Employers complain of a lack of relevant skills

The government wants 50% of young people in England to experience higher education by 2010 - against 44% now.

But the British Chambers of Commerce (BCC), representing more than 135,000 firms, wants more vocational training.

"Skills shortages are endemic in many sectors of the economy and are critical barriers to economic success and growth," it said in a report.

A taskforce set up by the BCC has made a series of recommendations aimed at increasing skills training at all levels.

'Lack of understanding'

"The taskforce believes that everyone who stays in post-16 education still needs vocational training as well if they are to progress to a rewarding and productive career," it said.

"However, much of the thinking seems to have been driven by an educational outlook rather than a real understanding of what is happening in the economy and the labour market.

"The strategies have been driven by the supply side and employers have been bombarded by a plethora of schemes and initiatives, many of which have not been fully implemented."

Instead there should be "a simple and coherent demand-led system".

Simply increasing the number of graduates will not address the skills shortages facing business British Chambers of Commerce report

On higher education, the report said: "There should be no target for university admissions because simply increasing the number of graduates will not address the skills shortages facing business."

Instead the government must place greater emphasis on addressing drop-out rates as high as 45% at some universities.

Businesses were "deeply concerned" that the government, parents and educational establishment put too much emphasis on academic and not enough on vocational learning.

The owner of an unnamed engineering company which employs more than 1,000 people, quoted in the report, said: "Too many people seem to get pushed through university leaving only low achievers to apply for apprenticeships.

"This company believes that the problem lies with parents and teachers having an incorrect perception that vocational courses have less value than academic courses."

Careers advice

The report did however argue for formal Learning and Skills Council targets, to ensure greater employer involvement in training at a local level.

And it complained there was "no systematic recruitment system in place for mainstream 16 and 18 year olds who leave education".

Teachers and school careers staff must know about jobs and not "automatically present the academic route as first choice".

The taskforce said modern apprenticeships must not be altered artificially to fit into the new diploma structure being proposed by the Tomlinson working party on 14 to 19 education.

It said the issue was "of fundamental importance".

"The economy requires young people who are educated and trained, not educated or trained."

Competition

The government complains that too many people leave education or training at the age of 16.

But the report said there had been "a huge increase" in the staying-on rate.

This had led people to demand higher level occupations - but they lacked the training for those so instead, "very large numbers" entered occupations which required only GCSE-level skills.

The Department for Education and Skills said: "Our competitor countries are increasing the number of people going to higher education and we cannot afford to be left behind."

It did accept there was a greater need for all students from 14 onwards to develop greater vocational skills - one of the key requirements of the 14-19 Tomlinson review.

"We are determined to work with employers across the country to build up a healthy vocational ladder of opportunity."

The Conservative Party has said it would scrap the university participation target and promote more vocational learning.

Liberal Democrat spokesman Phil Willis said the BCC was right to question the government's "random target" for university admissions.

He agreed that vocational trades now needed "high competence at many levels".

"Today's plumber is also an independent businessperson dealing with complex issues of tax, health and safety and contract negotiation."