Employer investment in Apprenticeships in England: an exploration of the sensitivity of employers in the construction sector to the net costs of training

Apprenticeships in England are undergoing major reform which will likely require employers to make a cash contribution to meeting the fees of their training providers. In return employers will be given more influence over the content of the training. If employers are expected to make a cash contribution this is likely to have an impact on their willingness to deliver Apprenticeships. Based on a series of employer case studies conducted between 1995 and 2011 an examination is provided of construction employers' sensitivity to the costs of delivering Apprenticeships. Because the cost to the employer is relatively high, and because there is a degree of uncertainty attached to recouping those costs, there is a distinct set of disincentives to construction employers providing Apprenticeships. This is important. First, the construction sector will need to recruit a large number of additional people into skilled trades jobs over the next 10 years as the sector's recovery gains pace and many existing employees retire. Second, Apprenticeships in the sector have an important role to play in young people's transition from school into work. A fall in the number of apprentices in the sector is likely to have important economic and social consequences.