February 23, 2015

UK political parties embrace apprenticeships

In the run-up to the UK’s general election, attention has turned to apprenticeships.

The UK Labour Party has recently promised 80,000 high-quality placements a year for school leavers in England. The pledge is part of a wider package of measures aimed at increasing UK productivity.

Meanwhile, the Conservative-led coalition government has, according to a spokesperson, already created 2.1 million apprenticeships, and promised to create 3 million more by 2020.

However, a new report from the National Union of Students (NUS)—“Forget Me Not: An Investigation into the Financial Well-being of Apprentices in the UK”—raises concerns about low pay for young apprentices.

According to the report, apprenticeships offer young people a chance to gain both a skill and a qualification whilst working in a “real” job with a wage. However, England’s teenage apprentices are entitled to only £95.55 (US$147) for a 35-hour week. The report recommends paying young apprentices at least the minimum wage for their age.

Our author Werner Eichhorst writes that on-the-job training and dual vocational education can help young people’s entry into the labor market. He also advises that establishing a dual vocational training model is a demanding task and should not be seen as a quick fix for high youth unemployment. Structural reforms to revive the economy and reduce entry barriers to employment are also needed.

Robert Lerman says that by providing firms with information on the economic returns of apprentices, by helping them set up apprenticeships, and by funding off-site training, policymakers can promote the expansion of effective career training and increased worker earnings with only modest public expenditures.

Related articles:
Does vocational training help young people find a (good) job?, by Werner Eichhorst
Do firms benefit from apprenticeship investments?, by Robert Lerman