National Transition Training Fund (NTTF): year 1 report

Conclusions

The NTTF was introduced at a point in the pandemic when there was limited information on what the impact of the crisis would be on unemployment, or which areas of the economy and labour market would be most affected in the short and medium term. It was designed principally to respond to rising levels of unemployment in line with labour market projections.

When unemployment levels did not rise as anticipated, largely as a result of UK and Scottish Government interventions, the Fund pivoted its focus to take a flexible, sectoral approach to support, including through upskilling and in-work provision. With sectors such as manufacturing, culture, tourism and hospitality effectively shut down from March 2020, labour market concerns centred around how businesses could retain talent or to ensure markets would not be lost through a lack of skills.

Key to the success of the interventions in these sectors has been the project-based nature of the Fund which has allowed for training for different purposes to be developed and delivered, often in partnership with the sector. For example, in tourism and hospitality, the core aim has been to support the retention of talented and experienced staff while in aerospace, training for new markets, such as de-commissioning, has helped businesses' future sustainability.

These changing labour market conditions, and the rapidly evolving circumstances of the pandemic throughout the Fund's first year has meant that delivery of Year 1 of the NTTF was not without its challenges. The Fund was set up at pace and providers had to move quickly to adapt their training courses for online provision while remaining flexible to changing national and local restrictions.

Despite these challenges, the report on Year 1 shows that the combination of tailored support for sectors, alongside employability support, and college and university-based training for individuals, has had a positive impact on the skills and training of people and businesses across Scotland, making an important contribution to supporting our recovery.