Apprenticeship numbers are expanding and employers seem to be more flexible about qualifications, but wages and allowances appear to be falling.
As mentioned in last month’s update, the Apprenticeship expansion seems to be having a marked affect in central London.
Last month we reported that Apprenticeship numbers across London were generally about 300% up on last year. Looking back over the last five months Apprenticeship vacancies in central London were nearly 400% up on the previous year (89 compared to 23).
Central London Connexions Apprenticeship Vacancy Notifications
1st December to 28/29th February
While apprenticeship numbers are increasing, the proportion of employers insisting on good GCSE grades (or equivalent) from applicants seems to be decreasing. Nearly half (49%) of Apprenticeship notifications either asked for no formal qualifications or only low grade (D-G) GCSEs or a Level 1 qualification. Compared to last year the proportion asking for good GCSEs is down, but those asking for no qualifications up.
Central London Connexions Apprenticeships
Qualifications Required (%)
1st December to 28/29th February
The £2,500 sweetener recently offered to small and medium sized employers to take previously unemployed 16-17 year olds into an apprenticeship is likely to have had an effect here. Many employers will have realised that their chances of finding a suitable candidate will be reduced if they are not flexible regarding qualifications. All of this funding has now been taken up in London but February saw many Apprenticeship vacancies from SMEs and most are still looking to fill their vacancies (which they must do by the end of March to claim the subsidy).
While the expansion of Apprenticeships with SMEs has increased the supply of vacancies may also have resulted in a decrease in the average apprenticeship wage. Money is still tight for many and while the large and national employers seem to be maintaining their Apprenticeship rates (eg £230 per week with The Royal Parks, £315 London General Transport) the average has dropped from £205 per week (in December to February 2008/09) to £130 in the last five months. The vast majority of apprenticeship vacancies notified to central London Connexions boroughs in February were paying between the minimum £95 and £120.
Many Training Providers and the National Apprenticeship Service have been advising employers that they may struggle to fill places on the minimum £95 per week, whether this results in some increasing their rates as we head into March is yet to be seen.
Trevor Bottomley
Employment & Labour Market Adviser
Central London Connexions
March 2010