Page 21 - Regional Employment & Skills Plan

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Mode of work is one of the most significant factors which impacts on travel to work areas, with evidence indicating that full time workers have fewer travel to work areas suggesting that individuals in full time employment are more likely to travel greater distances to work than those who work part-time. A further factor relates to the qualification levels of individuals, with those who have low qualification levels having a significantly higher number of travel to work areas with much smaller geographies.15 This suggests that those with low qualifications are less able or willing to travel longer distances to work and therefore tend to source employment within their immediate locality.
Time and distance travelled are also significantly affected by rurality and the suitability of transportation infrastructure. This effect would be considerably lesser if rural areas were able to capitalise on improving their connectivity and creating an environment which is supportive of home working.16
2.9 Business Demography
The region as a whole is dominated by micro and small businesses, the most recent statistics, indicate that 99% of the businesses operating in the region have less than 99 employees. Neath Port Talbot and Swansea have the highest percentage of medium and large sized enterprises with Powys and Ceredigion having the lowest.17
The Changing Pattern of Employment
The way that people work continues to evolve and traditional notions of a job for life is increasingly unrealistic for many within the labour market. Increasingly the labour market is becoming more fluid with dynamic and different ways of working and various ways to be employed, these changes produce a number of skills challenges. Research undertaken by the Recruitment & Employment Confederation (REC) highlights that ‘13% of British people believe they will be working in traditional ‘9 – 5’ employment by 2025’18 highlighting the awareness of the changing nature of employment and the need for flexibility. However the impact of zero hours contracts can affect different groups disproportionately ‘People on ‘zero hours contracts’ are more likely to be young, part-time, women, or in full-time education when compared with other people in employment’.19
The increasing use of zero hours contracts and the development of the ‘gig economy’ provide flexibility for both employers and individuals contractual arrangements but they also pose a genuine skills challenge. The Office for National Statistics (ONS) has identified that 905,000 workers within the UK have no guaranteed working hours20, (often termed as zero hours contracts) with 22% being within the Accommodation and Food sector and 20.2% in the Health and Social Care sector. In addition ‘around a third (32%) of people on “zero hours contracts” want more hours compared to 9% of people in employment not on zero hours contracts’.
The diversity of the arrangements of the ‘gig economy’ include a variety of models including self-employed franchises and personal service companies amongst others. This can shift the responsibility for some skills development from employers onto individuals and can prove a challenge in relation to time and money for individuals.
15 http://ons.maps.arcgis.com/apps/MapSeries/index.html?appid=397ccae5d5c7472e87cf0ca766386cc2
16 http://ons.maps.arcgis.com/apps/MapSeries/index.html?appid=397ccae5d5c7472e87cf0ca766386cc2
17 http://rlp.infobasecymru.net/IAS/themes/economy/businesses/tabular?viewId=595&geoId=1&subsetId=42 18 Gig Economy: The ubernisation of work – REC 2016
19 Contracts that do not guarantee a minimum number of hours: September 2016 - ONS
20 Contracts that do not guarantee a minimum number of hours: March 2017 - ONS
Regional Employment & Skills Plan South West & Mid Wales Policy Context