Skills Planning Vital To Tackle Gen Z Drift

A new report on a pioneering scheme for business-led skills planning in England has identified a pressing need to better engage Generation Z with the workplace.

The analysis of Local Skills Improvement Plans (LSIPs) found they have engaged thousands of people and employers in the training and education that firms desperately need.

But the report also identifies that the fragmented nature of funding and limited scope to target younger people means a host of opportunities to make greater gains is being missed.

There are 39 LSIPs in England, which have been running for four years. They are led by Employer Representative Bodies which bring together businesses, education providers and other stakeholders in their areas to identify the skills needed to support local economies.

Chambers of Commerce run 33 of the 39 LSIPs and the report assesses their impact and the opportunities to improve the system.

In 2025, the Berkshire and Oxfordshire LSIP involved more than 100 businesses in helping design 45 new courses. This led to more than 1,400 people accessing new training which met real employer needs.

Meanwhile the Essex LSIP was able to target funding towards the creation of new facilities and equipment that helped more than 2,200 learners.

But feedback from Chambers also identified a number of opportunities to unlock potential and further join-up the system.

These include a lack of influence in education for under-16s, opportunities to replicate the system for business support and more effective engagement with young people.

Kate Shoesmith, Director of Policy at the BCC, said:

“LSIPs have been really successful – involving thousands of businesses, training providers and learners over the past four years, to deliver great employment outcomes.

“But they are being held back from achieving more. For instance, there is an urgent need to plug gaps in the quality and consistency of careers advice available to schools – something we’ve been saying for years now. Many LSIPs report that schools are not aware of the growth areas in their local economies or the breadth of careers different sectors can offer.

“That isn’t the fault of teachers – they have enough on their plate. But with almost one million Gen Zs not in employment, education or training, earlier intervention is essential to connect young people to the world of work.

“The longer they are allowed to drift away from employment the harder it becomes. By linking the government’s Youth Guarantee scheme to ERBs who have strategic oversight of their local economies, a pathway into work can be created.

“The tools required to do this already exist through LSIPs. It is just a matter of giving them the long-term funding and authority to make it happen.”

Ross McNally, Chief Executive of Hampshire Chamber of Commerce said:

“As we mark three years of LSIP success across Hampshire and the Solent, we are proud of what has been achieved and how it provides a foundation for the new phase of delivery with employers and partners. The LSIP partnership helps to deepen employer engagement, strengthen skills navigation, and supports the region’s key sectors to invest, innovate and compete internationally. Our next chapter will place even greater emphasis on inclusion, green skills, essential core skills and fostering stronger in house training cultures. We are ensuring that businesses and communities benefit from the momentum we have built together.”

You can read the full BCC Report, Delivering Growth: Four years of LSIP Impact here.

Find out more about the Hampshire & Solent Skills Channel here.