Department for the Economy Board minutes 2026 - 1 April 2026

Graeme Wilkinson presented

• Purpose of presentation to set out pressures, challenges, early reform thinking and direction of travel.
• Skills are an important lever for economic growth. The system continues to face fragmentation, funding instability and employer alignment. Independent reviews consistently highlight structural issues.
• Labour shortage continues to be a challenge and will increase. There has been a large increase in the number of jobs but filling them is an issue. Participation in lifelong learning is 17% in NI but 30% in European countries.
• Employers are looking for STEM skills and female participation is an issue.
• There is a disinvestment in skills in NI with the opposite in GB and ROI.
• Positives include that 16k+ across apprenticeships and HLAs. Some interventions in NI are world leading. 243 graduates have gone through Assured Skills Academies in 2024/25 with 165 hired. We are able to be agile and responsive. There is much improved employer engagement. We are seeing an impact at the macro level.
• There are over 20 schemes supported through the Skills Fund. This demonstrates the ability of ALBs to react and respond to employers’ needs.
• Apprenticeships are at all levels with great feedback from employers and participants. They provide the ability to demonstrate skills in the workplace, particularly soft skills.
• An OECD review of 2019 highlighted the under utilisation of skills – not being in the right area.
• Persistent system challenges mainly relate to fragmentation. Duplication happens too. Structural change is needed to address the issue. SMEs find it difficult to engage with government in a meaningful way – a sectoral based approach is necessary.
• There is a declining skills investment. The position has changed significantly over the last number of years. Money is received through the Barnett consequential but not all of this is used for skills funding. Only 0.3% of NI public spend is spent on Skills in Industry which is very low compared to other countries, particularly ROI.
• There are immediate funding pressures with proposals for savings with the Minister. These include closing the pathway to those already in employment – this closes off progression pathways which are the lowest in Europe. A reduction in funding to the Skills Fund is another proposal.
• Transformation of the skills system – we are engaged with DfC and Invest NI how best to use funding. Sectoral partnership and how to engage with employers is important.
• One of the actions of the Skills Strategy was the creation of the Skills Council to make a joined-up process. We are conducting a review how to use the Skills Council in a more effective way. Is there value in having the Skills Council?
• Looking ahead we are looking at options for growing stakeholder appetite for reform which is unlikely in this mandate. We are also in early engagement talks with Invest NI and DfC.