The Government have already put in place improvements to the national living wage and will do more in that arena. Productivity is about a lot more than wages. From contributions that the hon. Gentleman has made in previous debates, I know that he is fully aware of that, too. The situation is more complicated.
One in four jobs left vacant in 2015 were due to skills shortages. The CBI has found that one in five employers want candidates for jobs who not only have academic qualifications but can demonstrate other skills as well. So the Government must ensure that their efforts to close the skills gap inspire and motivate those who would gain most—those in training and businesses that need their skills. If we are to strive to achieve the greater parity of esteem that we have talked about and to get businesses actively involved in education and training, we need to motivate more young people who are planning to pursue the non-academic track to gain the skills that will transform their lives. Only then will we secure the prize of greater national productivity. Wages have a role to play, but so, increasingly, does motivating young people to want to acquire these skills.
The key to promoting technical training will be the Government’s drive to provide 15 clear routes to 3 million quality apprenticeships. These routes are set out in the post-16 skills plan, which was published in July. It is a strong plan; my hon. Friend the Member for Grantham and Stamford (Nick Boles) deserves real credit for setting it out, and I join the hon. Member for Hove (Peter Kyle) in wishing him a speedy and full recovery from his current health challenges. Those routes—or “occupational categories” as they are called in the Bill—will signpost such sectors as construction, catering and hospitality, and vital ones such as engineering and manufacturing. The obvious, recognisable nature of these categories will give young people the assurance they need that apprenticeships are, and will be, focused on delivering identifiable careers and are relevant to their own fields of vocational interest. Relevance is absolutely key.
Confidence in these routes as genuine career paths can be bolstered only by involving businesses in their design. Fostering links between business and schools, and between business and the rightly reconstituted Institute for Apprenticeships and Technical Education, has never been more urgent. The Government have taken the initiative in encouraging businesses to step up to the plate and to deliver employer-led technical education that addresses the skills gap. I hope businesses will now seize this opportunity—it is vital that they do.
The Bill should be seen as part of a process of going further in breaking down the barriers between education and business—between school lessons and work experience. I have talked to my right hon. Friend the Minister about this. We need to get more young people out of school and into business, and more businesses into schools and further education. Indeed, schools themselves need to be made more aware of the options for, and the importance of, motivating young men and women in the classroom about wider opportunities to develop skills and career options.
No one in the House wants schools to feel they are being imposed on by the Bill; we want them to recognise the benefits of the Bill for the futures of the young people in their care. It is important to establish, as set out in part 3 of the Bill, an information-sharing relationship between the Department, schools, academies, colleges and other providers. Businesses, too, will need to find it easy to engage with education providers to be motivated to participate. Those relationships will need to be forged—in some cases, from scratch.
Fortunately, there is good practice—from existing schemes to introduce business skills into schools—to learn from and extend. For example, Young Enterprise and Enabling Enterprise provide teachers with opportunities to link up with business, and supply model exercises in flexible, transferable life and work skills. Young Enterprise already has relationships with over 50% of secondary schools. I shall be interested to hear—although this is not directly relevant to the Bill; it relates to the wider issue of what we can do to engage and motivate people—what role my right hon. Friend believes these schemes will play in this vital area of motivating more people.
There is much more that we need to do to close these skills gaps. In South Korea, for example, there is a clear difference between the skills gap among 55 to 65-year-olds, nearly half of whom are low-skilled, and among 16 to 24-year-olds, who have a much higher skills base.
In England, however, about 30% of the 16 to 24-year-old age group and the 55 to 65-year-old age group are classified by the OECD as having low skills. It is clear that we are not closing the gap for the different age cohorts, and the Bill will be fundamental in taking that work forward.
My right hon. Friend is absolutely keen to move things forward on social mobility and to play his part in the party for the workers, which is something he has helped to articulate in recent years.