Member Article

Apprentice growth dominated by older workers, according to study

Almost half of the apprenticeships in Greater Manchester have been taken by adults in their thirties, forties and fifties - many of whom are likely to already be in jobs - rather than young people trying to get into work, a new study finds.

The report by New Economy - Greater Manchester’s economic think-tank and advisor on best policy practice - shows that adult apprentices over the age of 25 have grown from 2,472 in 2008/9 to 13,485 in 2012/13 (a rise of 446%).

Almost two-thirds of those undertaking Greater Manchester-wide apprenticeships are women (64% in 2012/13) working in areas such as health and social care, customer service and business administration. Out of more than 200 different apprenticeships, these three account for half of all starts among older adults.

Meanwhile, there has been a 26% drop recorded in 16-18 year olds beginning apprenticeships in the three years to 2013.

The report says that the drop in younger apprentices has various causes – and may be only temporary. Reasons include a preference among some employers for older workers; policy changes leading to the end of short apprenticeships; and the ‘raising participation age’ policy in education being misunderstood as remaining in school rather than continuing learning in a workplace.

Overall, the numbers of apprentices have risen, including at ‘higher’ level – the equivalent of a degree. But the report raises concerns about the value of some apprenticeship opportunities.

Examples of apprentice ‘car valets’ and ‘chip shop workers’ were cited, while some apprentices complain of low pay and the risk of being made redundant after qualification because employers do not want to pay the wages of a skilled employee.

The average weekly wage for an apprenticeship vacancy in Greater Manchester was £120.78 a week in the six months to March 2014. Nationally, the National Apprenticeships Service says the typical weekly wage is £170 a week. A fifth of vacancies paid less than £100 a week and half less than £150.

James Farr, director of skills and employment at New Economy, said: “A good quality apprenticeship is a critical route into well-paying work and will be a better choice than going to university for some ambitious young people.

“But the challenge for the city region in the next few years will be to expand the numbers of good quality apprenticeships, particularly at advanced and higher levels.

“Apprenticeships are still often thought of as being about traditional manual roles. Our report shows how out of date this perception is.

“Areas such as engineering and construction are still very important, but most apprenticeships have taken on the characteristics of the service-oriented sectors that provide most jobs in Greater Manchester. What is more, the overwhelming majority of apprentices are women.

“We are keen to see more businesses recruiting new young employees via apprenticeships. Although we do not believe wage levels put many people off from applying, we want to make it easier by reducing living costs for apprentices.”

The report finds:

· In 2012/13, 56.6% % of apprenticeship starts were at intermediate level, 41.3% at advanced level and 2% were at higher level.

· 30,090 people began an apprenticeship in 2012/13. This compares with 12,496 in 2008/9 (a rise of 141%).

· The gender imbalance in favour of women increases with age. Overall, out of 30,090 apprenticeship starts in 2012/13, 57% were women. Among the over 25 age group, the proportion is 64%.

· Ethnic minority groups are under-represented among apprentices – especially at younger ages. ‘White’ people account for 91.5% of apprentices among 16-18 year olds, 89.1% among 19-24 year olds and 87.6% among apprentices over the age of 25. This compares with 85.3% of the population at large self-describing as ‘white’.

· In 2012/13 the top three most popular ‘frameworks’ (apprenticeship subjects) were: customer service, business and administration and health and social care.

· Success rates in apprenticeship vary by framework. In 2011/12 (the last year for which data is available), success rates among popular frameworks varied from 66.5% in health and social care to 79.7% in engineering.

The report’s main recommendations are:

- Targets for the numbers of ‘new recruits’ into an apprenticeship (as opposed to ‘converting’ an existing employee).

- Urgent clarification of the implications of beginning an apprenticeship for entitlements to family benefits.

- Half price travel for apprentices and an investigation into the feasibility of between 25% and 50% council tax relief for households with an apprentice under the age of 25 (depending on household circumstances).

- Better guidance on the application of the National Minimum Wage and more active ‘naming and shaming’ of employers believed to be paying below the legal pay floor.

- The extension of a ‘shared apprentice’ schemes in order to increase job security among apprentices.

- The adoption and development of an Apprentice Charter which sets out minimum expectations regarding fair treatment for apprentices.

This was posted in Bdaily's Members' News section by Simon Malia .