Select Committee on Education and Employment Appendices to the Minutes of Evidence


APPENDIX 18

Memorandum from the South West of England Regional Development Agency (JG 24)

Thank you for your invitation to provide a submission regarding any "jobs gap" in the South West of England and the associated strategies being developed. The importance of the provision of appropriate and sufficient skills within the South West to facilitate and support economic prosperity is recognised by the South West of England Regional Development Agency and its partners and is included as a main driver within the Regional Strategy. As such the identification of "jobs gaps" and the action to address these is a fundamental element of the Regional Skills and Learning Action Plan.

  I use the questions you pose in your letter of 28 July as the structure of my response.

What assessment has been made of the disparity between the supply and demand for labour at the regional and local levels within the RDA region and is there any indication that a "jobs gap" exists in certain localities?

ASSESSMENTS

  These are undertaken by a wide variety of agencies, training organisations and academic groups in the South West. Most concentrate on specific economic sectors, geographical areas or NVQ levels. They all identify the need for some aspect of skill development but these do not necessarily constitute "jobs gaps". Examples:

    —  National Training Organisations.

    —  Training and Enterprise Councils.

    —  Local Authority Economic Development Units.

    —  Higher Education Funding Council.

    —  Employment Service.

  Such assessments are valid but must be viewed within a wider regional context as cross-functional and geographic mobility constraints are primary determinants of true "jobs gaps". Several region-wide assessments exist including:

    —  A "State of the Region Report" commissioned by The South West of England Regional Development Agency (The Agency).

    —  "Skills in the South West" (Campbell and Foy, '98).

    —  The Learning Region (Field '99).

  The Agency recognises that it is essential to further co-ordinate the collation and analysis of labour market and skills and learning data and its appropriate dissemination. As such the Regional Skills and Learning Action Plan contains the headline action, "Develop and Informed Labour Market", which addresses this assessment need.

CONCLUSIONS ON "JOB GAPS"

  Viewed from the labour demand side the State of the Region Report identified the following skill shortages to be common across the South West:

    —  Communication.

    —  Numeracy.

    —  Teamworking.

    —  Problem solving.

    —  Management.

  There are also significant sub-regional needs notably:

    —  Information technology.

    —  Electronic engineering.

    —  Advanced engineering.

    —  Hospitality skills.

  Viewed from the labour supply side there is a shortage of accessible, low skilled, full-time permanent jobs in both urban and rural areas where transport availability and costs constrain individual travel to work boundaries.

If a jobs gap has been detected, what strategies are being developed to deal with this problem?

  The Regional Skills and Learning Action Plan addresses the sectors within which "jobs gaps" are identified. The Action Plan uses co-operative working across all relevant employer and learning provider organisations to meet regional and sub-regional needs. In addition to "Develop an informed labour market" noted above other headline actions include:

    —  Promote continuous learning as a way of life in the South West.

    —  Open up training, learning and employment opportunities to everyone who lives and works in the South West.

    —  Deliver a workforce equipped for the sustainable growth industries of the South West, now and in the future.

    —  Promote delivery through partnerships between employers, learning providers and individuals.

  Specific action includes:

    —  Derive and action plan in each sub-region addressing basic and key skills identifying needs, access and availability.

    —  Detailed action plans to be prepared by the appropriate National Training Organisations and partners for skill development within the economic sectors to be promoted and encouraged within the South West.

  The last action above includes all those economic sectors which have an identifiable skill development need at regional or sub-regional level.

Is the region the most appropriate level for such strategies to be developed and what role should be played by local and national authorities in dealing with this issue?

  The region is the level at which strategies should be devised and implemented for the following reasons:

    —  National v Regional: National level information and associated guiding and prompting can usefully add to regional and sub-regional planning. The practical addressing of "jobs gaps" however, will be carried out by groupings of individual sub-national employers and learning providers who are best engaged via sub-regional and regional mechanisms. This, as it is necessary they have ownership of both the "jobs gaps" and solution formulation at a practical, involved level at which they can relate.

    —  Regional Skills and Learning Strategy and Action Plans: As indicated above these are already formulated to varying degrees and address "job gaps" within the wider economic and social context of their associated Regional Strategy.

    —  Intelligence: Apart from the practical economies of scale and co-ordination arising from a regional approach the mutual inclusivity of sub-regional economies requires an overarching view. This would be too distant on a national scale but sufficiently close and coherent at regional level.

    —  Workforce mobility: Across sub-regional boundaries this is an increasing feature of employment, especially along the motorway axes which traverse and connect key economic locations within the South West. Hence, the region is, for the most part, a single coherent area of labour supply. Supra-regional mobility arises only at the periphery and in high value added occupations.

    —  Higher and further education markets and structures: Although some further and higher education institutions look beyond the region most perceive their learner and employer market to be contained within the South West. As such they have developed partnerships covering the region to maximise the benefits of a co-ordinated approach to services and operations. They will develop these within the context of the Regional Skills and Learning Action Plan which addresses the skills development needs of the South West.

    —  Common basic and key skills needs: Sub-regional differences in skill needs to exist however key skill development requirements such as employability, numeracy and literacy are common across the region. As such similar methodologies may be used to address these needs.

    —  Spreading best practice: Practically this needs to be carried.

  I have purposefully provided a concise response, though I will of course be pleased to provide more detail should it be required.

Jill Barrow
Chief Executive
South West of England Regional Development Agency

October 1999


 
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