In the UK there is strong evidence that individuals who acquire an apprenticeship qualification go on to have good labour market prospects, in terms of their earnings and indeed their employability. This is consistent with international evidence on the high economic value of these qualifications for individuals.

This report explores what types of firm engage with the apprenticeship programme and if there are characteristics that make them more or less likely to offer apprenticeships. The aim of the research is therefore to identify whether there are key determinants of firms' engagement with the apprenticeship programme that may be susceptible to policy intervention.

The research used two data sets, namely the National Employers Skills Survey (NESS) and the Annual Business Inquiry (ABI) to undertake the research. The former contains detailed information on a range of skills issues faced by firms and variables measuring their engagement with the apprenticeship programme. The latter provides additional information on the productivity, capital investment and employment characteristics of firms.

This report was written for the Centre for the Analysis of Youth Transitions (CAYT). A repository of CAYT impact studies is hosted by Mentor-Adepis (Alcohol and Drug Education and Prevention Information Service).