Skills and the Recession

There is an interesting piece of analysis from Laurence Downey the NI Manager for the Alliance of Sector Skills Councils in the Belfast Telegraph today.

This recession with its global perspective is like no other. The labour market in Northern Ireland is facing significant challenges. Many jobs no longer feel as secure as before and for those individuals who are made redundant the prospects of finding a new job appear increasingly difficult. Our young people currently completing their education and training will be entering a depressed job market with limited employment opportunities.

In his recent budget the Chancellor of the Exchequer forecast a return to economic growth in a year’s time. Many commentators and political opponents consider this expectation as being too optimistic and think it will take more like two years to see our economy returning to stable and sustained growth. We can be sure that the current downturn will make it a tough time for business both large and small for some time to come.

Sector Skills Councils (SSCs) have a vital role to play in supporting economic recovery and growth. They provide employers with a unique forum to express the skills and productivity needs that are pertinent to their sector. As independent employer-led organisations each SSC is responsible for tackling the skills and productivity needs of a specific economic sector across the UK. Sector Skills Councils represent 90% of the UK workforce from construction to hospitality, engineering to health, and many more.

In Northern Ireland, Sector Skills Councils are providing robust sector specific Labour Market Intelligence (LMI) working in consultation with employers. This detailed LMI is being used by SSCs to continuously influence Government skills policy, strategy and funding and to ensure the wide range of organisations providing education and training are meeting the needs of employers.

What can be done now to prepare the economy for future recovery and growth? It is not sufficient to only address unemployment. New jobs are emerging in a variety of identifiable areas; green technologies, low carbon, sustainable design, the digital and creative industries and a manufacturing sector that is rebalancing. Investment must also be focused on indigenous training that leads to higher level skills, reintegrates the workless back into sustainable employment and specifically attacks underlying skills gaps and shortages more so than ever.

Government led approaches continue to struggle to support existing businesses and individuals impacted by the downturn. Redundancies at F G Wilson, Bombardier, Wrightbus and Visteon, are just some examples of recent blows to Northern Ireland’s economy, particularly our manufacturing base. Northern Ireland cannot afford to fall behind now. The pain that our economy and our people are going through at present is hopefully temporary. It is up to all elements in our economy - government, employers, trade unions, education & training providers and sector skills councils - to work collaboratively to prepare for recovery, no matter how long it takes, so that we can be in a strong position to exploit the new opportunities that will inevitably emerge as we come out of recession.

For employers and employees in Northern Ireland the provision of education and training is changing, and striving to become far more responsive to the needs of the wider economy. Sector Skills Councils are at the heart of this demand-led approach with responsibility for National Occupational Standards (the building blocks for vocational qualifications) and apprenticeship frameworks within the Department for Employment and Learning’s flagship ApprenticeshipsNI programme. Increasingly, their LMI is being utilised to underpin up-to-date careers information, advice and guidance. SSCs are influencing and supporting policy and programmes in relation to employability skills and management & leadership. A major and much needed development is new policy and funding directed towards up-skilling and re-skilling initiatives for existing employees.

Our Assembly admittedly has limited powers and an even more limited budget. However, bold action is needed now to do what we can to protect our economy and invest in our future. The Programme for Government has as its central aim the creation of a dynamic innovative economy. In order to achieve this, the Executive will have to help create business confidence and that is done through investing in skills that will enable business to grow and lead in the future. A strong sect oral approach led by the Sector Skills Councils is absolutely vital to protect skills and jobs and prepare Northern Ireland for recovery.