Premeeting brief agenda and member case studies We

Pre-meeting brief: agenda and member case studies We asked members to prepare a brief on each of their sectors, focusing on the skills challenges pre and post-Covid.

Cross-cutting themes • Covid is the immediate concern but longer term shifts in technology and demography are big drivers of skills needs: • Technology requires new skills – e. g. transition from petrol to electric in the motor industry requires new skillset for technicians and mechanics, application of tech in agriculture requires more technical competency. • An ageing workforce – frequent theme across sectors, especially technicians and engineers in STEM industries, but also care and health. • Apprentice numbers will fall before they rise – many industries expecting redundancies when furlough ends. • Non-sector specific skills: • Leadership and management • Digital skills - Covid imperative for fitness/active sector, and creative and cultural sectors to continue to trade • Business operational skills – cited in creative sector, agriculture, and hairdressing amongst others. • Apprenticeships and other initiatives used to boost diversity. Some worry the good work could be undone by Covid: • E. g. STEM industries too male, in health too female, creative industries too middle class • Green shoots of recovery: • Some industries are starting to open but demand is low (i. e. motor industry, show rooms open but demand for cars is down) • Others are some way off (creative and cultural, engineering construction). There is a worry that people and therefore skills will be lost from the industries.

Institute of the Motor industry (IMI) Coverage – The IMI is the professional body for individuals working in the motor industry (post-manufacture). In 2019 the sector comprised c. 850, 000 jobs across the supply chain including sales, mechanics, and technicians. Pre-Covid Challenges – The industry faces the transition from petrol/diesel to electric, with new sales of the former to be banned by 2040. This requires new skills, from the sales people understanding the new drivetrains, to the technicians who service and repair vehicles. The industry is 80% male and has an ageing profile but progress was being made through apprenticeships. How has Covid affected things? – COVID-19 has undone much of the progress of apprenticeship standards in addressing key skills challenges in the automotive retail sector. Fundamentally employers do not want to increase headcount. Indeed, with 15% of automotive businesses temporarily closed or paused trading during the lockdown, an estimated 250, 000 employees in the industry have been furloughed and there is concern that when furlough support stops there could be significant redundancies. Industry experts predict this could be as high as 150, 000 in automotive retail alone. Our research reveals that 26% of employers in the automotive retail sector say that they will not be taking on any new apprentices in 2020, with a further 40% reviewing their plans with the intention of significantly reducing or possibly ceasing apprentice recruitment this year. Only 9% of employers say that their apprentice recruitment plans for 2020 remain unchanged. This is not only a very significant loss of opportunities for young people, but presents an existential threat to the provider network. The potential loss of provision would be a long term threat to any recovery in apprentice numbers. Green shoots of recovery are visible. Most automotive retail businesses have reopened which is one of the fastest sector reopenings. However, demand has been severely stifled. Consumer confidence is impacting car sales. The MOT extension has led people to delay MOTs, presenting severe commercial threats to the existence of many MOT centres.

ECITB Coverage – Engineering construction makes up one-fifth of the UK economy and supports the design, build and decommissioning of the nation’s critical infrastructure. This includes oil and gas, nuclear and renewables, and process industries, such as chemicals, pharmaceuticals, food processing, water and waste treatment. Engineering construction directly supports 190, 000 jobs. Challenges • A collapse in the oil price has triggered a major downturn in the oil and gas industry. This is the largest sector in which engineering construction companies operate. There is a risk that skills will be lost as employers shed jobs. Although demand lower in the short term, there is a medium-term demand for these skills in decommissioning and repurposing for net-zero. • The government is committed to net zero emissions by 2050. The tight deployment timeframes and the wide variety of technologies that may be rolled-out may exacerbate current skills shortages. • The industry has an ageing workforce, with 91, 000 engineers and 29, 000 engineering technicians expected to retire or be close to retiring by 2026 and difficulties in recruiting new talent. The industry has a gender imbalance and is 88% male. • Skills needs – Softer skills such as problem-solving, team working, management and safety management are in demand, as well as the technical skills of engineering professionals and technicians, design, and business professionals. Difficult occupations to recruit – 49% cite engineering related technicians, 45% skilled mechanical, electrical, instrument and electronic trades, 43% engineering and science professionals, 33% listed project personnel, 25% design and draughtspersons and construction operatives. Impact of Covid-19 • 71% of employers are still undertaking training. The average percentage reduction in training spending is 43%. Employers have revised down future training budgets. • 36% of employers had to postpone bringing in apprentices or graduates. • 37% face contracts cancellations. Another 23% face works being postponed or limited. However, 81% are still tendering for new work. • ECITB launched ‘train to retain’ on June 10, to support the retention of essential skills in the industry by providing grants for professional development activities for apprentices and graduates. The scheme targets those unable to pursue their current recognised industry programmes.

Enginuity Coverage – 1. 7 million engineers employed in advanced manufacturing. We connect engineers, employers, educators and policy makers across the four nations. Pre-Covid – Enginuity uses data and expertise to help employers with workforce planning. Engineers are tackling the big challenges such as: creating connected workplaces and homes, the transition to net-zero, and using technology to create a safer and healthier world. Industry 4. 0 is rapidly changing manufacturing and engineering, yet there is an ageing workforce and chronic skills gaps which impact on our business agility and resilience. Covid-19 – There is major disruption across the sector especially auto, aero and defence industries. • 80% of the sector has seen a fall in business and over 75% a drop in sales. • 85% of businesses in the sector have furloughed a portion their workforce with over a quarter already making redundancies and a further 45% expecting to at a time of a chronic skills shortage. • We need to boost economic confidence through productivity, ensure a safe place to work, and build business resilience through human capital investment. If talent is lost it will leave gaps in knowledge and experience. • We need to green our economy and to diversify e. g. carbon capture, heat pumps and make it here in the UK e. g. ventilator challenge. Covid-19 had bought into sharp focus our supply chain integrity. Our Response • Phase 1 - launched 18 th May in conjunction with the Made Smarter Commission, Make. UK, Advanced Manufacturing Catapults, free high quality, state of the art content on the newly created ‘engage’ platform. • Phase 2 - Developments for September 2020 – Industrial reset and recovery. For engineers, technicians, apprentices at risk, upskilling/reskilling, repurposing and matching roles to job and learning opportunities to reenergise careers and retain engineering talent.

Skills for Health Coverage – The sector employs over 2, 883, 000 people across the NHS, private healthcare organisations, and other healthcare settings (e. g. prisons, rural or remote areas, general practice, etc. ). And over 3 million people have been working during lockdown in Human Health and Social Work Activities as “key workers” representing 30% of the total “key workers” workforce, making them the largest occupational group to continue their tasks in lockdown. Pre-Covid-19 challenges Skills shortages: • The health sector started the crisis with 40, 000 nursing vacancies in England. • Despite the recruitment efforts during COVID-19, the sector now has the highest vacancy rate in the UK (2. 7 job vacancies per 100 employees), surpassing the accommodation and food industries. Aging workforce and recruitment: • 39% of the workforce is 45 years old or over, which impedes the sustainability of the workforce. • Apprenticeships can be an opportunity to gain further reach and expand training opportunities. However, trainee health students (on apprenticeships and other courses) are curtailed in undertaking their full clinical placements in NHS Trusts which could result in a delay and potential shortage of registered qualified health professionals in the next year(s). There also challenges for apprentices not being able to undertake End Point Assessments which require face to face or observation. Diversity: • Majority of health workers are women (76%), and despite increasing numbers of women in senior management roles, women are more likely to be employed in lower-paid specialities. Impact of Covid-19 • Recruitment efforts expected to increase in the next 6 months, particularly around medical support workers, HCAs, Phlebotomists, Nurses/Nursing Associates and GPs as well as ICU and bank staff. • “We are looking to increase the number of mental health gateway workers, social prescribers, listening & guidance social prescribers, physiotherapists, physicians associates and paramedics. Also upskilling admin/clerical staff to potential practice manager level” Survey respondent • Covid 19 has demonstrated that skills are transferable, yet 76. 1% state that as a result of the pandemic, training needs have increased due to numerous redeployment efforts. • Trusts have taken on additional staff to be able to assist with the pandemic, particularly in support roles and indicate that having undertaken their induction and initial training, they would like to keep these staff. Apprenticeship Standards will assist in their longer-term training and have the potential of creating a sustainable healthcare workforce pipeline.

Skills for Justice Coverage - 722, 445 individuals were employed across the justice sector (policing, prisons & probation, fire & rescue, courts & tribunals and the armed forces) in the 1 st quarter of 2020. Pre-Covid-19 challenges • Diversity – Gender balance has been an issue in some subsectors such as fire & rescue where only 16% of the workforce are women. Likewise, in the armed forces where 75% of the workforce are male. The fire & rescue subsector also holds a smaller proportion of nonwhite British people (5%) compared to the general population • Recruitment – Police forces have struggled to meet the government’s recruitment target of 20, 000 new officers as there a variety of logistical challenges such as recruitment campaigns, the assessment process and training large numbers of recruits. Recruitment is increasing within the Armed Forces however retention has become an issue with personnel being unwilling to uproot their families to move posting. • Funding – Central funding for fire & rescue services have steadily declined for the past 7 years resulting in cuts to staff numbers. Impact of Covid-19 • Staff wellbeing – More than half of justice sector organisations state that the pandemic has had a negative effect on the mental health of their staff. In addition, 1/3 of employers report that staff have suffered from poor physical health as a result of the pandemic. • Training & Development – More than half of employers state that as a result of the pandemic, training needs have increased. This is partly due to training and development activity being put on hold but also because of the emerging training needs surrounding infection prevention and control. • New ways of working – over 90% of organisations have implemented new ways of working and now need immediate support with employee engagement, staff wellbeing processes and effective staff rostering. Long-term needs relate to apprenticeship support, learning management solutions and Learning Needs Assessments. • Increased need for support – to support with recovery, justice sector employers have called for employer-led groups working collaboratively to meet recovery-related needs, additional guidance on bringing staff back into the workplace who may be remote working as well as leadership training and development.

Lantra – Skills for Land-based Industries Coverage – Lantra covers the land-based sector which includes agriculture, forestry, arboriculture, environmental and landscape management, pest control, animal care, sports turf, and specialist highways roles including temporary traffic management and vehicle restraint systems. In total land-based industries employ in excess of 1. 3 m people across the UK. Pre-Covid Challenges • Historic and inaccurate perception of sector as low-paid, low-skilled and hard, unsociable work • Many workers require competency certification for specific tasks and/or equipment • Sector characterised by predominance of small and micro businesses • Poor health and safety record (fatal accident rate 15 x higher than construction) • Increasing application of technology requires increasing technical skills – hard to attract • Many parts of the sector rely on migrant contract labour (picking, shearing etc) • Longstanding skills shortages (especially in agriculture) are business management skills and digital skills • If post-Brexit policy pays farmer to manage environment this will be a further area of skills shortage How has Covid affected things? • Double whammy on migrant workers, tighter immigration policy plus COVID travel restrictions • Hiatus in assessment of apprentices because assessors can’t go on site • Initially training of practical skills ceased due to restrictions – now restarting with new precautious in place How Lantra Responded • Developed remote assessment for apprentices using video streaming • Developed remote interactive training and refresher training to enable people to retain certifications • Created “Skills Matching Service” in Wales and Scotland to help employers fill critical roles if staff have to self-isolate

Creative & Cultural Skills Coverage - The Creative Industries are broad from advertising and architecture, through to performing arts, museums, galleries, TV, radio, software and publishing. The sector employs over 2 m people in the UK, and Pre-Covid was projected to create an additional 1 m jobs by 2030. It was growing five times faster than the rest of the UK economy, contributing £ 112 bn to GVA. Pre-Covid Challenges • In the cultural sector (music, performing arts, museums/galleries/libraries, craft and heritage) the biggest skills challenges are not sector-specific but transferable skills. The sector recruits from a creative background, even for non-creative roles. • Business operational skills including management and leadership are lacking. This includes financial planning, fundraising, leadership, people management and digital skills. • Leaders lack the confidence and ability to make use of digital technologies as part of company strategies. Digital help companies: • • • Innovate arts and culture Market art and culture Securing engagement with new audiences • Elitism is rife – over 60% of workers are graduates compared to 34% elsewhere. How has Covid affected things? • If pre-Covid skills challenges had been addressed, the sector may have weathered the crisis better, e. g. improved financial planning. • Venue based organisations have been badly hit. Many don’t expect to open until 2021. Millions in income has been lost overnight. • Parts of the cultural sector are heavily subsidised, and many are charities. Many organisations’ report that reserves will only get them to July/August. Emergency funding by sector agencies, trusts and foundations will help some survive until autumn, but if venues don’t reopen soon, then a high number of redundancies are expected. • Re Apprenticeships – Employers can’t create new jobs and offer apprenticeships until the sector stabilises. There will be mass redundancies before new hires. • The sector’s response, could increase diversity. CCSkills promotes the apprenticeship route, in part, for this reason. • Many have provided free access to online programmes during Lockdown (e. g. museum tours, plays, cultural education), but this risks undermining business models going forward. Will audiences expect to access culture for free? • A high proportion self-employed, with many losing income overnight. How can this part of the workforce be supported to return to work?

Skills for Care Coverage – The adult social care sector consists of 18, 500 organisations (at 39, 000 locations) employing 1. 5 m people. It covers care homes, homecare services, individuals employing their own staff, and local authority social services departments. GVA is c. £ 40. 5 bn annually in England. Pre-COVID challenges • The ageing population – If the workforce grew proportionally to the 65+ population, it would require 580, 000 more people by 2035. • Recruitment – There are 122, 000 open vacancies in the sector. 8% of the current workforce are EU nationals. • Retention – 440, 000 people leave their jobs annually with 1/3 of those leaving the sector altogether. Turnover soon after joining is a particular issue. • Care is a low paying occupation. Average pay is £ 8. 10 per hour, and 28% of people are on the wage floor. Progression is also a challenge. Since the introduction of the NLW experienced care workers only receive 15 p an hour more than new care workers. • Social care is perceived as a “low skilled job” but there is a failure to recognise the skills and values needed. How has COVID-19 affected things? COVID-19 has highlighted the cracks in the system, particularly apparent when it came to accessing PPE and the discharge from hospital processes. • Early on, there were acute staff shortages due to self-isolating, shielding, illness etc. These have lessened as recruitment support has increased but recruitment remains an issue for the sector. Some services face reducing staff hours and furlough as COVID-related deaths reduce bed occupancy, or family members step in. The decrease in revenue alongside increasing costs has led to financial difficulties for many providers. Some have closed. • Sick days have tripled from 3% to 8% in March/April with a number of care worker deaths. 21% of the social care workforce are BAME, a group disproportionately affected. Mental health is a concern due to work pressure, separation from family, higher levels of death among people receiving care and support, financial concerns, data demands, and changing guidance. • COVID-19 has focussed the need for reform in social care. This should include a review of the infrastructure, investment in skills, and the sector’s long term sustainability, to mitigate risks in terms of employment and economic contribution.

Skills. Active Habia Fitness/Active sector • Apprenticeship numbers were increasing due to Levy funding. But there are now worries apprentices will be the first to be made redundant after furlough. • Huge increase in demand for digital platforms for fitness and coaching, personal training etc. Increased demand for staff to have digital skills to meet the needs of these new ways of working, which some clients will want to remain with even after lockdown. Some staff have adapted quickly whilst others are slower to embrace these. • Concern over adapting to new ways of working post Covid-19 as fitness is a very hands-on, close contact industry. It’s difficult to give a complete service remotely, such as correcting posture, ensuring safety etc. • The sector will move to a blended approach, some preferring the remote delivery models, others returning to gyms and fitness clubs. Digital platforms will open up a new global audience, as already coaching is happening for clients in Australia etc. • A new agile approach is needed for strategy, systems and processes to meet the rapid change required to ensure the sector is ready for the blended/dual approach. • Personal Trainers are excited about the business opportunity – adding online services to their existing business portfolio, with the benefit of a reduced need to pay high rental costs in a gym facility. Spa Industry • 95% of spa industry leaders stated they face problems employing managers and directors who have the right combination of qualifications and experiences. 53% believe this will be a continuous problem in the next few years. • Despite these figures, the industry still places little emphasis on the importance of relevant educational credentials when hiring employees, contributing to the shortage in skills which are outlined above. • Many spa graduates and college leavers experience difficulty in entering the industry, as they do not have the years-experience employers are looking for, regardless of the exceptional knowledge they hold.

Skills. Active Habia cont. Hairdressing, Beauty, Barbering and Nail industries • The new apprenticeship standards raise the bar on skills, knowledge and behaviours, within the core aspects of the hairdressing, beauty and barbering industries. This seeks to address skills gaps, but currently only directly affects apprentices. • Salon owners report that entrants from full time education lack commercial skills and knowledge. • New entrants are less diverse and less able. The workforce is therefore less skilled and less able to deliver services to a diverse clientele. Period drama, multi-media and television all report skills shortages. This can not be addressed by a traditional apprenticeship route due to the freelance nature of these industries. • We anticipate a reduction in the number of employers, employees and apprenticeship starts as a result of Covid-19 due to the complete closure of the sector and the increased costs incurred in re-opening. Professionals may look to self-employment as a solution, leaving new entrants vulnerable. This means fewer entrants and those that achieve may enter the sector without supervision or cease engagement. Those who continue to trade as employers must be encouraged and assisted to offer and maintain high quality apprenticeships and experience to newly qualified practitioners. Historically the sector has seen high engagement and numbers of apprenticeships as a talent pipeline. • The stereotype of the profession discourages educators, parents, and new entrants into the sector. There is a perception of little career progression within each of the industries. Many lack an understanding of the complexity of each job role and the broad and varied skills, academic and entrepreneurial abilities required to be successful. This creates a barrier to desirable candidates. Careers information and enhancement of the pathways available needs to be expanded to recognise the academic and skill level needed, highlighting the varied career pathways open to entrants including and beyond being a practitioner. • There is a skills shortage in the teaching and assessment abilities of educators due to a dilution of the scope, breadth and depth of knowledge and diversity over a number of years. These skills gaps perpetuate in successive cohorts, which in turn is restricting opportunities and shrinking the offerings available to a diverse society.