The writer is an economist at LSE and former director of his Center for Economic Performance
Growth depends as much on skills as on physical capital. However, while the British government has started to invest in physical infrastructure, it still has to reveal its hand on skills.
The challenge is enormous. At the age of 18, around a third of our young people stopped receiving education or training. It is much worse than in competing countries. This is a key reason for the low productivity of the United Kingdom, low salary and low social mobility. This adds to the social protection invoice because more and more young people find themselves tragically glued to the list of applicants. It's really shocking.
To change it, we must approach the serious learning shortage. If you are eligible at university, you can expect to find a place. If you are eligible for learning, the perspective is completely different. During the government's counterpart program in recent years, there have been three times more candidates than available places. The number of learning designed for young people, as a professional equivalent at levels A, is barely half of what it was 10 years ago.
Turnout this should be an absolute priority. This requires a flagship policy signaling the desire to help young people. In 2009, the previous Labor government adopted the law on learning. This aimed to guarantee that from 2013, all young qualified candidates received a learning offer. (The coalition has removed this obligation).
We need a comparable commitment from the Starmer government. By 2029, there should be enough training places to the equivalent of levels A to ensure that each candidate qualified up to 21 years old obtains an offer. In other words, we need a learning guarantee.
This is vital for the government's opportunity mission as well as for growth. It would be radically improved social mobilityWho has always relied on the people who get up with learning. Social mobility has fallen since this route has weakened. And the skills policy must go far beyond its current objective to meet the shortages indicated by employers (which is the easiest by reducing older employees). The main educational work of the State is to start young people in life – becoming as qualified as possible. It is in everyone's interest, including employers.
At 15, our young people now do better than those of France and Germany to public exams. But then too much delay. Those who go to university will find a place, but those who want professional training are faced with an acute shortage.
Is a learning guarantee possible? It can only be delivered if employers provide the premises. The Charterred Institute for Personal Development revealed that 89% of employers support the idea of a guarantee and 60% believe that learning should mainly be for young people.
But to get there, it would take a huge effort. Each local authority should assess the number of places necessary, with the help of the central government, then persuade employers to provide enough places. It would also take a recruitment subsidy for SMEs in high unemployment areas.
The cost is manageable in the growth and levy of skills, the revision ApprenticeshipThis is compulsory for employers with a remuneration bill of more than 3 million pounds sterling. By 2029, the basic guarantee would cost 1.4 billion pounds Sterling – a third of the total levy product that year. However, employers will only devote this amount to young people if they were intended for this purpose. It would therefore be necessary to be anchored. The Labor Manifesto has promised to redirect funding to young people; It is the only sure mechanism to do it.
Our country desperately needs a radical change to give hope to a better future. The current guarantee of young people – of “education, training or help in search of work” – is not enough. The quality of employment is enormously important. A new learning guarantee would not only be fair, it is crucial for growth.
Letters in response to this article:
The independent training sector fills the apprenticeship gap / / From Ben Rowland, CEO, Association of Employment and Learning Providers (AELP), Stoke, United Kingdom
How small businesses create future leaders / / By Richard Ross, President, Rosedrees, London Ha8, United Kingdom
