UK Businesses Take Action to Address Widening Skills Gap

Wednesday, December 4, 2024

The UK is facing a growing skills gap, with nearly two-thirds of organisations reporting difficulty finding workers with the expertise they need, according to recent industry surveys. This shortage is particularly acute in sectors like manufacturing, engineering, and technology, where specialised skills are crucial to keeping businesses competitive

To combat this challenge, companies are turning to innovative recruitment and training strategies. Leading organisations like BAE Systems and smaller firms such as Power Plastics are at the forefront of these efforts, while industry bodies are urging the government to implement long-term solutions to address the root causes of the issue.

BAE Systems, one of the UK’s largest defence and aerospace companies, has ramped up efforts to recruit apprentices, graduates, and undergraduates. The company announced on 21 November 2024 that it plans to onboard a significant number of early-career professionals in 2025 to build a pipeline of skilled workers for the future. A spokesperson for BAE Systems said, “Investing in early talent is critical to ensuring we have the skilled workforce needed to support innovation and growth in the years to come. By offering structured training programmes, we’re equipping young professionals with the expertise they need to succeed.”

Smaller companies are also finding innovative ways to tackle the skills shortage. Power Plastics, a manufacturing firm, celebrated on 15 November 2024 the five-year anniversary of its partnership with HMP Kirklevington Grange Prison. The initiative has seen the company employ and train over 75 serving inmates as part of their rehabilitation and reintegration process. “By offering training and employment opportunities to inmates, we’re not only addressing our workforce needs but also contributing to the community by giving individuals a second chance,” said a Power Plastics representative. The programme has been praised for its dual focus on addressing labour shortages and supporting social justice initiatives.

The Federation of Small Businesses (FSB) has called on the government to play a more active role in addressing the skills gap. In a statement released on 20 November 2024, the FSB highlighted the need for greater investment in education and vocational training, providing incentives for businesses to upskill their workforce, and ensuring that wages remain competitive to attract talent. Martin McTague, Chair of the FSB, said, “The skills gap is not just a challenge for businesses; it’s a challenge for the UK economy. If we fail to address this issue, we risk falling behind on innovation and productivity. The government must work with industry to implement long-term solutions that benefit both employers and workers.”

The UK’s skills gap is part of a larger global challenge, with many advanced economies struggling to find workers equipped with the expertise needed to meet the demands of evolving industries. For the UK, addressing this issue is particularly urgent as businesses seek to adapt to post-Brexit labour market changes and compete on a global stage. Industry experts agree that closing the gap will require collaboration between businesses, educational institutions, and policymakers. Initiatives like those from BAE Systems and Power Plastics highlight the potential for innovative solutions, but systemic change will be essential to ensure long-term success.

As the UK works to address these challenges, the question remains: will government and industry rise to the occasion to secure the country’s economic future?