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Learning and skills newsSkills gaps worry employers, survey showsThe 2008 CBI/Edexcel education and skills survey (PDF 1.8mb) identifies skills gaps in the workplace, reveals the skills employers value the most and spotlights how employers are managing to source highly skilled people with the right qualifications. Completed by over 700 board-level executives, the survey gives a comprehensive view of business priorities on key education and skills issues. Worryingly, over half (53%) of employers are concerned there will not be enough skilled people in the UK to meet their future recruitment needs.Poor basic skills have a serious impact on customer service, according to two-fifths (40%) of employers, and lower productivity according to a third (34%). Both issues have damaging implications for business performance and employers are investing heavily in remedial literacy and numeracy training. The survey issues a clear wake-up call to graduates. John Cridland said: "Our message to students is that your hard work to attain the right skills and good qualifications is essential to securing quality, well-paid jobs after school, college or university". "This survey is also an alarm call to students and universities, who may be surprised by just how much employers also value the 'softer' skills that make people more employable. This means being a good team-worker, communicator and problem-solver is vital and getting work experience goes a long way with a future employer." The 32% of jobs currently requiring a degree is likely to grow as the UK continues towards an economy built on value-added services, high-tech and knowledge-based firms. This survey shows that employers want graduates who can communicate well and work as part of a team. The majority (86%) of employers ranked positive attitude and 'employability' in their top three demands when recruiting graduates. Having relevant work experience such as a placement during a degree course was also ranked as vitally important, by 62% of bosses. Science, technology, engineering and maths (STEM) skills are in demand but in short supply: six out of ten (59%) of firms employing STEM-skilled people say they are having difficulty recruiting, and the low take-up of STEM subjects at university is a large part of the problem. Employers are acting rationally by looking abroad to hire STEM graduates. A third (30%) of larger firms are recruiting from India and 25% from China. The CBI education and skills survey 2009 will run from November 2008. Please check the website regularly for updates and information about how to complete the questionnaire this autumn. For more information, please call Simon Nathan on tel 0207 395 8031. CBI Budget reaction wins extra skills fundingThe Chancellor’s budget statement confirmed an increase in government spending on adult training from the current £3bn to £3.6bn by 2011 (£1bn of which will be Train to Gain funding). The expansion of Train to Gain and introduction of Skills Accounts (which will enable individuals to gain funding for their chosen course) from 2010 will strengthen the demand-led approach to funding – and to support this Ministers announced an additional £60m of funding focused on Level 3 (intermediate level) training. With too many companies having serious problems recruiting individuals with science skills, the Chancellor also announced a £6m programme to support science in schools and measures to develop the skills of secondary school science teachers.Other HR measures announced in the Budget included the VAT staff hire concession, which allowed employment businesses to exclude staff wages when charging for temporary staff, will be withdrawn from 1 April 2009. Initial reactions suggest this will increase the cost of temporary staff for businesses in the finance sector and other businesses that cannot recover all the VAT that they incur such as health and education. The CBI has expressed concerns that the move would be damaging for these sectors and for employment opportunities. CBI reaction to the BudgetReacting to the Chancellor's Budget speech, Richard Lambert, Director-General of the CBI, said: "For business, although there may have been no further big shocks in today's speech, we mustn't lose sight of the whole raft of tax rises announced in the previous Budget and the Pre-Budget Report. These are scheduled to kick in from April, putting a further squeeze on firms at this already turbulent economic time."Too many companies have serious problems recruiting individuals with science skills. Inspirational teachers are key to encouraging more young people to study science, while high quality careers advice is vital to show them that these subjects open doors to well-paid and interesting careers. So ‘Project Enthuse’ and a £6m campaign to promote science in school will be welcomed by business. “The expansion of 'Train to Gain' and the introduction of skills accounts should ensure public funding follows the needs of employers and employees more closely. The focus must be on developing the economically valuable skills the UK needs to compete – today’s announcement of additional funding for intermediate skills and adult apprenticeships is welcome, as employers’ skills needs are often at these higher levels.” 
Apprenticeships summitFollowing the government review of apprenticeships and as part of National Apprenticeships Week, employers and training providers, as well as representatives from the LSC, gathered to debate today how to increase employer involvement in the scheme. While the CBI has welcomed the government’s ambition to expand the programme, we have put forward ideas – based on member consultation – for reforms to deliver greater flexibility in apprenticeship frameworks, reduce red tape, encourage more young people to consider apprenticeships and ensure that key skills is taught in a relevant way.Company qualificationsThe CBI has welcomed the government's announcement that Flybe, McDonald's and Network Rail will be able to award nationally recognised qualifications through their training programmes. John Cridland said: "Flybe, McDonalds and Network Rail deserve recognition for trail blazing this initiative and making it easier for companies wanting to follow in their footsteps."
Key issues in summaryFor the latest CBI thinking on learning and skills issues, see our business summaries.If you need free Adobe Acrobat PDF reader software or help with PDF documents, go to the Adobe Accessibility site at http://access.adobe.com Email us if you have accessibility requirements. Click on this link to go to the policy work page. |
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