The skills challenge

The demand for higher-level skills in British industry is set to grow in the years ahead, with sectors central to future growth, including manufacturing and construction, particularly hard-pressed. That?s according to this year?s CBI/Pearson Education and Skills survey published today.

The survey of 310 companies, which together employ over one million people, underlines the skills challenge facing the UK. It reveals:

?    2 in 3 businesses (68%) expect their need for staff with higher level skills to grow in the years ahead, but more than half of those surveyed (55%) 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%), construction (73%) and manufacturing (69%).

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% 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.

Apprenticeship opportunities are growing but reforms must now accelerate:

?    66% of respondents are involved in apprenticeship programmes, with provision spreading well beyond traditional sectors like manufacturing (76%) to new sectors such as professional services (42%), such as accounting and legal services

?    62% of respondents are 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.

?    38% of respondents say 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%).

Katja Hall, Deputy director-general, CBI said, ?We still have a system where too many young people are allowed to fall behind and never catch up. The system must change, with more focus on developing the aptitudes and attributes that set young people up for success in both work and life ? which matter much more to employers when recruiting than academic results alone.?