A new research report from the London Skills and Employment Observatory puts the spotlight on Apprenticeships and seeks to identify what more can be done to support their future development and increase their number in the short to medium term. This paper draws on a review of data, latest research and interviews.

The Mayor has set a target of 100,000 Apprenticeships in London by the end of 2012. However, expanding Apprenticeship numbers in the current economic climate of slow private sector jobs growth and shrinking public sector budgets presents significant challenges, not least finding employers willing to take on new Apprentices. 

London’s Apprenticeship statistics explained:

• London has seen strong growth in the number of people starting Apprenticeships over the last five years, with numbers doubling in the last year alone – from 20,350 in 2009/10 to 40,410 in 2010/11.

• London has seen sharp growth in the take up of Apprenticeships in the last four years, faster growth than for England as a whole. There has been an increase of 20,060 or 99 per cent in the last year alone.

• More people starting an Apprenticeship now successfully complete the Apprenticeship framework (a rise of 152 per cent in the number of frameworks achieved between 2005/06  and 2010/11 in London, compared with 84 per cent for England). 

• Apprenticeship take-up has increased across all London Boroughs, but that growth is not evenly spread. 

• There has been strong growth in Apprenticeship starts at both Level 2 and Level 3 and above, with the strongest growth taking place at Level 3.

• Nationally (as these statistics are not available for London), employers with fewer than 25 workers are responsible for delivering almost half of the Apprenticeship numbers.  This suggests that engagement with larger employers has not been as high as anticipated and that smaller employers remain crucial to the expansion of the Apprenticeships programme. 

• There has been strong growth across all age groups in the past year, with the biggest increase seen in adult Apprenticeships (aged 25+).  From just 60 starts in London in 2005/06 (when the programme was introduced), the number had risen to 3,900 in 2009/10.  The number of starts among 19-24 year olds rose by 75 per cent to 8,570 in the same period, with 30 per cent growth among 16-18 year olds (7,880 starts in 2009/10).

• Nationally, there has been strong growth in the take up of Apprenticeships among all ethnic groups, with the number from minority ethnic groups more than doubling between 2005/06 and 2009/10.  The proportion of Apprentices from minority ethnic groups has risen from 5.5 per cent in 2005/06 to 8 per cent in 2009/10.

• The recent growth in the number of Apprenticeships in the capital has resulted in London no longer having the lowest level of take-up of the English regions.  By the end of 2010/11, London recorded the sixth largest take-up of the nine English regions.  

• In recent years, London has had lower than average Apprenticeship penetration rates in all employment sectors.  This is likely to be linked to the supply of potential employees and the relative lack of sectors traditionally associated with Apprenticeships.  These factors are likely to lead to low awareness and, therefore, understanding amongst employers in the dominant London sectors.  However, low penetration rates in some of London’s largest employment sectors may be potential areas for growth.  This includes finance, accountancy and financial services, and retail.