Report reveals value of apprenticeships
New Cebr research reveals the significant value of apprenticeships to the UK economy
03 April 2013
A new report from the Centre of Economics and Business Research (Cebr) has unveiled the significant value that apprenticeships will deliver to the UK economy in the coming decade.
In the study, which was released in line with National Apprenticeship Week, the Cebr forecasts that between 2012-13 and 2021-22, 3.8 million people will complete an apprenticeship, and that this will contribute £3.4 billion a year to the economy through productivity gains by 2022.
The report also highlighted how apprenticeships are boosting productivity by enabling firms to grow their skills base. The Cebr estimates that the average apprenticeship completer can increase business productivity by £214 per week – leading to increased profits, lower prices, better products and higher wages. Positively, it looks like more firms and individuals are set to benefit – the report forecasts that the number of annual apprenticeship completions will rise across all sectors of the economy over the next ten years, growing to nearly half a million by 2021/22.
‘The importance of apprenticeships to businesses and the wider UK recovery cannot be underestimated’, says Charles Davis, Head of Macroeconomics at the Centre for Economics and Business Research.
‘Our research clearly demonstrates the significant contribution that apprenticeships can make to economic growth. Raising the skills of the UK’s workforce translates into improved UK competitiveness in a challenging post-financial crisis environment. This is a vital part of rebalancing the UK's economy and raising the chances of sustained export-led growth.’
However Chris Jones, CEO and Director General of City & Guilds, said that whilst the findings were encouraging, more still needs to be done to educate prospective apprentices about the different pathways into work:
‘All too often, young people are blindly encouraged to progress down the academic route, regardless of where the skills shortages are, or where jobs actually exist. Young people must have access to quality career information and guidance, so they can fully understand the opportunities apprenticeships can offer. ’
‘In addition, businesses have to be prepared to build links with young people at an earlier stage. They must commit to working with colleges and training providers to provide access to high quality work experience or traineeships that could help young people progress on to an apprenticeship. Only then will we see the kinds of economic benefits this report talks about.’
Visit the National Apprenticeship Service website to read the full report