Proving the Value of Apprenticeships
A million new apprenticeships would boost the economy
06 April 2012
As unemployment among 16-24 year olds hits an all-time high, City & Guilds has produced a report to show how its aim of creating a million new apprenticeships would boost the UK economy.
Creating a million new apprenticeships by summer 2013 is an ambitious target, but one that City & Guilds is committed to achieving through its Million Extra mission. To quantify the benefits these apprenticeships will have for the UK economy, City & Guilds commissioned research body SQW to compile a new research report – The Economic Value of Apprenticeships.
The report suggests that, should Million Extra be successful, UK businesses would generate an extra £459 million per annum as a result of their new apprentices, totalling £4.37 billion by 2020.
The Government would also stand to benefit from a million new apprenticeships, generating £1.2 billion in tax revenues between 2012 and 2020. This means that the business and tax benefits combined would total £5.57 billion – higher than predicted returns from the 2012 Olympic Games.
Chris Jones, CEO and Director General of City & Guilds said: ‘Apprenticeships work for both businesses and individuals – providing companies with a skilled workforce to help them grow, while giving people of all ages hands-on experience, guidance and qualifications. Not only will these apprenticeships inject a much needed financial boost into our struggling economy, but they will help tackle current unemployment levels.’
The report’s findings were supported by some of the biggest apprenticeship employers in the country, which are already reaping the rewards of on-the-job learners. Steve Holliday, CEO of National Grid, said: ‘Business leaders are increasingly recognising that apprentices are key to the future of this country and this research highlights just how important they are in aiding the UK’s economic recovery.’
Holliday encouraged more businesses to take on apprenticeships: ‘At National Grid, we are committed to ensuring that our staff has access to high quality apprenticeships. It’s great to see City & Guilds working with employers to help solve challenges around hiring apprentices to ensure more organisations are able to offer places.’