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What the Growing Skills Shortage Really Means for Your Company’s Future

There are ongoing skills problems that businesses are encountering, according to new data from the Employer Skills survey released in September 2023. The UK’s labor market is changing, and this was shown by a study of over 72,000 businesses in various industries. The survey’s main concerns were hiring shortages across all industries, skill gaps, and training.

The skills shortfall that UK employers are facing has gotten worse; in 2022, there were not enough qualified candidates for almost 36% of all openings, up from 22% in 2017. 

Moreover, the information indicates that 10% of businesses had open positions due to a skills shortage when candidates were interviewed. It appears from this that there is a growing disparity between what employers require and what the local labor can offer in terms of skills.

Due to the influence of COVID-19 and the level of preparedness of young people entering the workforce for the first time, there is a noticeable difference between this year and last. 

Deeper insight into the skills gap from a youth perspective can be obtained by examining findings from organizations such as Youth Employment UK (YEUK) and the Prince’s Trust. Young people without work experience suffer the largest obstacle, according to YEUK’s Youth Voice Census 2023. For the most part, people are still figuring out how to get into the workforce and what talents employers value.

The research, however, indicates that despite these obstacles, seventy-one percent of young people feel driven to fulfill their life goals. Of these, sixty-four percent believe they can overcome obstacles if given the right support to develop their abilities and confidence. 

Three out of ten workers in the UK will be employed in these industries by 2035, according to Department of Education projections, which raises concerns. Long-term economic growth in the UK depends critically on addressing skills shortages in these vital industries.

Additional read: How can Britain overcome the skilled worker shortage post-Brexit?

Remarkably, companies that did not experience a skills gap in their industry nonetheless felt that their workers needed to be more proficient in certain areas. Within what are often thought to be desirable career markets, there were some of the biggest skills gaps. 

Financial Services, Business Services, and the Hotels and Restaurants sector have seen the biggest increases in the Skills Gap density (the percentage of workers deemed to be not fully skilled) over the past five years. Should the current skills gap remain unaddressed, it will worsen as AI, digitalization, and the Net Zero economy continue to grow and require new talents.

As this research makes clear, the situation is more complex than a straightforward North-South division story. When comparing 2012 to 2011, the regions with the largest percentage of workers deemed to be not totally skilled were the South East, North East, and East Midlands. The lowest recorded percentages of employees who are not totally adept, however, are found in London, the South West, and the West Midlands.

Over the past ten years, the number of institutions in London, the South West, and the West Midlands that have at least one skill-shortage vacancy has decreased by approximately 10%, despite the fact that the number is still high nationwide. Progress in addressing the skills shortfall has not yet been made in the South East or North East, and in comparison to 2011, more firms now have at least one vacancy related to the skills shortage.

In conclusion, the growing skills shortage is a significant issue that can impact companies in various industries. For us at Dynamic Staffing Services, it presents an opportunity to provide value to our clients by offering specialized skills and expertise, as well as innovative staffing solutions to help fill the skills gap. 

We keep abreast of emerging trends and technology in order to gain a thorough grasp of our client’s businesses and employment requirements. Through this approach, we assist our clients in navigating the ever-changing and complex world of recruitment and guarantee that they have the talent necessary to stay successful and competitive over the long run.

To learn more about our services and get a solution for your staffing needs, call us at +44-7477196844 or email enquiry@dss-hr.co.uk.

Visit our Website:  Dynamic Staffing Services.

About the Company

Headquartered in Dubai, with offices in 13 countries spread across UK, Europe, Middle East and South Asia, Dynamic Staffing Services is an industry leader within its niche space of international recruitment. Over the last 45 years, DSS has successfully places over 450 000 candidates in the engineering, healthcare, hospitality, IT and manufacturing sector. Please visit us as www.dss-hr.com to learn more about us. We pride ourselves in being an ethical recruitment services provider following the stringiest regulations towards code of conduct. We recruit talent from Eastern Europe, India, Philippines, Vietnam, Indonesia, Africa, Egypt, Bhutan, Nepal, Bangladesh, Malaysia among other nationalities and place them into 24+ countries. Each year we give jobs to about 12 000 candidates.

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