THE CHANGING LABOUR MARKET

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

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.

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

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

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).

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.

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.

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.

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.

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.

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.