This week, the fate of millions of 16-year-olds across the nation was sealed as their grades were finalised and released, shaping the course of their future. With pass rates dropping back to pre-pandemic levels, concerns are growing about the ongoing educational and skill challenges in the UK.
Pass rates have declined from 68.2% last year to 67.6% this year. Although this drop might not appear significant at first glance, it becomes more concerning when in international comparative perspective. Young adults in the UK are notably less likely to be in education than their counterparts in other countries, lagging nearly 15% behind nations like Spain and Germany. Furthermore, the UK has a higher percentage of its population lacking basic qualifications compared to other nations such as France, Australia, US and Canada.
Despite the introduction of an apprenticeship levy in 2017, which required large employers to allocate 0.5% of their payroll to training, apprenticeship numbers fell by a third from 2015 to 2023. This decline was most significant among under-19s, with the number of apprenticeships for those under 25 dropping from 285,000 to 177,000, as companies focused more on training their current employees. Government data shows that for every available apprenticeship, there are three applicants. Consequently, over one-third of 18-year-olds in Britain lack any form of training, a higher rate than in similar advanced economies.
Britain’s thirst for skilled workers is displayed by the premium companies offer for these roles but despite this market-based solution, it has proven ineffective in attractive a significant rise in skilled workers.
Another key domestic issue which needs to be addressed is the north-south divergence. London and the South East being the two largest GDP regions. Furthermore, the GCSE pass rate fall has occurred worse in the North than the South which could be a sign of issues propagating. Some might argue that this isn't a major concern given the location of the UK's financial capital. However, for the UK economy to advance further, it's crucial that the North boosts its economic development, particularly in the tertiary sector, to complement its existing strength in the secondary sector.
The UK government is expanding apprenticeship programs to address high demand and align them with industry needs. Vocational training is being enhanced through new “Skills Bootcamps” in sectors like digital technology and construction. The “Lifetime Skills Guarantee” is providing free or subsidized training for adults to promote lifelong learning. Regional disparities are being addressed with targeted investments in areas with significant skills gaps. Additionally, there is a focus on improving STEM education and career guidance to better prepare students for the job market. These measures aim to create a more skilled and adaptable workforce to support economic growth. The effects of these programs will only be seen in the years to come.