Together we can weather the economic storm
Posted to Employer Engagement at 5:19 pm on March 12th, 2009 by Stephen Studd
There is no mistaking that this is a difficult time for the economy. As we move into spring, more job losses and redundancies are reported, along with the downturn in consumer spending and rise of repossession figures amongst homeowners – there really isn’t much to celebrate.
Let’s not forget that over the last ten years sport and active leisure however, has outperformed the rest of the UK economy four fold in terms of GVA and employment. Yet the period of recession that we are now in will put immense pressure on the sector to maintain its position in the economy.
We are a service sector and therefore we attract discretionary spending. Consequently there is now a real concern that this spending will be hit. Prior to Christmas there was no clear evidence of this and there is a view that fitness and physical activity is now more resilient and the benefits are better appreciated by the consumer. Recently there has been anecdotal evidence that customers are being more cost conscious and looking for more value of money with their gym and leisure centre memberships. However, both privately and publicly owned and run clubs and centres are in the same boat. Local authorities are not immune to the lack of public spending and face the same business pressures as privately owned health clubs after all; people still pay for leisure services.
During this time it is crucial for SkillsActive to work with employers, to help them through this period of turbulence and maintain their status within both the economy and government agenda.
We’re taking a four ‘R’ approach. Retain: where possible encourage employers to retain their staff, facilitate opportunities to access funding for training and keep people on the ‘shop floor’. Re-skill: proactively broker training solutions for employers to introduce new skills in the workplace. Re-deploy: encouraging perhaps smaller employers to share both expertise and workplace training. For example, if an Apprenticeship programme cannot be completed within one organisation, linking with another to ensure the apprentice can finish the programme. Re-engagement: encouraging employers to open their doors to people who have perhaps been made redundant and offer volunteering places, coaching hours or similar to engage them with the sector.
The fact is recession or no recession, increasing the number of people participating in sport and physical activity and adopting an active lifestyle is the key success for all parts of the sector and is an agenda shared with government. And although the last economic slowdown back in 1997-98 did have an impact on the sector, and we witnessed negative growth in employment, I am confident that ten years on consumers are more health conscious and physically active. That doesn’t mean we don’t need to stop encouraging them back through the door. A workforce with more people, better skilled, better qualified will help. And although we will inevitably come up against challenges over the coming months, working together we can and will overcome them.



