Skills supply
Key issues
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Large skills deficits in the Black Country, with a larger proportion of people with no formal qualifications.
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The West Midlands Region faces a significant gap between the level of qualifications required by employers, and the level currently prevalent in the working-age population.
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Coventry and Warwickshire LEP, GBSLEP and the Black Country have an undersupply of labour at level NVQ4+ (degree level), but an oversupply at the NVQ3 level, highlighting the importance of the Adult Education Budget in supporting the up-skilling of people at the right levels.
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Housing affordability has worsened most rapidly in areas where a significant number of people commute into the conurbation. If the cost of housing becomes prohibitive in these areas, this may become a long-term constraint on attracting the necessary skills to the region.
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The region is in short supply of apprentices and has a comparatively low level of qualifications in the workforce.
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Graduate retention in the region is somewhat weaker than the UK average. Fewer students stay for both study and subsequent employment. Given the size of the university system in the region, this gap in retention represents a significant constraint on skills supply.
Qualification levels
Again, the difference between the West Midlands and the UK mean in terms of qualifications can be almost entirely attributed to the Black Country as a centre of manufacturing, which has drawn on skills which are not always recognised in formal qualifications. The other two LEP areas are much closer to the UK in general.
Qualification Level |
Black country |
Coventry and Warwickshire |
Greater Birmingham and Solihull |
UK |
| % with NVQ4+ - aged 16-64 | 29.3 | 43.8 | 37.6 | 43 |
| % with NVQ3 - aged 16-64 | 17.8 | 19.2 | 19.8 | 18.2 |
| % with NVQ2 - aged 16-64 | 18.9 | 15.6 | 19.1 | 16.8 |
| % with NVQ1 - aged 16-64 | 11.5 | 10.1 | 9.8 | 9.6 |
| % with other qualifications (NVQ) - aged 16-64 | 9.9 | 5.7 | 5.6 | 5.8 |
| % with no qualifications (NVQ) - aged 16-64 | 12.6 | 5.5 | 8.1 | 6.6 |
Table 2: Summary of the percentage of West Midlands working-age population at each qualification level, by NVQ equivalent. 2020 data, with UK comparison. Source: Annual Population Survey, January 2019 – December 2020, 2020 SAP boundaries
FE Education and Training Achievements
The most notable difference in the distribution of Further Education provision across the region, as compared to the England average, is the smaller share in health and care, despite this sector having a larger share of West Midlands Employment.
The other main difference is a greater share of ‘Preparation for Life and Work’, which includes English language training and other employability skills.
All other discrepancies are likely within the margin of error, suggesting that there is more work to be done in tailoring provision to the needs of local areas, a situation likely to change owing to the recent devolution of AEB funding.
Adult education and training achievements by sector subject area, 2019/2020 - West Midlands
Agriculture, horticulture and animal care - 0
Arts, media and publishing - 1
Business, administration and law - 7
Construction, planning and the built environment - 3
Education and training - 2
Engineering and manufacturing technologies - 2
health, public services and care - 12
History, philosophy and theology - 0
Information and communication technology - 5
Languages, literature and culture - 3
Leisure, travel and tourism - 1
N/A - 0
Preparation for life and work - 52
Retail and commercial enterprise - 5
Science and mathematics - 3
Social sciences - 1
Adult education and training achievements by sector subject area, 2019/2020 - England
Agriculture, horticulture and animal care - 1
Arts, media and publishing - 3
Business, administration and law - 7
Construction, planning and the built environment - 3
Education and training - 2
Engineering and manufacturing technologies - 2
health, public services and care - 16
History, philosophy and theology - 0
Information and communication technology - 4
Languages, literature and culture - 3
Leisure, travel and tourism - 2
N/A - 0
Preparation for life and work - 48
Retail and commercial enterprise - 6
Science and mathematics - 3
Social sciences - 0
Figure 10: The distribution of Further Education provision is here contrasted between the West Midlands and England. Source: Further Education & Skills data, DfE, (published 2020), 2020 SAP boundaries
Apprenticeship Achievements
As with broader Further Education, the distribution of provision is remarkably similar in the West Midlands as compared to England in general. As with the devolution of AEB funding, this indicates the potential that exists for further tailoring of opportunity to fit local employers and industrial and strategic priorities.
Apprenticeship achievements by sector subject area - 2019, England
Agriculture, horticulture and animal care - 2
Arts, media and publishing - 0
Business, administration and law - 29
Construction, planning and the built environment - 6
Education and training - 3
Engineering and manufacturing technologies - 18
health, public services and care - 23
Information and communication technology - 6
Leisure, travel and tourism - 2
Retail and commercial enterprise - 11
Science and mathematics - 0
Apprenticeship achievements by sector subject area - 2019, West Midlands
Agriculture, horticulture and animal care - 1
Arts, media and publishing - 0
Business, administration and law - 31
Construction, planning and the built environment - 5
Education and training - 3
Engineering and manufacturing technologies - 21
health, public services and care - 22
Information and communication technology - 5
Leisure, travel and tourism - 2
Retail and commercial enterprise - 9
Science and mathematics - 0
Figure 11: Apprenticeship distribution, West Midlands contrasted against England. Source: Apprenticeships data, DfE, (published 2020), 2020 SAP boundaries
KS4 destinations
A modest difference between the West Midlands and England averages can be attributed to a lower proportion of young people staying in education (likely attributable to the generally higher level of deprivation within the region), with the proportions going on to apprenticeships or sustained employment the same.
Sustained education, employment and apprenticeships |
sustained education destination |
sustained apprenticeships |
sustained employment destination |
|
| West Midlands | 93.3 | 86.4 | 3.7 | 3.2 |
| England | 93.7 | 86.9 | 3.7 | 3.2 |
Table 3: Comparison of Key Stage 4 outcomes, West Midlands vs England. Source: KS4 destination measures, DfE, 2018/19 (published 2020), 2020 SAP boundaries
HE Qualifiers by Subject
Engineering and Technology, and Computing make up a larger proportion of West Midlands graduates than for England in general, and a similar plurality take up Business and Management. This implies that retention of graduates in STEM is a greater constraint than production is on the growing sectors demanding this skillset
West Midlands
Business and management - 15,625
Subjects allied to medicine - 8,460
Social sciences - 7,945
Education and teaching - 6,275
Engineering and technology - 5,625
Creative arts and design - 4,055
Computing - 2,915
Law - 2,700
Psychology - 2,635
Biological and sport sciences - 2,585
Language and area studies - 2,085
Historical, philosophical and religious studies - 2,035
Physical sciences - 1,485
Medicine and dentistry - 1,310
Mathematical sciences - 1,305
Architecture, building and planning - 1,100
Agriculture, food and related studies - 1,040
Communications and studies - 870
Geographical and environmental studies - 630
Combined and general studies - 200
Social and environmental studies - 90
Humanities and liberal arts - 70
veterinary sciences - 20
General and other sciences - 10
England
Business and management - 121,580
Subjects allied to medicine - 69,855
Social sciences - 69,160
Creative arts and design - 55,040
Education and teaching - 50,930
Engineering and technology - 42,485
Law - 34,000
Psychology - 26,985
Biological and sport sciences - 26,810
Computing - 26,300
Language and area studies - 26,265
Historical, philosophical and religious studies - 21,640
Architecture, building and planning - 16,755
Physical sciences - 16,740
Communications and media - 16,085
Medicine and dentistry - 15,550
Mathematic sciences - 12,090
Geographical and environmental studies - 6,235
Agriculture, food and related studies - 3,900
Combined and general studies - 2,210
Social and environmental studies - 3,765
Humanities and liberal arts - 1,385
veterinary sciences - 1,840
General and other sciences - 880
Figure 12: Higher Education qualifiers by proportion in each subject area, West Midlands vs England. Source: HESA public data.
KS5 destinations, 2019/20 (2018/19 cohort):
The negligible differences in outcomes between the West Midlands and the England average suggest that the region’s challenges lie more in getting a sufficient proportion of its young people to attain higher qualifications than in improving outcomes for those who already have them. A broader analysis of 16-18 outcomes (see Annex B) yielded the following:
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Research and modelling by CityREDI suggests that levels 2 and 4 are under-supplied in the region, while level 3 is over-supplied.
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There are marked differences in outcome between ethnic groups and students from a disadvantaged background. Deprived students, whether in terms of free school meal eligibility or the index of multiple deprivation (IMD) at the school location, much less likely to remain in education at KS4 or KS5.
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Further Educations prior attainment data show that most FE students study at the same level or one level higher than their previous qualification, as might be expected. However, a plurality of students taking up level 5 qualifications already had level 6 qualifications, suggesting that level 4 represents the last rung of the ladder for many. This is compounded by the low overall enrolment figures for FE beyond level 3.
Destinations after 16-18 by main level studied (state-funded mainstream schools and colleges), 2019,2020
England
- Sustained Employment - 25.6
- Sustained education - 18.4
- Sustained apprenticeship - 13.00
West Midlands
- Sustained Employment - 24.8
- Sustained education - 18.9
- Sustained apprenticeship - 12.60
England
- Sustained Employment - 31.5
- Sustained education - 25.3
- Sustained apprenticeship - 14.70
West Midlands
- Sustained Employment - 28.9
- Sustained education - 28.8
- Sustained apprenticeship - 14.60
England
- Sustained Employment - 22.2
- Sustained education - 59.2
- Sustained apprenticeship - 5.60
West Midlands
- Sustained Employment - 21.1
- Sustained education - 59.7
- Sustained apprenticeship - 6.60
Figure 13: Outcomes for students aged 16-18, by level and outcome type. The West Midlands conurbation is compared to the England average. Source: 16-18 Destination Measures, DfE, 2018/19 (published 2020), 2020 SAP boundaries.
FE and skills destinations
The high proportion of FE learners at NVQ2 and 4 levels entering the workplace corroborates with CityREDI analysis (Annex B) indicating the shortages at these levels and surplus at level 3. The overall outcomes are somewhat weaker than the England average, with 55%
of FE students going into sustained employment versus 60% in England, a discrepancy not explained by more of them staying in education.
Destinations of FE Skills learners in 2019/2020 - West Midlands CA
EMP percent - 67
Learner percent - 37
EMP percent - 56
Learner percent - 52
EMP percent - 47
Learner percent - 14
EMP percent - 58
Learner percent - 40
EMP percent - 42
Learner percent - 47
EMP percent - 70
Learner percent - 13
EMP percent - 63
Learner percent - 41
EMP percent - 45
Learner percent - 41
EMP percent - 83
Learner percent - 13
EMP percent - 55
Learner percent - 25
Destinations of FE Skills learners in 2019/2020 - England
EMP percent - 64
Learner percent - 38
EMP percent - 56
Learner percent - 55
EMP percent - 53
Learner percent - 13
EMP percent - 59
Learner percent - 37
EMP percent - 49
Learner percent - 41
EMP percent - 73
Learner percent - 13
EMP percent - 67
Learner percent - 37
EMP percent - 54
Learner percent - 34
EMP percent - 78
Learner percent - 15
EMP percent - 60
Learner percent - 24
Figure 14: Comparison of Further Education students by level of study and proportion going on to sustained employment or education. The West Midlands Combined Authority is compared to the England average. Source: FE outcome based success measures, 2018/19 destinations, DfE, (published 2020), 2018 LEP boundaries
Apprentices: 2019/20 destinations of 2018/19 cohort:
There are no remarkable differences between the West Midlands and England averages with respect to outcomes for apprentices. However, modest differences exist across levels; the highest level apprenticeships see the largest proportion ending up in sustained employment, but outcomes for lower levels are still mostly positive. The challenge for apprenticeships in the region seems be more one of quantity (enrolment numbers have declined in recent years (see Annex A: Skills Supply), more than quality.
England
EMP percent - 90
Learn percent - 18
Any learn percent - 14
EMP percent -90
Learn percent - 18
Any learn percent - 26
EMP percent - 90
Learn percent - 14
Any learn percent - 8
EMP percent - 88
Learn percent - 22
Any learn percent - 32
EMP percent - 48
Learn percent - 38
Any learn percent - 55
West Midlands
EMP percent - 90
Learn percent - 18
Any learn percent - 20
EMP percent - 92
Learn percent - 30
Any learn percent - 50
EMP percent - 90
Learn percent - 10
Any learn percent - 20
EMP percent - 90
Learn percent - 25
Any learn percent - 35
EMP percent - 40
Learn percent - 30
Any learn percent - 55
Figure 15: Destinations of 2018/2019 apprenticeship and traineeship cohort in the following year. The West Midlands is compared to England. Source: FE outcome based success measures, 2018/19 destinations, DfE, (published 2020), 2018 LEP boundaries
HE graduate destinations
The prospects for West Midlands graduates are not worse than for UK graduates in general, with a slightly larger proportion going into full-time employment, a slightly larger share unemployed, explained by fewer going into part-time work or further study.
As we will see, these outcomes do not necessarily reflect the region’s labour market, given the high graduate mobility, but rather the strength of its university system.
Graduate destinations for 2018/2019 Academic year
West Midlands - 6.3
UK - 5.4
West Midlands - 0.4
UK - 0.4
West Midlands - 1.0
UK - 0.9
West Midlands - 4.7
UK - 5.2
West Midlands - 0.0
UK - 0.1
West Midlands - 0.7
UK - 0.6
West Midlands - 6.5
UK - 7.7
West Midlands - 10.5
UK - 10.8
West Midlands - 1.2
UK - 1.3
West Midlands - 0.6
UK - 0.6
West Midlands - 9.0
UK - 10.9
West Midlands - 59.0
UK - 56.2
Figure 16: The West Midlands and UK are contrasted here in terms of the proportion of their graduates going on to different destinations. Source: HESA open data.
Graduate retention
There are marked differences in the attraction and retention of both students and recent graduates between UK regions. In the typology set out below, the West Midlands fits into the mild brain drain category, due to its successful attraction of students to its university system but subsequent loss of many young graduates to other parts of the UK.
The centralisation of opportunity in the UK is reflected in the fact that only London is truly a brain gain region, and in this sense the West Midlands is doing no worse than most other regions, and better than some (the North East, Yorkshire and the Humber.) The pathway to brain gain for the West Midlands would be to continue to attract the large number of students it does, but hang on to more of them, particularly graduates in STEM.
More detailed findings on graduate retention are presented in Annex B.
Typology |
Regions |
Descriptions |
| 1 | North East, Yorkshire and the humber | Regions that attract and retain students but export new graduate workers - brain drain |
| 2 | East Midlands/West Midlands | Attractors of students but exporters of new graduate workers - brain drain |
| 3 | London | Regions that retain and attract new graduate workers - brain drain |
| 4 | East of England, south east, south west | Regions with low retention and high attraction of both students and new graduate workers -high mobility |
| 5 | North west, Wales, Scotland, Northern Ireland | Regions with high retention and low attraction of both students and new graduate workers - low mobility |
Table 10: Summary of the five situations for graduate retention and attraction. Note that only London truly gains. Source: Graduate Outcomes in 2017/18, DfE, (published 2020), 2020 SAP boundaries
2019 Employer Skills Survey – Employer-provided training comparisons:
No great differences separate the three West Midlands LEP areas from the England average, except for the lower proportion of Black Country employers providing training. This is likely a reflection of a lower overall base of formal qualifications.
West Midlands-wide data on the reasons cited by employers for not offering training cited first that their employees were all fully proficient (76%), then that no training in a relevant subject was available (11%), that training was not their highest priority (5%) and that funding was not available (5%).
Employers providing training over past 12 months, 2019
No training - 39
On job training only - 18
Off job training only - 12
Off job and on job training - 31
No training - 43
On job training only - 19
Off job training only - 11
Off job and on job training - 27
No training - 36
On job training only - 21
Off job training only - 11
Off job and on job training - 32
No training - 40
On job training only - 19
Off job training only - 11
Off job and on job training - 30
Figure 17 - Cont: Comparison between the proportion of employers providing training, and whether this training is conducted during working hours, between West Midlands and England. Source: Employer Skills Survey, 2019 (published 2020), 2019 LEP boundaries.