The Centre for Economics and Business Research (CEBR) has launched a new report to mark the start of National Apprenticeship Week 2015, which has found that consumers prefer to do business with businesses employing apprentices.
The ‘Benefits of Apprenticeships to Businesses’ study finds that offering apprenticeships were perceived by two-thirds of the public as contributing to society and providing opportunities for young people, with 5 million consumers more likely to make a purchase from an apprentice employer.
One in four consumers say they would go as far as even paying more for goods and services offered by companies that employ apprentices. Aggregated across key sectors in the economy, this price-premium would equate to an additional £18 billion a year in consumer spending.
National Apprenticeship Week 2015 is a national drive to promote the benefits of apprenticeships. Events across the country will celebrate the success of apprenticeships that have been transformed over recent years so they are more responsive to the needs of employers and learners.
Today’s research also highlights a number of other financial benefits firms employing apprentices can enjoy, such as increased long-term productivity. A typical apprentice delivers productivity gains of over £10,000 per annum, rising to almost double that in the construction and planning, and engineering and manufacturing sectors. Moreover, the research demonstrates that even before an apprentice is fully qualified, many businesses will see economic benefits of offering apprenticeships. The figures show that while training, each apprentice in England is estimated to deliver an average positive net gain of £1,670 per annum to their employers.
Business Secretary Vince Cable said: “In launching National Apprenticeship Week we are celebrating the 2.1 million apprenticeship starts since 2010 and the positive impact they are having on businesses around the country. The benefits of apprenticeships are clear – they make a vital contribution to the economy, boost business productivity and give people the skills they need to get on in the world of work. As this research shows, there has been an important shift in the attitudes towards apprenticeships with businesses, consumers, and young people recognising the significant opportunities they can offer.”
Skills Minister Nick Boles said: “This research is further proof that apprenticeships deliver for businesses as well as providing life changing opportunities for young people. National Apprenticeship Week gives us the opportunity to raise the profile of apprenticeships and traineeships, and to celebrate the important role they play in our economy. I encourage people of all ages and employers of all shapes and sizes to find out more about apprenticeships and how they can deliver for them.”
As part of National Apprenticeship Week, employers are being encouraged to share their reasons for employing apprentices on social media, with #100reasonswhy.