Apprenticeships worth £5bn to region this year
APPRENTICESHIP programmes will have contributed £5bn to the North West economy this year, according to research.
The Centre for Economics and Business Research says the £5bn boost is the ighest of any region in the UK.
The figure includes gains to the economy from higher wages, business profits and taxes, an estimated reduction in unemployment benefit payments, and benefits to organisations while training apprentices.
This region has the highest number of participating apprentices of any other in the UK with 143,810 apprentices participating in 2012/13, 15% of the UK total.
The most popular sectors for apprenticeships are: health and social care (13%), customer service (10%), business administration (8%) and retail and engineering (both at 7%).
Apprenticeships have been running since 1914 and are predicted to continue to rise in popularity – the number of people starting an apprenticeship each year has grown in recent years from around 100,000 in 1950 to more than 450,000 people in 2013-14.
Minister of State for Skills Nick Boles said: “Today apprenticeships are at the heart of the Government’s drive to equip people with the skills that employers need to grow and compete.”
The CEBR report reveals the economic benefit of apprenticeships for all parties involved – the apprentice, employer and the state:
It says that for every £1 that is spent on apprenticeships, the national economy gains £21. This is high in comparison to other expenditure, for example, returns on investment in the innovation, research and technology sectors range from around £4 – £7 per £1 spent.
In addition pprentices are more likely to be in employment for longer, and will receive higher earnings, with wage premiums of 11% for intermediate-level apprentices, and 18% for advanced-level.
