Apprentices could contribute £3.4 billion a year to the UK economy through productivity gains by 2022, a new report from the Centre for Economics and Business Research (CEBR) says.
Released to mark the National Apprenticeship Week 2013, the report says a completed apprenticeship can add an average of £214 a week to business productivity through increased profits, lower prices, better products and higher wages.
Gains vary from sector to sector, but engineering and manufacturing show the biggest weekly uplift of £414.
The number of apprentices is expected to rise from 260,000 in 2012/2013, to 480,000 by 2021/2022, 81,000 of them in engineering and manufacturing.
Deputy Prime Minister Nick Clegg said: “Apprenticeships are at the heart of our drive to provide employers with people who have the skills needed for their businesses to prosper and compete, often in a global market.
“Apprentices are vital to Great British business – from mechanical engineering and business administration to dental nursing and physiotherapy.”
Secretary of State for Business, Innovation and Skills, Vince Cable, said: “This research confirms the economic importance of apprenticeships and sends a clear message that they deliver for employers, individuals and the economy.
“I want to see more small and medium businesses reap the benefits of apprenticeships which is why we have introduced a £1,500 incentive for SMEs who take on a young person.
“I hope that during National Apprenticeship Week more employers up and down the country will look to increase their skillset and productivity by taking on an apprentice.”
For information about Apprenticeships and the Apprenticeship Grant for Employers of 16 to 24 year olds (AGE 16 to 24) which offers £1,500 to help SMEs cover the costs of taking on a new apprentice, visit apprenticeships.org.uk or call 08000 150 600.
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