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Rethinking Apprenticeships

A recent report and government announcements focus on increasing the proportion of 16-24 year olds in apprenticeships.

A report published by the IPPR (Institute for Public Policy Research) this month argues that there is a need to increase the employer demand for young people to enter apprenticeships.
 
After a steep decline in the 1970s and '80s, apprenticeships have enjoyed a recent renaissance. The attraction of apprenticeships is a response to the disappearing youth labour market over the past three decades. Economic and social changes since the late 1970s have made it harder to move straight from school into work. With youth unemployment at a record high, the need to provide routes into employment for school leavers is ever more pressing.
 
Apprenticeships and vocational education play a key role in young people’s transitions into work in many northern European countries and in some other Anglo-Saxon countries (notably Australia). Rates of youth unemployment in these countries are much lower than in England.
 
Since 2004, when apprenticeships were made available to adults, a rising proportion of apprentices have been aged over 25. In 2002/03, 58 per cent of apprenticeships were taken up by 16-18 year olds. Seven years later in 2009/10, just 42 per cent of apprenticeships went to under 19 year olds. Provisional figures for 2010/11 show an increase of 234 per cent compared to 2009/10 in apprenticeships for 25 year olds, with more workers in their 30s, 40s, 50s and 60s taking up apprenticeships. This compares to a 10 per cent increase in apprenticeships for under 19 year olds and a 21 per cent increase for 19-24 year olds. The report states:
 
“Increasing the number of apprenticeships that are offered to people aged 25 and over has diluted the important role that they should play in socialising young people and preparing them for the world of work”
 
Apprenticeships Starts by Age & Level
 

 
A recent announcement from Business Secretary Vince Cable outlined new measures to ensure more young people benefit from an Apprenticeship:
  • To encourage thousands of small firms that don’t currently hire apprentices to take on a young apprentice aged 16 to 24, the Government will offer employers with up to 50 employees an incentive payment of up to £1,500. This will support up to 20,000 new Apprenticeships in 2012/13. An initial payment will be made two months after the individual has started their Apprenticeship; the balance will be paid after the Apprenticeship has been completed and the trainee has progressed into sustainable employment.
  • There will be a renewed focus on targeting the programme where Apprenticeships deliver greatest value - including on younger adults, new employees, higher level qualifications and particular sectors where they can make the greatest impact.

Read the full IPPR report here and click here for details of the recent Government announcement.

Trevor Bottomley
Employment & Labour Market Adviser
Central London Connexions
December 2011

A recent report and government announcements focus on increasing the proportion of 16-24 year olds in apprenticeships.

A report published by the IPPR (Institute for Public Policy Research) this month argues that there is a need to increase the employer demand for young people to enter apprenticeships.
 
After a steep decline in the 1970s and '80s, apprenticeships have enjoyed a recent renaissance. The attraction of apprenticeships is a response to the disappearing youth labour market over the past three decades. Economic and social changes since the late 1970s have made it harder to move straight from school into work. With youth unemployment at a record high, the need to provide routes into employment for school leavers is ever more pressing.
 
Apprenticeships and vocational education play a key role in young people’s transitions into work in many northern European countries and in some other Anglo-Saxon countries (notably Australia). Rates of youth unemployment in these countries are much lower than in England.
 
Since 2004, when apprenticeships were made available to adults, a rising proportion of apprentices have been aged over 25. In 2002/03, 58 per cent of apprenticeships were taken up by 16-18 year olds. Seven years later in 2009/10, just 42 per cent of apprenticeships went to under 19 year olds. Provisional figures for 2010/11 show an increase of 234 per cent compared to 2009/10 in apprenticeships for 25 year olds, with more workers in their 30s, 40s, 50s and 60s taking up apprenticeships. This compares to a 10 per cent increase in apprenticeships for under 19 year olds and a 21 per cent increase for 19-24 year olds. The report states:
 
“Increasing the number of apprenticeships that are offered to people aged 25 and over has diluted the important role that they should play in socialising young people and preparing them for the world of work”
 
Apprenticeships Starts by Age & Level
 

 
A recent announcement from Business Secretary Vince Cable outlined new measures to ensure more young people benefit from an Apprenticeship:
  • To encourage thousands of small firms that don’t currently hire apprentices to take on a young apprentice aged 16 to 24, the Government will offer employers with up to 50 employees an incentive payment of up to £1,500. This will support up to 20,000 new Apprenticeships in 2012/13. An initial payment will be made two months after the individual has started their Apprenticeship; the balance will be paid after the Apprenticeship has been completed and the trainee has progressed into sustainable employment.
  • There will be a renewed focus on targeting the programme where Apprenticeships deliver greatest value - including on younger adults, new employees, higher level qualifications and particular sectors where they can make the greatest impact.

Read the full IPPR report here and click here for details of the recent Government announcement.

Trevor Bottomley
Employment & Labour Market Adviser
Central London Connexions
December 2011

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