Employers Warn of Widening Skills Shortage

By Sean Coughlan, BBC Education correspondent

UK Employers Seek More Skilled Staff in a Global Economy

An increasing number of UK employers are worried that they will not be able to recruit enough high-skilled employees, according to an annual CBI survey.

The survey of 500 employers found 69% were concerned about not being able to find enough highly-skilled staff, compared with 55% last year. The report also indicated that demand for low-skilled workers would continue to fall.

Top Business Priority

Tackling this skills gap has become a “top business priority”, said CBI deputy director-general Josh Hardie. He warned that after the decision to leave the European Union, reduced access to migrant skills would further impact businesses.

Neil Carberry, the CBI’s director of employment and skills, stated it was “absolutely critical” that businesses had clarity on the status of EU nationals currently working in the UK.

Automation and Recruitment Trends

Automation has seen robots taking manufacturing jobs. The survey shows firms expect to increase high-skilled staff and cut low-skilled jobs.

Yet more than two-thirds of firms are not confident there will be enough well-qualified staff to meet demand. Almost a third of businesses expressed concerns about the literacy and numeracy levels of new recruits.

Attitude Over Qualifications

Employers rated “attitude to work” as more important than formal qualifications. Rod Bristow, president of Pearson UK, noted that while knowledge matters, “the most important ‘skills factor’ centres on attitudes and aptitudes such as ability to present well.”

Improving careers advice was also highlighted. A separate Baker Dearing Educational Trust survey found young people benefit from direct employer contact through work experience and talks from industry professionals.

Debate Over the Apprenticeship Levy

The CBI report reflects doubts about the government’s proposed apprenticeship levy, which will fund targets for more apprenticeships by charging larger employers. Businesses want “better quality training places” and do not wish to pay extra for existing training to be rebadged.

Josh Hardie warned that “the levy system will work in Whitehall but it won’t work in Walsall” unless there is a genuine change of direction. Petra Wilton of the Chartered Management Institute argued that the levy is essential to avoid under-investment in future skills and maintain international competitiveness.

Skills: The Key to UK Competitiveness

Neil Carberry stressed that skills will determine the UK’s competitiveness regardless of post-Brexit trading arrangements. “If you want a high-skills, high-pay UK, it’s all based on skills,” he said.

A Department for Education spokeswoman added: “We are introducing the apprenticeship levy so that businesses have the talent they need to grow and thrive. We will continue to work closely with businesses of all sizes to design the levy around their needs and the needs of their employees.”

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