Between 2013-22, 3.8 million people will complete an apprenticeship, creating a £3.4 billion boost to the economy and an increase in business productivity ranging from between £268 and £414 per week, a research study has shown.
According to the new report from the Centre for Economics and Business Research (CEBR), launched at the start of National Apprenticeship Week, the average apprentice increases business productivity by £214 per week, which leads to a growth in profits, lower prices, better products and higher wages.
Based on CEBR’s findings, the engineering-and-manufacturing sector will see the greatest gain from apprenticeship completers (£414 per week), followed by the construction and planning sector (£401) and business, administration and legal (£268).
The yearly number of apprenticeship completions by 2021/22 in the business, administration and legal sector is predicted to grow from 74,000 to 121,000. A similar increase of 38,000 to 81,000 is expected in the engineering-and-manufacturing sector, while construction and planning will rise from 27,000 to 65,000.
Personnel Today’s next webinar, in association with Learndirect, will examine the various ways in which organisations can employ young people and look at the raft of government initiatives that have been launched to help tackle the growing number of “NEETs” – those not in education, employment or training. More…
“Since 2010, we have had more than a million people start an apprenticeship in the UK. But I want to see more small and medium businesses reap the benefits of apprenticeships, which is why we have introduced a £1,500 incentive for SMEs that take on a young person.”
Charles Davis, head of macroeconomics at the Centre for Economics and Business Research added: “Our research clearly demonstrates the significant contribution that apprenticeships can make to economic growth. Raising the skills of the UK’s workforce translates into improved UK competitiveness in a challenging post-financial crisis environment. This is a vital part of rebalancing the UK economy and raising the chances of sustained export-led growth.”
Barclays launched a new scheme partnered with the National Apprenticeship Service, which supports businesses across England each time they employ an apprentice. Within the scheme, local Barclays business managers help match up suitable apprentices and businesses in their area.
Chief executive of Barclays Retail and Business Banking Ashok Vaswani said: “We’ve seen first-hand how our apprentices are incredibly productive and valued members of staff.
“But we often also find great young people who want to work in other industries, and we believe we can help them into work through our vast network of business customers. Our new package of free support is available to any businesses whether they bank with us or not because we are aiming to make a really big difference to young people’s careers, and to our economy.”
For more information visit Personnel Today’s Employer’s Guide to Apprenticeships
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