GUEST COLUMN:
Ian Price
Director
CBI Wales
Over the last few weeks, students across Wales have received their A-level, GCSE and BTEC results. Whether they received them in the post, at school or college or via a smartphone, nothing can take away from their importance to young people who have worked so hard to achieve them.
Employers were particularly interested in the latest results, the first published under the type of ‘normal’ exam conditions seen before the pandemic. There was a downturn in the very highest A-level grades in Wales, but an uptick in the top marks awarded to GCSEs, as measures were removed that mitigated against lost learning time during COVID.
However, of more concern was a fall in the proportion of students from Wales going into higher education. UCAS, the universities admissions service, revealed that 17,000 people in Wales had been accepted for a place at university for the new term by mid-August, representing 29.4% of students. This figure compares with 35.6% in England, 29.7% in Scotland and 36.8% in Northern Ireland. The overall UK university entry rate was 34.9%.
Regardless of whether students enter higher education, further education, take up an apprenticeship or go directly into work, companies right across Wales look forward to welcoming this cohort of talent into their ranks, with real excitement for their new skills, creativity and insights. For example, BTEC – in which almost 80% of pupils received pass marks this year – is particularly highly prized by world-leading manufacturers such as Airbus and Toyota that call Deeside home.
While the latest GDP figures suggest the economy has finally shaken off the slumber of recent years, we know that many companies across the UK are still looking for more people to truly power their growth ambitions. According to the latest labour market statistics, employment in Wales has been generally increasing over the last few years, despite well-known setbacks. Currently paid employment stands at 1.32 million. Yet unemployment is down on the year.
Meanwhile, we are still seeing staggering levels of economic inactivity. The ONS shows the current economic inactivity rate in Wales stands at 28.3%; by comparison UK economic inactivity rate is 22.2%.
Firms tell us that they are struggling with labour shortages. Absences due to ill health form a big part of that. Previous Office for National Statistics (ONS) estimates show that 2.8 million in the UK are out of work due to long-term ill health. The impact on our economic prospects is stark: according to a CBI-Pertemps report, 38% of firms have turned down growth opportunities because of labour shortages. A healthy economy needs a healthy workforce.
The Welsh Government, in addition to the Working Wales programme and Jobs Growth Wales+ that both help the economically inactive back into work, offers Healthy Working Wales which provides free basic services and advice to employees. The Access to Work scheme provides financial support to help employees with disabilities or health conditions remain in or return to work. However, it is the adoption of the Employee Assistance Programmes (EAPs) that can really make a difference.
Yet businesses want to play a more proactive role in the health of their employees, but the current tax system discourages it. Politicians have the power to change the economic picture, through action on employee health tax incentives. The CBI is calling on the Government to make UK-wide EAPs a fully tax-free benefit – so it’s easier for firms to support their people in broader and more substantive ways. On top of that, relaxing rules on tax relief for employer-funded medical treatment recommended by occupational health specialists will incentivise businesses to help their staff intervene on chronic health conditions earlier. These measures can make a real difference.
As the Welsh Government’s Economic Contract shows, firms are keen to provide their people with a great experience at work – leading to positive results for the local economy. Providing support on health will help make entering the workforce more attractive, including for those who are just making their first steps in the professional world, like the students in Wales who received their results.
Employers know how important it is to make sure they can help their staff be well and stay well. If we provide for the health of our people, and make sure we offer the best possible experience to those starting out in their careers, we have a better chance of bringing about sustainable growth. This will require close collaboration between business and all tiers of government on matters like health tax – enabling us to deliver the high-productivity, high-skills workforce that will take us to greater economic prosperity. An ambition that – if realised – will benefit ‘UK plc’ and the people of Wales alike.
