Update image to hire modern apprentices

12.00.00am BST (GMT +0100) Tue 27th Jun 2006

The capital's job market is struggling to fill vacancies because of a shortage of skilled workers yet on-the-job-training is seen as the poor relation to academic qualifications, the London Assembly warns today.

This skills deficit is one of the biggest economic challenges the UK faces and the problem is more acute in London. Nearly one in ten of the capital's workers do not have all the skills needed for their job.

The Assembly's Economic Development, Culture, Sport and Tourism Committee's investigation of apprenticeships found such schemes present real career opportunities for thousands of young Londoners. But despite recent high profile TV images, there are misconceptions that most initiatives are 'Cinderella' training options; better suited to those without good GCSE passes.

Dee Doocey AM, Chair of the Committee, said: "London must have control of it's own apprenticeship schemes so that they can focus on the capital's needs in terms of skills and jobs rather than Government targets."

The London Assembly supports the Mayor's call for strategic powers in training and skills. The Committee says that local employment needs must drive skills provision and urges the Government to stop imposing targets for apprenticeship numbers in London.

The investigation found several hurdles in the provision and take-up of apprenticeships. Schools in their careers advice frequently downplay work-based learning. Employers tend to have exaggerated fears about bureaucracy, costs and risks involved with taking on trainees.

Cases of explicit discrimination still exist for black, ethnic minority and female applicants. Fewer than 3 per cent of 16 to 19 year-olds from ethnic minority backgrounds enter apprenticeships. 93 per cent of plumbing apprentices in London are white.

Drop out rates for some apprenticeships can be as high as 40 percent. Many young people are tempted by full time wages, rather than what they can earn on apprenticeship schemes. But the result for trainees who obtain skills and qualifications can in the long term be just as lucrative.

Retention on some schemes could also be improved if apprentices were permitted to change employers or colleges and retain credit for what they have already achieved.

Dee Doocey added: "Londoners need to be better placed to take advantage of jobs arising from major projects like the 2012 Olympics, Crossrail and Thames Gateway. The Mayor, Government, Learning and Skills Council and Trade Unions all have a role to play in improving the reputation of modern apprenticeships."