Low skills and social disadvantage in a changing economy
People with low skills and no qualifications are at a significant disadvantage in the labour market. Competition for jobs means that this group is often at a disadvantage even when seeking employment in routine, low paid and often insecure jobs. This can lead to an above average risk if unemployment or even economic activity.
This paper reviews the evidence relating to the disadvantage in the labour market faced by people with low skills and distils key policy issues in engaging and up-skilling the workforce as the UK strives towards a globally competitive, high value-added economy.
Equality Briefing Paper – Low Skills and Social Disadvantage in a Changing Economy (PDF, 1.0 Mb)
Published September 2011
Low skills and social disadvantage in a changing economy considers the prospects for people who are disadvantaged by a lack of skill and/or qualifications. A low level of skill or educational attainment is one indicator of social disadvantage in relation to a person’s economic and labour market status. A lack of skills or qualifications tends to place people at the end of the labour ‘job queue.’
In reviewing the evidence relating to disadvantage in the labour market, a number of key findings have emerged:
- The number of people of working age in the UK at risk of disadvantage because of low skilled and/or no qualifications has fallen in recent years, although in 2010 there were still over 1.6 million working-age people with no qualifications.
- Just over a quarter of all workless households in 2010 contained individuals with no qualifications. In 2010 over 48 percent of the unqualified were not in employment or unemployed and were not seeking work.
- The prospect of employment for people with low skills has worsened during the recession, especially for people with no qualifications. The employment rate gap between the unqualified and people with NQF Level 2 and above has worsened in the past few years. While the risk of redundancy remained comparatively low for employees with high level qualifications, the risk of redundancy increased sharply for those qualified only to NQF Level 1 or who held ‘other’ qualifications.
- Individuals who are inactive for reasons other than participation in full-time education face considerable barriers to any form of learning. Similarly, employees in low skilled routine or semi-routine jobs are the least likely to be offered any job-related training.
- Once workers achieve basic skills and Level 2 qualifications, they appear more likely to receive training from their employers. This reinforces the importance of basic skills and Level 2 skills for further progression.
- Many of the factors depressing aspirations lie outside the sphere of the individual and are rooted in the reality of the local labour market and wider social context. Ultimately there has to be the realistic prospect of higher quality, better paid employment that will provide some tangible return to any individual investment in learning.
This paper is one of a series of five Briefing Papers on equality and skills, which include:
- Disability and skills in a changing economy
- Gender and skills in a changing economy
- Low skills and social disadvantage in a changing economy
- Older people and skills in a changing economy
- Spatial inequality and skills in a changing economy
Other recent research in this area includes:
The Youth Inquiry (UK Commission 2011) explored questions around the unemployment, recruitment and employer perspectives of young people.
In May 2011, Joseph Rowntree Foundation published ‘Poverty and ethnicity: a review of evidence’ and is launching a fuller programme of in this area.
