Spring - Essex Employment and Skills Board Skills Evidence Base Summary Booklet - Procat
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contents Foreword 1 1 2 Foreword Background 3 6 “ Back in 2013, nothing like this existed in Essex, or indeed 3 Context 7 elsewhere in 4 The Global and National Picture 8 the country...” 5 Summary of UKCES Reports 9 6 Brexit 10 7 Key Facts 12 8 Local Vacancy Data 14 9 Enterprise and Employees 15 We are extremely proud to introduce our fourth edition 10 Key Sectors Reviewed 16 of the Skills Evidence Base Summary Booklet, providing 11 Sector Profiles 18 an overview of the skills needs and challenges faced 12 Further Education and Skills in Greater Essex 32 in Essex. 13 Current Activities 40 When we first produced our Skills Evidence Base back 14 Appendix 44 in 2013, nothing like this existed in Essex, or indeed 15 Data Sources and Caveats 46 elsewhere in the country. Four years later, our Skills Evidence Base is widely viewed as being the defin- itive source of intelligence on the skills challenges that employers in Essex’s priority sectors are facing. This information also gives a unique insight into the skills and jobs that are in demand across the county. 2 3
Foreword • Delivering our employer focused Tutor CPD Pilot which enabled FE tutors to gain real industry experience and knowledge. • Establishing the Greater Essex Enterprise Adviser Network, to help improve the links between schools and employers. the skills challenges identified. Working with • Supporting Essex County Council’s ‘Gift a range of partners we have continued to of Care Campaign’ to help fill vacancies make excellent progress but, as we stated across the care sector in Essex. last year, there continues to be much to do. • Assisting local educators to understand Together, with a We are responding to these skills challenges through a number of our existing pro- their local economy and deliver employer -led provision; notably several Essex range of partners, grammes and by developing new and innovative solutions. Through these pro- colleges have used the Evidence Base for shaping rebuilds or bidding for funding. we have continued grammes we are working hard to achieve our mission: to build a productive, These have included Colchester Institute’s - Suzanne Jude £5.6m STEM Campus in Braintree as well as to make excellent responsive and inclusive Essex skills system that delivers growth for local people and the £11m Advanced Manufacturing Centre ESB Chair at Harlow College. progress...” employers and is established as a national (Raytheon UK) exemplar. As you will see from this report, the ESB is involved in a wide range of activities: Suzanne Jude (Raytheon UK) Chair, Essex Employment and Skills Board As with our previous summary booklets, we Some of our important achievements have used a combination of published data over the past year include: Alison Calnan (Ford Motor Company) and statistics, local business feedback and Vice Chair, Essex Employment information on planned future develop- • Delivering our FE Golden Hello and and Skills Board ments to produce our research. We are Tutor Training Programme, enabling FE always looking at how we can enhance our training providers to respond to indus- David Bell (Federation of Small evidence base and welcome your views on try need. how we can improve this in future editions. Businesses) Vice Chair, Essex Employment • Creating our ‘What’s Your Thing?’ local and Skills Board Over the last year we have seen some new careers information booklet and dis- challenges and new opportunities emerge tributing to more than 19,000 students. that have the potential to significantly impact our sectors, none more so than • Setting up a new Sector Action Group the vote last June for the UK to leave the for the Finance sector to engage with EU. Therefore we have included a special companies across Essex and to ensure section within this year’s summary booklet that we are the local voice for the seven focusing on the potential impact of Brexit. sectors we represent. As per previous years we have included • Enhancing our Education and Industry an update on the wide range of activities STEM Programme to inspire more young that we are taking forward to respond to people into our priority sectors. 4 5
Background Context To inform and support a skills system which is truly employer Since the last edition of the Evidence Base, there has been an awak- responsive, a robust and comprehensive Evidence Base is required ening to the skills shortages that face the UK; the Chancellor of the to accurately describe the current and future skills and employment Exchequer committed £500m to fill post-Brexit skills gaps. While steps needs of Essex. are being taken to eradicate these issues, they have not been resolved. Although a great deal of skills information already exists, even at a national level, this is often The headlines below demonstrate this: disparate and, prior to our Skills Evidence Base, had never been gathered or interpreted at a detailed local level. This led to a fragmented picture of local needs and a skills system which “The introduction of the Apprenticeship Levy provides the perfect opportunity for companies to was not always responsive and did not create viable opportunities for young people. up-skill their existing staff and to introduce new talent into the sector. Employing apprentices and training them on the job in built environment disciplines provides them with skills that are Through our Skills Evidence Base we have laid an excellent foundation in creating a detailed immediately relatable to the workplace, meaning we can begin to grow our workforce almost and robust picture of local skills needs. We continue to receive an enthusiastic response to this immediately” – Stephen Bartle, Head of Commercial & Business Development at the University with schools, colleges, universities, businesses, partners and providers all telling us that this is College of Estate Management, Property Wire, 16 March 2017 a much needed and utilised resource. “Britain’s cyber security chiefs warned that skill shortages threaten to leave companies vulner- Importantly it gives us a holistic and clear picture of local need. We have been approached by able to a “significant and growing wave of cyber-crime” – Robert Hannigan, Outgoing Director a number of organisations outside of Essex, seeing this as a best practice model. We recognise of GCHQ, Financial Times, 14 March 2017 that it is important for us to keep information updated and continue to ensure that it is accurate by adding updated statistics and local business feedback, both of which are reflected in this “Only 15,000 UK students sat a computing ICT A-Level this summer – accounting for less than summary. 2% of the overall exams sat. Although there was a slight year-on-year increase… only 500 stu- dents [entered]… far below the growing number of jobs being created in the technology sector” What research is available? – Madeline Bennett, What is the UK Doing About its STEM Skills Shortfall?, The Telegraph, 28 November 2016 This booklet is a summary of the more in-depth research and information that is freely available on our website: www.essexesb.co.uk/our-research “We have a challenge to encourage more youngsters into engineering but in the meantime we have to rely heavily on recruiting people with the appropriate skills from abroad to fill the gap” The Essex Skills Evidence Base covers the local authority areas of: Essex County Council; – Professor Dame Anne Dowling, President of the Royal Academy of Engineering, The Telegraph, Southend-on-Sea Unitary Authority and Thurrock Unitary Authority and is made up of the fol- 17 October 2016 lowing resources: “The digital skills gap costs the UK economy £63 billion a year, according to a report by the 14 local skills profiles covering all district, borough, city and unitary areas in Essex: House of Commons Science and Technology Committee, and MPs are calling on the government Basildon, Braintree, Brentwood, Castle Point, Chelmsford, Colchester, Epping Forest, Harlow, to take action.” – Lis Evenstad, ComputerWeekly, 13 June 2016 Maldon, Rochford, Southend-On-Sea, Tendring, Thurrock and Uttlesford. “Recruitment and retention is without a doubt the biggest issue for adult social care employers Seven sector-focused skills profiles: because to have sufficient [levels] of the right people with the right skills is absolutely funda- Advanced Manufacturing & Engineering mental to providing quality care and support. It is a big concern for everybody and we’re trying Care to help promote careers in social care… but there are many challenges.” – Sharon Allen, Chief Construction Executive of Skills for Care, The Guardian, 8 March 2017 Finance & Insurance Health ‘There is very limited training in business-specific, non-technical skills and knowledge [within the IT, Digital & Creative construction sector]. For instance 4% of respondents have training in business planning; 5% Logistics in business development and 6% in the day-to-day business running.’ – Grant Modernisation Phase 2 Employer Consultation, CITB, March 2016 6 7
Global and Summary of National Picture UKCES Reports Global Analysis • There were 1.8 million establishments recorded representing an increase of 1.3% from the previous survey in 2013. There was a larger increase in the employment populations, from 27.0 million in employment in 2013 to 27.8 million in 2015; an increase of 3%. UKCES Employer Skills Survey 2015, May 2016 update • UK economic growth held up better than expected following the Brexit vote, particularly with ‘2016 has been a year of momentous change. The EU referendum, the US presidential elections regards to consumer spending and services. For 2016 as a whole, growth now looks likely to be and the slowdown in emerging markets are just a few of the issues companies are contending around 2%. UK Economic Outlook, PWC, November 2016 with. We have seen workers’ strikes in France, political upheaval in Spain and ongoing debates around global border control. • The pace of growth in manufacturing output for the domestic market had remained modest… Some manufacturers hoped to benefit from import substitution as a result of the sterling’s In Europe, the skills gap has widened while productivity levels remain dismally low. In Asia, weakness, but there were few examples of that so far. UK Economic Outlook, November 2016 China and India are experiencing slower economic growth, which places its own pressure on employment. On the other side of the world in the US, the story is one of an increasing talent • Growth in business services’ turnover had slowed over the past three months… Services Exports’ mismatch, manifested by simultaneous growth in unemployment and job vacancies. growth had picked up moderately… Consultancy Services noted improved overseas revenue in Europe, in areas such as online retail and IT. ‘Agents’ summary of business conditions, Bank of There are, however, some bright spots. Looking at the countries that fared particularly well this England, 2016 Q3 year, around 130,000 new jobs have been created in Italy since the start of 2015, while un- employment has also fallen. Germany’s labour market continues to be buoyant. In Japan, the • 21% of SME employers were majority-led by women, defined as controlled by a single woman government has introduced a new ‘womenomics’ policy aimed at boosting the number of female or having a management team of which a majority were women. Medium-sized businesses were workers.’ – Alistair Cox, Chief Executive Hays plc, Hays Global Skills Index, 2016 less likely to be women-led (15%). Women-led businesses were more common than average in Human Health (54%), Education (54%) and Other Services (38%) sectors. ‘Small Business Survey’, Department for Business, Innovation & Skills, May 2016 National Analysis • 5% of SME employers were minority ethnic group (MEG-led), defined as having a person from an ethnic minority in sole control of the business or having a management team with at least half of its members from an ethnic minority. There was no difference in this proportion by size of business, but MEG-led businesses were more likely than average to be found in information/ ‘Despite a sustained period of uncertainty due to Brexit, the UK remains an attractive place to communications (11%), retail/wholesale (8%) and financial/real estate (7%). ‘Small Business do business and to work. Skills shortages remain prevalent, particularly in technical engineering Survey’, May 2016 roles, specialist technology and qualified finance roles. In these areas businesses are struggling to attract sufficient numbers of qualified and skilled workers, which is impacting on productivity • 38% of SME employers had greater turnover (value of sales) than the year previous. 41% had and business growth. Many of these companies are continuing to invest in STEM and diversity approximately the same turnover and 17% had lower turnover. These proportions were similar initiatives in order to improve their talent pipeline and combat future skills shortages. Overall, to those observed in SBS 2014. ‘Small Business Survey’, May 2016 wage growth is steady but candidates in skill-short areas are enjoying significant salary increases.’ – Nigel Heap, Managing Director Hays UK, Hays Global Skills Index, 2016 • The main major obstacles to the success of the business were competition (49%), regulations/ red tape (49%), taxation (43%), late payment (33%) and staff recruitment/skills (32%). ‘Small Business Survey’, May 2016 8 9
6 Brexit Headlines rexi Following the result of the EU referendum in June 2016, the Government has announced that Article 50 will be officially triggered on the 29 March 2017, begin- ning the formal process of the UK’s withdrawal from the European Union The potential impact this may have to the UK econ- omy is unknown, as details regarding the ‘Brexit deal’ have not been disclosed by the Government. • Karen Briggs, Head of Brexit at KPMG, explains however likely it seems that there will be ‘Brexit Deal’ businesses still need to plan for a ‘no deal’ scenario. Financial services, Pharmaceuticals and Energy are relying on the government to deliver a smooth and orderly Brexit because of the large amount of regulation within the respective sector currently under EU law. There have been five areas of concern that have been highlighted, these are; access to labour, additional traffic and tariff barriers, uncertainty of a closed negotiation process, potential cliff edge and relocation and revised supply chains. Banking, Insurance and Industrial Manufacturing are the best prepared sectors for Brexit, the Au- tomotive, Life Sciences and Logistics sectors are not too far behind. It is worrying that some firms are not yet preparing for Brexit, this could have a knock-on effect further up or down the supply chain and could hamper efficiency and growth. Smaller businesses are in favour of having access to the single market and talent and hoping that there will not be additional administrative burdens which could affect the business. They will also need more support to be able to take advantage of new trade opportunities. – ‘Article 50 Tigger Date: Political and Business Reaction’, Jessica Fino, Economia, 20 March 2017 However, economists and • In a case study carried out by The Guardian they spoke to seven different people in different professionals have tried to sectors and explored how they are already seeing the effects of Brexit. Out of these seven sector predict what may happen professionals, five of them are included within the ESB’s seven growth sectors, the five profes- and some headlines are sionals work in; construction as a construction worker; finance and insurance as a financial listed on the following page. consultant; health as a doctor and a nurse and IT, digital and creative as a web designer. The main issues that these people are having are the question marks over the ability to hire people from the EU and EEA post-Brexit and the residential rights of current EU citizens and citizens those who are hired between now and the conclusion of the Brexit negotiations. – ‘Lots of Nurses Have Already Left: EU Workers Head for Exit’, Sarah Marsh, The Guardian, 14 March 2017 • Brexit could have a major impact on the UK workforce and on Britain’s ability to recruit inter- national talent. There are 2.1 million European Union immigrants working in the UK. With major skills shortages in industries such as construction, engineering and IT, EU migrants provide the British economy with vital skills which are in short supply among the indigenous workforce. Im- migrants also make up a substantial proportion of the unskilled, low-paid job market, as well as making a big contribution to the healthcare sector – 11% of all NHS staff are not British. Brexit could also present challenges to businesses that employ EU nationals, forcing them to invest more in British workers as well as potentially increasing the regulatory barriers to recruiting staff from Europe. While it is not clear yet what status European migrants would have if the UK with- drew from the EU and its freedom of movement policy, business leaders are already expressing concerns about what impact it might have on their ability to recruit the skilled workers that they need. – Data Quarks, [dataquarks.com/what-brexit-could-mean-for-the-uk-workforce] 10 11
Key Facts • Low number of enterprises in Mining and Quarrying (20) and Electricity, Gas, Steam and Air Conditioning Supply (45). • Around 700,000 employees, with almost 20% working in Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles. • High numbers of employees in Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles. (133,000), Human Health and Social Work Activities (92,000) and Education (61,000). • Low number of employees in Mining and Quarrying (180) and Agriculture, Forestry and Fishing (540). • Greater Essex had an average of 235 start-ups for each £1billion of GVA between 2009 and 2014. GVA per person employed of £52,300, close to the UK average (2014). People living in Greater Greater Essex working People in employment. Out-Commuting Essex (predicted to rise age population. to 1.9m by 2021). A large number of people commute out of Greater Essex, particularly to London Skills Levels with higher than average salaries. The bars represent the change since our last report; the orange colour represents an • 148,920 people from Greater Essex travel to work in London each day. increase, the blue colour represents a decline and the gray colour represents no change: -3% 0% +3% • 71% work within their district or Essex, 29% commute outside of Essex. Working age people who have degree level skills+ (Level 4) (37% Nationally) 28% • At £594, people who live in Essex earn £55 more per week than the national average (£539) Percentage difference since 2016 (median, full-time, weekly earning residents), ONS 2016. Working age people with A level or equivalent+ (Level 3) (56% Nationally) 47% • The average house price for Essex is higher than the national average, this is also the case for Working age people with GCSE or equivalent+ (Level 2) (73% Nationally) 69% Southend-On-Sea and Thurrock. Working age people with pre-GCSE+ (Level 1) (84% Nationally) 84% Working age people with no qualifications (9% Nationally) 8% Significant Social and Economic Challenges Greater Essex Enterprises A strong, thriving local economy with a high number of SME’s. • Over 74,000 Enterprises, 90% of which have fewer than 10 employees. • There are a high number of enterprises in Construction (13,340), Professional, Scientific and 79,550 people are on key out of work benefits 10,780 people claim job seekers’ allowance Technical Activities (12,460) and Wholesale and Retail Trade; Repair of Motor Vehicles and (an increase from 2015 where the number stood (August 2016), a substantial reduction from Motorcycles (10,655). at 63,050). 16,320 since our last report. 12 13
Local Vacancy Enterprises and Data Employees Below is information regarding job postings across Greater Essex, there is further detail included Outlined below are details of the number of enterprises, employees and the top three industries in the district profiles and sector profiles: www.essexesb.co.uk/our-research for each district. For further information and detail please see the respective district profile at: www.essexesb.co.uk/our-research Job Postings by District 30,000 28,110 UTT 22,500 19,512 BRA COL TEN 15,545 BASILDON Enterprises – 6,995 15,000 12,516 Employees – 84,000 9,573 9,495 9,487 7,595 7,964 Wholesale and Retail – 17,000 7,500 5,067 Human Health – 11,000 CHE 2,596 Manufacturing – 7,000 MAL 1,352 2,087 2,027 HAR 0 BRAINTREE Enterprises – 6,580 Braintree Basildon Brentwood Chelmsford Castle Point Colchester Epping Forest Harlow Maldon Rochford Tendring Uttlesford Southend- On-Sea Thurrock Employees – 55,000 ROC Wholesale and Retail – 10,000 EPP BRE Manufacturing – 7,000 BAS Construction – 5,000 SOU CAS Top Ten BRENTWOOD THU Enterprises – 4,195 Advertised Salaries Top Ten Baseline Skills Specialised Skills Employees – 36,000 Professional, Scientific & Technical Activities – 5,000 >£90,000 1,592 Communication Skills 33,268 Teaching 9,976 £80,000 - £89,999 1,021 Organisational Skills 21,158 Project Manamement 5,741 Wholesale and Retail – 4,500 £70,000 - £79,999 1,509 Customer Service 12,208 Repair 5,353 Administration – 4,500 £60,000 - £69,999 3,185 Planning 10,994 Contract Management 4,894 £50,000 - £59,999 5,759 Microsoft Excel 10,832 Product Sales 4,838 £40,000 - £49,999 9,949 Detail-Orientated 8,939 Key Performance Indicators 4,448 CASTLE POINT CHELMSFORD COLCHESTER EPPING FOREST £30,000 - £39,999 23,376 Team Work/Collaboration 8,632 Business Development 4,303 Enterprises – 3,255 Enterprises – 7,665 Enterprises – 6,825 Enterprises – 7,485 £20,000 - £29,999 33,416 Writing 8,143 Accountancy 4,009 £15,000 - £19,999 20,665 Sales 8,112 Budgeting 3,876 Employees – 21,000 Employees – 83,000 Employees – 81,000 Employees – 49,000 £10,000 - £14,999 5,405 Business Management 7,389 Sales Recruiting 3,576 Wholesale and Retail – 4,500 Human Health – 15,000 Wholesale and Retail – 15,000 Wholesale and Retail – 7,000
Key Sectors installation, hospitality, catering, logistics, The existing Dartford crossing is full to ca- security, site services, support roles and pacity for much of the time. It is one of the others over the coming years. least reliable sections of the UK’s road net- work of motorways and major roads. Users Reviewed Transport: Rail Crossrail 1 is nearing com- pletion and its first service is due to start in May 2017 and be fully operational by December 2019. Its route will run into regularly experience delays and unreliable journeys. Improvements would produce significant economic benefits locally, re- gionally and nationally. A new crossing Essex as it will terminate at Shenfield. It will would significantly improve connectivity for provide a direct line for people commuting moving goods, delivering services and for Last year we carried out research to assess that there are numerous other sectors from Essex into Central London. employees to access jobs. whether any changes needed to be made and industries in Essex which have their to our priority sectors and whether any own skills challenges and which contribute Even before the completion of Crossrail 1, Essex County Council has shown its back- additional sectors should be included with- significantly to the success of Essex. plans are developing for Crossrail 2 which is ing for a new crossing, stating it would in our footprint of activities. There are also a number of major devel- planned for completion in 2033, with plans create an additional 25,000 new jobs, the opments on the horizon that will impact considering the potential to serve Harlow construction of 21,000 new homes, as well Having reviewed a number of factors, on the demand for skills within Essex, and South Essex. This would create oppor- as unlocking significant economic growth including their size, their growth potential some of which include: tunities in construction as well as create and regeneration potential for the county. and the value they add to the local econo- opportunities in the wider economy. my, as well as reviewing the priority sectors Life Science Essex is located at the heart Housing The rate of house building across for the wider South East Local Enterprise of the London-Stansted-Cambridge Inno- Transport: Air Growth is also expected at Greater Essex is forecasted to grow sig- Partnership (SELEP), we made the follow- vation Corridor, which is one of Europe’s our two major international airports, Lon- nificantly over the next 20 years. Hous- ing additions and changes to our priority largest Life Sciences and Healthcare don Southend and London Stansted. In the ing need across Greater Essex has been sectors: Technologies clusters. There is significant short term London Southend is launching objectively assessed with a need for 179,000 growth potential within this sector, par- additional routes to some of Europe’s most additional dwellings between 2016 and We added Finance & Insurance. It became ticularly in locations such as Harlow where popular destinations as part of its expan- 2036. In order to achieve this, it requires clear from the evidence collected that the Public Health England have unveiled plans sion, with 2.5 million passengers expected delivering on average 8,980 dwellings per Finance & Insurance sector plays a vital to create a £400 million science hub by by 2018 (up from only 4,000 in 2010). annum, this compares to average annual role in the Essex economy and is currently 2024. This hub has the potential to cre- completions of 4,630 dwellings per year suffering from skills shortages as evidenced ate 2,750 jobs and support approximately London Stansted is making plans to be- across Essex from 2004 to 2015. by the 2015 UKCES employer survey. 10,000 construction-related jobs during come a hub for one or more long-haul the development of the site, a significant airlines, with Heathrow and Gatwick edging High Speed Internet Connectivity In line We updated IT, Digital and Creative. Our proportion of those coming from the local towards capacity, and has recently an- with the Government’s aim to provide definition now more accurately reflects the area. nounced new deals with airlines that will superfast broadband (24Mbps+) for at least nature of these industries and more closely help sustain an estimated 15,000 jobs at 95% of the UK and at least 2Mbps for aligns our definition of the sector with other Energy EDF Energy and China General Stansted. the remaining 5%, Essex County Council regional and national bodies. Nuclear Power Corporation (CGN) are has set up ‘Superfast Essex’. This pro- together intending to develop a new It has also announced the construction gramme is led by Broadband Delivery UK nuclear power station at Bradwell-on-Sea, of a new £130m arrivals terminal. Work is (BDUK) a team within the Department for Keeping an Eye on Maldon in Essex. expected to take up to three years to com- plete, and will begin in late 2018. Culture, Media and Sport. Superfast Essex is working to extend superfast broadband the Future The project is currently at a pre-plan- ning stage and it will be several years Transport: Road On 12 April 2017, the coverage to 97 percent of Essex by 2020. before any detailed proposals are pro- Secretary of State for Transport announced duced. A similar development at Hinkley the preferred route for the Lower Thames Point C will create thousands of Crossing. The crossing will be a bored tun- Essex’s economy is not driven purely by employment and apprenticeship oppor- nel crossing under the River Thames east the seven priority sectors identified in our tunities in a broad range of occupations of Gravesend and Tilbury. skills evidence base and therefore we keep and careers. If the project moves for- a close watch on economic developments ward then opportunities will include: across Essex and beyond. We are aware construction, civil engineering, electrical 16 17
Sector • NATIONAL HEADLINES The UK is currently the 11th largest • REGIONAL AND LOCAL HEADLINES The East of England has the third largest Profiles manufacturing nation in the world. total output of all Uk regions, and manu- • However the UK still has a relatively large facturing contributes 13% of that. total trade deficit, which widened in 2016 • The manufacturing workforce stands at by £9.6 billion to £39.4 billion, as imports 235,000, making up 7.5% of the entire continued to increase more than exports. workforce. • New figures from Engineering UK show • The regions productivity has increased that nationally there will be over 2.5 to 100% equalling the national average. million job openings between 2017 and workforce. This section gives a brief overview of our seven growth sectors. For further information and 2022, adding to the £280 billion GVA detail please see the respective sector profile at: www.essexesb.co.uk/our-research that is already produced by the sector. VACANCY AND SKILL SUMMARY Advanced 49,500 people employed KEY DRIVERS • There were more than 15,545 job postings 4,300 companies Manufacturing and • Brexit negotiations • across Greater Essex in 2016. Top baeline skills in demand: Communi- Engineering Employers include: BAE Systems, e2v, Ford • Expanding the talent pool cation, Organisational, Planning, Problem UK, Gardner Aerospace, Ipeco, Olympus • Efficiency Solving, Detail Orientation, Team Work Keymead, Truck-Lite and Visteon • Digitalisation and automation and Customer Service. Engineering Services. • Local authority areas with highest number of vacancies: Chelmsford, Colchester, Basildon, Braintree and Harlow. • Top occupations in demand: Plant & Machine Operative; Engineering Tech- National Job Shortages include: Electrical Machine Design Engineer & Power Electronics nician; Design & Development Engi- Engineer (Aerospace); Electronics Engineer (Aerospace); Production & Process Engineer neer; Production Manager & Directors in (Chemical Engineering & Aerospace); Aircraft Maintenance & Related Trades; Electronics Manufacturing & Science; Engineering & Engineers (Rail & Automotive) Production technicians. • Advertised Salaries: £60,000 620 extremely important to the Top Ten Specialised Skills in Greater Essex 2016 economy across Essex... ...and is increasingly becoming a more highly skilled industry. As a result, the sector action group has been focused on working closely with training providers across Essex to address the skills gap that is threatening the sector. The ESB is hugely supportive of new investments Repair 1,183 Computer Aided Draughting/Design (CAD) 805 being made in a number of training facilities in the county - Tracey Cart Inspection 799 Mechanical Engineering 766 including the Harlow Advanced Manufacturing & Engineer- Advanced Manufacturing & ing Centre and the Braintree STEM Innovation Centre.” Engineering sector lead Machinery 765 Quality Assurance & Control 724 (Konica Minolta) Project Management 642 Engineering Industy 481 Background Product Testing 474 Electrical Engineering 471 18
Care 44,500 people employed KEY DRIVERS VACANCY AND SKILL SUMMARY 1,390 companies • Technological advancements enable • There were 7,180 job postings advertised more independence, needing less direct in the care sector across Greater Essex support. during 2016. Employers include: Aldanat Care, Bluebird Care, Care UK Health and Social Care, Forest Home • Demographic changes will increase the • Top baseline skills in demand: Commu- Care Ltd, Interserve Healthcare, National Health Service (NHS) and Runwood Homes Ltd. pressure on the sector, as the population nication, Organisational, Writing, English, of the UK continues to increase and age. Mathematics, Leadership, Listening and • Government policy & funding could Creativity. National Job Shortages include: Social Workers working in children’s and family services, drive the sector as there was an extra • Districts with most vacancies: Chelmsford, Medical Practitioners consulting in old age psychiatry £2bn worth of funding announced over Colchester, Basildon, Southend-On-Sea the next three years (Spring Budget 2017). and Epping Forest. • Top Occupations in demand: Care work- ers and home careers, Social workers, The care sector is becoming an Top Ten Specialised Skills in Greater Essex 2016 Nursery nurses, Childminders and Youth and community workers. increasing priority not only for • Advertised salaries: the ESB, but for the nation... £60,000 161 providers to try and open Essex up to the great oppor- Care planning 489 Mental Health 418 tunities that are available in the sector. Working with Patients 321 Home Management 295 with Learning Disabilities We have made a direct impact in Essex by helping to Cleaning Supervisory Skills develop and deliver a Health and Care Apprenticeship 252 230 scheme, which is just one of the steps required to solve - Daniel Wylie Working with Patients 223 Teaching 215 the challenges that the sector faces.” Care sector lead with Dementia (Aldanat Care) NATIONAL HEADLINES LOCAL AND REGIONAL HEADLINES • There are currently an estimated 1.55 mil- • Around a third (30%) of the adult social lion care workers in the UK. The sector is care workforce in England is in London also estimated to contribute £40.4 billion and the South East. per annum to the English Economy. • Essex is already home to some 300,000 • Over the past 12 months, the new starter over-65s, as well as around 36,000 over- rate was 35%, while the staff turnover rate 85s, these numbers are expected to more was 27.3%. By 2037 there could be 13.5 than double in the next twenty years. older people per care worker, compared • Essex is currently supporting a lower rate to the current figure of seven. of service users with home care at 95 per • The average age for a care worker in the 10,000 compared to national rate of 115. UK is 43. 20% of those employed are over the age of 55. It is estimated that the care and health sector will need to recruit nearly two million people by the year 2022. 20 21
Construction 64,500 people employed LOCAL AND REGIONAL HEADLINES KEY DRIVERS 16,290 companies • South Essex College (Basildon) has just • How well the sector can replace the opened a new construction centre, providing ageing working force, as 27% of local training and opportunities for local people in construction workers have in excess Employers include: Anderson Group, Brennan Group, Cadman Group, Countryside Properties, a number of different trades. of 20 years’ worth of experience and are EJ Taylor & Sons, Higgins Construction, Hutton Construction Ltd, Keepmoat, Kier Group plc, • The Construction Skills Network East of Eng- potentially heading towards retirement. and Ringway Jacobs land (2016-2020) estimates that a total of • Central government policy also could be 19,550 jobs will be created over the next five a key driver as they are in control of the years. Brexit negotiations which could affect the National Job Shortages include: Engineering Geologist, Hydro-geologist, Geophysicist, • Total construction output in the East of sector in regards to regulation of carbon Geotechnical Engineer, Tunnelling Engineer, Contaminated Land Specialist, Landfill Engineer England is likely to increase in line with mitigation and climate change. This is the UK average rate, at 1.1% per annum assisted by the flow of talent entering the between 2016 and 2020. different subsectors. Construction is the largest Top Ten Specialised Skills in Greater Essex 2016 ESB priority sector, employing VACANCY AND SKILL SUMMARY 64,500 across the county... • There was 12,299 job postings advertised in the construction sector across Greater Essex during 2016. - Alan Cadman • Top baseline skills in demand: Communica- Construction sector lead tion, Planning, Customer Service, Problem Repair 976 Contract Management 850 (Cadman Group) Solving, Microsoft Office and Writing • Districts with most vacancies: Chelmsford, Project Management 691 Procurement 575 Colchester, Basildon and Thurrock. ...Despite this, it is estimated that the sector will need to increase its workforce by between Computer Aided 506 Civil Engineering 462 • Top Occupations in demand: Quantity Draughting/Design 12,000 and 24,000 people by 2021 to deliver the housing growth required across the county. (CAD) Surveyors, Electrical and Electronic Trades, There are multiple barriers facing the sector that are restricting the sector’s ability to create Contract Preparation 414 Construction Industry 390 Elementary Construction Occupations, the skilled workforce that it needs, these include: training providers failing to attract tutors, Knowledge Electricians and Plumbers. Inspection 333 Estimating 294 an aging workforce and the perception of the sector hindering recruitment. The sector action • Advertised salaries: group is determined to make a difference and has developed a skills action plan for the sector in conjunction with the CITB. Through this plan we are involved in organising a range of activ- ities to address the challenges faced by the sector.” £60,000 639 • In 2014 the Construction industry con- • The Federation of Master Builders (FMB) tributed £103 billion to economic output has described the new apprenticeship levy in the UK. 2.1 million people were working as a “fair settlement for small employers” in the UK construction industry in 2015. and the only cure for the sector’s skills • Brandon Lewis, Planning and Housing shortages was to recruit and train more Minister, stated that the government aims people (Brain Berry, FMB Chief Executive). to build one million new homes over the next five years (2015-2020). This reflects the figure that the National Housing Fed- eration estimates are needed to meet the country’s housing needs. 22 23
Finance 26,000 people employed • Professor Edward Tsang, Director, Centre for Computational Finance and Economic KEY DRIVERS 2,700 companies & Insurance Agents (CCFEA) believes that Essex has created a hub for the development of • Businesses are struggling to keep pace with technology and understand the these specialist skills needed to work in associated risks and opportunities. In the post-recession finance sector. The response, they seek individuals proficient offerings of post-graduate qualifications in Enterprise Resource Planning (ERP) Employers include: Alpine Insurance, BNY MELLON, Cofunds, First Data, IFDS, IMS international, such a MSc in Computational Finance, systems, integrated financial reporting Lloyds Bank, MARSH, MS AMLIN and QBE. Algorithmic Trading and Financial Com- systems, cloud-computing platforms, and puting, which will help aid the growing information security and data-mining skills gap in the sector. tools. • The finance and insurance sector is facing a number of serious challenges. Stricter Essex is becoming a VACANCY AND SKILL SUMMARY regulations, rising taxes and technolog- ical innovations question the traditional strategic area for finance and • There were more than 10,000 job post- business model. At the same time, the wealth shift towards the emerging insurance... ings in the Finance and Insurance sector during 2016. markets offers new opportunities. ...as the newly established London-Essex Finance • Top baseline skills in demand: Commu- nication, Microsoft Excel, Invoicing, Busi- Top Ten Specialised Corridor continues to extend further eastwards ness Management and Customer Service Skills in Greater Essex 2016 from the City of London. However, finance leaders are concerned about the supply of new employees • Local authority area with most vacancies: to the sector. The sector has seen the sharpest Chelmsford, Colchester, Basildon, Harlow rise in skills shortages out of any of the ESB priority and Brentwood. sectors, rising from 10% in 2013 to 21% in 2015. • Top occupations in demand: Bookkeepers, This rise is why Finance and Insurance was Chartered and Certified Accountants, established as a priority sector for the ESB in 2016. Estimators, Valuers and Assessors, - Adele Carnera Accountancy 3,161 Budgeting 1,047 Since then, a sector group was developed and is Finance & Investment Analysts & Advisers Finance & Insurance sector lead & Financial Managers and Directors. Financial Contract Accountancy 875 working on promoting the diversity of roles with- 1,018 (IFDS) • Advertised salaries: Accountancy in the sector and is identifying ways to make the Account 851 Bank Reconciliation 726 Reconciliation sector more accessible. £60,000 708 employed in the financial sector; two-thirds niche workforce and world leading ed- are employed outside London. ucation and research facilities, Essex • The UK is home to the second largest pen- allows financial businesses to place them- sion industry in the world. As well as having selves at the beating heart of the Big Data the largest insurance industry in Europe and revolution. third largest in the world, contributing over • Dr Leidner, Director for Research, Cor- £25 billion annually to UK GDP. porate R&D at Thomson Reuters, was • The proportion of vacancies that are hard pleased that IADS (Institute for Analytics to fill in Financial and Services due to a and Data Science) at the University of shortage of people with the right skills has Essex was taking on the challenge of doubled since 2013, according to the latest preparing students for a world where ‘big annual Employer Skills Survey from the UK data’ is transforming professional and Commission for Employment and Skills. consumer decision-making. 24 25
Health 47,000 people employed VACANCY AND SKILLS DATA 1,700 companies • There were more than 14,544 job postings in the health sector during 2016. • Top baseline skills in demand: Communication, Organisational, Planning, Leadership, Mentoring, Research, Computer Skills and Teamwork. Employers include: Aspen Healthcare, BMI Healthcare, BUPA, Care UK, National Health • Local authority area with most vacancies: Chelmsford, Colchester, Southend-On-Sea, Service (NHS), Nuffield Health, Ramsay Health Care and Spire Healthcare Basildon and Harlow. At the same time, the wealth shift towards the emerging markets offers new opportunities. National Job Shortages include: Consultant specialising in Clinical Radiology, Emergency • Top occupations in demand: Nurses, Medical practitioners, Health associate profession- Medicine, Old Age Psychiatry; Medical Practitioner in Emergency Medicine; Medical Radiogra- als, Physiotherapists and Nursing auxiliaries and assistants. phers; Neurophysiologist; Orthoptist and Prosthetist Therapy Professional; Paramedic • Advertised salaries: £60,000 988 facing a significant shortage of nurses, doctors and other Mental Health 1,000 Patient Care 802 professionals... Care Planning 713 Theatre Practitioner 706 Midwifery 689 Mailing 685 ...Unfortunately there is no quick fix in the health sector due to the time it takes to train staff; it takes three years to train Teaching 677 Calculation 668 a nurse and up to 15 to train a medical consultant. Working Medical Industry 489 Surgery 444 - Dr Sunil Gupta alongside the STEM programme we have recently planned and Background Health sector lead delivered ‘Health Week’ in Essex. As well as collaborating with the care sector to deliver a rotational apprenticeship scheme (NHS CCG) in the region.” NATIONAL HEADLINES LOCAL AND REGIONAL HEADLINES • The NHS has to make huge saving of £210 • The people of Essex are, on the whole, billion over the next few years, as well as healthy but the number of older people meeting the increasing service demands. id growing at a much faster rate than the • A rise in long term health conditions has majority or the UK. resulted more opportunities for health • It is estimated that the number of people professionals to work in the community. in Essex who suffer from dentia will rise • There has been an increase in the num- 84% between 2014 and 2034. ber of vacancies for doctors and nurses across the UK, 60% and 50% respectively. KEY DRIVERS • It is estimated that 69% of healthcare trusts are now recruiting from abroad in • The rising levels of chronic and complex order to fill vacancies. conditions and an aging demographic, places pressures on the health sector. • The ability to fill vacancies will help drive the sector, as many trusts are struggling to do this. 26 27
IT, Digital 30,000 people employed KEY DRIVERS VACANCY AND SKILLS DATA 7,500 companies & Creative • The ability for other sectors to adapt and adopt IT solutions, as there is more and • There were more than 17,000 jobs post- ing advertised for IT, Digital and Creative more overlapping between industries. occupations across Greater Essex in 2016. • Innovation is the key to driving perfor- • Top baseline skills in demand: Commu- mance across the whole economy, not nication, Organisational, Writing, Problem Employers include: Adphonic, BT, Coast Digital, Eurobase System, Kat Marketing, Mercury just the IT, digital and creative sector. This Solving, Customer Service, Microsoft Of- Theatre, Objective IT, Royal Opera House Thurrock, Storm Creative Media and Yellowspring. is assisted by the flow of talent entering fice and Detail Orientation. the different subsectors. • Local authority area with the most vacan- National Job Shortages include: Software Developer, Shader Writer cies: Chelmsford, Colchester, Basildon, 2D/3D Supervisor, Stereo Artist, Animator Top Ten Specialised Brentwood and Harlow. Skills in Greater Essex 2016 • Top occupations in demand: Programmers and software development professionals, Marketing associate professionals, IT user With an estimated 1,000,000 support technicians, IT business analysts, architects & systems designers and Web new workers needed nationally design and development professionals. • Advertised salaries: between 2012 and 2022... SQL 2,684 Java Script 1,723 Microsoft Windows 1,695 Microsoft C# 1,593 £60,000 988 Java 1,012 Website Development 972 Working closely with training providers across Essex allows us to investigate how the curriculum could change to benefit the local economy and enable more adult - Paul Coffey entrants to enter the sector. Our attention is also drawn IT, Digital & Creative sector lead to the gender split in the industry and we are looking to (Coast Digital) increase the number of females working in the sector.” NATIONAL HEADLINES LOCAL AND REGIONAL HEADLINES • The digital and creative industry has been • The three leading digital clusters in the highlighted by the government as a priority East of England are Cambridge, Norwich for growth. However, there is a shortage and Ipswich. Clusters in Greater Essex of suitable digital skills for jobs in the UK can be found in Southend-On-Sea, Brent- labour market. wood, Harlow and Bishops Stortford. • Only 17% of tech specialists are women, • The Creative economy accounts for 7.7% a figure that falls to only one in ten for of jobs in the East of England, compared programmers and software development to 28.9% in London. professionals. • In the SELEP area, the creative industries • Job grew in the sector by 11.2% between generate £2.5 billion in GVA - the largest 2011 and 2014, this was 2.8 times faster GVA contribution of any LEP outside of than the rest of the workforce. London. • The average salary is advertised at almost £50,000, 36% higher than the national ad- vertised average. 28 29
Logistics 37,000 people employed KEY DRIVERS Top Ten Specialised Skills in Greater Essex 2016 3,200 companies • A growing customers base and increased use of e-commerce will increase demand for logistic companies. Employers include: DP World, DSV, Harwich International Port Ltd, London Container Services, • The third age of the internet has the po- Manchester Airport Group, Port of Tilbury, Stobart Air, Uniserve, Velta and Woodland Logistics tential to improve the efficiency and reli- ability of the logistics industry. Forklift Operation 303 Transportation • 3D printing and driverless vehicles could Logistics 210 National Job Shortages include: Large Good Vehicle Drivers, Managers and Directors in revolutionise the sector, reducing oper- Repair 154 Product Sales 149 storage and warehousing, Importers and Exporters ating costs while improving the reliability Key Performance 148 Warehouse Management 140 of deliveries. Indicators Inspection 122 Cleaning 117 The logistics sector in Essex VACANCY AND SKILL SUMMARY Logistics 103 Stock Control 102 has the potential to drive not only • There was more than 8,209 job postings advertised in the Logistics Sector during the local economy but that • 2016. Top baseline skills in demand: Communi- of the nation... cation, Organisational, Customer Service, Detail Orientation, Planning, Team Work, ...Essex is well served by international seaports and air- English and Computer Skills ports; however the supply of a skilled workforce is an • Local authority area with most vacancies: issue which is impacting the growth of the sector across Thurrock, Chelmsford, Harlow, Basildon, the county. The logistics sector is continually changing; Colchester. rapid technological advancement and innovation means • Top occupation is demand: Large goods that the workforce needs to be able to keep up and with vehicle drivers, Van Drivers, Elementary digital skills. Other challenges include recruiting HGV/ - Trevor Hutchinson Storage Occupations, Fork-lift Truck LGV drivers, increasing the proportion of females in the Logistics sector lead Drivers and Importers and Exporters. sector and challenging the stereotypes of the sector. We (DP World) • Advertised Salaries: have started to chage these perceptions by distributing our careers information booklet ‘What’s Your Thing?’ to £60,000 42 • The logistics sector employs 2.2 million • The East of England has the second high- people nationally, but the sector’s per- est number of logistics companies, only formance in the UK lags behind that of behind the South East. many of its European competitors. • Sea ports in the SELEP area transport • The sector particularly under-performs around 14 million passengers and 85 mil- with regards to education and train- lion tonnes of freight. ing, ranking 22nd in the amount of staff • Amazon announced in 2016 that they training provided. are going to open a new 550,000 sq. ft • The most prevalent roles in the sector are fulfilment centre in Tilbury, creating around machine operatives, with these account- 1,500 permanent jobs. ing for 49% of the current workforce. 30 31
Further Education Learner (16+) Participation in Government-funded Further Education by Level in Greater Essex (2011-12 to 2015-16) and Skills in 2011- 2012 27,800 35,240 Greater Essex 2012- 33,890 2013 29,230 2013- 31,860 2014 28,300 The following informaton on Further Education and skills in Greater Essex is based on the Sta- 2014- 28,370 tistical First Release ‘Further Education and Skills in England, January 20171 and accompanying 2015 27,790 data tools2 published by Department for Education. 2015- 25,300 2016 29,690 Further Education and Skills includes learners aged 16 or over who are studying a course at a 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Further Education College, training provider or within their local community, and employees who are undertaking an Apprenticeship or other qualification in the workplace. Learners enrolled at Participation Achievement School Sixth Forms or in Higher Education are not included in these figures. Additional statistics on Further Education and skills provision are available online from the FE Apprenticeships Data Library3. There were 14,570 apprenticeship starts by Greater Essex residents in 2015-16, virtually un- changed from 2014-15 (14,580). This compares to a 1.9% increase nationally. However, the Further Education and Skills number of achievements increased to 7,880 in 2015-16, an increase of 6% from 2014-15. This compares to a national increase of 4%. The total number of learners (aged 16 or over) in Greater Essex partcipating in government-funded further education in 2015-16 was 89,680, a decline of 6.8% from 2014-15. This compares to a national decline of 8.4%. The total number of learners in Greater Essex achiveing a govern- Apprenticeship Starts and Achievements in Greater Essex (2011-12 to 2015-16) ment-funded qualification in 2015-16 was 65,560, a decline of 8.4% from 2014-15, compared to a national decline of 11.3%. 14,410 14,470 14,580 14,570 15,000 12,830 Learner (16+) Participation and Achievement The number of learners in Greater Essex 12,000 in Government-funded Further Education in participating on Government-funded Greater Essex (2011-12 to 2015-16) Further Education Full Level 2 courses 9,000 7,880 (equivalent to 5 or more GCSEs at grade 6,880 7,150 7,440 6,480 111,660 A*-C) fell to 25,300 in 2015-16, a decline of 6,000 10.8%. This compares to a national decline 2011- 2012 81,440 of 10.1%. 112,890 2012- 3,000 2013 84,610 The number of learners in Greater Essex 2013- 2014 108,800 participating on government-funded Fur- 0 83,200 ther Education Full Level 3 courses (equiv- 2011- 2012 2012- 2013 2013- 2014 2014- 2015 2015- 2016 2014- 96,200 alent to 2 or more A-Levels) was 29,690. 2015 Starts Achievement 71,560 This is equivalent to an increase of 6.8%, 2015- 89,680 compared to a national increase of 8.9%. 2016 65,560 Two fifths of apprenticeship starts were by learners aged 25 or over, with 30% by 19-24 year 0 20,000 40,000 60,000 80,000 100,000 120,000 olds and 30% by 16-18 year olds. 1 SFR07/2017 https://www.gov.uk/government/statistics/further-education-and-skills-january-2017 Participation Achievement 2 https://www.gov.uk/government/statistical-data-sets/fe-data-library-further-education-and-skills 3 www.gov.uk/government/collections/fe-data-library 32 33
Apprenticeship Starts by Age in Greater Essex (2011-12 to 2015-16) Apprenticeship Starts by Sector Subject Area in Greater Essex (2015-16) 5,970 5,770 5 5,420 5,490 6,000 4 6 4,760 4,640 4,710 4,430 4,560 4,440 4,360 4,380 4,360 5,000 3,720 3,830 4,000 3,000 7 3 2,000 8 1,000 0 9 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Under 19 19 - 24 25+ 2 1 10 The number of Higher Apprenticeships started by Greater Essex residents continued to increase, 1 2 3 4 5 Agriculture, Horticulture Arts, Media Business, Administration Construction, Planning Education rising from 630 in 2014-15 to 790 in 2015-16. There was also an increase in the number of and Animal Care and Publishing and Law and the Built Environment and Training Advanced Level Apprenticeships, rising to 5,780 to in 2015-16. 1.8% 0.5% 31.1% 3.3% 2.4% Apprenticeship Starts by Level in Greater Essex (2011-12 to 2015-16) 6 7 8 9 10 Engineering and Health, Public Services Information and Leisure, Travel Retail and Manufacturing Technologies and Care Communication Technology and Tourism Commercial Enterprise 9,390 12.2% 27.6% 2.6% 2.6% 15.8% 10,000 8,260 8,350 8,070 7,970 11 Science and 8,000 Mathematics 5,850 5,780 5,590 4,940 6,000 4,400 0.1% 4,000 2,000 350 360 630 790 There has been a 70 marked growth in the 0 number of apprentice- 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 ship starts in Health, Public Services and Intermediate Apprenticeships Advanced Apprenticeships Higher Apprenticeships Care since 2010-11, whilst the number of stats in Retail and Business, Administration and Law and Health, Public Services and Care accounted for just un- Commercial Enterprise der a third of all starts in 2015-16, with a further 16% of starts in the Retail and Commercial has fallen. Starts in Enterprise sector and 12% in Engineering and Manufacturing Technologies (see chart overleaf). both Construction and the Built Environment and ICT in 2015-16 were below levels in 2010-11 (see the top chart opposite). 34 35
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