When discussing the benefits of apprenticeships, we often focus on the individuals directly involved – namely the apprentice and the employer. This blog post will explore how apprenticeships benefit the economy on the whole, thus benefiting our entire society.
According to the Centre for Economics and Business Research (2014), apprenticeships contribute £34 billion to the UK economy.
Contributions to this included higher wages, business profits and taxes, as well as a reduction in unemployment benefit payments.
CEBR showed that benefits to organisations while training apprenticeships were £1.9 billion per year.
The report showed that for every £1 of public money spent on apprenticeships, the economy benefitted by £21.
The proven benefits, therefore, do not only affect those directly involved (the apprentice and employer), but the state in general. Employers are urged by the Skills Funding Agency to recognise the positive impact apprenticeships have made in the past (and will make in the future).
CEBR also published Benefits of Apprenticeships to Businesses, which gave a great insight into public attitudes to apprenticeships.
In this report, they found that two-thirds of the public saw apprenticeships as something which contributed to society and provided opportunities for young people. Moreover, 5 million consumers said they were more likely to purchase from an apprentice employer.
This research highlighted how typically, an apprentice will deliver productivity gains of over £10,000 per year. This number increases in some sectors, including engineering and construction. Not only do apprentices deliver such gains, but these economic benefits are experienced even before the individual becomes fully qualified.
As apprenticeships become increasingly popular and the variety of apprenticeship topics expand, the economic benefits of apprenticeships will continue to flourish. For updated research on such benefits, stay up-to-date with the Centre for Economics and Business Research: https://cebr.com/
University of Kent offer a fully managed apprenticeship service that will support both business and student throughout the degree apprenticeship.