The document summarizes a skills and employability strategy for the University of Derby and D2N2 region from 2016-2020. It provides an overview of the labor market, economic profile, skills needs, and current education and training provision in the region. The strategy aims to inform stakeholders of skills needs and provide an evidence base to improve local skills performance and create a productive workforce with the required current and future skills.

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University of Derby and D2N2 working together
Skills and Employability Strategy (2016-2020)
September 2016

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Welcome and Introductions (5 mins)
Context & Scene Setting for the Refresh of the Skills Strategy (10 mins)
Labour and Employment Needs (30 mins)
Allen Graham, Chief Executive of Rushcliffe Borough Council
Skills and Provision (50 mins)
Hayley Wood, University of Derby, College of Education
Stakeholder Round Table Discussion (20 mins)
Conclusions and Close (5 mins)
Allen Graham, Chief Executive of Rushcliffe Borough Council
Agenda

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Aim and Vision of
The Skills & Employability Strategy (2016-2020)
The aim is to inform stakeholders as to labour market conditions, employment skills
needs and provision; providing an evidence base to influence quality solutions to
improve local skills performance.
The vision is to create a productive workforce that has the skills required in its current
and future economy.
The Strategy draws data and insight from the most up to date sources to maximize its
value as evidence.

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Employment and the labour market
• 87.7% of employers in the region are classified as micro-businesses employing nine
or less employees.
• There has been particularly strong growth in the Motor trades and Transport &
Service industries between 2010 and 2015 with an increase of 210 businesses in the
region during this period.
• Between 2017 and 2022, there is projected to be 9% growth in the human health
and social work area, and 7% growth in the construction industry, across D2N2
(Working Futures, 2014)
• 17% of employers in the area are reporting that they have skills gaps.
• The Annual Population Survey (2014) indicates that the levels of qualifications held
by residents of the D2N2 region aged 16-64 are lower than the average for the
whole of England.

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D2N2 Economy
• Total population is 2,147,900. Men 49%, female 51%
• Over 67,835 businesses across D2N2, employing 891,800 members of
staff.
• Jobs expected to rise by around 47,000 between 2012-2022 (0.4%, lower
than England at 0.6%).
• 87.7% of businesses are Micro’s (employing 1 to 9 employees).
• Self employment accounts for 8.2% of working population, lower than
England rate of 10.4%.
• Average workplace annual earnings in 2015 is £25,411, which is £2,462
lower than England average.
• Average workplace annual earnings in Mansfield (£20,278) is £13,630
lower than in Derby which is £33,908.
NOMIS - Dec 2015, UKCES Working Future 2012-2022, ASHE - 2015

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Economic profile
• Sector profile broadly similar to England, but over represented in
manufacturing, business admin./support & Health
• Leading sources of employment growth are expected to be wholesale and
retail trade (+10,000), health and social care (+9,000), support services
(+9,000), construction (+9,000) and information technology (+8,000)
• Manufacturing (-9,000) and public administration (-4,000) are projected
to see continued decline, however still significant employer.
BRES/NOMIS, UKCES Working Future 2012-2022

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Occupation profile
• D2N2 has lower than average rate of employed individuals in higher skills
occupations.
• 39% of employment is in 3 high skilled occupations
• Employment in 3 lowest skilled occupations is slightly higher (27%) than
UK average (25%).
• Middle skills occupations slightly higher (34%) than UK (32%).
• Job growth expected to be concentrated in higher level roles, half of
which expected to be in professional roles.
• Lower level jobs growth in occupations relating to care.
• Jobs with low/no qualifications are expected to decline from 20% to 14%
of the workforce.
• Replacement demand however, will contribute more than 8 times as
many job openings as net job growth over next decade (407,000 openings
compared to 47,000).
Annual Population Survey - January to December 2015

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Skills shortages
• 13% employers reported vacancies.
• 31% reported hard to fill, with shortage of skilled workers seen as the main
reason.
• Skill shortage vacancies account for 19% of all vacancies in D2N2.
• Most common in skilled trades, caring and leisure.
• 68% highlighted work experience as being critical or significant factor in
recruiting candidates.
• Maths and English rated at 60%, vocational qualifications 48%.
UKCES 2015 Survey

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Skills gaps
• 4% employers report skills gaps in their workforce.
• Being new to job, increased workload sited as main reason.
• 66% reported they have provided training for their staff.
UKCES 2015 Survey

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Recruitment of young people &
apprenticeships
• 25% recruited an education leaver in 2-3 years preceding survey,
compared to 27% nationally.
• 9% employers in D2N2 had recruited someone from University or
HEI, compared to 14% nationally.
• 17% of employers in D2N2 offer formal apprenticeships,
compared to a national figure of 15%.
• 40% were expecting to offer formal apprenticeships in the future.
UKCES 2015 Survey

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Skills profile
• The levels of qualifications held by residents of the D2N2 region aged 16-64 are lower than the average for
the whole of England
8.2% No Quals
5.9% Other Quals
86.0% Level 1 +
73.4% Level 2+
55.3% Level 3+
33.3% Level 4+
• D2N2 has skill levels below the national average at all levels except NVQ1 and above (both have 73.4% for
NVQ2+).
• Bassetlaw, Nottingham, Newark & Sherwood, Broxtowe & Erewash have above average proportions of
their population with no qualifications (NVQ)
• Rushcliffe, High Peak, Derbyshire Dales, Broxtowe & Amber Valley above average proportions of their
population with higher Skills (NVQ L4 or above)
Annual Population Survey (2015)

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Labour market – employment rate
• Employment rate in
D2N2 is 73% of
working age population
compared to 74% for
England
• Highest rate is
Derbyshire Dales with
84%, and lowest is
Nottingham at 64%
Annual Population Survey Jan-Dec 2015

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Labour Market - Unemployment Rate
• JSA Claimant rate in
D2N2 is 1.4% of
working age
population, in line with
England average
• Lowest rate is
Derbyshire Dales with
0.4%, and highest is
Nottingham at 3
JSA Claimant Rates – ONS, May 2016

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NEET & not known rates (2015-16)
• There are estimated to be 2,570
NEETs across D2N2
• Nottingham has the lowest NEET
and Not Known rates across
D2N2, and one of the lowest
across all Core Cities in England
• Derby and Nottingham have
NEET rates above the England
average
• Nottinghamshire has the lowest
NEET rates
DfE 2015 local authority NEET figures (average over Nov 15, Dec 15 and Jan 16)
14
4.1%
4.20%
2.5%
4.8%
3.6%
5.8%
9.3%
8.20%
9.1%
4.7%
5.6%
2.7%
-1% 1% 3% 5% 7% 9% 11% 13% 15%
EM Region
England
Nottinghamshire
Derby City
Derbyshire
Nottingham
NEET Not Known

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Why are we involved?
• The Skills Strategy Refresh and the LEP desire to meet the needs of the local
economy and empower the residents of D2N2 fits with the College of Education’s
commitment to widening participation and social justice.
• As a department we are in partnership with a wide variety of education providers
across all sectors in the D2N2 region.
• Opportunity to provide a joined up approach to education across the region and
develop teachers for the region who are aware of the structure and make up of the
local economy.
• To develop an evidence base for what we know anecdotally.
• To work with local stakeholders to develop an FE and Skills sector that is fit
for purpose, efficient and effective.

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Research
• Desk based research and analysis.
• Labour market and employment data.
• Education provision.
• Aim is to map current FE offer to the skills requirements of specific areas.
• Linking provision to meet employer need.
• Developing a triangulated approach to the development of skills that meet the
needs of local employers and aid economic growth and development
Mapped against the eight priority sectors:
· Construction
· Transport Equipment Manufacturing
· Food and Drink Manufacturing
· Transport and Logistics
· Low Carbon
· Visitor Economy
· Life Sciences
· Creative and Digital Industries

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School based provision in the region
● The East Midlands is currently the joint lowest performing Ofsted region in terms of inspection
outcomes.
● The region had the worst GCSE results in England in 2015; nearly 46% of pupils did not achieve
the benchmark five or more A* to C grades including English and maths.
● Derby and Nottingham were among the 10 lowest ranking local authority areas nationally for
GSCE examinations – only 47.6% and 42.4% of pupils respectively achieved the benchmark five
or more A* to C grades including English and maths in 2015
● Outcomes are improving though over the region.
● 182 schools in the region across urban and rural areas and these include 18 independent
schools, 43 special schools and 121 maintained secondary schools.

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School based provision in relation to the
priority sectors
0 10 20 30 40 50 60 70 80 90 100
Life Sciences
Transport
Logistics
Construction
Visitor economy
Creative and digital
Food and drink manufacturing
Low carbon
Health and Social Care
% of schools in D2N2 offering some curriculum provision
in each sector

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School based provision
• No real geographic trends for key priority curriculums.
• Three recently opened free schools
– Derby Manufacturing University Technical College
– Nottingham University Academy of Science and Technology
– Vision Studio School
• As a result of new accountability measures the curriculum offer has become more
restricted.
• The number of vocational programmes has been cut.
• 29% of 16 -19 learners take STEM subjects at A Level.
• Inconsistent approach to employability, careers and enterprise

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FE Context
• The Further Education and Skills sector includes a number of contexts including sixth
form colleges, general further education colleges, private training providers,
community learning and workplace learning.
• 2015-16 there are 161 institutions of 16-19 provision across D2N2:
– 19% Ofsted grade 3 or 4 (requiring improvement or inadequate).
– EFA funding allocation to D2N2 is £201,162,698.
• 2015-16 there are 47 prime providers of FE & Skills in the D2N2 region:
– SFA total funding allocation to the prime providers is £198,171,928, 55% of which
is to the six D2N2 FE Colleges.
• 2014-15 SFA distribution of non apprenticeship delivery funding lists
27 providers with a D2N2 postcode delivering 22.08% of their provision
within their home local authority and 61.24% within their home region.

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FE Context (SFA 2014-15)
• 161,090 residents within the D2N2 region (based on learner postcode) engaged in
some sort of education and training in either an education and training establishment
(general further education college or private training provider), community learning
or workplace setting.
• 317,620 qualifications / programmes were delivered across the D2N2 region by a
total of 661 different providers.
– Community Learning (16.6%)
– Education and Training (66.5%)
– Workplace Learning (1.5%)
– Apprenticeships (15.2%)

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FE Context (SFA 2014-15)
• 21% of programmes
delivered were relevant
to the D2N2 eight
priority sectors.
• 6% of apprenticeships
delivered were relevant
to the eight priority
sectors.
• 68% of all provision is
delivered by D2N2
providers who are from
within the D2N2 LA area.
293,163
62,656
8,470 15,463
679 1,435 1,189
13,973 21,447
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
SUPPLY FE PROVISION (14/15 Learner LA Postcode)
None apprenticeship delivery

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Participation across the region

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Community learning (26,870 learners)
Community provision encompasses a wide range of activity including:
• Personal and Community Development (77%)
• Neighbourhood learning in deprived communities (2%)
• Family English, Maths and Language (9%)
• Wider family learning (12%)
• Approximately 14% of all starts in the region is community based compared to an East
Midlands average of 8%.
• There was a 15% increase of provision between 2013-14 and 2014-15.
• Participation amongst older age groups (45+) is the highest of all groups within
community based provision and 71.7% participation is female.
• Provision is less likely to be targeted to specific sectors and more likely to
cover generic work, life and functional skill provision. The highest SSAs are
Arts, Media and Publishing at 28% and Preparation for Life and Work at 26%.

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Education and training (107,270 learners)
• Provision reduced by 14% between 2013-14 and 2014-15.
• 34% of starts is below Level 2.
• 0.53% are Level 4+.
• 45.7% of enrolments were Preparation for Life and Work.
• 59% of provision is to 19+.
0 20000 40000 60000 80000
2011-12
2012-13
2013-14
2014-15
Age-Band
16-18 19+

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Workplace learning (2,420 learners)
• Provision reduced by 14% between 2013-14 and 2014-15.
• 34% of starts is below Level 2.
• 0.53% are Level 4+.
• 45.7% of enrolments were Preparation for Life and Work.
• 59% of provision is to 19+.
0 20000 40000 60000 80000
2011-12
2012-13
2013-14
2014-15
Age-Band
16-18 19+

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Workplace Learning (2,420 learners)
• Workplace learning is the smallest context of Further Education and Skills provision within D2N2.
• Some major local employers are in direct receipt of Skills Funding Agency monies. For example,
Rolls Royce and Toyota.
• The majority of provision within workplace learning is targeted at the priority sectors of D2N2.
Logistics 34
Creative and Digital 6
Low Carbon 9
Visitor Economies 291
Construction 421
Food and Drink Manufacturing 0
Health and Social Care 296
Life Sciences 2
Transport Equipment and
Manufacturing
191
Total 1250

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Traineeship provision
• In 2014 - 15 there were 19,400 traineeship starts nationally and 12,600
completions.
• 940 of those starts were in the D2N2 region.
• Currently there is limited data about completions in the region or the sectors in which
young people are doing their traineeships.
• The starts figure for D2N2 represents the sixth highest starts for traineeships in
England overall for 2014-15.
• Derby, Nottingham and Amber Valley have recorded the most significant increases in
the number of traineeship starts from 2013-14 to 2015-16.

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Apprenticeship provision (24,530 learners)
• Starts and achievements vary across D2N2
with certain areas such as Derbyshire and
Nottinghamshire enjoying higher recruitment
and success rates than the national average
• Recruitment and success rates in Derby and
Nottingham are below the national average
• Majority (61%) are Intermediate apprenticeships
• 25+ age group is 41% of all apprenticeship learners (32.9% in 2013-14)
• Advanced Apprenticeship increase is slower than England overall
• Limited Higher Apprenticeship offer and delivery (4%)
6,810,
28%
7,570,
31%
10,150,
41%
Participation
Under 19 19-24 25+

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Apprenticeship starts by sector subject
area (SSA) and level
Intermediate Level
Apprenticeship
Advanced Level
Apprenticeship
Higher
Apprenticeship
Apprenticeship
Trailblazer
Grand
Total
Health, Public Services and Care 3,025 2,559 448 6,032
Science and Mathematics 0 17 17
Agriculture, Horticulture and Animal Care 263 107 1 371
Engineering and Manufacturing
Technologies
2,264 1,255 29 12 3,560
Construction, Planning and the Built
Environment
644 178 822
Information and Communication Technology 101 288 56 7 452
Retail and Commercial Enterprise 3,830 997 7 4,834
Leisure, Travel and Tourism 317 258 575
Arts, Media and Publishing 4 40 0 44
Education and Training 78 184 262
Business, Administration and Law 4,569 2,482 437 7,488
Grand Total 15,095 8,365 978 19 24,457
Table and data provided is based on SFA Data Cube of Apprenticeship Starts

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24,457
10,339
822 477 69 0
1,067
2
3,560
4,342
0
5,000
10,000
15,000
20,000
25,000
30,000
No of App Starts
Table and data provided is based on SFA Data Cube of Apprenticeship Starts
Apprenticeship provision
• 42% of Apprenticeship
Starts are delivered to
the D2N2 Priority
Sectors.
• Apprenticeships to D2N2
Priority Sectors are fairly
evenly spread across the
age-bands:
o 36% to 16-18
o 31% to 19-24
o 32% 25+

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Apprenticeship provision
• Data for the East Midlands for 2012/13 and 2014/15 suggests that the number of
Apprenticeships in Engineering and Construction has started to increase, possibly as
a result of a slight upturn in the economy.
• There is a need to increase higher apprenticeships in the eight priority sectors.
Science and Construction for 2014/15 had a 0% participation rate for higher level
apprenticeships.
• In 2014/15, there were only 44 apprenticeships in the travel and tourism sector
across the whole D2N2 area. 68.2% of these apprentices were engaged with
intermediate/level two apprenticeships and all in travel services.

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Higher education
There are three universities within the D2N2 region; University of Nottingham, Nottingham Trent
University and the University of Derby.
From the three universities there is an estimated student population of 78500, with approximately
47% of students at these institutions coming from within the region.
•All offer programmes directly related to 7 of the priority sectors
•All FE Colleges in the region have some HE provision
•Foundation Degree is predominant offer for priority sectors
•Low carbon is least represented priority sector
•Creative and Digital Industries is the most represented
•Construction is well represented
•Little evidence of higher and degree level apprenticeships

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Travel to learn
D2N2 FE Place of Learning by Level
No. Learners % learning in
D2N2
% learning
outside D2N2
D2N2 total 1,263,959 87% 13%
Entry level 170,472 93% 7%
Higher level 1,188 81% 19%
Level 1 296,629 89% 11%
Level 2 290,468 80% 20%
Level 3 169,109 83% 17%
Level 4 (original) 11,623 73% 27%
Level 5 (original) 466 74% 26%
Not applicable 245,127 90% 10%
Not Applicable/ Not Known
78,871 93% 7%
Source: Datacube, 2011/12-2014/15

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Travel to learn
• At a district level, six districts have a below average proportion of learners learning
within the D2N2 area – South Derbyshire, High Peak, Bassetlaw, Rushcliffe, Newark
and Sherwood and North East Derbyshire. These are districts on the periphery of
D2N2, with links to other conurbations outside the D2N2 boundary.
• Key destinations for travel to learn outside the LEP area include:
– South Derbyshire – East Staffordshire, NW Leicestershire
– High Peak – Stockport, Tameside, Manchester
– Bassetlaw – Doncaster, Lincoln, Rotherham
– Rushcliffe – Charnwood
– Newark and Sherwood – Lincoln
– NE Derbyshire – Sheffield

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Does the educational offer in D2N2 meet
the needs of employers?

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Questions for consultation
• Do the findings of the strategy refresh provide an effective evidence base to inform the needs of the local
economy?
• Based on the evidence you have been provided with, what should the five key priorities for skills and
employment be for D2N2?
• D2N2 aims to raise business productivity and competiveness through training, skills and by having a long term
strategy. Does the evidence base provide you with the data to inform your own skills strategies and why?
• The success of the refreshed strategy will require all stakeholders to be informed, influenced and involved.
How will you use the D2N2 Skills Strategy 2016-2020?
• How can we better align the delivery of community, workplace and mainstream skills provision to meet the
needs of D2N2 priority and growth sectors? Is the mix of provision appropriate to local need?
• In line with D2N2 delivery principles it is important to evidence that all funded provision adds value and meets
local need. How can we ensure that future funded provision meets local socio-economic need and which KPIs
would be most appropriate?
• D2N2 is exploring the development of an outcome agreement framework for funded provision based on local
priorities and indicators. Would you support the development of such an approach and what
considerations need to be taken into account?