Apprenticeships – not dole

The latest figures around unemployment are frightening for one particular demographic. There are now over one million young people aged 18-24 out of work, with many also devoid of training or further education.

Being young and unemployed has knock-on effects for not only social wellbeing in the form of lowered self-confidence and esteem, but also for local economies in the form of spending powers. The only option for many is signing on to Jobseeker’s Allowance and taking part in the lottery of applying for limited job opportunities.

An alternative to this gamble is apprenticeships: on the job, practical learning in a trade or contemporary profession. While the government has invested significantly in raising the awareness of apprenticeships from both employer and employee perspective through the National Apprenticeship Service (NAS), I would argue what is really needed is a localised approach to developing and embedding apprenticeships into the every day practices of the public, commercial and social sectors.

The value of apprenticeships to public authorities, private sector partners, local economies and the state has certainly been evident in recent research undertaken by the Centre for Local Economic Strategies (CLES). Working with Manchester City Council and particularly its Capital Programmes Team we have sought to explore the cost-benefits of the Manchester People into Construction (MPiC) scheme.

The scheme is embedded into the procurement framework agreements of the North West Construction Hub and seeks to provide three-year apprenticeship opportunities with organisations delivering construction projects for Manchester City Council. The beauty of the scheme is that it comes at very little direct cost to the council and presents few risks to the construction partners themselves as recruitment of apprentices is handled by the council and wages handled through the social employment focused Aspire model.

The benefit of a partnership approach to delivering apprenticeships is clear. Apprentices have gained practical skills, greater respect from their peers and a structure to their lives as a result of MPiC. Construction partners had gained access to high quality apprentices and have been able to change the perception of apprenticeships as a result of MPiC. And the council has been able to demonstrate how they deliver social and economic benefit through procurement as a result of MPiC.

On a quantitative measure the 114 apprenticeships delivered through MPiC has led to a total of £5.46m of benefit whether that be through increased economic output or reductions in welfare benefit payments, crime or ill health. This means that for every £1 invested in MPiC an additional £4.74 is generated in social, economic and environmental benefits.

These types of schemes should not just be restricted to the construction industry, the traditional purveyors of apprenticeships, but should cut across all procurement activities and business sectors. The research has taught us that collaboration between public and private is crucial to enabling apprenticeships: the public sector as the steward of place; and the private sector as the creator of employment opportunity.

In an era defined by harsh cuts and stringent welfare reform it is up to a proactive local government working with commercial and social partners to do the best for local people. With a collaborative approach apprenticeships can be a viable and positive alternative to the dole.

• The research referred to throughout this blog was launched at an event with Manchester City Council on Friday, 4 November and can be accessed here.