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Skills shortages holding back the UK's economic recovery

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    Skills shortages holding back the UK's economic recovery

    Not really news is it? It claims the UK has been shooting itself in the foot restricting skilled migrants outside the EU. However I think they're ignoring the poor compensation offered to apprentices and skilled workers in general. The UK has made it quite clear many times before, skilled workers outside the financial sectors are not wanted.


    BBC News - Skills shortages holding back the UK's economic recovery

    Skills shortages holding back the UK's economic recovery

    1 December 2014 Last updated at 00:29 GMT By Matthew Wall Business reporter, BBC News
    Crossrail tunnel boring machineCrossrail has called for more women to become engineers to avert a skills shortage
    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 latheApprentices 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 constructionCan 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.
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    open the floodgates let the cheap skilled workforce in because we didn't train anyone during the recession and we sacked all the old gits who knew what we do and how, we are filled with staff who have degrees in Art.
    Always forgive your enemies; nothing annoys them so much.

    Comment


      #3
      That story has been run every year for the last 30 years.

      It's a systematic failure of the eduction system.

      Comment


        #4
        .....

        I have nothing against women but why do so many commentators think the answer to every question is more women? Even IPSE is on the same bandwagon.

        Perhaps if they replaced PowerPoint with something more appropriate to business needs at school that would be a start.

        Comment


          #5
          Originally posted by tractor View Post
          I have nothing against women but why do so many commentators think the answer to every question is more women? Even IPSE is on the same bandwagon.

          Perhaps if they replaced PowerPoint with something more appropriate to business needs at school that would be a start.
          There are lots of women and older people who are economically inactive or not as economically active as they could be. (To put in layman's terms these groups aren't fully employed or employed at all.)

          So getting these people working would mean we would need less migrants and as these people would/will be claiming benefits such as pensions anyway, we may as well make them work as much as possible while they are fit enough to do so.
          "You’re just a bad memory who doesn’t know when to go away" JR

          Comment


            #6
            Originally posted by vetran View Post
            open the floodgates let the cheap skilled workforce in because we didn't train anyone during the recession and we sacked all the old gits who knew what we do and how, we are filled with staff who have degrees in Art.
            You forgot to add that employers don't believe in paying to train staff now so are using the government to subsidise their training budgets.
            "You’re just a bad memory who doesn’t know when to go away" JR

            Comment


              #7
              There's no shortage of immigrants where I work, infact the pretty much 100% Indian nationals on work permits.

              They have had a great effect on the company, the company is now pretty much bankrupt due to poor productivity, and I'd be surprised if it still exists in a couple of years time.

              Comment


                #8
                Originally posted by tomtomagain View Post
                That story has been run every year for the last 30 years.

                It's a systematic failure of the eduction system.
                Indeed, it looks like the annual business case to justify signing off endless visa requests.

                Comment


                  #9
                  This is an interesting topic. Why? because it relates to UK immigration policies and corporate hiring methods.

                  There is a great deal of whining about a shortage of skills in the UK with blame being apportioned to the education system. Lip service is given about apprenticeships and getting more women into IT and engineering (anything that gets them out of HR would be a good thing).. It just is not going to happen in the short term or even medium term if at all.

                  The UK is not the finite limit of the skills markets from which employers can recruit. There is the whole EU. Commentators are ignoring this. Though there are many many thousands of workers here from eastern europe very few are from the high end skills spectrum of the market (which is the market we should really be open to)

                  It is a matter of cost and competence of hiring regimes. Many of these companies want to be able to hire Indian engineers and programmers. Why when there are thousands of Poles, italians, Spaniards, Romanians eligible to work here would they need to ? It is because Indians are cheap and easy to find and hire. As companies wont pay decent salaries to engineers according to market forces they discourage the brightest students to study STEM subjects (the brightest don't work in engineering they work in the city or retail or consultancy)

                  IT is one of the better paid sciences and employers have got round the cost problems through "shoring" (near, far and off!). They must not be allowed to open the floodgates to non EU residents for other STEM disciplines.
                  Let us not forget EU open doors immigration benefits IT contractors more than anyone

                  Comment


                    #10
                    Originally posted by SueEllen View Post
                    You forgot to add that employers don't believe in paying to train staff now so are using the government to subsidise their training budgets.
                    They do not because employees can jump and leave at a moments notice.
                    Let us not forget EU open doors immigration benefits IT contractors more than anyone

                    Comment

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