Using an index framework, we can monitor movements in a series of indicators tracking trends in the West Midlands' skills performance, benchmarked against performance in other English regions and England as a whole.
We have updated the trends in the skills performance indicators and overall skills performance index for the West Midlands up to 2009.
Please note the report has become longer and more complex as the framework of measures has evolved. In 2010, we decided to focus on the most critical elements of the framework. Creating a more succinct summary helps partners to identify trends and issues quickly and easily.
Skills performance indicators: review of performance 2009-2010
Published September 2010 (indicators are updated to 2009)
Key headlines
Our summary skills index indicates the West Midlands has a faltering skills performance. After narrowing between 2005 and 2007, the gap in performance between the West Midlands and England as a whole has begun to widen again, from 1.1 points in 2007 to 2.3 points in 2009. As a result the West Midlands has dropped from 5th to 6th place in the league table of English regions.
Chart: West Midlands overall skills performance index
There are low rates of productivity (measured by GVA per employee) in the West Midlands. A GVA figure of just over £40,000 in 2008 was 86% of the England's average of nearly £47,000.
At the same time the workforce is characterised by lower earnings compared to other parts of the country. At £456 in 2009, average earnings were more than 5% below the England average of £482.
There are low employment rates and high rates of worklessness in the West Midlands. Currently, there is a 72% employment participation rate in the West Midlands. This compares with an England average of more than 74%. Nearly 30% of the West Midlands' working age population were workless in 2009 compared with the England average of 27%.
Qualification attainment still lags behind other regions. For example, only 49% of 15 year olds attained 5 or more GCSEs at grade A*-C in 2008-09. This is 2 percentage points below the England average.
Encouragingly, the proportion of private sector businesses investing in training has continued to rise strongly. An increase of two percentage points from 64% in 2007 to 66% in 2009 was the fourth highest in the country.
However, there are continued concerns as to whether the new skills employers will require can be sourced from the West Midlands' working age population. There is also a lack of relevant skills and qualifications preventing individuals from competing for existing jobs on offer.