Apprenticeships forecast to contribute £3.4bn by 2022
A report by CEBR for the National Apprenticeship Service
Cebr authored this report to mark the start of the National Apprenticeship Week 2013. Productivity Matters: The impact of Apprenticeships on the UK economy presents our analysis of the contribution of Apprenticeships to the economy, examining current trends and future developments and exploring the productivity impact of Apprenticeships. Key findings include:
- The potential for Apprenticeships to contribute more to the economy is significant. Based on Cebr’s forecasts, between 2012-13 and 2021-22, 3.8 million people will complete an Apprenticeship. It is estimated this would contribute £3.4 billion to the UK economy a year in productivity gains by 2022
- Apprenticeships are boosting productivity by enabling businesses to grow their skills base. The average Apprenticeship completer increases business productivity by £214 per week leading to increased profits, lower prices, better products and higher wages.
- Productivity gains from former apprentices vary according to industry sector. The engineering and manufacturing sectors see the greatest gains (£414 per week) followed by construction and planning (£401) and business, administration & legal (£268).
- The number of annual Apprenticeship completions is forecast to rise across all sectors of the economy over the coming decade, growing from an annual 260,000 in 2012/13 to 480,000 by 2021/22.
Secretary of State for Business, Innovation and Skills, Vince Cable, said: “This research confirms the economic importance of Apprenticeships and sends a clear message that they deliver for employers, individuals and the economy.”
The report was referenced on Number 10′s website