This statement comes at the end of National Apprenticeship Week and after prime minister David Cameron's call on Monday for apprenticeships to be the "new norm" for young people.
In the UKCES report, Employer Ownership of Skills: Building the Momentum, it argues that "for too long, employers have been asked to engage with government-led skills initiatives underpinned by unsustainable levels of public funding."
UKCES has made several proposals it believes will help align skills investment with growth potential:
- Funding employers, rather than colleges, for the delivery of apprenticeships.
- Making public and private investment work harder by measuring the impact on people and business performance rather than simply counting qualifications.
- Bringing trusted Labour Market Information (LMI) together and making it freely accessible to answer questions like "how many of this type of job will be available in the future?" and "what do people doing that job get paid?"
- Incentivising employers to work collaboratively and with unions to form industrial partnerships, taking end-to-end responsibility for skills within a sector or locality by setting standards and defining quality and career pathways.
Charlie Mayfield, chairman of the John Lewis Partnership and UKCES said: "The changes we put forward in this report will challenge us all: employers, the Government, colleges and unions.
"But at its heart, what we are recommending is a long-term commitment to identifying and investing in the skills and talents our economy really needs."
Mayfield added: "To achieve that, employers must be in the driving seat with the freedom to work collaboratively in their sector, in their local area, within their supply chain, and with colleges and training providers to address the skills gaps they face now and in the future.
"In return, employers need to take responsibility for generating training opportunities for young people that are more relevant and more valuable.
"None of this will be easy, but I believe it is vital if we are to develop the kind of workforce which will deliver on our shared ambitions for growth and prosperity."
Scott Johnson, an entrepreneur who is also a commissioner at UKCES said: "As a small-business owner, a direct incentive would encourage me to give an opportunity to a young person and at the same time would give me the buying power to get the skills my business needs for growth."