Six million people in England risk being without a job or in work they are over-qualified for by 2030, new research for the LGA suggests.
The Learning and Work Institute, which authored the report, estimates that not meeting the skills needs of employers could lead to a potential loss of £120 billion in economic output by the end of the decade.
The current centrally governed skills and employment system, which sees £10.5 billion a year spent by eight government departments or agencies across 20 different national schemes, is creating a confusing and ineffective system.
The LGA is calling for the Government to use next month’s Budget to devolve all back-to-work, skills, apprenticeship, careers advice, and business support schemes and funding to the local areas in which they are used.
Cllr Kevin Bentley, Chairman of the LGA’s People and Places Board, said: “Millions of people face a future where they have skills mismatched for jobs at a huge cost to people’s lives and the local and national economy.
“Councils are ideally placed to lead efforts to help the Government bring growth and jobs to all parts of the country and ensure everyone is fully equipped with the skills they need to compete for future jobs.”
Stephen Evans, Chief Executive of the Learning and Work Institute, said: “We now need a decade of investment, in order to boost life chances, economic prosperity and to level up the country.”