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spring 2009
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Training in a global, and local, downturnBy Joe Shamash As the global economic downturn continues to wreak havoc on the working landscape, the role of vocational education and training has in many ways come to the fore. Politicians, unions and business leaders have been vocal in their support for training as a key mechanism for helping businesses and individuals survive the recession and prepare for recovery. In October last year, Peter Mandelson echoed a joint statement from the Confederation of British Industry and the Trade Union Council. "Those that invest in training are less likely to fail," he said, urging, "businesses to invest in skills and training to ensure that they are well placed to take advantage of the opportunities when global economic conditions improve." Meanwhile, the introduction of economic stimulus packages has seen governments across the globe commit billions to training programmes and large scale public infrastructure projects to boost employment – the most recent of which is a jobs and training package in Australia worth US$674 million and a similar €1.5 billion package in France. Vocal support and big numbers have not, however, been enough to negate concerns that companies are likely to sacrifice training first in order to cut costs in this tough economic climate. Trends from past downturns and evidence from the current recession suggest that cuts in corporate training are inevitable, though it is likely that these will be in proportion to cuts in the employment market. UK Labour Force Survey statistics for the recession of the early 1990s showed a 1% drop in the total number of people receiving training, largely in line with the drop in employment. Still, this would be no minor decline in the current recession: unemployment in the UK is currently over 2 million, its highest since 1997, with the British Chambers of Commerce now predicting that this will peak at 3.2 million, or just over 10%, in 2010. According to a recent survey by the Confederation of British Industry, employers are in fact looking to target training more effectively, rather than just make indiscriminate cuts in their budgets. CBI Director-General, David Lambert, says this shows that most businesses are indeed aware of the benefits of training in tough times, the challenge is helping them to achieve these benefits by ensuring public resources are sufficient, flexible and accessible, and that content and delivery of training is adapted to their changing needs. ”During turbulent times,” Lambert says, ”it would be understandable if firms have to reduce their training budgets, but this survey shows that they are most concerned with getting more value from their training, to ensure they are better placed for an upturn when it comes.“ Further illustrating employers’ focus on the value of training, the CBI survey also found that whilst Train to Gain is working effectively for many businesses, two-fifths of employers felt it had delivered ‘no impact’ for their business, and its training brokerage service also got a mixed reception. This serves as a reminder that progress in making Train to Gain more flexible – which has caused a surge in its popularity in recent months – must continue if more businesses are to be able to make the most of the scheme The need to improve the flexibility of funding is something colleges have also identified as crucial if they are to meet the demands of a growing number of newly unemployed people looking to reskill and students choosing to remain in education. Community colleges in America, which offer part-subsidised two-year vocational degrees, have reported application numbers rising by as much as 20% from last year – an increase in demand they are not currently equipped to meet. Similar concerns have been raised in the UK, particularly over delays to the college building projects and a warning from the Learning & Skills Council that Train to Gain funding may fall short if demand continues to increase at the current rate. Allowing colleges more say in how to manage their budgets, argues Association of Colleges president, David Collins, would help offset shortfalls, with local colleges able to free up unused funding from one area to meet excess demands in others. Apart from a few overarching trends, the local impacts of the global downturn vary considerably, as do the responses of businesses and individuals, which depend on the sector, the size of the company and a host of other factors. Training can and often does play a crucial role in these responses. On the positive side, public awareness of the potential benefits of training is high. The message from employers, learners and practitioners is that support for training must be flexible enough to suit local conditions if these potential benefits are to be realised. Policy makers have done well to get their message heard. To turn the public resources available into the most effective form of support, they must now listen to the messages coming from practitioners and businesses, who are best positioned to understand local needs in difficult times. Related publication CSD briefing note: Training in Economic Downturns Did you find the article useful? Vote now |
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Peter Mandelson, Secretary of State for Business, Enterprise and Regulatory Reform, UK |
