Action urged to improve 'skills system' to meet future challenges

The skills system in Scotland needs reform if it is to meet future challenges, according to the bosses of a cross-party think tank.

Published 8th Jan 2017

The skills system in Scotland needs reform if it is to meet future challenges, according to the bosses of a cross-party think tank.

The Institute for Public Policy Research Scotland (IPPR Scotland) says colleges, apprenticeships, learning and work-based training all need to tackle poor economic growth and low pay, progression and productivity issues.

In a report titled Equipping Scotland for the Future, it says Scotland's pay rate has fallen behind the UK after catching up between 2010 and 2015.

The report also found fewer Scots progress from low-skilled jobs to middle and high-skilled jobs than the rest of the country.

Scotland's standing has improved against the national average, however, the UK is said to have performed poorly over this time.

Russell Gunson, director of IPPR Scotland, said: The skills system in Scotland needs help to deliver the economy that Scotland needs.

In the short-term there are weaknesses in Scotland's economy around pay, progression and productivity that the skills system can help to address.

In the long-term, with demographic change and technological change likely to see a very different world of work we must make the decisions now that prepare us for this future.''

The report suggests technological and demographic changes will alter our economy and society resulting in people working longer in multiple careers and for multiple employers.

The think tank suggests six measures for improvement including setting out a clear national purpose of the skills system.

It says there should be regional integration'' and flexibility of learning to encourage people to learn at their own pace.

Further recommendations include increasing the skills that can be transferred and clarifying the routes to learning where there is duplication.

Mr Gunson added: In particular, we will need to see a skills system with a much clearer national focus, one that is integrated at the regional level reducing duplication and a system focused as much on those learners who have already started their careers as those just starting out.

By taking action now, we can prepare Scotland for the future, delivering a skills system that supports Scotland's economy for the long-term.''

Jamie Hepburn, Minister for Employability and Training, said: We are using all of the powers at our disposal to promote fair pay and conditions and as a result Scotland has the highest proportion of employees, around 80%, paid the Living Wage of all the four countries of the UK.

We know it's important that we address skills gaps and have confirmed we will use the apprenticeship levy, which the UK Government forced on Scotland without consultation, to give both employers and employees more options and flexibility. We will boost Modern Apprenticeships and address skills gaps and the training needs of existing employees where a full apprenticeship might not be appropriate.

Our review of enterprise and skills agencies will look at building on existing strengths to ensure a system where all of our agencies work with each other and collaboratively with our business, academic and civic partners to optimise economic impact across the whole of Scotland.''