When comparing the economy of today with the situation only one year ago, one may be forgiven for assuming that the fast pace of recovery has ensured financial security for businesses in record time. However, as the economy is still geared towards austerity and is thus highly dependent upon business growth in order to maintain stability, there could be clouds on the horizon yet.
In fact, a report by the UK Commission for Employment and Skills (UKCES) has indicated that economic growth could stagnate in the near future thanks to a shortage of skilled workers. At present, around 22 per cent of available job vacancies in England are within sectors which require a high level of skill, yet employers are unable to source workers with the ability to fill these positions – creating a phenomenon known as “skills shortage vacancies.”
Worryingly, this figure appears to be accelerating more steeply than the rate of economic recovery, with the number of skills shortage vacancies having almost doubled since 2009. Meanwhile, the number of total job vacancies has climbed by 45 per cent in the same timeframe, indicating that a high proportion of jobs being created are in areas which require a strong skill set from workers.
With one in five job vacancies being left unfilled as employers struggle to source skilled workers, employers’ organisation the Confederation of British Industry (CBI) insists that more must be done to address the pressing issue at grass roots level. Director for employment and skills, Neil Carberry, believes that introducing a greater number of high-quality apprenticeships is the most logical course of action, as well as revolutionising careers advice given in schools.
He says; “The flip side of faster growth is an escalating skills crisis.
“While this isn’t surprising, it makes it all the more urgent to close the skills gaps in science, technology, engineering and maths to support the recovery.”
The report, which surveyed the recruitment policies of more than 90,000 employers between March and July 2013, found that the problem was most acutely felt in Scotland – in fact, a quarter of all vacancies were as a result of skills shortages. It also found that employers are now spending less on staff training than in 2011, perhaps in a bid to build business capital and reduce overall spending.
Another key industry body supporting a policy of greater skills support in the education system is the British Chambers of Commerce (BCC), which has recently published a skills and employment manifesto outlining the problems British businesses could face if this matter remains unaddressed.
President Nora Senior says; “Skills will decide who wins and who loses in a 21st century economy – yet employers across the UK constantly say they struggle to find prospective employees, particularly those leaving education, who have the right skills to succeed in the workplace.
“The world has changed at a rapid pace; if Britain doesn’t keep up, employers who are unable to access the skills they need or those unwilling to invest in training will lose business to other firms at home and abroad, putting us at a disadvantage.”
Previous Post
Landmark Washington Hotel Sold
