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31/05/12

What role should LEPs play in skills creation?

It was clear from the Conference in April, that LEPs see Skills as a priority issue that has to be tackled if local economies are to regain growth. There is a real dilemma. On the one hand it is clear that young people are bearing much of the brunt of the present economic difficulties with youth unemployment across the Europe standing at 18%.

At the same time the EU reports that the UK continues to have too many leaving school that are functionally illiterate and innumerate with no qualifications. It is estimated that low skill jobs will decline by 51% this decade whilst the demand for medium and high skill jobs will increase by 16% and 21% respectively. Overlay this with a a report from the beleaguered construction sector where the latest Reed survey reports that four in ten businesses have skills gaps which are having an effect on their performance and growth potential.

It is clear to me that existing policies are failing. What then becomes the role of LEPs?  Do we simply try and put forward a coherent view of employer needs both present and into the future? Do you try and push for a more localised balance of supply and demand or do we push for a more radical reform of the current educational and skills system? What thought is being given to incentivising the individual and just what of a structure that sees a tripartite approach involving the state, the employer and the individual. 

I will flesh out some thoughts on this in the next blog.


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