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Measuring Scotland's Progress Towards A Smart, Successful Scotland 2003

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measuring Scotland's progress towards A SMART, SUCCESSFUL SCOTLAND

improved demand for high quality in-work training
LEAD INDICATOR
13A - PROPORTION OF THOSE IN EMPLOYMENT UNDERTAKING TRAINING

Why this measure?

A smart, successful Scotland needs a workforce that is constantly seeking to improve its skills. In an increasingly competitive and dynamic global environment employees cannot afford, and their employers cannot allow them, to rely on skills learned in the past. By undertaking training while employed, workers equip themselves for the current demands of the economy. By doing so new skills and techniques can be introduced to the entire workforce rather than only to those currently leaving formal education.

How does Scotland perform?

Proportion of working age employees receiving training in the last 13 weeks (2002)

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Scotland (29.6%) does not perform as well as the UK as a whole (30.8%). The gap is not big, and statistics show that Scotland has narrowed the gap on the UK, having moved from 11th to 9th since 2000. London and the North East of England are the two best performing areas. Directly comparable figures to allow a comparison between Scotland and the OECD were not available. The measure used here is training undertaken in the last 13 weeks; in the OECD data it is in the last year. In the UK 40% of those aged 25-64 undertook training within the period of a year, placing it fifth in an OECD sample of 20 countries. Given that Scotland's training rate over 13 weeks is slightly below that of the UK average it may be concluded that over a year the percentage of people undertaking training would be slightly below that of the UK. On this basis it may be concluded that Scotland would be in the second quartile.

What does this mean for Scotland?

Scotland's lower number of individuals undertaking training means that it will not, other things being equal, be as attractive a business location as other areas of the UK due to a poorer uptake of in-work training. However, the gap between Scotland and the UK is small and the trend is upward for both countries. Should the proportion of employees in training continue to increase the small gap between the take-up rate in Scotland and the UK average will become less significant.

13B - NUMBER OF, AND EMPLOYMENT IN, INVESTORS IN PEOPLE ACCREDITED COMPANIES

Why this measure?

The Investors in People standard was developed in 1990. It sought to provide a framework for improving business performance and competitiveness through setting business objectives and helping people develop to meet these objectives. The measure is important because having a workforce with the skills to take advantage of opportunities and manage technologies is crucial in the global marketplace. Businesses must apply for the Investors in People Standard and the total number of holders year-on-year gives a good measure of the demand for high quality in-work training.

How does Scotland perform?

Proportion and employment in firms in Scotland recognised by Investors in People (2002)

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As a measure specific to the United Kingdom, it is not possible to make any international comparison. Instead the percentage of firms and employment within those firms that possess the Investors in People award is presented broken down by employment size. It is little surprise that recognition by Investors in People is positively related to the employment size of firms. Evidence suggests that more Scottish firms than before are applying for and receiving the Investors in People award, though that rate would appear to be lower than that for the UK as a whole.

What does this mean for Scotland?

Accreditation by Investors in People involves both financial and administrative costs. This is undoubtedly the reason that take-up is higher in larger firms. Although the benefits of Investors in People awards are applicable to all firms, it would be surprising if take-up amongst smaller firms were to increase without policy changes to address this.

13C - DEMAND FOR LEARNING TO ENHANCE TRANSFERABLE CORE SKILLS

Why this measure?

There are certain skills that can be considered desirable for individuals to have irrespective of their current employment. These "transferable" skills are those that allow the workforce to be suitably fluid to ensure transition from one employment to another without the need for extensive re-training. Where re-training is required, the possession of transferable skills should make the training more effective.

How does Scotland perform?

Percentage of respondents interested in, or likely to undertake, taught or non-taught learning in the next 12 months (1998, 2001 and 2002)

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The measure used was of individuals who were interested in or likely to undertake, taught or non-taught learning over the next 12 months. Results for Scotland fall around 10% behind those of the UK. Unfortunately there is no information on how this variable has changed over time. However, a recently released report noted Scotland playing a leading role in the development of core skills at school and it may be hoped that today's schoolchildren continue to demand transferable core skills as they move through adulthood.

What does this mean for Scotland?

Statistics compiled on attitude must always be regarded with some caution - there is often a large difference between what people claim they will do and what they actually do - but it does at least give an indication. The gap between Scotland and the UK is concerning. Though the absolute number in both countries is quite high the gap could be because Scots believe they have less need for developing transferable core skills than the rest of the UK.

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