9 January 2007 - DfES and DWP: A Shared Evidence Base – The Role of Skills in the Labour Market
This paper presents a shared DfES and DWP interpretation of the evidence on the role of skills in the labour market and their impact on productivity. This represents the evidence base where our priorities overlap, the focus of this paper is therefore those with low skills – how to improve their employability for sustained employment that provides opportunities for progression.
The main findings are:
- The UK has a relatively long tail of low-qualified and low-skilled adults who are increasingly inactive in the labour market. To increase productivity, maximize output and improve social equity we need to both improve qualifications and skills levels of the low qualified and low skilled and maintain and increase employment rates.
- Employment-focused programmes have generally had more impact on initial employment chances for the low-skilled and are more cost-effective than education-focused programmes but the jobs low-skilled people move into are typically low-paid and provide few prospects for progression.
- Training will be necessary to help move some of the low-skilled group into work. We need to build on the best aspects of past programmes such as: developing strong links with employers; a clear work focus; use of employer placements; and support which is tailored to meet individual needs.
- The best improvements in earnings and productivity occur when qualifications are gained in the workplace. However, those with low levels of skill are the least likely to receive training from their employers.
The main messages for policy development coming out of the paper are:
- We need to develop better ways of identifying those for whom a lack of qualifications or skills is a barrier preventing them from moving into good quality sustainable work.
- We need to encourage employers to offer training to their low-skilled employees
- We need to ensure that training is well-designed and delivered.
- We need to develop a seamless service so that when people start to improve their skills whilst on benefits they can continue their learning once they move into work.
Notes to editors
- This joint DWP/DfES paper: “DfES and DWP: A shared evidence base: The role of skills in the Labour Market” is published on 09 January 2007 on both DWP and DfES websites.
- The paper was drafted by analysts in DWP and DfES to inform the Leitch Review of Skills.
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Prepared by: Department for Work and Pensions Work, Welfare and Poverty Directorate