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Education

May 2007

Introduction

Under the official Standard Industrial Classification (SIC, 2003) the education sector encompasses the full range of education services including both public and private education at any level or for any profession, oral or written as well as by radio, television and internet. Its scope extends from primary and general secondary education, including pre-primary ("nursery") education and technical and vocational secondary education ("further education"); higher education from sub-degree to post-graduate level; and adult and other education, including the activities of the Learning & Skills Council and National Training Organisations and of private training providers and driving school activities.

Employment

Education is a basic local service activity and a major employing sector. In 2005 there were nearly 64,000 education-related employee jobs in Lancashire. This represented 10.6% or one in ten of all the sub-region's employee jobs, a proportion slightly higher than the Great Britain average of 9.4%. Some 48,000 or three-quarters of the workforce comprise female employees of whom 58% worked on a part-time basis compared with 32% of men. Overall, a substantial 48% of the education sector's workforce was employed on a part-time basis.

Table 1 Education: Employee Profile, Lancashire, 2005
Employment Status No. of Employees % of Employees
     
Male full-time workers 10,900 17.1
Male part-time workers 5,200 8.2
Female full-time workers 22,000 34.5
Female part-time workers 25,700 40.2
Male workers 16,200 25.3
Female workers 47,700 74.7
Full-time workers 32,900 51.6
Part-time workers 30,900 48.4
     
Total 63,900 100.0
Source ONS - Annual Business Inquiry, 2005

Figure 1 Education Employment by District, 2005
Graph showing the number of education employee jobs in Lancashire's local authorities - see text for details
Source ONS - Annual Business Inquiry

Education jobs are widely spread across the County, in part reflecting the distribution of population and specifically the school age population, though the two largest centres – Lancaster and Preston – each the base of a university as well as wider educational services, between them account for about 29% of Lancashire's education jobs (Figure 1). Locally, education jobs make up 18.2% of all jobs in Lancaster District and 14.7 in Rossendale, falling to a share of 5.3% in Fylde and 8.2% in Chorley.

Structurally the sector comprises some 1,490 separate employing units – i.e. schools, colleges, training establishments, etc. across the sub-region with an average size of 43 employees. More than a half of these establishments employ fewer than 25 people but these account for only 10% of the workforce (Table 2). On the other hand, the top 124 establishments, each with 100 or more employees, account for over a half of the total sector workforce. The Universities of Lancaster and Central Lancashire are the two largest institutions.

Table 2 Size Structure of Education Establishments: Lancashire, 2005
Employee Size Band Establishments Employees
No. % No. %
         
1-4 369 24.8 800 1.3
5-10 193 13.0 1,400 2.2
11-24 248 16.7 4,300 6.8
25-49 398 26.8 13,900 21.7
50-99 154 10.4 10,300 16.1
100-199 97 6.5 13,200 20.6
200+ 27 1.8 20,000 31.3
         
Total 1,486 100.0 63,900 100.0
Source ONS - Annual Business Inquiry, 2005

Employment Trends

Employment in education activities expanded steadily over post-war years with a particularly sustained surge over the 1960s and early 1970s associated with demographic changes and with the expansion of further and higher education (Figure 2). Thereafter employment growth remained modest until a further large expansion in the second half of the 1990s associated with growth in pre-primary education and adult training provision and major public expenditure across both primary and secondary education. The largest segments of education employment in Lancashire today are in primary education, which continues to expand quite strongly particularly in terms of support staff whose numbers have doubled over recent years; followed closely by general and technical/vocational secondary education. Growth in higher education has been under-pinned by the government target of 50% participation by 18-30 year olds in English higher education by the end of the decade whilst there have been increased job opportunities in adult and special education and in the activities of private training providers.

Figure 2 Education Employee Jobs: Lancashire, 1950-2005
Graph showing how the number of education employee jobs in Lancashire has changed from 1950 to 2005 - see text for details
Source Ministry of Labour/ONS - ERII Employment Records

Table 3 Education: Lancashire Employee Jobs, 1993-2005
  Primary Education Secondary Education Higher Education Adult & Other Education All Employee Jobs
           
1993 13,000 12,300 9,100 2,600 37,000
1995 13,800 12,500 9,900 1,700 38,000
1996 14,400 12,400 10,100 2,800 39,800
1997 15,200 12,200 10,200 2,600 40,300
1998 16,700 13,200 11,900 3,400 45,200
1999 16,100 13,300 12,500 3,700 45,600
2000 17,100 13,200 11,900 3,300 45,500
2001 17,200 13,000 12,700 4,000 46,900
2002 24,200 16,600 13,400 4,600 58,800
2003 23,500 16,500 13,600 4,300 57,900
2004 25,300 16,900 15,000 5,100 62,300
2005 25,000 17,700 15,900 5,300 63,900
Note Primary and secondary education employee figures for the period 1999-2001 are suspect. It appears that there may have been an erroneous classification of some educational establishments resulting in an under-estimation of local job numbers in the sector.
Source ONS - Annual Employment Survey/Annual Business Inquiry

General Characteristics

Stonyhurst College, Hurst Green, Ribble Valley
Photograph of Stonyhurst College at Hurst Green in Ribble Valley

Economically, education is a major sector in its own right and the proportion of total financial resources devoted to it is one of the key choices made by government, enterprises and individual students and their families. It is an investment item since it affects the future income of both the individual and the nation: it can help foster economic growth, enhance productivity, contribute to personal and social development and reduce social inequality.

Total expenditure on education services by central and local government in the UK in 2004/05 was £64bn. This included £4.2bn directly on under-fives, £36.5bn on schools, £7.4bn on further education and £7.8bn on higher education. On the broadest measure the current level of public expenditure on education across the UK represents about 5.6% of total gross domestic product (against 4.7% in 1997) or approximately 13% of all public expenditure. The contribution of the private sector has also increased over recent years and taking account of private as well as public sources of funding, the UK spends in the order of 6.1% of its total GDP on educational institutions.

Locally, universities and major colleges of further education are often amongst some of the largest employing organisations and can have significant economic impacts in terms of their expenditure power and multiplier effects and in attracting revenue and generating employment within the area. Moreover, their role in community outreach work and in assisting the re-generation of urban areas has received increased recognition over recent years.

Education generally is being called upon to play an increasingly important role in preparing young people to enter the business world and to continue to update skills throughout the working life. Through its content, organisation and the quality of its training and formation, education is the most important factor in meeting the demand and the changing conditions of the labour market. A general tendency towards a longer educational period reflects both an increasing need for higher education as a protection against unemployment and the political desire to offer as many students as possible the opportunity to complete secondary studies and to move into higher and further vocational education.

For further details, please contact:
Peter Kivell
Tel 01772 534157
Email Peter.Kivell@lancashire.gov.uk