« Previous | Contents | Next »
Listen
Chapter 7: Economic Value of College Learning
Skills are, in the words of the Leitch Review of Skills17"the key driver of economic growth, boosting productivity and contributing to increased employment. Fundamental changes underway in the global economy make improvements in skills ever more critical".
In the Lisbon Council Policy Brief, the Economics of Knowledge18, published in 2006, the author explains that "evidence shows - consistently, and over time - that countries and continents that invest heavily in education and skills benefit economically and socially from that choice. For every euro invested in attaining high-skilled qualifications, taxpayers get even more money back through economic growth. Moreover, this investment provides tangible benefits to all of society - and not just to the individuals who benefit from the greater educational opportunities".
We have sought to put a monetary value on the contribution that colleges make to enhance the skills of the workforce in Scotland. We have considered so far as possible the measurable value of the output of the sector rather than the economic impact of spending by colleges whether on wages, consumables or buildings. This is because we wanted to understand better the difference that colleges make. If resources were not devoted to the college sector then they would be available for spending elsewhere for example in the Health Service or on a tax cut, both of which would generate economic impacts through the multiplier. It is therefore of more interest to examine the output, what we are getting for the resources allocated to the sector, rather than the inputs.
The measurable value that we have sought to capture is far from being a value for the full economic benefit of colleges, but it does give us a robust baseline.
We examined the economic gain of a learner increasing their qualification level by marrying information from the Labour Force Survey and data returns from the college sector. This economic analysis, which is at Annex C, was unable to capture all college learning (because of the methodology used and to some extent incomplete data), and was unable to consider the value of additional qualifications at the same level, so that for example gains of a learner obtaining a further Higher that would allow them access to University or the benefits of reskilling that required a different but not higher level qualification could not be captured. It did not take into account benefits that arise beyond the increase of a qualification level. This means for example it did not necessarily capture the benefit of an unemployed person obtaining employment as a result of undertaking a course at their existing qualification level but in a different subject. It also did not capture any of the other social benefits that such learning would bring. On the basis of extremely cautious assumptions, the net economic benefit of colleges is at least £1.3bn.
In effect, we are saying that the college sector turns £1 into an asset worth (at least) £3.20 in a year. This represents an excellent return on investment.
As well as by increasing qualification levels, colleges also make a key contribution to economic growth by:
- providing quality learning experiences to develop basic education and skills;
- developing the knowledge base of business; and
- promoting Scotland.
As previously mentioned about 38% of college enrolments were related directly to employment (by employers either paying for the course in whole or part, block or day release or assessment of work-based learning). Taking into account activity such as government training programmes, about 58% of working age enrolments can be attributed directly to industry links. A breakdown of these links can be found in Figure 10.
The case studies in this section describe the approaches a number of colleges have taken to meet the needs of particular sectors of the economy. They illustrate the breadth of colleges' work both in terms of the diversity of the sectors supported by colleges (from the 'old' such as printing to the 'new' biotechnology). The case studies demonstrate the key importance of working closely with the industries concerned to ensure that the learning provided by colleges is relevant to their needs. To achieve this colleges work closely with Sector Skills Councils. Links between colleges and the Councils are numerous. For example:
Skillsmart Retail is working with Inverness, West Lothian, Lauder and John Wheatley colleges on the development of programmes for older learners, including language skills and IT training;
Financial Services is working with colleges, including Stevenson College, on a course to get people into work in the financial services sector; and
Summitskills is working with Inverness College to provide training to upskill plumbers and electricians in the installation of solar panel systems used as part of the domestic hot water systems.
Figure 10: Links with industry (58 per cent of the working age enrolments), 2004-05 (Source: FES)
Case Study : Creative Industries
Things are looking good for me, I may be going to University and who knows from there. All this has only been achieved because of the help and support from my lecturers and Key Skills [Department}, and a few hours from myself.
Creative industries in Scotland make up over 4% of the Scottish economy.
As A Smart Successful Scotland, explains "Our education system has a leading role in developing the skills, experience and behaviours which support creativity and entrepreneurship".
Links between Cardonald College and European designers and manufacturers have enabled the college to provide training and support more flexibly to people already working in the sector, as well as offering a direct benefit to full-time students through the development of real time commercial standard projects that introduce the students to the demanding world of work in the creative industries. Examples include:
- developing wall hanging designs for an interior decoration company to be produced in China and sold through major UK retail outlets;
- developing a student documentary project into a half hour programme for the BBC;
- designing a range of tableware accessories for a major Scottish retail outlet; and
- a TV project with Govan Initiative enabling local graduates to gain the practical skills necessary to progress in the competitive world of television production and management.
Martin is a skilled joiner and cabinetmaker who felt, at the age of 29, that he wanted to restart his education in the creative sector. He struggled initially on the Access to Design course until staff asked the College's Key Skills team to help. After being tested and found to be dyslexic Martin was provided with appropriate help.
Martin completed all units in the Access course, then completed a National Qualification in Fashion Technology before deciding to complete his studies in HND Stitched Textiles and Fashion Design.
"Things are looking good for me, I may be going to University and who knows from there. All this has only been achieved because of the help and support from my lecturers and Key Skills [Department], and a few hours from myself."
Martin
Case Study: Biotechnology
Although the course is challenging, small class sizes mean no one is struggling.
The Life Sciences sector, which includes biotechnology, makes up about 1.4% of the Scottish economy.
As A Smart, Successful Scotland explains "..working with specific sectors can be an efficient and effective way to increase productivity and growth. Support at sector level should focus on understanding industry level issues and opportunities through close co-operation with those in the industry".
Biotechnology is a sector that has the potential to be key to the economic success of Scotland. This 'new' industry has many small or medium enterprises and start-up companies, and has a reported shortage of appropriately skilled, work-ready science recruits.
The Scottish Colleges Biotechnology Consortium ( SCBC) was launched in May 2001 to provide high quality technical training for the industry and to develop strategic partnerships with schools. The consortium comprises Forth Valley College, Adam Smith College, James Watt College, Dundee College and Bell College (a higher education institution). The Consortium's central office is located within Forth Valley College.
Working in partnership with industry, the Consortium provides tailored and relevant training programmes. It offers an extensive portfolio of programmes including short tailored courses; technician training; postgraduate upskilling; and industry tailored full-time provision. Training is delivered both on-site and in college. The Consortium has also developed an extensive e-learning resource (supported by the European Social Fund).
A common barrier to technician training in the sector is releasing staff from their employee roles. Forth Valley College therefore offer an industry tailored evening programme for HND Biotechnology in addition to day-release, part-time and full-time study. The evening programme is flexible allowing learners to select which units they study and complete the programme at their own pace. A rolling programme allows learner in-take every three months.
"Although I work in a Biotechnology company, my post is not part of the production process. This evening course and qualification will allow me to progress in the company and work in different areas.
"The evening classes are very convenient for me and my employer since they do not interfere with my work. I would not be able to study in working hours as my company is a relatively small enterprise.
"Although the course is challenging, small class sizes mean no one is struggling."
Lesley, Forth Valley College
Case Study: Performing Arts
My training...has more than equipped me for the profession, my creative growth was expertly nurtured.
As A Framework for Economic Development in Scotland explains "The economic benefits of culture are highly significant and the Scottish Executive's policy is to promote participation in the widest possible range of top quality cultural provision. Young people's exposure to cultural activity helps develop a range of important skills, equipping them for life and the world of work, such as self confidence, creativity and social skills".
Since the decline of traditional industries in Dundee, the creative industries have become established as key drivers of the regeneration of the City. In 2001, Dundee College opened The Space, a place that provides:
- world class dance and theatre training;
- a venue for professional companies to perform;
- a centre for the wider community to access arts training, and
- a learning experience for students which has performance as its core.
When The Space was first conceived, the College ran one stream of NC (National Certificate) Theatre Arts and one stream of Foundation Dance programmes, providing 30 student places. In 2005, Dance and Theatre activity has grown to seven full-time streams, providing over 120 student places on programmes ranging from Introductory, through National Qualification to Higher National Certificate and Diploma level. Recruitment to full-time programmes now extends beyond Scottish borders to include participants from Europe, with interest being shown in international markets.
The College's extensive links with professional companies, which includes activities such as workshops, masterclasses, residencies, guest teachers, and attendance at rehearsals, gives learners the experience of professional standards of work in technique and creative sessions, focusing on regular performance.
"My training … has more than equipped me for the profession, my creative growth was expertly nurtured …"
Laura (now professional dancer)
Case Study: Entry into Traditional and New Vocations
As A Smart, Successful Scotland explains "The ability to identify and respond quickly and flexibly to changing demands from employers is a characteristic of an effective labour market. To achieve this, a culture of lifelong learning amongst those in the market and those involved in supplying the labour market is needed".
Glasgow Metropolitan College has a structure of five academic schools, designed to be business-facing: Built Environment; Communication and Media; Design; Food and Hospitality; and Information Communication Technology, Sport and Tourism.
Each College School has an Advisory Board comprising representatives of industry, academic partners, professional bodies and other relevant organisations. The Advisory Boards assist the College in a variety of ways including that of advice on changing career opportunities, work placements for students and recruitment to industry.
Television
The HN Television Operations and Production course has been running since 1994 when it first started with 20 students in two converted classrooms. The section has expanded to 100 students with state of the art facilities which include, digital edit suites, sound dubbing suites, classrooms with digital edit facilities, digital location cameras and sound kits, and a purpose built multi-camera television studio with full digital lighting rig and studio control room.
This has involved substantial investment from the College, sponsorship from industry and the investment and commitment continues apace with the development in technology.
Students work with lecturers who are all from a professional television background and the staff have many years' experience in the television industry and in education.
Printing
Glasgow Metropolitan College is the sole provider of print education in Scotland. It offers a broad portfolio of National Certificate, Higher National Certificate & Higher National Diploma qualifications in all areas of printing. This includes Pre-press, Lithography, Screen Process, Digital Printing. All courses have been constructed in partnership with the Printing industry, SQA and the Scottish Print Employers' Federation.
The Modern Apprenticeship course has been designed to permit printing apprentices, who are in employment, to attend college in a block release pattern. Day release courses are also available in some areas of specialism.
One example of an individual student who has benefited and prospered from attendance at this college is Tom who, as a litho print apprentice, attended college on a day release basis over a 3-year period.
Tom, after completing his apprenticeship formed his own company. This grew and now as Group Managing Director he currently employs over 400 staff. All of his print apprentices attend college on a block release basis with many of his employees being graduates from HNC/ HND Print courses.
Case Study: Renewable Energy and Energy Efficiency
As The Framework for Economic Development in Scotland explains, "renewable energy production is important to economic development in Scotland for three reasons - environmental, security and diversity of supply, and for the economic development opportunities it provides".
In 'Going for green growth: a green jobs strategy for Scotland', the Executive articulates its vision of a Scotland that develops the next generation of clean, resource-efficient technologies and commercialises and exports those technologies.
Lews Castle College is developing a Hydrogen Lab as part of its programme related to renewable and alternative energy in the Outer Hebrides. The project is linked to training in a number of linked technologies, including solar hot water and photo-voltaic installation and maintenance.
Initially the Hydrogen Lab will focus on three research and development projects of value to the local economy:
- Use of fuel cells to drive highly-inductive loads;
- Relevant applications of waste oxygen from wind turbine-driven electrolysis; and
- Conversion of large marine engines to hydrogen.
The Hydrogen Lab was installed in April 2006. Training for students started in summer 2006.
The Outer Hebrides Community Planning Partnership has established an Energy Innovation Zone ( EIZ) in response to environmental concerns and a recognition that renewable energy and energy efficiency are sustainable ways of meeting future energy demands. Greenspace Research is an important component of the EIZ strategy, and is a bold initiative that will help to transform utilisation of clean energy sources in the construction industry and create a centre of excellence in renewables-related design, management, training and software expertise at Lews Castle College, UHI.
Greenspace CPD will, from summer 2006, provide an online energy analysis training environment delivered on the internet. It is targeted at construction industry specialists such as chartered surveyors, building design engineers, architects and builders.
« Previous | Contents | Next »