UK Skills Shortages Worsening

Published: 6 February 2014

Worsening skills shortages may stop UK businesses from taking advantage of the economic recovery, according to a report from the UK Commission for Employment and Skills (UKCES), reports the BBC. In a survey of 91,000 employers, the report found that one in five vacancies were unfilled due to candidates having a poor skills base.

UKCES found that 146,200 job vacancies (22%) last year were unfilled because of inadequate skills, compared with 91,400 (16%) two years ago. The growing concern about skills shortages comes as the UK economy is reported to be showing signs of recovery.

The UKCES report ‘Skills for Sustainable Recovery’ found there were 655,000 vacancies in the UK between March and July 2013, up from 586,500 in 2011. It suggests that the problem of inadequate skills, qualifications, or experience in the workforce is hitting some industries harder than others, with more skills shortages found in areas; such as manufacturing, construction and plumbing, as well as in health and social care.

The study also found that employers struggled to find employees with the core generic skills of communication, literacy and numeracy: "There has been an increase in the proportion of skill-shortage vacancies resulting from a lack of communication skills, particularly oral communication (41%, up from 37% in 2011), as well as a lack of literacy (34% up from 28% in 2011) and numeracy skills (26%, up from 24%)."

Douglas McCormick, a commissioner at UKCES, said: "Whilst the rise in the number of vacancies is a good sign that the economy is recovering, there's a real possibility that businesses might not be able to make the most of the upturn because they don't have the right people. This shows that businesses need to start thinking about planning their talent pipeline now - not waiting until they are unable to fulfil contracts because of a lack of skilled staff."

Matthew Hancock, Minister for Skills and Enterprise, added: "Employers in some sectors report persistent skills shortages, which is why I have been working hard to design a skills system that is rigorous in the training it provides and responsive to the needs of employers.”

Neil Carberry, director for employment and skills for the CBI, said: "The flipside of faster growth is an escalating skills crisis.”

TUC general secretary Frances O'Grady said: "It's great that more businesses want to recruit. But with jobseekers outnumbering vacancies by four to one, it's hugely frustrating that across the UK a large number of jobs go unfilled because of local skills shortages. Employers, unions and government must each play their part in tackling the UK's damaging skills shortages."

Ultimately employers who want to successfully appoint the required talent to drive growth and take advantage of the current economic up-turn and rising confidence, will need to be pro-active and imaginative in their future recruitment campaigns.  Plus they will also need to have a strong, transparent and candid relationship with a leading recruiter in the specific functional area and/or sector.

Simon Walton is a Partner and Head of the Retail & Consumer Practice at Berwick Partners

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