The demand for higher-level skills in British industry is set to grow in the years ahead, with those sectors most central to future growth, including manufacturing and construction, particularly hard-pressed. That’s according to CBI/Pearson Education and Skills recent survey
The survey of 310 companies, which together employ over a million people, underlines the skills challenge that the UK faces.
According to the survey 2 in 3 businesses (68 percent) expect their need for staff with higher level skills to grow in the years ahead, but more than half of those surveyed (55 percent) fear that they will not be able to access enough workers with the required skills
Demand for highly skilled workers is particularly strong in sectors critical to the rebalancing of the economy – engineering, science and hi-tech (74 percent), construction (73 percent) and manufacturing (69 percent)
With an apprenticeship levy for larger employers set to be introduced following the Budget, the CBI is concerned that while it may fund more apprenticeships to meet the Government’s target of 3 million, it will not deliver the high-quality; business-relevant training needed, and do little to help small or medium sized businesses.
Of apprenticeships starts in 2013/14, just 2 percent were higher apprenticeships, which lead to qualifications at a level equivalent to higher education. Business is clear that the Government must accelerate reforms and ensure employers are in control when it comes to the design and delivery of apprenticeships, to boost quality.
Katja Hall, CBI Deputy Director-General, said: “The Government has set out its stall to create a high-skilled economy, but firms are facing a skills emergency now which threatens to starve economic growth. Worryingly, it’s those high-growth, high-value sectors with the most potential which are the ones under most pressure. That includes construction, manufacturing, science, engineering and technology.
“The new levy announced may guarantee funding for more apprenticeships, but it’s unlikely to equate to higher quality or deliver the skills that industry needs.
“Employers have a critical role in up skilling the workforce, but part of the deal must be for real business control of apprenticeships to meet their needs on the ground.
“The best way to plug the skills gaps and provide quality training is to speed up existing apprenticeships reforms already underway and encourage smaller firms to get involved.”
Apprenticeship opportunities growing but reforms must now accelerate: Around two-thirds (66 percent) of respondents are involved in apprenticeship programmes, with provision spreading well beyond traditional sectors like manufacturing (76 percent) to new sectors such as professional services (42 percent), like accounting and legal services 62 percent of respondents either intending to expand their apprenticeship programme or to start one in the next three years – the best result since the survey began in 2008.
Recent government reforms have been welcomed by business (81 percent) but concerns about the reform programme include bureaucracy and red tape (29 percent) and delays in funding reform (25 percent) 38 percent of respondents say that matching qualifications better with business needs would get more companies involved in apprenticeships as would putting more purchasing power in the hands of firms (34 percent).
On his part, Rod Bristow, President of Pearson’s UK business, said: “Better skills are not only the lifeblood of the UK economy – as fundamental to British business as improving our infrastructure, technology and transport links – they are also critical to improving young people’s life chances, of enabling them to be a success in life and work.
“The government is right to be ambitious about apprenticeships. We need more high-level apprenticeships in high growth sectors like biotech, engineering, and technology, as well as traditional ones.
“But our further education sector, which provides the Higher National Diploma courses that deliver these technical skills, sits on the edge of a funding precipice and may suffer damage for years to come. Proper funding of further education would provide a huge boost to British businesses and productivity. Without improving the supply of skills, the UK will find it hard to remain competitive in the global economy.”
Firms report widespread difficulties in recruiting staff with the necessary science, technology, engineering and maths (STEM) skills, with half (52 percent) of firms experiencing (or expecting within three years) a shortfall of experienced staff. As a result STEM study carries a real premium with 2 in 5 employers (40 percent) preferring graduates to have STEM skills.
Culled from Pearson website for learning
