Future-Proofing the Skills System in the Glasgow City Region (Scotland, United Kingdom)

3. Aligning regional skills supply and demand and supporting re- and upskilling of adults

Abstract

This chapter reviews the adult skills system in Scotland and explores how the system is geared to provide re- and upskilling opportunities responsive to regional labour market changes. The chapter analyses measures for participation in adult learning in the region and discusses what regional priorities this raises. It then explores the key features of the adult skills system within the Glasgow City Region, including the main types of re- and upskilling, sources of funding, and different providers, and identifies options to reduce barriers to participation in adult learning and increase employer engagement at the regional level.

In Brief

• The requirement for re- and up-skilling of adults is growing within the Glasgow City Region (GCR) as the labour market changes. Although the region already has one of the most highly skilled working-age populations in the UK – over two-fifths are qualified to a degree level – there is no room to standstill as demands for high skills are expected to grow. At the same time, GCR also has a high share of workers with no qualifications (12% in 2023). Despite the ongoing labour market changes, adult participation in adult learning in GCR is below the UK and EU averages and lower than in many other European metropolitan regions.

• In light of limited participation in adult training, skills deficits have increased in the region. The region has experienced growing skills shortages, gaps and under-utilisation in recent years. For example, in 2022, the share of firms with a vacancy and a skill-shortage vacancy in the Glasgow Regional Outcome Agreement Area (covering three of the eight LAs) was second highest in Scotland at 27%. The area also shows a high share of skills under-utilisation.

• The responsibility for adult skills policies is devolved from the UK to the Scottish Government, but the system remains relatively centralised at the Scottish level. Adult learning programmes are coordinated and managed through various national skills agencies, which strongly influence funding allocations regionally and locally, as well as the nature and content of provision and participation volumes. The three leading providers are colleges, universities, and independent training providers. Community Learning and Development and employability programmes complement these.

• The funding landscape for adult learning is complex, and Scotland-wide input and output targets firmly guide core funding allocations. Financing adult skills policies includes core funding, e.g., course provision in colleges and universities, and short-term financing. Core funding for colleges and universities is guided by Scotland-wide targets for input (students) and outputs (credits) rather than outcomes or employer needs. This presents a fundamental challenge at the regional level.

• In GCR, the importance of skills in supporting economic development is increasingly recognised. GCR is home to six colleges and six higher education institutions, as well as various independent training providers. Although not the region’s primary raison d’être, skills policies are increasingly featured in GCR's key regional strategies, e.g. the latest GCR Regional Economic Strategy and the Regional Skills Investment Plan. Nevertheless, the link between regional economic development and skills policies remains relatively weak.

• In the context of national skills reforms, skills devolution is discussed as one way to strengthen regional skills provision in GCR. In GCR, stakeholders struggle to align regional skills provision with labour market demand. Challenges include i) the financing mechanisms for further and higher education institutions driven by input and output targets rather than outcomes; ii) insufficient funding for retraining and enhancing skills for workers; iii) a funding allocation across work-based learning, colleges, and universities that limits the re- and upskilling opportunities for adult workers; and iv) a lack of detailed regional labour market data to tailor educational offerings to regional demands. GCR is using the momentum of ongoing reforms of the skills system to push forward the idea of further regionalisation.

• There are options to strengthen participation in adult learning through various national, regional and local measures. Financial incentives for individuals to participate in education and training are weighted towards younger, full-time students pursuing a university degree. These national schemes are supplemented by local schemes run by LAs, in particular, to provide targeted support for vulnerable adult learners. Yet, often, these do not cover the tuition fee. Multiple stakeholders offer career guidance for adults, and there are options at the regional level to simplify and streamline services and develop bespoke GCR guidance material. Flexible adult learning provision, including increased use of micro-credentials, presents an opportunity for the region to engage more adults in re- and upskilling.

• There are several mechanisms for employer engagement in GCR, but these could be simplified, and the engagement of small and medium-sized employers strengthened. Glasgow City Region has two central employer engagement bodies: the Glasgow Economic Leadership Board and the Glasgow Employment and Skills Board. Each represents various (mainly larger) employers across critical sectors in the regional economy. GCR could take steps to review and strengthen mechanisms for employer engagement on skills issues, including through a Regional Skills Board, which would also include representation of providers and learners. In addition, links between business and skills support for employers could be strengthened by piloting Employer Hubs in the region.

Introduction

In changing labour markets, re- and upskilling is essential to support individual career progression, increase productivity, and create sustainable economic growth. The world of work is changing fast, and so is the demand for skills. Ongoing skills investment over people’s lifetime is critical to future productivity and success as the economy and labour market evolve. Reskilling (i.e. developing new skills unrelated to one’s current skill set) and upskilling (i.e. learning new skills to enhance one’s current skill set) can help individuals stay relevant in the labour market and move up the career ladder. These practices are relevant for all workers, regardless of skill level, and for companies to stay productive.

The Glasgow City Region (GCR) recognises the critical importance of adult skills provision to drive regional economic growth in a way that makes the economy more inclusive and meets Scotland’s net zero target. While the main raison d’être of GCR is implementing the more than GBP 1 billion City Deal, the region recognises the importance of skills to support its ambition of inclusive and climate-neutral economic growth. This is evidenced in key strategic documents such as the 2020 Looking Forward to the Future report from the GCR Economic Growth Commission (Policy Scotland, 2020[1]) and the 2021 Regional Economic Strategy (RES) (Glasgow City Region, 2024[2]). Despite plans to reform the Scottish skills system, the adult skills system in Scotland remains highly centralised, and the options for LAs and the region to align regional skills supply with demand remain restrained.

This chapter analyses the role and responsibilities of various stakeholders at the Scottish, regional and local levels in delivering re- and upskilling opportunities for adults in the Glasgow City Region. The first section of the chapter provides key data on participation in adult learning and the nature of skills demand and supply in GCR. Section two outlines the key features of the skills system in Scotland, exploring the main types of re- and upskilling, sources of funding, and providers. The third and fourth sections look more specifically at the adult skills system in GCR and analyse the challenges and opportunities for strengthening the link between skills supply and demand at the regional level. Lastly, sections five and six review options to reduce barriers to participation in adult skills development in GCR and to strengthen employer engagement in the regional skills system.

Participation in adult learning in Glasgow City Region

The requirement for re- and up-skilling is growing within the Glasgow City Region as the economy is continually disrupted. Ongoing changes in the labour market due to the green and digital transitions combined with short-term economic shocks following the COVID-19 pandemic and Russia’s war of aggression in Ukraine are increasing the need for re- and upskilling in GCR. The region already has one of the most highly skilled labour markets, with 52% of the working-age population qualified to a degree level in 2022. Yet, there is no room for a standstill as future demand for skilled workers to fill positions in administration and support services, wholesale and retail, and human health and social work are expected to grow (Glasgow City Region, 2021[3]; Skills Development Scotland, 2022[4]). The region also faces immediate shortages in energy, construction, transport, manufacturing and waste sectors to support the green transition and become the first cirrculyar city in Scotland to meet carbon-netrual goals by 2030. (Glasgow City Council, 2024[5]). At the same time, GCR has one of the highest shares of the working population with no qualifications (12% in 2021), the 2^nd highest level among the UK’s Core Cities. Recent analysis suggests that in 2030, 94% of the UK workforce will need to re- and upskill (Allas, Fairbairn and Foote, 2020[6]), equating to around 839 000 workers within the GCR alone.

This section analyses different measures of participation in adult learning in the Glasgow City Region. It shows that despite the increasing need for re- and upskilling of the workforce in the region, this is not translating into growth in adult learning, as evidenced through a range of measures. Following general OECD trends, this is especially the case for low-skilled workers, self-employed and part-time workers. At the same time, skills shortages in the region are persistent and increasing.

Participation in adult learning is low in the Glasgow City Region, and it varies across its Local Authorities

Participation in adult learning in the Glasgow City Region is below the UK and EU averages and lower than in many EU regions. In 2023, 9% of 25-64-year-olds in GCR participated in work-related training in the last four weeks1, respectively two and three percentage points less than the UK and the Scottish averages (Figure 3.1, Panel A). GCR fares even worse in comparison to most European regions. In 2023, participation in adult learning was more than four times higher in Stockholm (41%) than in GCR and over three times higher in Helsinki (29%). Low participation in adult learning was also observed across LAs in GCR, ranging from 4% in North Lanarkshire to 13% in Glasgow City (Figure 3.1, Panel B). Moreover, little improvement in adult learning was observed in GCR in the last 15 years (Figure 3.1, Panel C). In 2004, 11% of 25-64-year-olds participated in training in the four weeks preceding the interview. That number gradually decreased and reached a low of 7% in 2018. After a jump to 10% in 2022, participation in adult learning decreased again to 9% in 2023.

Figure 3.1. Adult participation in education and training in the Glasgow City Region is low in international comparisons

Participation in education and training in the last four weeks, 25-64-year-olds

Note: Panel A refers to NUTS2 regions. Data for the Glasgow City Region are a weighted average of data for Glasgow City, East Dunbartonshire, East Renfrewshire, Renfrewshire, Inverclyde, West Dunbartonshire, North Lanarkshire and South Lanarkshire. The participation measures cover participation in formal and non-formal education and training.

Source: OECD’s calculations based on NOMIS [Annual Population Survey] for UK data and Eurostat [Education – Regions] for the remaining data.

Participation in adult learning in the Glasgow City Region differed along individual characteristics, such as education and type of employment. Males and females aged 25 to 64 were almost as likely to participate in adult learning, at 9% and 10% respectively (Figure 3.2). In contrast, large differences in participation in adult learning were observed between those with and without university education. Among those with a university education, 13% participated in work-related training, compared to 8% without a university education. Employees were more likely to participate in training (14%) than self-employed (9%). The share that participated in training was also higher among those working full-time (14%) and in the service sector (14%). Participation in training among managerial and professional occupations, at 16%, was higher than the GCR’s average but still below the training participation observed in the general population in regions such as Stockholm, Helsinki or Amsterdam.

Figure 3.2. Individual characteristics have an impact on adults' participation in job-related training in the Glasgow City Region

Participation in education and training in the last four weeks, 2023

Note: Data for Glasgow City Region are a weighted average of data for Glasgow City, East Dunbartonshire, East Renfrewshire, Renfrewshire, Inverclyde, West Dunbartonshire, North Lanarkshire and South Lanarkshire. Estimates are for those in employment aged 16 and above who reported they had participated in job-related training in the last four weeks. Data refer to people in employment aged 16-64. Job-related training includes on-the-job training, training away from the job and pre-employment training.

Source: OECD’s calculations based on NOMIS [Annual Population Survey].

The Glasgow Regional Outcome Agreement area outperforms other Scottish regions in the share of employers that arrange or fund training for their staff. The Scottish Employer Skills Survey, supported by the Scottish Government, highlights critical features behind employers’ training behaviour. In 2022, 61% of the Scottish employers surveyed reported having arranged or funded training for their staff in the previous 12 months (Figure 3.3). In addition, 59% of employees reported having received training in the previous 12 months. This proportion was higher than in 2020 (55%) but lower than pre-pandemic levels (62% in 2017). The greatest proportion of staff trained were by employers in the Glasgow Regional Outcome Agreement (ROA) Area, which includes Glasgow City and parts of East Dunbartonshire and East Renfrewshire (69%). The proportion was lower in the West ROA (which includes parts of East Renfrewshire, Inverclyde, Renfrewshire and West Dunbartonshire) and in Lanarkshire ROA (which includes North Lanarkshire, South Lanarkshire and parts of East Dunbartonshire) (at 61% and 59%, respectively). Among those establishments that did not provide training, the majority believed that their employees did not need training, 70% in the Glasgow ROA, 67% in the Lanarkshire ROA and 69% in the West ROA.

Figure 3.3. The Glasgow ROA has the highest proportion of staff trained among Scottish regions

Proportion of staff trained over the past 12 months, 2022

Note: Glasgow Regional Outcome Agreement (ROA) includes Glasgow City and parts of East Dunbartonshire, East Renfrewshire; Lanarkshire ROA includes parts of North Lanarkshire, South Lanarkshire and parts of East Dunbartonshire; West ROA includes Inverclyde, Renfrewshire, West Dunbartonshire and parts of East Renfrewshire. The Employer Skills Survey defines training as 1) Off-the-job training, which is training that the employer funds or arranges and that takes place away from the employee’s immediate work location/position and 2) On-the-job training, which is training that the employer funds or arranges and takes place where the employee normally works (e.g. at their desk). These would be activities recognised as training by staff rather than the sort of learning by experience which could take place all the time.

Source: Scottish Government (2023[7]), “UK Employer Skills Survey 2022 – Scotland Report”, www.gov.scot/publications/uk-employer-skills-survey-2022-scotland-report/.

Employers’ training behaviour in Scotland varies across sectors and firm sizes. In 2022, on average, slightly more than two in three Scottish businesses (61%) had provided training for their staff in the last 12 months. The share is lower in the Primary Sector and Utilities (49%), Construction (59%), and Manufacturing (55%). In contrast, higher proportions of employers were trained within the public sector (e.g. public administration 71%) and financial services (66%). Furthermore, larger employers are more likely to provide training to their staff (47% among employers with 2 to 4 employees vs. 96% of employers with 100+ employees). Moreover, the most common barriers to training were a lack of time (47%) and a lack of funds (36%). Only 15% of staff receiving training had worked towards a nationally recognised qualification, equating to 9% of the Scottish workforce. In addition, training expenditure per employee and trainee has remained relatively stable in Scotland over time and is similar to the UK average (i.e. GBP 2 870 per trainee and GBP 1 680 per employee). That said, 43% of employers report that they are not content with their levels of training and would like to do more (Scottish Government, 2023[7]).

Skills shortages in the region are persistent and increasing

The Glasgow Regional Outcome Agreement Area has the second highest incidence of overall and hard-to-fill vacancies in Scotland. In 2022, 27% of employers in the Glasgow ROA had at least one vacancy. Moreover, 12% of employers in that area had a hard-to-fil vacancy due to a lack of applications with appropriate skills, qualifications or experience (i.e. a “skill-shortage vacancy”). In Scotland, these figures were only higher in the Edinburgh and Lothian ROA, with 32% of employers having at least one vacancy and 14% having a hard-to-fill vacancy (Figure 3.4, Panels A and B). The share of firms with vacancies and skill shortage vacancies increased in all Scottish ROAs between 2020 and 2022. Moreover, in 2022, 15% of firms in Glasgow ROA indicated that they experienced skills gaps (i.e., at least one employee who is not fully proficient), a three percentage point increase compared to 2020. Skills gaps were even more prevalent, at 16%, in the Lanarkshire and the West ROAs.

Figure 3.4. The share of firms with a vacancy and a skill-shortage vacancy in the Glasgow ROA was second highest in Scotland

Note: A skill-shortage vacancy is defined as a specific type of hard-to-fill vacancy that occurs when an employer cannot find applicants with the required skills, qualifications, or experience to do a job. Glasgow ROA includes parts of East Dunbartonshire, East Renfrewshire, and Glasgow City; Lanarkshire ROA includes parts of East Dunbartonshire, North Lanarkshire, and South Lanarkshire; and West includes East Renfrewshire, Inverclyde, Renfrewshire, and West Dunbartonshire.

Source: Scottish Government (2023[7]), “UK Employer Skills Survey 2022 – Scotland Report”, www.gov.scot/publications/uk-employer-skills-survey-2022-scotland-report/.

Overview of the adult learning system in Scotland

The adult skills system in Scotland is highly centralised. The responsibility for further and higher education and adult learning is devolved from the UK Government to the Scottish Government. Yet, within Scotland, the design and planning of skills remains very much a national government task overseen by four national agencies. LAs play a role in the system by providing employability services and Community Learning and Development (CLD). For the purpose of this report, the adult skills system is defined as all types of continued education and training. This may include any formal or non-formal learning (general, specialised or vocational) undertaken after initial education and training or after entry into working life, which aims to: i) improve or update knowledge, skills or competencies (upskilling), ii) acquire new skills for a career move (re-skilling) or iii) ensure personal or professional development (Cedefop, 2024[8]). This section provides an overview of the main stakeholders and types of provision in the Scottish adult skills system and ongoing discussions around future reforms.

Multiple stakeholders are involved in the adult skills system in Scotland

While responsibility for post-school skills policies and adult learning is devolved to the Scottish Government, the Scottish system for continuous education and training remains relatively centralised. The Scottish Government’s remit in the skills area is extensive, covering pre-school, primary, secondary, further, and higher education and work-based learning and vocational training programmes such as apprenticeships. At the national level, the parts of the skills system that provide education and training opportunities for adults are overseen by four national agencies: the Scottish Funding Council (SFC), Skills Development Scotland (SDS), the Student Awards Agency for Scotland (SAAS) and the Scottish Qualification Authority (SQA). These national agencies strongly influence funding allocations, the nature and content of provision, and patterns and volumes of participation in education and training (Table 3.1)

Table 3.1. Main national agencies involved in the adult skills system in Scotland

Authority	Main tasks
Scottish Funding Council (SFC)	SFC is Scotland’s tertiary education and research authority, which oversees the delivery of tertiary education, research and innovation. The authority manages the funding and Outcome Agreements for all universities and colleges to guide the delivery of education and training. SFC also oversee several skills and lifelong learning policies and programmes, including College Foundation Apprenticeships, the Young Person’s Guarantee in Colleges, and University Graduate Apprenticeship places.
Skills Development Scotland (SDS)	SDS is Scotland's national skills body. Its primary purpose is to support people and businesses in developing and applying their skills. The authority is responsible for overseeing the funding and delivery of Modern Apprenticeships. It also delivers Career Information Advice and Guidance (CIAG) services across the country and works with employers to help them invest in existing skills and develop new talent.
Scottish Enterprise (SE)	SE is the Scottish economic agency. It focuses on activities that help Scottish businesses grow and scale through innovation, investment, and internationalisation. While skills policies are not part of its portfolio, the agency is involved in supporting, e.g., collaborations between employers and further and higher education institutions.
Scottish Qualification Authority (SQA)	The SQA is Scotland's national accreditation and awarding body. The authority oversees the national framework for qualifications and sets and maintains standards for many other awarding bodies and accredited qualifications.
Student Awards Agency for Scotland (SAAS)	The SAAS is the national agency responsible for providing information, support and funding for higher education students. The agency assesses applications for living costs and bursaries for eligible students studying in the UK.

Source: Scottish Funding Council (2024[9]), About us, www.sfc.ac.uk/about-us/ (accessed on 27 May 2024); SAAS (2024[10]), About SAAS, www.saas.gov.uk/about-saas (accessed on 27 May 2024); Skills Development Scotland (2024[11]), About, www.skillsdevelopmentscotland.co.uk/about (accessed on 27 May 2024); and SQA (2024[12]), About us, www.sqa.org.uk/ (accessed on 27 May 2024).

There are various mechanisms to support continuous education and training for adults within the Scottish skills system, which involves different agencies, providers and funding streams. The main adult learning pathways include academic routes through further and higher education and work-based learning through apprenticeships and vocational education and training (VET). Further and higher education usually involves national and higher qualifications, while vocational qualifications or work-based learning include the Scottish Vocational Qualifications (SVQs), National Progression Awards, and Skills for Work. The relationship between the different types of qualifications is organised through the Scottish Credit and Qualifications Framework (SCQF), overseen by SQA (Scottish Credit and Qualifications Framework Partnership, 2024[13]). Qualifications in the SCQF are classified using two measures: level and credit. The levels (running from Level 1 to 12) show the complexity of learning, and the credits indicate the learning volume (one SCQF credit represents ten notional learning hours). Further details on different routes for adult education are provided in Table 3.2.

The leading providers of continuous education and training in Scotland are colleges, universities and independent training providers. Scotland has 19 universities and higher education institutions (HEIs) and 24 colleges nationwide. While a large part of the education and training provision in these institutions is targeted at youth, universities and colleges also provide continuous education and training for adults across the different levels of qualifications in the SCQF. Many colleges offer specific adult education courses designed to meet the needs and interests of adult learners. These courses may cover various subjects, from basic literacy and numeracy skills to vocational training, apprenticeships and professional development. Universities in Scotland also play a significant role in supporting the continuous education and training of adults, often through mechanisms similar to those of colleges but with a stronger focus on higher education. Funding for colleges and universities, including apprenticeships, is overseen mainly by SFC and to some extent SDS (parts of apprenticeship funding) (see Table 3.1). SDS also allocates funding to independent providers and workplace training opportunities through various programmes.

The adult skills system also includes more specialised options for adult learning locally through employability services and Community Learning and Development (CLD) activities. These activities supplement the core provision from colleges, universities and independent providers. They tend to be funded by local authority budgets and national funding from the Scottish and UK governments, such as the UK Shared Prosperity Fund (UKSPF), and they focus on supporting the most vulnerable groups. As explored more broadly in Chapter 4, these activities often draw on various providers, including voluntary, charitable and not-for-profit organisations. With an emphasis on vulnerable groups, their focus is on adult education and broader personal and social learning.

Furthermore, individuals already in employment may also access work-based learning provided in their workplace, but this often does not lead to a recognised qualification. Work-based learning may be provided to individuals in work either by external providers on behalf of their employer or by the employer themselves. Employers often fund this type of training without additional public funding. These forms of training can be of various types involving on and off-the-job components, either through structured learning (courses) or less structured learning (such as on-the-job training, work shadowing, and seminars). Data from the Scottish Employer Skills Survey suggests that workplace learning opportunities are most likely to be accessed by those already more highly skilled (Scottish Government, 2023[7]).

Table 3.2. Main types of adult skills provision in Scotland

Type of learning	Purpose	Providers	Programmes	Qualifications
Basic skills/ education	Accreditation of qualifications in basic skills or national qualifications at the primary and lower secondary education level	Colleges, Local Authorities, publicly funded bodies (libraries, prisons, community centres, health centres); third sector organisations	Accredited units in literacy, numeracy, digital skills, English for Speakers of Other Languages (ESOL) or national level 1-5	SQCF 1-5
Second-chance upper secondary education	Access to qualifications at the upper secondary level or higher education	Colleges and universities	Higher and Advanced Higher Certificates Scottish Wider Access Programme (SWAP) University pre-access courses	SQCF 7-8
Upper-secondary Vocational education and training (VET)	Competence-based, practically oriented-qualifications	Colleges, independent providers and employers	Scottish Vocational Qualifications (SVQs)	SCQF 4-11
	Access to employment or progression to Higher National Qualifications	Colleges	National Certificates	SCQF 4-6
	Short-cycle tertiary vocational qualifications	Colleges	Higher National Certificate (HNC) and Higher National Diploma (HND)	SCQF 7-8
Apprenticeships	Occupational qualifications and core skills through combined work and study	Schools, colleges and universities, independent providers, third sector organisations	Foundation / Modern / Graduate Apprenticeships	SCQF 5-11
Employability services	Development of skills relevant to the labour market, life skills and access to work experience	Local Authorities, independent providers, third sector organisations, Jobcentre Plus	Training opportunities through locally run employability programmes	Usually, not formally recognised qualifications
	Certification of acquired workplace skills	Colleges	Certificate of Work Readiness	N/A
Community Learning and development	Basic skills and broader personal and social learning	Schools, colleges, Local Authorities, third-sector organisations and private sectors	Various	Usually, not formally recognised qualifications
Work-based learning	Re- and upskill individuals in work	By employers themselves or in co-operation with independent providers or colleges	Various	Usually, not formally recognised qualifications

Source: Wittaker, S. and Boeren, E (2018[14]), An overview of provision in Scotland in seven typesof education for adults, Centre for Research in Educationand Diversity, www.docs.hss.ed.ac.uk/education/creid/Briefings/Briefing38.pdf. Scottish Credit and Qualifications Framework Partnership (2024[13]), The SCQF Interactive Framework, https://scqf.org.uk/about-the-framework/interactive-framework/. Scottish Government (2023[15]), Fit for the Future: developing a post-school learning system to fuel economic transformation, https://scqf.org.uk/about-the-framework/interactive-framework/. Employability in Scotland (2024[16]), Employability Services, www.employabilityinscotland.com/employability-services/. Education Scotland (2024[17]), Community Learning and Development, https://education.gov.scot/learning-in-scotland/sector/community-learning-and-development-cld/.

The Scottish skills system is under review and reforms in the near future are likely

The current skills priorities of the Scottish Government, running to 2032, are set by the National Strategy for Economic Transformation (NSET) launched in 2022 (Scottish Government, 2022[18]). The NSET is the Scottish Government’s 10-year strategy for economic transformation and builds on Scotland’s Future Skills Action Plan from 2019 (Scottish Government, 2021[19]) and the Enterprise and Skills Review from 2017 (Scottish Government, 2017[20]). Together, these reviews and strategies recognise that education and skills are essential drivers of a thriving, inclusive and entrepreneurial economy and outline reforms to secure a stronger skills system in the future.

The Scottish Government has recently commissioned various reviews of different parts of the skills system. From 2021-2023, the Scottish Government commissioned several reviews of the existing skills system in the country. These included a review of the tertiary education sector (Scottish Funding Council, 2021[21]), the post-school learning system (Scottish Government, 2023[22]), the career guidance system (Skills Development Scotland, 2023[23]), the qualifications and assessment system (Scottish Government, 2023[24]), adult learning (Scottish Government, 2023[25]) and most recently, a review of the future of the Scottish post-school learning system (the so-called Withers Review) (Scottish Government, 2023[15]). The Withers Review considered skills functions and remits of Scotland’s national public bodies, making 15 recommendations for future adaptations to support the NSET.

Building on the reviews, the Scottish Government has announced major reforms to the skills and education system. Shortly after the launch of the Withers Review in June 2023, the Scottish Government announced that it would embark on a comprehensive programme for reforms of the post-school education and skills system, including the development of a new national model of public funding for all colleges, universities, apprenticeships and training and a model for student support and engagement that take into account all provision pathways, including, e.g. apprenticeships and CLD (Scottish Government, 2023[22]). As part of this work, the Scottish Government is committed to working with partners across Scotland to identify ways in which they can strengthen approaches to regional skills planning. At the time of writing, these reforms are still in the planning phase.

Funding for adult learning comes from multiple pots with different criteria and aims

Multiple agencies and other stakeholders oversee the delivery of learning and training for adults. SCF provides core funding for colleges and universities through a credit-based funding model (colleges) and the “main teaching grant” (universities). SFC announces financing of colleges and universities every year, and Outcome Agreements set out what each educational institution should deliver in return for SFC funding. The Outcome Agreements are negotiated between each institution and SFC. In addition, colleges, universities and independent training providers receive financing for the delivery of apprenticeships from both SCF (foundational and graduate apprenticeships) and SDS (modern apprenticeships) (see Chapter 5 for further description of the funding model for apprenticeships in Scotland). Additional funding flows into the system through SAAS, which is responsible for calculating and covering the part of student tuition fees covered by the Scottish Government.

SFC provides college funding through a credit-based funding model, where funding levels depend on the type and subject of the course. In practice, SFC provides teaching funding to colleges that undertake to deliver a specified volume of activity measures in “credits” (1 credit is equivalent to 40 hours of learning). For teaching, where SFC is the sole source of funding, the credits to be claimed by colleges equal the number of planned SQA (or other awarding bodies) credits to be delivered. Recognising that some subject areas are more expensive to deliver than others, SFC has categorised all programmes across five price groups. In the academic year 2023/24, the price for a credit in each price group ranges from GBP 269.60 to GBP 467.16 (Scottish Funding Council, 2023[26]). According to colleges, the credit funding price requires classes of at least 16 to 22 students for the courses to be financially sustainable. In practice, funding is closely linked to the courses and degree programmes chosen by eligible students (input) rather than the demand from employers (outcome). Overall, although individual colleges Outcome Agreements will pay attention to regional skills assessments and regional skills investment plans, their primary target is the delivery of places (and attracking students to fill these places) rather than responsiveness to the regional economy (and developing changed provision to meet these needs).

The bulk of core funding for universities comes through the “main teaching grant", which is a grant per student. The central teaching grant was worth GBP 700 million (or just under GBP 5 800 per student) in 2022-23 and 2023-24. In addition, universities charge Scottish students a tuition fee. However, due to the fundamental principle that higher education in Scotland is free of charge for students, the tuition fee is paid by the SAAS (Ogden and Thomas, 2024[27]). The SFC allocates each university a number of “funded places” for eligible Scottish students, which attract funding from the main teaching grant. In contrast, universities face no caps on the number of international students, whom they can also charge higher tuition fees.

In recent years, a series of re- and upskilling funding initiatives have been in place temporarily to provide further mechanisms to enable providers to respond to employer and learner demands. These include ring-fenced funds such as the Flexible Development Fund and the University Upskilling Fund overseen by SFC and the Individual Training Accounts (ITA) overseen by SDS (Box 3.1). However, all of these funds are no longer in place.

Box 3.1. Examples of recent Scottish re- and upskilling funds

Flexible Workforce Development Fund

The objective of the Flexible Workforce Development Fund was to provide an opportunity for employers to access funding to create training programmes that meet their needs. By accessing the fund, employers could choose the training that best meets their needs and, thus, use the available funding to address priority skills gaps, including transitioning to net zero. Training was provided by colleges, the Open University in Scotland and independent training providers. In 2022/23, the fund equated to GBP 7 million for training to be delivered to UK Apprenticeship Levy-paying companies in Scotland (see Chapter 5) and GBP 3 million for training delivered to SMEs. Following the Scottish Budget 2024 and 2025 announcement, no funding is available for the fund in academic years 2023/24 and 2024/25.

National Transition Training Fund

The Scottish Government introduced the National Transition Training Fund as part of its response to the economic impact of the COVID-19 pandemic. The fund was implemented in two rounds. The first round commenced in 2020, primarily to support and provide training to individuals aged 25 and above who had been made unemployed or were threatened with redundancy following the pandemic. In the second round introduced in 2021, individuals exposed to industrial restructuring and redundancy were supported to re- and upskill to retain employment.

Upskilling Fund

The Upskilling Fund was first implemented in 2019 to provide universities with funding to offer short, flexible provisions to support people living and working in Scotland to re- and upskill with higher-level skills needs in strategically important curriculum areas. This provision should help facilitate continued economic recovery and transformation. The Scottish Funding Council provides funding annually to universities. In 2023/24, funding equated to just under GBP 7 million. So far, funding has enabled the piloting different shorter, flexible, and credit-based learning courses and micro-credentials. The fund is not a part of the 2024/2025 budget.

Individual Training Account (ITA) fund

The ITA was introduced in 2017 to support re- and upskilling adults out of work or in low-paid/low-skilled jobs and looking to progress. Through the ITA, individuals received GBP 200 towards a single training course or training episode per year. The fund sought to improve work-related skills and qualifications accessed from approved courses and providers. ITA courses covered agriculture, business, construction, early years and childcare, health & safety, science, technology, engineering and mathematics (STEM), social care and transport. The programme was managed by Skills Development Scotland and provided up to 18 500 funded places annually. An evaluation from 2022 showed that younger people and men were more likely to book an ITA course. In addition, construction accounted for the highest level of ITA course bookings. The evaluation also showed that the ITA funding limit of GBP 200 per individual guided people’s choice of course (i.e. not choosing courses which exceeded the limit). Of the more than 2 000 participants surveyed, 63% rated their overall experience as “very good” and 27% as “quite” good. Since 2023, the ITA has been put on hold by the Scottish Government.

Note: 1. Annual “pay bill”: The annual pay bill includes all payments to employees that are subject to employer national insurance contributions, such as wages, bonuses, and commissions.

Source: Scottish Funding Council (2024[28]), Flexible Workforce Development Fund, www.sfc.ac.uk/skills-lifelong-learning/flexible-workforce-development-fund/; Scottish Government (2022[29]), National Transition Training Fund (NTTF): year 1, Scottish Government, www.gov.scot/publications/national-transition-training-fund-nttf-year-1-report/; and Scottish Government (2023[30]), Individual Training Accounts: evaluation, Scottish Government, www.gov.scot/publications/individual-training-accounts-evaluation/.

The adult skills system in the Glasgow City Region

Within the broader Scottish context, the Glasgow City Region has its own distinct adult skills system. GCR is home to six of the country’s 24 colleges, six of the country’s 19 higher education institutions and a range of independent training providers. While GCR – nor other Scottish regions – does not have a formal place in the structure of the Scottish system for continuous education and training, the region increasingly recognises the fundamental importance of skills to foster regional productivity, economic growth, social inclusion and moving towards net zero. In this context, regional stakeholders increasingly engage in the national reform debate and seek to inject more regional flexibility into an otherwise centralised adult skills system. This section provides an overview of the governance structures of GCR and the landscape for adult skills provision across the eight LAs and nine further and higher education institutions in the region.

The governance structure of the Glasgow City Region is closely linked to the City Deal

The Glasgow City Region was established to implement the Glasgow City Region City Deal. Signed in 2014 by the eight LAs, the Scottish Government and the UK Government, the Glasgow City Region City Deal is the first in Scotland and one of the largest and most advanced in the UK. It represents over GBP 1 billion investment over 20 years in infrastructure, research, business innovation, and job opportunities for residents in the region. The partnership benefits from City Deal funding from both the UK and Scottish Governments (more than GBP 500 million provided from each) and LAs (additional GBP 130 million). A key focus area of the City Deal is the development of improved infrastructure to facilitate regeneration and connectivity in the region (Glasgow City Region, 2024[31]).

The main decision-making body in the Glasgow City Region is the Cabinet, involving the leaders of all eight participating Local Authorities in the region. Contrary to other UK City Regions (e.g. Greater Manchester and London), GCR does not have an elected mayor representing the entire region. The Cabinet is supported by a Chief Executives Group, which oversees the delivery of the Cabinet’s operational functions, including the Programme Management Office. The Programme Management Office includes around 30 full-time staff members, who act as the secretariat for the Cabinet and are the central point for managing, appraising and monitoring programme delivery. In addition, there are a series of management and delivery groups involving representatives from across the eight LAs, including the Economic Delivery Group and different Portfolio Groups connected to the work programme of the Regional Economic Strategy (RES) (see below). The group responsible for re-skilling and up-skilling is the Skills and Employment Portfolio Group. The governance structure also includes the Regional Economic Partnership (REP), which consists of the eight LAs’ chief executives, government agencies (e.g. SDS), third sector and chambers of commerce. The group monitors the delivery of and reviews GCR strategies and action plans. A recent addition to the governance structure was the Regional Skills Devolution Group, which has been established to explore options for greater devolution of skills policies to the regional level (see the following section).

The Glasgow City Region also includes the GCR Intelligence Hub, which provides high-quality economic intelligence to support the delivery of the City Deal and the RES. The GCR Intelligence Hub was established in 2019 with support of the Scottish Government and national and regional agencies, including Office of Chief Economic Advisor, Scottish Enterprise, Skills Development Scotland and the University of Strathclyde. The purpose was to build in-house regional capabilities to support significant regional investment projects in the Glasgow City Region building on existing available data. The Hub has four main functions: policy research, economic modelling, strategy development, and project evaluation. The work covers various economic issues, including demographics, land use, sustainability, inward investment, economic growth, tourism, transport, enterprise, skills, employment and housing. In particular, the Hub has developed business cases for infrastructure projects as part of the City Deal and supported the writing of the RES in cooperation with the Economic Delivery Group. The Hub has only done limited work in the skills field for now. The work of the Hub has no annual work plan but is project-based, following requests from GCR, individual LAs or even external stakeholders. Increasing demand for the work of the Hub has led to a more than doubling of the team over the last couple of years. Figure 3.5 provides a simplified overview of the existing governance structure in GCR and proposed changes to this structure, which are further reflected in this chapter and the following chapters.

Figure 3.5. Overview of the existing and proposed governance structure in GCR

Note: The figure to the left is a simplified overview of the existing governance in the Glasgow City Region, and the figure to the right shows the proposed changes to this structure following this review. The dark blue colour is used for decision-making bodies, the light blue colour for non-decision-making bodies and the orange colour for bodies to engage with external, non-government stakeholders such as employers, education and training providers and learners. The white colour is used for the existing Skills Delivery Group, a temporary body established as a follow-up to ongoing Scottish Government reviews of the Scottish skills system.

Source: Author’s elaboration based on interviews with stakeholders in the Glasgow City Region.

Although not the region’s primary raison d’être, skills policies are increasingly featured in key regional strategies and documents. The first important step in discussing skills priorities in the region was taken with the Regional Skills Investment Plans (RSIP) from 2014-2019 and 2019-2024 (Glasgow City Region, 2019[32]). The RSIPs are comprehensive strategy documents that seek to tackle economic, employment and skills challenges through various initiatives. The strategies were co-produced with several key partners, including the region’s colleges and universities, and are supported by SDS as part of their Skills Investment Planning work (Skills Development Scotland, 2024[33]). Launched in 2021, the Regional Economic Strategy (RES) sets out an evidence base for the regional economy and identifies future challenges and opportunities for economic development across the eight LAs in the region. The RES identifies three long-term challenges for the regional economy: economic inclusion, productivity, and climate change. The RES extends the commitments from the RSIPs to continue to work with regional partners to enhance “the agility and resilience of the skills system regionally so that it can better adapt to challenges and opportunities emerging from global technological and economic trends” (Glasgow City Region, 2021[34]). More specifically, re- and upskilling policies are reflected in two out of the 12 projects that make up the first phase of the RES work programme – the Future Skills Programme and the Foundational Economy Pilot (Box 3.2). In addition, two other programmes – the Fair and Healthy Work Programme and the Green Business Support Programme also have links to skills through the development of good working conditions and healthy working lives in the private sector and business support for the transition to net zero.

Box 3.2. Projects with a skills focus in the Glasgow City Region’s Regional Economic Strategy

The Future Skills Programme

The programme aims to support the development of regional skills programmes designed to meet the needs of the regional economy. The programme includes actions to design regional skills programmes across various sectors – including hospitality, local government, health and social care, logistics and transport – or types of skills. It also aims to establish a GCR Skills Partnership. The implementation of the programme and its actions is led by the GCR Programme Management Office. In the research and design stage of the programme, the Programme Management Office has engaged with Local Authorities to identify challenges related to skills shortage and mismatches, existing arrangements to address them, and opportunities for a GCR intervention to overcome challenges faced in the selected sectors.

The Foundational Economy Pilot

The “Foundational Economy” concept originated in 2013 and is a way of conceptualising or grouping sectors of the economy that supply essential goods and services used by everyone in everyday life. It includes a place’s key workers, crucial supply chains and infrastructure, and culturally important goods and services (e.g. social care, tourism, retail, food, health services, hospitality, education and networks and communications). The Foundational Economy covers over 60% of jobs and 40% of businesses within GCR, including a large proportion of low-paid jobs in the economy. Focusing on productivity growth in the foundational economy can offer a way of overcoming challenges and ensuring inclusive economic growth. The RES programme aims to create a pilot project to support the growth of the foundational economy in GCR. To guide the design of the pilot project, the GCR Intelligence Hub has reviewed the business support offer for the Foundational Economy nationally and regionally and explored how GCR can effectively enhance the Foundational Economy. The pilot project has not yet been initiated.

Source: Glasgow City Region, (2022[35]), Regional Economic Strategy – Action Plan2022/23, Glasgow City Region, Glasgow, https://glasgowcityregion.co.uk/wp-content/uploads/2022/08/GCR-RegionalEconomicStrategyActionPlan-23August2022.pdf; and Glasgow City Region (2021[36]), Glasgow City RegionFoundational Economy, Glasgow City Region, Glasgow, https://glasgowcityregion.co.uk/wp-content/uploads/2021/07/Foundational-Economy-June-2021-1.pdf

Despite recognising the importance of skills to support regional economic development, the link between these policies could be further strengthened. The RES and the RSIP are important documents that recognise skills as vital for regional plans for economic growth. Yet, in practice, the two policy areas – economic development and skills – remain relatively separated in the regional governance set-up and strategies. While the RES is overseen by the Economic Delivery Group, which reports directly to the Chief’s Executive Group, the responsibility for the RSIP formally lies with the Skills and Employment Portfolio Group, and in practice, is not closely followed neither by the portfolio group nor the Chief’s Executive Group. In addition, despite the critical work on the Future Skills Programme and the Foundational Economy Pilot, links to skills policies in other programmes or work areas are missing, e.g. in the Green Business Support Programme and the Fair and Healthy Work Programme.

Actors in the adult skills system in the Glasgow City Region

With six colleges and six universities based in the region, the Glasgow City Region is an integral part of the Scottish adult skills system (Table 3.3). These include distinct and world-leading specialist institutions such as the Glasgow School of Art and the Royal Conservatoire of Scotland. GCR covers three college regions: Glasgow, Lanarkshire and West (Scottish Parliament, 2023[37]). Together, the six colleges in GCR represent 42% of college activity in Scotland. While the primary target group of colleges and universities remain youth under 25, continued education and training for adults is a priority for both education institutions, including those based in GCR. In addition to the further and higher education institutions, a broad community of private and third-sector training providers operates in GCR.

Table 3.3. Colleges and universities with campuses in the Glasgow City Region

Local Authority	Colleges	University
Glasgow City	City of Glasgow College	Glasgow Caledonian University
	Glasgow Clyde College	Glasgow School of Art
	Glasgow Kelvin College	Royal Conservatoire of Scotland
		University of Glasgow
		University of Strathclyde
East Dunbartonshire	New College Lanarkshire (campus Kirkintilloch)
Inverclyde	West College Scotland (campus Greenock)
North Lanarkshire	New College Lanarkshire (campus’ Motherwell, Cumberland and Coatbridge)
Renfrewshire	West College Scotland (campus Paisley)	University of the West of Scotland (campus Paisley)
South Lanarkshire	South Lanarkshire College (campus East Kirkbride)	University of the West of Scotland (campus Hamilton)
West Dunbartonshire	West College Scotland (campus Clydebank)

Note: There are no college or university campuses in East Renfrewshire.

Source: Glasgow City Region (2019[32]), Regional Skills Investment Plan 2019-2024, Glasgow City Region, Glasgow, www.skillsdevelopmentscotland.co.uk/media/ulvmizcl/regional-skills-investment-plan-glasgow-city-region.pdf

A newly established college partnership aims to strengthen collaboration between colleges and to reduce within-regional competition around funding and students. The tight funding environment and the credit price funding model incentivise colleges to compete on students and funding. Consequently, co-ordination with other colleges and education providers has been lacking in some parts of the system. To overcome this challenge, the six colleges in GCR have recently established a college partnership which facilitates meetings between the principals of the six colleges. The partnership also involves the Glasgow Regional Board's Executive Director, a coordinating body for the three colleges based in Glasgow City. The partnership aims to strengthen further specialisation of the courses offered by each of the six colleges and avoid duplication and competition resulting in inefficient use of funding. While still in the early stages, this partnership is promising and could be closer linked to the GCR governance structure to ensure that steps towards further college specialisation are aligned with current and future regional skills demand (see the following section). A closer link to the region could also facilitate the dialogue between the colleges and LAs – particularly for colleges with campuses in several local areas.

Linking skills supply and demand at the regional level: moving towards a regionalised skills system in the Glasgow City Region?

In the context of a rapidly changing labour market and following the recommendations of the Withers Review, discussion on regional skills devolution has intensified in Scotland. Devolution of adult skills policies has been on the Scottish policy agenda for many years, and the Government has already taken several steps to strengthen regional flexibility through funding and delivery structures. This is illustrated, for example, by the introduction of the Regional Skills Assessments and Regional Skills Investment Plans managed by SDS and the Regional Outcome Agreements for colleges and universities overseen by SFC. Together, these initiatives seek to anticipate better regional skills needs, co-ordinate skills activities around regional priorities, and support the alignment of funding for further and higher education with regional needs. Yet, as described by the Withers Review, regional stakeholders still struggle with challenges such as the inadequate alignment of provision with employer requirements, a lack of agility in the post-school system leading to skills shortages in strategic sectors and an imbalance in the provision for youth vs. adults and work-based vs. class-room-based education and training (Scottish Government, 2023[38]). As mentioned previously, the Scottish Government has published the Purpose and Principles for Post School Education, Research and Skills in June 2023. The report sets out the initial priorities in response to the recommendations provided by the Wiethers review, including on skills planning. However, at the time of writing, this work is still in its very early stages.

This section reviews the main challenges faced by the GCR and discusses options to overcome these through regional skills devolution. The section focuses on the main barriers to and possible solutions to ensure regional skills alignment: 1) changes in the national funding structure to increase flexibility; 2) more granular data to inform regional policies; and 3) a regionalised skills system to respond to regional needs.

National funding structures limit regional flexibility to adjust provision to demand

A significant barrier to aligning regional skills supply with demand is the mechanisms for allocating core funding to colleges and universities. As outlined in previous sections, the core funding process for further and higher education is strongly guided by nationally set targets and priorities. The Scottish Government, through SFC, sets caps on the number of Scottish university students and targets for colleges based on achieved credits. Consequently, funding allocations are heavily influenced by input and/or output targets (i.e. the number of learners and the qualifications achieved). Especially for colleges, the funding structure limits the options to trial and test new courses, as each course must attract a certain number of participants to cover the delivery costs. Downward pressure on overall core funding levels in the context of rising costs and inflationary pressure further complicates the situation and limits the options to innovate and offer courses that meet employer demand in the short and medium term. Despite using Outcome Agreements to meet their regions' changing social and economic needs, consulted regional stakeholders stressed that the scope to innovate and adapt provisions from previous years is limited. Examples of areas where GCR struggles to deliver future-oriented skills programmes are the decarbonisation of heating in homes and buildings (e.g. training of heat pump technicians), the maritime sector (e.g. advanced STEM skills) and the local government sector (e.g. training of planners).

National funding structures also influence the possibility of the Glasgow City Region providing training that is adjusted to the needs of adult learners. Adults looking for re- and upskilling opportunities often require more personalised and flexible study options and support, and thus, there is a lower likelihood of high volumes of students looking for the same training. In addition, the financial support structure for individuals to participate in continuous education and training often means that working students must pay fees for their studies (see the following section). These factors may discourage colleges from providing courses targeted to adult learners.

An additional challenge from the funding system is the annual funding cycles combined with the instability of temporary ring-fenced funding pots. In recent years, ring-fenced funding for re- and upskilling (e.g. the Flexible Workforce Development Fund and funding for apprenticeships) have provided added focus on regional flexibility. However, many of these funds have remained modest in scale relative to the core budget. Many stakeholders see them as “bolt-on” to core provision rather than integrated and viable education and training pathways. The ring-fenced funds have also suffered from being temporary and fluctuating from year to year, which can impede long-term planning and the ability of regional stakeholders to use the funding to guide regional skills provision. A recent example is the pausing of both the Flexible Workforce Development Fund, the University Upskilling Fund and the ITAs. In addition, national commission processes attached to each fund can work against regional collaboration as stakeholders are eager to access extra funding sources. At a more general level, some regional stakeholders wonder whether the system allows for the optimal mix of funding across learner groups (youth vs adults) and types of learning (work-based learning, colleges and universities).

A lack of granular labour market information further adds to the challenge

In recent years, the Scottish Government has supported the development of more detailed labour market information (LMI) at the regional level. The Evidence and Impact Team in SDS is important in making granular labour market information available for regions and LAs. Essential products from the team include the annual Regional and Sectoral Skills Assessments, a monthly Economy, People and Skills Briefing and monthly updates to the SDS evidence tool – the Data Matrix. The Regional Skills Assessments are published annually for several regions in Scotland and include data on the levels of LAs, Regional Outcome Agreement Areas (ROAs) and the City Region. They intend to provide a familiar and coherent evidence base built up from existing official datasets and forecasts, including, amongst others, the Scottish Employer Skills Survey and commissioned forecasts for the next ten years. Data is supplied around three themes and available to download from the SDS website through the Data Matrix: skills supply, skills demand, and skills mismatch (Skills Development Scotland, 2024[39]). SDS also provides an in-depth analysis of the skills needs of specific sectors. Recent examples include their work on Climate Emergency Skills Action Plan Pathfinders to assess up- and reskilling requirements associated with the transition to net-zero and the Digital Economy Skills Action Plan, which provides insights on skills needs for the digital transition (Skills Development Scotland, 2023[40]; 2023[41]). Lastly, SDS holds a series of nationwide webinars and seminars to promote and discuss the results of their work.

Despite ongoing improvements, the use of regional labour market information varies across the Local Authorities in GCR. Whilst regional partners value robust official data collected nationally (e.g. through the Employer Skills Survey), stakeholders consulted as part of this project reported concerns that the national data lacked granularity and an in-depth understanding of skills requirements in specific jobs and careers of the future. In addition, consulted stakeholders pointed out several shortcomings in national data on post-school skills provision. What is missing, in particular, are national or regional skill outcome measures that can follow students' trajectories in the longer term (e.g. completion rates, the proportion of completers entering positions in their field of study and the proportion of completers staying the region to take up work, wages earned). In the Netherlands, the Graduate Tracker has been developed by the Dutch PES (Uitvoeringsinstituut Werknemersverzekeringen) to track students after they leave school through register data (Box 3.3).

Box 3.3. The Graduate Tracker (the Netherlands)

In 2018, the Dutch Public Employment Service (Uitvoeringsinstituut Werknemersverzekeringen) initiated a graduate tracking system to enable young people to transition from education. The initiative combines several administrative databases to track young graduates in the first ten years of their careers. It provides youth with information to help them make informed decisions on their choice of initial education based on labour market information. To analyse the labour market position of graduates, the Dutch PES has partnered with SEO Amsterdam Economics (a research agency affiliated with the University of Amsterdam), which analyses anonymised administrative data from the microdata of Statistics Netherlands (Centraal Bureau voor de Statistiek). The microdata consists of various data, including educational data, personal characteristics, income, and type of contract), which are linked individually for more than 200 000 graduates annually. This initiative can help young people transition from education to work by providing a clearer picture of the economic consequences of their educational decisions, given the lower risk of unemployment. Information on labour market positions is determined by the time required to find a job, gross hourly wage, annual income, and the percentage of permanent employees.

Source: UWV (2021[42]), Customising LMI to different user groups – the approach of the Dutch Public Employment Service, www.cedefop.europa.eu/files/cedefop_m._van_smooorenburg_uwv.pdf

The Glasgow City Region Intelligence Hub presents an opportunity for the region to strengthen the regional labour market and skills intelligence and thus support the alignment of supply with demand. While the primary task of the GCR Intelligence Hub is not to provide labour market and skills intelligence, it has produced extensive work on sectoral trends in the regional economy as well as complementary regional skills analysis. The Intelligence Hub could take on an even stronger role in collecting and analysing labour market and skills data in GCR to complement (rather than duplicate) and embellish existing national analyses provided. The Hub could lead the development of an annual regional skills assessment to identify regional skills needs, which could be combined with a rotating cycle of in-depth research studies and skills assessments in key sectors and occupations. This work should build opn existing vailale data and help to maximise awareness and take-up of existing national and regional resources while also producing region-specific work. For critical sectors such as the green and digital economy, the hub could build on the results of recent work done by SDS through the Climate Emergency Skills Action Plan and the Digital Economy Skills Action Plan, which both include insights on the needs of the regional economy in the Glasgow City Region The Hub could also take the lead on developing a more uniform approach to employer skills surveys in the region and liaising with the Scottish Government on gaps in the existing data infrastructure.

Possible elements of a new regional skills governance structure

In the context of wider reforms of the adult skills system, devolution may present itself as an option to create a more agile and flexible system guided by outcomes. As shown in Chapter 2, GCR is an integrated economic area. In 2023, 66% worked in the same Local Authority as their place of residence, 16% commuted to Glasgow City and 17% commuted to work outside of GCR. with 37% of residents commuting to a different LA to work. Combined with the increasing institutional capacity at the regional level in GCR and the identified challenges with the existing national system outlined above, this presents essential arguments for why the question of regional skills devolution is and should be considered as part of ongoing national reforms. In this context, the Regional Skills Devolution Group and key stakeholders from the region have been established to develop a “skills devolution ask” concerning planning and delivery of skills provision.

To move forward with this idea, there is a need to discuss which specific elements of the adult skills system could or should be devolved to the regional level. Elements might include a new model for funding colleges and universities that are outcome-based and potentially overseen by the newly established College Network (which facilitates cooperation across the six colleges in the region) in partnership with the City Region and a more flexible funding model for apprenticeships (see Chapter 5). In addition, potential new investments in re- and upskilling initiatives could be implemented through a Regional Skills Fund established in cooperation with SFC and as an alternative to the previous nationally commissioned funds. A Regional Skills Fund could provide a mechanism to inject additional flexibility into regional skills programmes by supplementing the core funding routes. Funds might be deployed to develop regional careers and skills programmes aligned with sectors of priority to the regional economy. Steps towards regional skills devolution could build on lessons learned from other OECD countries, including the Greater London Authority in the UK and the Education and Training Boards in Ireland (Box 3.4).

Box 3.4. Examples of regional skills systems across the OECD

The Greater London Authority’s Region Skills Fund (UK)

The Greater London Authority is the devolved regional governance body of the Greater London area, consisting of an executive Mayor and the 25-member London Assembly. It has existed since 2000 to improve the co-ordination between the 32 Local Authorities in the area. Since 2019, parts of the Adult Education Budget have been devolved from the UK Government to the Greater London Authority. While the Adult Education Budget is a small piece of the overall training system, this change has allowed London to adapt its adult training provision to regional and local needs. The authority has set up two advisory bodies to implement the devolved budget and guide future requests for the devolution of skills policies. First, the Skills for Londoners Board advises on skills and employment programmes, including the Adult Education Budget. Second, the Skills for Londoners Business Partnership aims to improve and better align provision to meet London’s skills needs. Together, these bodies have provided input on adjusting provision to regional and local needs, which has resulted in several changes on the ground. The authoirty had expanded funding for unemployed Londoners and those on low wages to help them access new employer opportunities. It has also increased training providers’ flexibility in delivering and designing courses that adjust to the regional labour market needs. One example of a Greater London Authority programme is the Mayor’s Academies, which aims to build on core funding for colleges, universities and independent training providers to provide targeted investments that can meet regional industry and learner needs. Among other things, the programme has created a series of sectoral Academy Hubs that bring together skills providers, employers, and other partners to provide more industry-relevant training recognised through the Academy accreditation system. The programme is overseen and evaluated by the authoirty.

The Education and Training Boards in Ireland

Regional implementation and delivery of adult skills policies have been strengthened in Ireland in recent years, including the creation of the Education and Training Boards (ETBs). While Ireland only has two government levels (national and county governments), the ETBs operate at the regional level – i.e. combining several counties – to align skills policies across levels of government and adjust skills provision to regional and local labour market needs. The ETBs were established in 2013 under the Education and Training Boards Act 2013. They replaced the former 33 Vocational Education Committees as the primary education providers locally in Ireland. There are 16 ETBs responsible for providing education and training services in their respective region. The overall purpose of the ETBs is to promote lifelong learning opportunities, support skills development, and foster community engagement in education and training initiatives. Their core tasks include overseeing initial and further or adult education, managing schools, providing adult and further education and training, delivering youth services (youth support officers and funding initiatives), coordinating training programmes, and performing quality control of the school and adult education offers. The ETBs include 21 members, comprising 12 Local Authority nominees, two staff nominees, two parents nominees, and five members from bodies representing community/business/learners’ interests.

The initial education responsibilities of the ETBs are funded and overseen by the Department of Education, whilst the vocational education and training and adult education part of the 16 ETBs are overseen by the Department for Higher Education, Research, Innovation and Science through the Irish State Agency for Further Education and Training (SOLAS). The yearly strategic performance agreements between SOLAS and each ETB are the primary mechanism to ensure the quality of and spending on vocational education and training and adult education. The performance agreements establish focus areas and goals for each ETB, subject to regular review through dialogues between SOLAS, the ETBs, heads of colleges, and education providers. With the strategic performance agreements, SOLAS increasingly seeks to link funding to agreed targets. Through the performance framework and the accompanying online Dashboard, ETBs can follow their performance vis-à-vis annual targets and see how they perform relative to other ETBs.

Source: OECD (2021[43]), Future-proofing Adult Learning in London, United Kingdom, OECD Review on Local Job Creation, OECD Publishing, Paris, https://doi.org/10.1787/c546014a-en; and Education and Training Boards Ireland (2024[44]), About ETBI, www.etbi.ie/etbs/.

Significant changes to the governance structure of the Glasgow City Region would be needed to lift any potential new tasks in the adult skills field. To be able to take on new responsibilities for designing and implementing adult skills policies, GCR would have to review its existing governance structure. In particular, there would be a need to expand the Programme Management Office's capacity and establish a body within the governance structure that can oversee new responsibilities in the skills area. One option could be to turn the Regional Devolution Group into a Skills Delivery Group operating in parallel with the Economic Delivery Group and reporting directly to the Chief Executives Group. This group would consist only of representatives from Local Authorities, GCR and the Scottish and UK Governments and could take the lead in setting up and monitoring regional performance (together with the Intelligence Hub) and overseeing the delivery of the RSIP and parts of the RES. A Skills Delivery Group could also be responsible for strengthening cooperation with key stakeholders in the regional skills system, including education providers and employers (see below).

Changes in the governance structure of the Glasgow City Region present an opportunity for the region to take a stronger role in facilitating cooperation across stakeholders in the regional skills system. Establishing mechanisms for collaboration and networking amongst stakeholders and communities is essential to enable the diffusion of ideas, knowledge exchange and sharing of good practices in a regional skills system (OECD, 2019[45]). To support existing efforts across regional stakeholders to coordinate and align skills provision, GCR could establish a Regional Skills Board bringing together government and non-government representatives, including providers (e.g. colleges, universities independent training providers, third-sector organisations and LAs), employers and possibly learner representatives (as the Irish Education and Training Boards). The board would replace or supplement the existing professional communities and networks operating across GCR. The board could support continued co-ordination and specialisation of further education provision through stronger collaboration between the colleges in GCR. This could take inspiration from a recent initiative in Atlantic Canada to facilitate college cooperation as a way to address labour shortages in the province (Box 3.5).

Box 3.5. College co-operation in Atlantic Canada (Canada)

The Atlantic Colleges Atlantique is an association of the seven public institutions delivering college programming in Atlantic Canada. The association has initiated the Colleges Transformation des Collèges Project with the Future Skills Centre in Canada. The project aims to address labour shortages and skills gaps in Atlantic Canada by proposing seven pilot projects initiated and deployed over 24 months. The projects will address gaps identified as priority sectors, e.g., Early Childhood Education, Information and Technology, and Licensed Practical Nurses. These projects will test, evaluate, and generate potential solutions to optimise and transform the college education and training system in Atlantic Canada. At the heart of the project is establishing a virtual Innovation Centre to help coordinate and connect the pilot projects. The range of colleges, engaged partners, and languages (both French and English) will help maximise the applicability and transferability of key learnings from the projects to colleges across not only the province but also the country. Another objective of the project is to strengthen the collective competence of the college system to support students from all communities.

Source: Future Skills Canada (2024[46]), College Transformation des Collèges, https://fsc-ccf.ca/projects/college-transformation-des-colleges/.

Overcoming individual barriers to participation in re- and upskilling

Despite the increasing need to re- and upskill the workforce, many adults across OECD countries face multiple and interrelated barriers to participation in learning. Adult learners face many potential barriers to participation in adult education, including situational barriers (e.g. caring responsibilities or lack of employer support), institutional barriers (e.g. a lack of learning opportunities tailored to their specific needs) and dispositional barriers (e.g. concerns about their ability to succeed) (OECD, 2023[47]). Across OECD countries, some of the most common barriers are a lack of time for work-related reasons, lack of time for family reasons, and lack of financial resources when employers do not fund training (OECD, 2023[47]).

Governments can use various instruments to facilitate and encourage participation. Policy instruments that are disposable to governments to encourage participation in continuous education and training include financial incentives for individuals, financial incentives for employers, career guidance, flexible adult learning, and education and training leaves. Depending on the barriers to particiaption different instruments can be deployed. The following section analyses existing national, regional and local measures and discusses options for GCR to strengthen measures related to three dimensions: i) financial incentives for individuals, ii) career guidance and iii) flexible adult learning. Financial incentives for employers are covered in the following section on employer engagement, while this report does not cover education and training leaves.

Financial incentives to increase the participation of all individuals

Many adults do not participate in learning because of a lack of financial resources to cover participation costs. Costs for participation in adult education may be either direct costs to cover participation fees or indirect costs due to a loss of income when participating in training during working hours. A lack of financial resources can be a barrier for adults, and often, there are no or limited options for loans for adult learning. The barriers are particularly high for low-skilled adults who usually have a fragmented employment history with periods of unemployment and low-level, low-paid positions with limited opportunities for employer-paid training. The time and resources invested in training do not always pay off for these individuals. Targeted financial incentives for individuals can strengthen participation in adult learning. Governments across the OECD subsidise adult learning to encourage participation due to its many individual and societal benefits. Financial incentives for individuals can take different forms, including education allowances, loans at preferential rates, adult learning premiums, scholarships, subsidies, tax incentives and education vouchers.

In Scotland, as in many other OECD countries, financial incentives for individuals are mainly implemented through national schemes that only cover limited parts of the continuous education and training system. In the Scottish post-school system, students can access financial support measures. Available measures include grants, fee waivers, bursaries, scholarships, and discretionary and hardship funds. Their conditions and eligibility criteria vary by the learner’s age, background characteristics, course, and provider’s nature. Domestic students pursuing degrees in universities are entitled to free tuition and provision. In colleges, access to financial support is more complex. It depends, e.g. on nationality/residency status, course level, full/part-time studies, start date of the course and individual circumstances (e.g. household income, marital status and number of dependents). Most domestic students pursuing full-time courses are fully funded by Educational Maintenance Allowance or SAAS (depending on the student’s age). Students are responsible for paying course fees for part-time courses but may qualify for a part-time fee grant from SAAS. The support available depends on how many credits the individual is studying. In addition, students on low income or who receive benefits may be eligible for a fee waiver, subject to fee waiver places available (Student Information Scotland, 2024[48]). Overall, the incentives tend to be weighted towards younger, full-time students pursuing university degrees, and there are only limited options available for students pursuing continued education and training (full or part-time).

National schemes are supplemented by local schemes run by LAs, e.g. to provide targeted support for vulnerable adult learners. At the local level, LAs seek to support adult learning through various measures, including financial incentives. Local measures often supplement national schemes, e.g., providing support for living costs such as travel or childcare. However, given the structure of national schemes, most individuals still find themselves in a situation where they must cover (parts of) their learning costs. Consulted stakeholders in GCR expressed concerns that financial incentive measures for adult learning must be stronger to inspire more (low-skilled) adults to engage in learning. More generally, stakeholders expressed that the system was not geared to support lifelong learning, where individuals continue learning at different stages and in various formats. The Individual Training Account was one crucial exception to this overall trend. As described in Box 3.1, the ITA provided up to GBP 200 per individual per year to support low-skilled adults to participate in education and training. However, the fund was limited in scale and volume and has now been paused.

The Glasgow City Region has options to strengthen financial incentives for individuals through national, regional and local routes. Following the multiple reviews of the Scottish skills system, particularly the recommendations from the Withers Review, the Scottish Government is re-assessing the national incentives framework. GCR could take advantage of this moment to provide input to the national government on how the system can be changed to cater more to adult learners seeking to participate in learning at different stages of their lives. At the same time, the LAs in GCR could look inward and review existing financial measures across local areas to support participation in adult learning. This work could be led by a working group linked to the GCR governance structure (e.g. through the suggested Skills Delivery Group). The group could draw together experts in the GCR with experience from deploying local incentives (e.g. discretionary awards and hardship bursaries) and thus pool knowledge about what works in the region. The group could also draw lessons from other OECD countries, e.g. on other approaches to ITAs and Lifelong Learning Entitlements (Box 3.6). Building on these experiences, one option to feed into the national level is to re-launch the Scottish ITA but with a stronger focus on supporting the low-skilled workers at risk of labour market exclusion and to link available funding to support for training in in-demand sectors and occupations.

Box 3.6. Examples of individual financial incentives for adults to participate in adult learning

Individual Training Accounts or Vouchers in Latvia and the United States

An individual learning or training account (ILA or ITA) is a subsidy scheme that attaches training rights to individuals (rather than employers or jobs) to fund current or future education and training activities. Often, these accounts are voucher-based schemes, where training rights are made portable from job to job and from one employment status to another. This is important in a world where many individuals must retrain for new positions or occupations due to changing labour markets and skill demands. However, ILAs or ITAs must be carefully designed to ensure they are aligned with labour market needs and support take-up by low-skilled workers.

In Latvia, the Latvian State Employment Agency issues vouchers for vocational and non-formal basic competency programmes to the unemployed. These can be used exclusively for priority training areas defined by the Latvian Training Commission. The Commission considers assessments of labour market priority undertaken by State Employment Agency (e.g. based on an analysis of vacancies, patterns of employment and unemployment, labour market forecasts and sectoral trends). The maximum funding and length of the training varies with the qualification level of the programme (from around EUR 600 to EUR 1 220 and from 480 to 960 hours).

Low-skill adults have access to Individual Training Accounts (ITAs) in the United States. The target group of the vouchers is low-skilled adults who can receive funding to access approved training programmes, which prepare them for work in sectors and occupations experiencing high growth and, hence, demand. The individual selects the training provider in consultation with the Career Advisor. The decision of which skills are in demand is based on labour market information at the state or local level. Programmes approved for funding are advertised on a state-wide programme and provider list. ITAs are funded under the Workforce Innovation and Opportunity Act, and Workforce Investment Boards oversee the implementation.

Plans for Lifelong Learning Entitlements in England (UK)

From 2025, England (UK) will introduce the Lifelong Loan Entitlement, which will create a single funding system to help people pay for college or university courses and train, retrain, and upskill flexibly in their working lives. This could be through a full-time degree, individual modules or other courses such as higher technical qualifications. From 2026, the loan will be available for full courses with degrees/technical qualifications and modules of high-value technical courses. Eligible learners can access a tuition fee loan, with new learners accessing up to the full entitlement of GBP 37 000, equal to four years of study in today’s fees. Lifelong Loan Entlitement tuition loans will be available for people up to 60. Targeted maintenance grants will also be available for some groups, such as learners with disabilities or support with childcare. Learners can see their loan balance through their personal Lifelong Loan Entitlement account.

Source: OECD (2019[49]) Getting Skills Right: Creating Responsive Adult Learning Systems, www.oecd.org/employment/emp/adult-learning-systems-2019.pdf; OECD (2019[50]), Getting Skills Right: Engaging Low-skilled Adults in Learning, www.oecd.org/employment/emp/engaging-low-skilled-adults-2019.pdf; OECD (2019[51]), Financial Incentives to Promote Adult Learning in Australia, https://doi.org/10.1787/c79badcc-en; and UK Government (2024[52]), Lifelong Learning Entitlement overview, www.gov.uk/government/publications/lifelong-learning-entitlement-lle-overview/lifelong-learning-entitlement-overview.

Career guidance to orient adults towards sectors and jobs in demand

Career guidance is essential to help adults navigate a constantly changing labour market. Career guidance can be defined as services that help workers of any age make meaningful education, training and occupational choices and manage their careers (Cedefop et al., 2021[53]). Career guidance is used to raise awareness of available education and training services and increase the participation of individuals who either have limited knowledge about existing offers or cannot navigate these offers on their own.

Career services in Scotland are delivered by multiple providers across different parts of the Scottish national and local governments, as well as the UK government. As described in the Scottish Government’s Career Strategy, career service providers in Scotland may be categorised into three overall groups: 1) those whose primary function is to offer career guidance (e.g. SDS and employability providers), 2) those for whom career guidance represents an essential part of their services (e.g. schools, colleges, universities, Jobcentre Plus and LAs), and 3) those with an interest in career guidance (e.g. trade unions, charities and local community groups) (Scottish Government, 2020[54]).

The leading Scottish career guidance provider is SDS, responsible for delivering Scotland’s all-age national careers service. SDS has career advisers in every state secondary school that aims to support youth transitioning from school to work (see Chapter 5). In addition, the agency delivers services from 30 premises and 147 community venues. For GCR, SDS deliver from 8 premises and 66 community venues. SDS also has an online presence through the My World of Work platform (Skills Development Scotland, 2024[55]), an internationally recognised example of an online career guidance tool, and a telephone helpline. For individuals out of work/receiving income support benefits, SDS co-operates with Jobcentre Plus (JCP) – the UK’s public employment service – through the Integrated Employment and Skills (IES) Partnership. This agreement ensures that individuals can be referred for support between the two organisations depending on their needs. For all customers where JCP is the lead partner, the partnership enables JCP to make referrals where they feel a customer may benefit from career guidance as part of their career development (Scottish Government, 2020[54]).

The broad number of providers at the national and regional levels represents the system's strengths and weaknesses. On the one hand, it is an apparent strength of the Scottish career guidance system that the delivery model is rooted in schools, colleges, universities, JCP offices, LAs and local communities. On the other hand, there is a risk of fragmentation and inconsistency in individual support. At the same time, resources seem to be skewed towards services for youth. The regional career guidance offer for adults could be strengthened by mapping and bringing together various stakeholders operating in the region. In particular, the work could aim to map and streamline access points and referral routes between different parts of the career guidance system to make it easier for individuals to manoeuvre. This work could also look into options to provide more fair and equitable access, especially for low-skill adults and ensure high-quality advice. In addition, GCR could discuss with the Scottish Government options to rebalance the career guidance offer to cater to the growing numbers of adults needing re- and upskilling opportunities. Lastly, GCR could seek options in collaboration with the GCR Intelligence Hub and SDS to strategically use available regional labour market information to guide career services in the region (particularly those not provided by SDS). This could result in developing bespoke GCR career guidance materials for different career service advisers.

Reforms of the career guidance system for adults could take inspiration from existing programmes across OECD countries. In Bristol (UK), they have implemented the Future Bright Programme, which targets adults in work who need support to progress in their careers and further develop their skills. In Portugal, where the Qualifica Programme is a government initiative that includes a network of 313 centres that provide information, guidance and other services for adults needing up- and reskilling. In Iceland, 14 lifelong learning centres operate nationwide to provide career and educational guidance and services to adults in the labour market with limited formal education.

Box 3.7. Examples of career guidance programmes for adults

The Future Bright Programme in Bristol (UK)

The Future Bright Programme is in place to provide career coaching for currently employed people who need support to progress in their careers and further develop their skills. The programme takes a holistic individual approach, pairing participants with a dedicated career progression coach for one-on-one coaching in their area over three to six months. Eligible persons are aged 18 or over and are currently in paid work (including zero hours and self-employed) living in Bath & North East, Somerset, Bristol, and South Gloucestershire. The coaches help participants to find or apply for a new job, look for available training, advance the participant’s interview skills, and advise with CV writing. While individuals can enrol on their initiative, local job centres are crucial in the implementation programme. Participation is anonymous, and participants' employers are not informed of their employees’ participation, which is an advantage for employees looking to shift career paths. An evaluation of the programme has shown positive results. Since 2021, 4 000 individuals have received coaching through the programme, 1 858 have entered training, and 265 have improved their work situation and income as a direct result of participation in the program.

The Qualifica Programme in Portugal

The Qualifica Programme is a government initiative launched in 2016 to promote adult training and education – focusing on enhancing skills and qualifications to improve adults’ employability. The programme comprises a national network of 313 centres that provide information, guidance and other services for adults needing up- and reskilling. The centres can refer adults to qualifying or educational pathways and can help adults get prior learning certified. The centres also provide training and support tailored to the individuals’ needs. Services may vary amongst the centres depending on location and resources. Another output of the Qualifica programme is the Qualifica passport. It allows adults to track their qualifications and skills acquired and identify further learning pathways, guiding them towards future skills development opportunities. This tool is available online on the Qualifica passport webpage, allowing adults to design possible and suitable qualification routes via a simulator. Lastly, as part of the Qualifica programme, the Portuguese government has created a Qualifica Industry Programme. Launched in September 2023, this programme supports re- and upskilling in the industrial sector to promote job retention and prevent the risk of unemployment in companies. The program targets specifically micro- and SMEs, supporting the qualification and re-qualification of workers.

Lifelong Learning Centres in Iceland

In Iceland, 14 lifelong learning centres operate nationwide to provide career and educational guidance and services to adults in the labour market with limited formal education. The centres focus on employed and unemployed adults, and both groups may access the services free of charge. A key priority of the centres is to support the recognition of prior learning for adults with limited formal education. The Education and Training Service Centre is the coordinating body of the lifelong learning centres. The Education and Training Service Centre’s main task is to supervise the development of guidance and counselling provided in the centres in cooperation with employers and education providers. The Education and Training Service Centre is a private company jointly owned by the Icelandic Confederation of Labour, the Confederation of Icelandic Employers, the Federation of State and Municipal Employees, the Ministry of Finance and the Association of Local Authorities in Iceland.

Source: West of England Combined Authority (2022[56]), Future Bright Interim Evaluation, www.westofengland-ca.gov.uk/wp-content/uploads/2023/12/3251.Future-Bright-Impact-Report-HD.pdf; Portuguese Government (2024[57]), Programa Qualifica, www.qualifica.gov.pt; Portuguese Government (2024[58]), Government creates Qualifica Industry Program, https://eportugal.gov.pt/en-GB/noticias/governo-cria-o-programa-qualifica-industria; and ETSC (2024[59]), About us, https://frae.is/fraedslumidstodin/about-us/.

Adapting the learning offer to the needs of adults who have other responsibilities

Adult learning systems need to be flexible to provide learning offers that recognise and seek to overcome the constraints of working people with family or other responsibilities. A flexible adult learning offer allows adults to combine and move quickly between education, training and employment over the life course. There are at least four main ways in which adult learning provision can offer greater flexibility: i) timing and allowing, e.g. for part-time studies or weekend and evening courses; ii) location (e.g. providing training at work or in alternative learning spaces); iii) delivery mode (e.g. online courses); and iv) course type (e.g. modular courses) (OECD, 2023[47]).

In the Glasgow City Region, especially colleges and universities are working to modernise delivery methods to enhance access to learning. Examples of more flexibility in learning offers in GCR include modular and short vs. regular training intervals; in-person vs. remote learning; on- and off-the-job training; mechanisms to accumulate and record accredited skills outcomes attained over time (e.g. through micro-credentials); and online-only options for self-supported learning. When still in place, the SFC upskilling fund supported the development of such offers, especially in the university sector. An example was the University of Glasgow’s Upskilling Project, which facilitated skills-focused, demand-led micro-credential courses to support employees and employers across Scotland to up- and reskill in response to socioeconomic challenges. The Project offered fully funded places to learners through the SFC Upskilling Fund. Each industry-led course is worth five to ten academic credits, lasts five or ten weeks and is entirely online or flexible (University of Glasgow, 2024[60]). While the Scottish Government supports the continued roll-out of micro-credentials in further and higher education (The Quality Assurance Agency for Higher Education, 2023[61]), this type of flexible training offer could be further developed in GCR building on experiences across OECD countries (Box 3.8). In addition, other measures such as evening and weekend courses could also be better exploited. In the future, GCR could explore options to test and trial new measures in a more collaborative way.

Box 3.8. Micro-credentials across the OECD

Micro-credentials are short, targeted learning activities that allow learners to re- and upskill quickly and efficiently. While traditional credentials include formal degrees and qualifications, micro-credentials certify or highlight the learning and outcomes of short-term learning experiences, such as short course training, often not recognised as stand-alone formal educational qualifications by relevant education authorities. Micro-credentials have swiftly spread across OECD countries in recent years. Education and training institutions increasingly offer micro-credentials by rebranding or restructuring their existing programmes and creating new ones. This is often done with other institutions, industries and learning platforms. A growing number of companies and non-profit organisations are also offering micro-credentials. Micro-credentials can be a means of social inclusion by facilitating a wide range of learners, including from disadvantaged or vulnerable groups, to access education and training opportunities. However, integrating micro-credentials into the existing adult learning system remains a challenge in many countries, primarily revolving around the recognition and equivalence of these credentials alongside traditional qualifications. A recent OECD report has pointed to various options to improve the micro-credential system in countries, including 1) establishing quality assurance frameworks (e.g. through minimum standards for programmes at the national or sub-national level), 2) spreading awareness and understanding of micro-credentials to facilitate broader take-up, e.g. through digital platforms, registries or individual learning accounts), 3) integrating micro-credentials into adult learning systems (e.g. by linking them to National Qualification Frameworks) and 4) collection of data and evaluation programmes.

Source: OECD (2024[62]), “Building the Future of Skills Development through Micro-credentials”, Paris, www.oecd.org/els/emp/skills-and-work/Future_of_skills_micro_credentials.pdf; and OECD (2023[63]), “Micro-credentials for Lifelong Learning and Employability: Uses and Possibilities”, OECD Education Policy Perspectives No.66, Paris, OECD Publishing, https://doi.org/10.1787/9c4b7b68-en.

Strengthening employer engagement in the regional skills system

Employers play a central role in preparing adult learning systems for the future. Successful adult learning programmes require the engagement of a diverse set of stakeholders, including employers and employers organisations. Employers hold essential information on existing and future skills needs and how to deliver training accordingly. In addition, employers are vital to promoting a positive learning culture and facilitating access to training by providing relevant information, as a large part of adult learning occurs at work. Lastly, as employers benefit from job-related education and training through increased productivity, innovation and employee retention, they often play a central role in financing adult learning provision. This section reviews existing measures for employer engagement in the skills system in GCR and discusses options to strengthen existing local and regional mechanisms to benefit employers and learners.

Support for employers to invest in re- and upskilling is limited

Inconsistencies in the Apprenticeship Levy system risk employer engagement and additional skill investments. While the UK Apprenticeship Levy aims to strengthen employer engagement in the system, the national implementation by the Scottish Government is not seen positively by many Scottish employers, as interviews for this review revealed. The money collected from Scottish employers through the UK Apprenticeship Levy is only partly used to finance apprenticeships or other adult skills/work-based learning activities. One consequence is that apprenticeships are more expensive for employers in Scotland than in England (see Chapter 5). Another issue is the pausing of the Flexible Workforce Development Fund, which employers otherwise have found very useful in supporting re- and upskilling activities for employees. International research shows that where funds are not hypothecated, and employers have little control over how the money is spent from levy training funds, they are less effective in securing employer engagement (OECD, 2017[64]). In GCR, the fragility of the employer engagement infrastructure and the inconsistency of funding have led to concerns about the stability of future employer engagement in the regional skills system.

One option for the Glasgow City Region could be to create stronger links between support for employer engagement in skills provision and more traditional business support services. All eight LAs in GCR have their business-facing support services, which tend not to include a strong focus on skills development. In particular, business support services are delivered through Business Gateway, a national programme that provides online and in-person support for businesses on planning, building control and environmental health. In addition, many LAs have used funding from the UK Shared Prosperity Fund (UKSPF) to enhance local business support interventions further locally. Given the increasing focus on skills development in the region, it could be valuable to better link the local business support measures with support for re- and upskilling in businesses. Another essential aspect would be to reach out to and ensure access for micro-enterprises and SMEs. One option could be to develop a bespoke GCR Employer Hub that links business support with skills development support through one or more physical and/or online hubs. The hub could build on funding from the Business Gateway programme and the UKSPF and could start as a pilot project in a couple of LAs in the region. In Ireland, the Skills to Advance programme overseen by the Education and Training Boards helps employers identify their skills needs and provides training for employees needing re- and upskilling support. In Greater Manchester (UK), the Business Growth Hub combines business and workforce development support for employers in the region (Box 3.9).

Box 3.9. Programmes to support employers to re- and upskill in Greater Manchester (UK) and Ireland

Skills to Advance Ireland

In Ireland, a national re- and upskilling programme – Skills to Advance – for employers and employees has existed since 2019. The programme has two overall objectives: 1) helping employers identify their skills needs and supporting them in developing training offers for their employees, and 2) providing training for employees needing re- and upskilling support. The training opportunities target workers i) in occupations and sectors changing – specifically in light of the green and digital transition, ii) in lower-skilled jobs, or iii) above 50 years. The programme aims to equip employees with the skills needed to succeed in their current jobs or to change to other professions. The Irish Education and Training Boards manage and operate the various training offers via regional branches, overseen by SOLAS (the state agency for further education and training). Employees can access offers via three routes: 1) by enrolling directly in relevant training options to advance their work options, 2) by accessing offers through their employer, and 3) as part of regional development initiatives where employees enrol in regional skills development offers. Training is provided across various sectors, e.g. hospitality and tourism, leadership and management, health and welfare, engineering, and construction. The programme also has a dedicated partnership in the green sector, where large Irish companies and skills providers are engaged in developing courses targeted at green skills development. The training options are specifically targeted at SMEs. SMEs eligible for training (e.g. because they have high shares of low-skilled workers) will work with Skills to Advance advisers to conduct a learning needs analysis. The resulting training options are free of charge.

The Greater Manchester Business Growth Hub (United Kingdom)

Since its launch in 2011, the GM Business Growth Hub has been a central point of contact for businesses in Greater Manchester. The hub combines services for business across various sectors in the different stages of development. Through the advisers in the hub, companies can get one-to-one support, e.g., to understand their workforce development needs and be guided towards available re- and upskilling programmes and funding opportunities. The hub has a dedicated service for apprenticeships (the Apprenticeship Growth Service), which supports employers in engaging with and taking up apprentices. Other parts of the services focus more on general business development, e.g. how to explore export options. Most of the services the hub provides are free of charge for businesses. To access the services, businesses are asked to provide basic information about their companies (e.g. type of sector and number of employees) through an online questionnaire. A total of ten advisers work in the hub, representing each of the ten Local Authorities in the Greater Manchester Combined Authority. The hub has received funding from the UK Shared Prosperity Fund via the Greater Manchester Combined Authority.

Source: SOLAS (2024[65]), Skills to Advance, www.solas.ie/programmes/skills-to-advance/; and Business Growth Hub (2024[66]), Our Impact, available online at: www.businessgrowthhub.com/ourimpact (accessed on 07.05.2024).

Multiple mechanisms for employer engagement exist at the national, regional and local levels in Scotland

At the national level, the employer engagement infrastructure across the skills system is fragmented, and mechanisms for employer engagement are limited. From 2002 to 2016, the primary mechanism for employment engagement in the UK Government was the Sector Skills Councils, which presented a structured way to engage industry, employer, trade and professional bodies across various sectors of the economy. With these bodies no longer in place, the Scottish Government has moved to more diverse mechanisms of employer engagement, with variation across sectors. Generally, these tend to be limited in outreach, often prioritising a small number of large employers in specific sectors, e.g. through advisory boards. Many of these public/private partnerships do not have skills policies at the top of their agenda. While there are essential exemptions (e.g. the way SAAB cooperates with employers on apprenticeship provision), the overall consequence is that Scotland suffers from low employer engagement in the skills system. This is evident in the apprenticeship system, where only 10% of all employers offer apprenticeships (and only 5% of businesses with 2-4 employees) (Scottish Government, 2023[7]) (see Chapter 5).

At the regional level, two well-established boards facilitate exchanges and collaboration between employers and the regional administration. These include the Glasgow Economic Leadership (GEL) Board, which provides strategic guidance to GCR on economic development issues and the Glasgow Employment and Skills Board, which oversees the work of the Developing the Young Workforce (DYW) programme across GCR and has a broader remit to help connect employers with the labour market and find solutions for recruitment and skills issues. Both boards involve a range of (mainly larger) employers across the public and private sectors. In addition, the GEL Board has representation from academia. While the GEL Board is primarily focused on regional economic development, the Glasgow Employment and Skills Board is dedicated to strengthening employer engagement in employment and skills policies in the region (Box 3.10).

Box 3.10. Employer engagement bodies in the Glasgow City Region

Glasgow Economic Leadership (GEL) Board

The GEL Board was established in 2011 after the 2008 economic crisis to support economic development in the Glasgow City Region based on a sector-led approach. The board members are leaders from academia, industry, and the public sector (e.g. the Chief Executive of Glasgow Airport, the CEO of Glasgow Chamber of Commerce, and the Vice Principal at the University of Strathclyde). The board aims to align and boost private and public investment in Glasgow City and the region. The board’s work is organised around critical sectors (i.e. life sciences, tourism, creative economy, green economy, financial and business services and higher and further education) of the regional economy, with each sector stream being led by one of the board members. Depending on the sector, the board also has links to small and medium-sized businesses (e.g. in Life Science). While skills policies are not the board’s primary focus, the topic is covered ad hoc and as a cross-cutting issue. Together with the Glasgow City Region, the board is currently exploring options to link the board closer to the governance structure of the city region and to strengthen its focus on investment and skills as drivers for business and economic growth.

Glasgow Employment and Skills Board

The Glasgow Employment and Skills Board comprises more than 30 employer representatives, which seeks to support up- and reskilling and lifelong learning policies across current and emerging sectors in the Glasgow City Region. Previously known as the Glasgow Employer Board, the Glasgow Employment and Skills Board became a formal membership group in 2012 with the support of the Glasgow Chamber of Commerce. In 2019, the Glasgow Chamber of Commerce turned the board into the main forum for employment and skills topics. The board has led in implementing the Developing the Young Workforce (DYW) programme in the city region and national consultations on employment and skills issues. In addition, the board has developed various strategic initiatives, including “Skill the Gap” (a one-day event in March 2023 to provide information on ways to up- and reskill staff and share innovative practices to address skills shortages), initiatives to support the recruitment of young people, and business support for recruitment and skills (e.g. paid work placements).

Source: Interviews with various stakeholders in the Glasgow City Region. Glasgow Economic Leadership Board (2024[67]), Glasgow Economic Leadership, https://glasgoweconomicleadership.com/; and Developing the Young Wofkforce Glasgow (2024[68]), Recruit, retrain, upskill!, https://dywglasgow.com/recruit-retain-and-upskill/.

Numerous partnerships exist between employers, Local Authorities, colleges, and universities at the local and institutional levels. Critical stakeholders in the region (e.g. LAs, colleges and universities) use local and institutional-level partnerships to connect with employers, understand their demand and facilitate training and job placement opportunities. Most of these partnerships are linked to the administrative boundaries of the LA or college or even to a specific department within the authority or education institution. The system can be challenging and resource-intensive for employers to access and navigate, and many remain unsure about how and with whom to interact. According to consulted stakeholders, there is a need for more simplified engagement structures with fewer entry points. This would benefit both employers (e.g. through better alignment between skills provision and employer needs) and individuals (through more explicit routes into employment and work-based learning).

Members of the Glasgow City Region could take steps to review and strengthen mechanisms for employer engagement on skills issues, including through a Regional Skills Board. GCR needs one or more explicit and well-defined routes through which employers can influence skills policies and provision in the region. Discussions about how this could be done are already ongoing. In particular, one option presented by the Withers Review is to establish a regional board (Scottish Government, 2023[15]). As outlined in the previous section, this could take the form of a Regional Skills Board, which would bring together employers, providers, and learners in the region on wider workforce and skills development issues. The board’s purpose would be to guide skills planning and education and training delivery at a regional level. The board could be linked to a new Skills Delivery Group consisting of only local, regional and UK/Scottish Government representatives.

From an employer perspective, a Regional Skills Board should build on existing employer engagement structures, including the GEL Board and the Glasgow Employment and Skills Board. The board members could include representatives of various employers in the Scottish economy, including SMEs. SMEs comprise more than 99% of all private sector jobs in Scotland (Scottish Government, 2023[69]), yet they continue to be underrepresented in crucial employer engagement bodies, including the ones in GCR. The selection of members for a new board can be guided by mapping employer and industry networks in the region, which also supports establishing a series of partnership agreements as the basis for future collaboration with employers beyond the board. One of the board's first tasks could be to develop a new employer engagement strategy on skills for the region, closely linked to the RES and the RSIP. The new strategy should also seek to align thinking on critical economic sectors across GCR stakeholders and guide new initiatives in the highest priority sectors.

References

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[8] Cedefop (2024), Terminology of European education and training policy, https://www.cedefop.europa.eu/sk/tools/vet-glossary/glossary/post-initieel-onderwijs#:~:text=Any%20formal%20or%20non%2Dformal,skills%20or%20competences%20(upskilling)%3B (accessed on 25 April 2024).

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Note

← 1.  The participation measures cover participation in formal and non-formal education and training. Formal education and training refer to learning activities that are institutionalised, intentional and planned through public organisations and recognised private bodies and constitute the formal education system of a country. For adults, it consists mostly of vocational education, special needs education and some parts of adult education. Non-formal education and training are defined as any institutionalised, intentional and organised/planned learning activities outside the formal education system. It compromises courses, seminars and workshops, private lessons or instructions and guided on-the-job training, but excludes non-guided on-the-job training. “Last four weeks” refers to the four weeks before the interview conducted as part of the Labour Force data collection (Participation in education and training (based on EU-LFS) (europa.eu)).