The UK needs to develop a nationwide approach to skills programmes
Ahead of the Spring Budget we read with interest in the Financial Times today the Chancellor’s plans to launch investment zones across the country, with potential incentives to improve skills and to encourage hiring through tax breaks including on employer national insurance contributions. This is fantastic news as we have long campaigned for a skills strategy recognising urban hubs and regions with existing strengths in particular skills and industries.
Our Midlands vacancy trends research produced with Vacancysoft, published in February 2023, and reporting on 2022, evidences this concentration of skills demand and employer sector type. There was a high demand for engineering talent, in addition to IT. Civil engineering vacancies topped the chart with 1,300 discrete vacancies across client websites in the year, an increase of 51.7% year on year, with construction engineering vacancies up 43.6% and electrical engineering up a massive 72.5%. The top engineering employers were in real estate and construction with Amey’s vacancies increasing by an astounding 381.1%, Kier Group surging by 257.3% and Rolls Royce leading in the broader engineering sector with an increase of 161.1%. For every large employer vacancy, we know there will be many more throughout their supply chains in addition to a surge for highly skilled contractors.
Investing in urban or regional hubs such as the East Midlands or Newcastle and Sheffield, where we see a significant number of tech and niche scientific jobs, could see localised funding to support tech start-ups, T Levels and SMEs accessing technology-based apprenticeships. There is scope to tailor the Apprenticeship Levy for a more regional and sectoral approach targeting hard-to-reach workers and technical sectors suffering from labour shortages.
The Government is urging UK businesses to “do their bit” and get involved in skills training. Currently, there remains a mismatch between Government programmes and private sector investment in skills training. Businesses need to be encouraged to invest in Government led skills development and training with incentives and funding. Schemes such as Kickstart and T levels require significant ongoing management and administrative time commitment, and the cost-benefit analysis of the cost versus the benefit of working towards ESG targets and developing a long-term, loyal, skilled workforce needs to balance.
Our Midlands vacancy report published in February 2023 evidences inbound investment, particularly from the USA. This is fantastic for Global Britain but will only be viable if the regions have the labour market to deliver a return on the investment.