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2014-12-02 11:34:49
By Matthew Wall Business reporter, BBC News
The UK's chronic skills shortage is hampering productivity and holding back the
economic recovery, business leaders believe.
Kevin Green, chief executive of the Recruitment and Employment Confederation
(REC), whose members are "on the front line of the UK labour market" as he puts
it, paints an alarming picture.
"Last year we had nine areas of skills shortages, now we have 43 areas. Every
single type of engineering is in short supply, from mechanical to software,
civil to electrical," says Mr Green.
"In IT, coders, programmers, developers are all in short supply; there's a
shortage of doctors and nurses in the National Health Service; and we need
about 20,000 more teachers in the UK.
"And the situation's been getting worse month-on-month over the last 18
months," he adds.
Employers organisation the CBI concurs.
"Our most recent survey shows that skills shortages are becoming more acute,
and risk acting as a break on our economic recovery," says Rob Wall, the CBI's
head of employment and education.
"This is particularly true for high-level skills in sectors like engineering,
technology, digital, manufacturing and construction."
Stemming the tide?
Business secretary Vince Cable Business Secretary Vince Cable believes the UK's
skills gap is "crippling" the country's manufacturing sector
The consensus is that the UK is particularly lacking in workers proficient in
Stem subjects - science, technology, engineering and maths.
The CBI found that nearly 40% of firms looking for staff with Stem skills have
had difficulties recruiting, and about half thought the situation was only
going to get worse.
The shortage is particularly acute in construction, encompassing as it does a
wide range of disciplines from structural engineering to architecture,
bricklaying to surveying.
"Quantity surveying was on a skills shortage list back in 2007," says Alan
Muse, global director of the built environment at the Royal Institution of
Chartered Surveyors (Rics).
"We never had enough in the first place. Then the recession meant people
stopped investing in building, so many migrated out of construction into other
sectors, using their transferable skills as experienced graduates," he adds.
'Severe shortage'
When the money taps were turned on again as the economy picked up, skills
shortages became all the more evident.
According to one recent report by accountants KPMG and the London Chamber of
Commerce and Industry (LCCI), about 20% more construction managers, surveyors,
electricians and other trades will be needed to meet demand, over the next four
years, than were needed from 2010-13.
House building targets are unlikely to be met as a result.
"About 400,000 people left the industry since 2008," says Richard Steer,
chairman of Gleeds, a leading construction management company responsible for a
wide range of projects, from nuclear power stations to luxury apartments.
So the industry is now suffering from a severe shortage of almost all skilled
people.
"Brick factories closed down [during the recession] so house builders have
suffered a huge shortage of raw materials and bricklayers," he says.
"Brickies are flocking to the South East leaving shortages in the regions," he
points out.
Close-up of hands laying bricks "It takes about three or four years to become a
good brickie," says Richard Steer, chairman of project management firm Gleeds
Filling these gaps isn't easy, as training takes time and money.
"It takes about three or four years to become a good brickie," says Mr Steer.
These skills shortfalls mean the price of construction goes up "at a time when
we're trying to create more social and affordable housing," he adds.
Employers in driving seat?
Identifying the problem is relatively easy; coming up with solutions is far
harder.
In another recent report - Growth Through People - the UK Commission for
Employment and Skills (UKCES) called for:
employers to take a lead in improving skill levels
more vocational pathways to work
more integration between the worlds of work and education
more apprenticeships
work experience to become an integral part of education
The report, which was endorsed by the CBI and the Trades Union Congress,
concluded that the skills shortage crisis would only be addressed if industry,
unions, government and educators collaborated on an agreed strategy.
The government has certainly been investing in traineeships and
apprenticeships, but there is frustration among large employers that they have
not been sufficiently involved in designing the schemes and courses.
"The system to date has been about government deciding what skills are needed
rather than employers," says the CBI's Mr Wall.
"We want to see a system that is simpler and that puts employers in the driving
seat."
Recent reforms to the apprenticeships scheme, implemented by Business Secretary
Vince Cable, have been welcomed by business.
Apprentices learning how to use a computerised lathe Apprentices learning how
to use a computerised lathe: Business is keen to expand the apprenticeships
programme, as long as they have more control over it
But most organisations agree that more could be done to remove the stigma
attached to vocational subjects in schools, colleges and universities.
"Vocational routes are seen as second class and that isn't acceptable," says Mr
Wall.
"Germany, South Korea and Switzerland have much more successful vocational
routes to employment."
Skills Minister Nick Boles is trying to do this by encouraging university-style
graduation ceremonies for successful apprentices.
Skilled immigrants
While immigration is currently a political hot potato, with most vote-chasing
political parties promising to clamp down on it, the construction industry
admits - with varying degrees of candour - that it needs more, not fewer,
workers from abroad.
And rather than being swamped with cheap, immigrant labour, Gleeds' Mr Steer
believes it is actually getting harder to attract foreign workers.
"There's less temptation for foreign skilled and unskilled labourers to come
over now as their own economies have improved," he says.
Large block of flats under construction Can large-scale construction projects
like this succeed without immigrant labour?
This only adds to the skills shortages experienced within the industry.
His view is backed up by Oxford University's Migration Observatory, which found
that there was a 39% fall in highly skilled immigrants coming to the UK from
non-European Economic Area countries between 2011 and 2013.
Restricting visas for skilled immigrants is "absurd", says the REC's Kevin
Green.
"It's bizarre that we invite people here to train them up, then don't ask them
to join our labour market," he says.
"We've created 700,000 jobs in the last year and unemployment is falling, but
employers are finding it more and more difficult to find the skills they need."
The UK's productivity paradox remains and skills shortages would appear to be a
likely cause.