This is part of a course on careers guidance being developed for CXTV

1. THE CHANGING
LABOUR MARKET

2. How is the labour market
changing?
 The world of work is a dynamic arena of
constant development and change
 This presentation describes some of the
fundamental changes and explores
implications for helping your son/daughter with
their career choices

3. Some changes take place over a
relatively long time at a slower rate, such
as the decline of UK manufacturing
sector. Others, over a matter of months
or years, such as the rise of mobile
technology.

4. Some industries,
such as
construction, are
very sensitive
and prone to
peaks and
troughs, as well
as significant
regional
variations.

5. Despite economists’ best efforts, some
changes are not foreseen, making some
labour market predictions, especially in
the long-term, unreliable, and vulnerable
to, for example, changes in government
policy or world events.
Fundamental changes in the labour
market include:
 The global economy
 Technology
 Demographics

6. The Global Economy
 Economies and businesses are
international.
 Language skills are highly prized.
 Firms outsource tasks abroad to cut costs.
 The level of the migrant workforce is
increasing both in and out of the UK.
 The UK struggles to compete globally
because of skill shortages in science,
engineering, technology and maths (STEM).

7. Technology
 The pace of change is fast and
accelerating.
 Young people are part of the networked
generation.
 IT skills are essential at all levels.
 STEM skills are increasingly in high
demand.
 The number of unskilled jobs available is
reducing and will continue to fall.

8. Demographics
 Our ageing, ‘top heavy’ population has
major implications for the labour market –
people will be working for longer.
 Young people trying to launch careers will
be competing against an older, experienced
workforce.
 There is increasing demand for scientists
and health care workers to deal with the
implications of ill health in the elderly.

9. What’s changed in the UK labour
market in 2011?
 More young people stayed on in education
as job opportunities dropped.
 Manufacturing output slowed as demand
and exports weakened – this is set to
continue.
 Distribution, hotels and restaurants,
transport, storage and communications also
experienced positive growth trends.
 Finance and business services growth was
slow, but is expected to increase.

10. Current UK labour market for
young people
 Current economic climate is very hard for
young people.
 Good levels in English and Mathematics are a
precondition for access to a range of academic
and vocational courses.

11. What does this mean for young
people?
 A vanishing youth labour market.
 High returns (on average) for education and
qualifications.
 High aspirations for Higher Education.
 High returns on employment experience.
 Rapid economic change.

12. What do you need to think
about?
 You need to prepare your son/daughter to
enter a volatile job market, which requires
them to be aware of their transferable skills.
 Everyone needs to be aware of skills
shortage areas and of the fact that employers
expect an increasingly better qualified
workforce.
 Young people need to fulfil their academic
potential and develop strong employability
skills to compete in the job market.