and 3. The US, GB and NI have proportions at Levels 4&5 (the highest levels) which are on a par with other countries. Sweden is an outlier in this comparison. While we have no reason to doubt that Sweden scored more highly than any other country tested, the size of the difference is open to some doubt. This is due to cultural attitudes to test-taking and slight differences in administration of the tests (Carey 2000). After the differences at Level 1 the most striking difference is at the crucial Level 3 (intermediate skills area) where GB, NI and the US are particularly weak. 3. The implications of changing demand for the supply of skills and competences, implications for broad policy strategy and UK government policy response The UK has a larger group with no further education and training after compulsory education than in other European countries and this holds for Northern Ireland also. Proportions in the UK and NI population with higher education qualifications compare well with other European countries and, more recently, with the US. As a result of the increasing use of ICT and the need for greater flexibility and innovation in all areas of business, the demand for graduate skills shows no sign of slackening at present. Good levels of ICT competence and an A-level standard in mathematics are particularly sought after by companies in the fast expanding banking and finance sectors. The fierce competitive environment in which almost all businesses operate in the globalising knowledge economy has all but eliminated jobs which can be carried out by individuals without basic literacy, numeracy and ICT skills. This trend is of particular concern to the UK because of the high proportion having low skills in these areas (confirmed by the IALS survey and the Moser Report (DfEE 1999). The UK stands out from other countries in having relatively low proportions of the population with good levels of intermediate skill (ISCED 3). Unmet demand for associate professional competence, technician, supervisor and middle management skills is of particular concern to UK business as a result of this feature of the UK skills distribution. This applies also to Northern Ireland. Bringing together what we know about the demand for skills in the UK , stocks of skills and competence and current trends in supply it is clear that there are three priorities for policy makers:
By developing the skills of individuals we make them more productive, better able to contribute to society and enjoy a fulfilling life. If business can draw upon a rich pool of skill appropriate to business needs the productive potential of skilled individuals will be realised and business will flourish. The policy priorities outlined above aim to satisfy what we know will be the medium and long-term skill needs of the economy for broad generic skills and good technical and social competences. Government has a particular responsibility to take a longer-term perspective on skill and to direct investment to this end since individuals and business frequently lack the information or means to do so. But business also has urgent short-term skill requirements. Government can contribute to helping business satisfy these requirements in a number of ways.
Other (more interventionist) strategies to help meet business skill requirements have been used in other countries and might repay further study. In Appendix B of this report I reproduce the main recommendations of the UK government-appointed Skills Task Force. In this section, therefore, I emphasise what I think are the crucial recommendations and crucial challenges in implementing these recommendations. The Skills Task Force fully recognised the main weakness of the UK education and training system, namely that so many young people gain no further useful level of qualification/skill following compulsory education. International comparisons clearly show that other countries do much better. The Skills Task Force accepted that 'the absence of a fully developed vocational route in England has been one of the main reasons why attainment amongst less academically inclined young people has historically been so low'. A vital proposal, therefore is to strengthen the apprenticeship route, create a level playing field between the funding of the employer and college-based vocational routes and provide a path into Higher Education for those following a vocational route to Level 3. The importance of this policy area cannot be over-stated. All the important planks of government policy for developing young people's skills depend on ensuring that all aim for a Level 3 qualification and that most achieve it. This will assure good employability for all who study to this level, a good supply of vital technician and associate professional skills and a good supply of young people to continue into Higher Education. I believe that, to achieve these goals, a great deal of work will be needed to strengthen employer organisations with responsibility for training (NTOs) and that employers should make an increased financial contribution to providing these increased resources for NTOs (Steedman, Gospel and Ryan 1998). The Task Force recognises that NVQ qualifications alone provide an inadequate basis for a full programme of vocational and technical training to Level 3. This led to an earlier Skills Task Force recommendation for the development of 'vocational certificates specifying knowledge and understanding which are related to occupational standards and which can be taken alongside those qualifications attesting competence'. These certificates are now under development by the Qualifications and Curriculum Authority. In addition to encouraging more young people to reach Level 3 and beyond by the apprenticeship route, the Task Force recognises that some will need or want to study full-time in college for a full vocational qualification, and recommends that Learning and Skills Councils should aim to encourage increased concentration of resources on the most relevant occupational areas. Incentives are the key to the government's proposals for young people and for adult learning to improve basic skills. The Skills Task Force urges the government to go further in removing direct financial obstacles to learning (fees). The Task Force observes that other European countries and the US achieve higher levels for young people by keeping them longer in some form of education and training than is the case here where fees must be paid after the 19th birthday. The Task Force therefore recommends that learning to Level 3 should be free of charge for all to their 25th birthday. It is recognised however, that removing such obstacles and other financial obstacles for adults and young people will not necessarily lead to greater participation. My view is that adults in particular will require a variety of incentives and innovative non-threatening teaching and learning situations using ICT to the full. Many adults with literacy and numeracy difficulties are in work for all or part of the time. In particular I consider that employers have a key role to play in encouraging their employees to improve basic skills by providing more stimulating work situations (job rotation, simple projects) which in turn give rise to an incentive to improve basic skills. Finally, the Skills Task Force expresses particular concern about 'e-skills' - skills for e-commerce and industry which are needed in all sectors of the economy and not just in the ICT producer sector. This should be a priority for government and the sectors concerned working together to rationalise qualifications and provision and broadcast clear signals to individuals that there are good rewards to be gained from investment in these skills. REFERENCES Carey S (ed.)(2000) Measuring Adult Literacy: the International Adult Literacy Survey (IALS) in the European Context Office for National Statistics, London DfEE (1999) A Fresh Start: Improving literacy and Numeracy (Moser Report) DfEE (2000) Skills for All: Proposals for a National Skills Agenda Final Report of the National Skills Task Force Eliasson G (2000) 'Developments in industrial technology and production - competence requirements and the platform theory of on-the-job learning' in CEDEFOP AGORA IV The low-skilled on the European labour market: prospects and policy options - Towards a minimum learning platform CEDEFOP, Thessaloniki, 2000 Houtkoop W (1999a) 'The Position of the Low-Skilled in Firms' Max Goote Centre, University of Amsterdam, mimeo TSER-NEWSKILLS Working Paper No. 3 Lundvall B-A (2000) 'Europe and the Learning Economy - on the need for reintegrating the strategies of firms, social partners and policy makers' paper given at the Seminar 'Towards a Learning Society: Innovation and Competence Building with Social Cohesion for Europe' 18-30 May 2000 http://in3.dem.ist.utl.pt/learning2000 Machin, S (1996) 'Changes in the relative demand for skills' in A L Booth and D Snower (eds) Acquiring Skills: Market Failures, their Symptoms and Policy Responses, Cambridge University Press, Cambridge McIntosh S and Steedman H (2000) Low Skills: A Problem for Europe Final Report to DGXII of the European Commission on the NEWSKILLS Programme of Research, Centre for Economic Performance, London School of Economics and Political Science, London 2000 Mellander E (1999a) 'The Multi-Dimensional Demand for Labour and Skill-Biased Technical Change' Mimeo, Industriens Utredningsinstitut, Stockholm TSER-NEWSKILLS Working Paper No. 20 Mellander E (1999b) 'Varför har efterfrågan fallit på lågutbildad arbetskraft i svensk tillverkningsindustri?' Murray A and Steedman H (1998) ' Growing Skills in Europe: the changing skill profiles of France, Germany, the Netherlands, Portugal, Sweden and the UK' Centre for Economic Performance Discussion Paper No. 399, July Nickell, S and Layard R (1999) 'Labour Market Institutions and Economic Performance' Centre for Economic Performance Discussion Paper 407 OECD (1996) Employment and Growth in the Knowledge-based Economy, Paris OECD/CERI (1997) 'Literacy Skills: Use them or lose them' in Education Policy Analysis, OECD Paris OECD/Statistics Canada (1995) Literacy, Economy and Society OECD, Paris ONS (1997) Adult Literacy in Britain The Stationery Office, London Prais S J (1995) Productivity, Education and Training Cambridge University Press Soete L (1996) 'Globalisation, Employment and the Knowledge-based Economy' in OECD Employment and Growth in the Knowledge-based Economy OECD, Paris 1996 Steedman H, Gospel H and P Ryan (1998) Apprenticeship: A Strategy for Growth Special Report, Centre for Economic Performance topkey issues in relation to education, training Dr David Armstrong September 2000 Introduction 1. This Paper provides a summary of a number of key issues in relation to education, training and industrial development in Northern Ireland (NI). The paper is structured under three main headings: n Education and training for industry; n Lifelong learning and industry needs; and n Community-based learning and industry needs. 2. These three headings reflect the three areas in which the advisers have been asked to prepare briefing papers for the Committee. Education and training for industry The economic challenge 3. Recent estimates suggest that around 132,000 new jobs need to be created in NI between 2000 and 2010 in order to ensure that employment and unemployment rates converge with elsewhere in the UK [372] 4. In order to achieve this it will be essential to ensure that appropriate strategies and action plans are put in place to create the conditions for economic growth. Success will be dependent upon, amongst other things: n Increasing the attractiveness of NI to Foreign Direct Investment (FDI); n Consolidating and internationalising NI's larger indigenous businesses; and n Developing a dynamic small business sector to service these two segments of the market. The views of local industry 5. It is widely recognised that the job creation targets will not be met unless there is a stepped shift in the skills base within the Northern Ireland workforce, sufficient to meet the demands of the knowledge-based economy. 6. In March 2000, one half of all NI companies and three fifths of local externally-owned companies, reported current hard-to-fill vacancies [373] NI companies indicate that this is having a major detrimental impact on business development and, in particular, is leading to: n Above average recruitment costs; n Increased running costs due to the use of overtime; n Loss of quality in customer service; and n Loss of business and orders to competitors. Education and training priorities beyond 2000 External Link Disclaimer: The Northern Ireland Assembly does not exercise any editorial control over the websites listed above and therefore cannot be held responsible for the information, products or services contained therein. |