Professor Julie Lydon explores the skills Wales will need, and what role universities will need to play, to respond to the challenges and opportunities of the future
Every strong, sustainable economy has its foundations in the education and skills of its population. With the current pace of technological advancement and the changes taking place in workplaces across the world, this is perhaps more important than ever before. As we enter what has been described as a fourth industrial revolution, with experts predicting a near unprecedented level of automation in the coming decades, many have considered what these changes mean for individuals and businesses, and what skills will be needed to make the most of the opportunities of the future.
Much of the discussion around automation and technological change has focused on the risks that these changes pose to jobs. Frequent headlines suggest that a third of jobs across the world could be lost. While most accept that automation does risk displacing jobs in Wales and the UK, there is also a recognition that, historically, automation has brought with it increased productivity and where jobs are displaced, new ones are also created.
But while recent studies estimate the number of jobs created in the UK by automation will balance out the jobs lost, this does not capture the social or cultural impact of job displacement. Nor does it capture the potential for those new jobs to be created in areas outside Wales, exacerbating existing regional disparities between Wales and the rest of the UK.
In preparing for technological and economic change, research and innovation (R&I) and skills are two central pillars of any government’s approach. Our report – Solving Future Skills Challenges in Wales – launched today at the cross party group for universities – explores what skills Wales will need and what role universities will need to play to ensure that Wales is well-placed to respond to the challenges and opportunities of the future.
The report starkly outlines some of the particular challenges we face in Wales. Our population is, on the whole, older than the UK average and less well-qualified. In the 2011 census, in Wales 26.5% of the usual resident population aged 16-64 had a degree compared to 28.7% of those in England. Our productivity continues to be one of the lowest in the UK, which means that providing the opportunity for people of all ages and background to access higher education is even more important in Wales than it is elsewhere in the UK. And, for the Welsh economy, universities are of greater economic importance than other UK regions.
But just as Wales faces unique challenges, we are in some ways also a step ahead. The implementation of Professor Sir Ian Diamond’s recommendations on student support arrangements and higher education funding is already helping improve access to flexible learning, and early figures suggest a 35% increase in those choosing to study part-time in Wales. In the face of uncertainty in higher education in other parts of the UK, the Diamond Review gives us a clear way forward in Wales and one which will contribute to us meeting Wales’ future skills needs.
As well as delivering the Diamond package there are other things that government, providers and employers can do to prepare for the challenges of the future. Across the UK we have seen a sharp increase in demand from employers and individuals for degree apprenticeships. Tens of thousands of people across the UK are already studying on these work-based routes to a bachelor’s or master’s degree. In Wales, degree apprenticeship delivery is currently limited to bachelor’s level and only in the subject areas of engineering and advanced manufacturing, and digital. Given the ageing population in Wales and the increasing urgency of reskilling that population, it is imperative that Welsh Government supports universities in providing a broad range of work-based routes to undergraduate and postgraduate learning.
For universities, there will also be a need for us to work with government and other providers to consider how we can increase flexibility for those wishing to study flexibly. For example, what opportunities do people have to complete short courses or to study at the times that best work for them?
There are also opportunities for all post-16 providers in Wales to build on the existing collaboration that takes place which, as well as facilitating progress, could also help deliver skills in potentially remote or rural areas, or in ways that fit with work or caring responsibilities.
The workplace is changing, and there are risks and opportunities for Wales in this change. This report examines one part of what must be Wales’ response to these future challenges – how we provide higher level skills in ways that are flexible and accessible. Universities working with key stakeholders have an important role to play in achieving this. And by ensuring we have a post-16 education system that is flexible and responsive to the future needs of Wales, we can provide opportunities for people of all ages and all backgrounds to gain new skills and benefit from the opportunities that automation could bring to a modern and prosperous Wales.
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