According to projections, by 2030, 20% or less of the population will be grossly underqualified for their positions. Consequently, many people may find themselves working less productively, feeling less satisfied with their jobs, not gaining access to the right training, or even losing their jobs entirely.
The skills gap is widening at different paces within each industry and caused by various factors that impact them, such as a lack of investments from the government or employers, Brexit & pandemic situations or by fear of digital automations that “kill” off sustainable positions in the workplace.
Some of major highlights for skills challenges are:
- Career growth and staff supply are limited,
- Pay difference within sectors,
- Lack of engagement with colleges/uni,
- Apprenticeship programmes not appealing,
- Rural areas hard to retain and recruit,
- Not enough local trainings in rural areas leading to talents to relocate,
- Qualifications aren’t always the key to success,
- Work experience is meaningful and needs more buy in from employers,
- Lots of groups around doing the “same thing” creating confusion amongst training & skills.
In this article, we are looking at the main sectors facing skills gap challenges and how these could be answered for a more stable future to the young talents entering the workforce.
Manufacturing & Engineering
According to a survey mentioned by themanufacturing.com in April 2022, the main reasons why manufacturing industries are experiencing skills shortages are insufficient involvement of manufacturing in technical education; lack of opportunities in modern manufacturing and engineering; and a poor interest in manufacturing and engineering.
It also shows that the majority of young people are less interested in the manufacturing industry as part of their career path or growth. There are concerns about automation where robots are the sustainable solution for many companies, replacing staff as technology progresses. Which makes young workers wonder about the long-term commitment to this line of work.
In the engineering industry, young workers may struggle to find the right training. This is because of technological advancements becoming more and more regulated within businesses (e.g. ISO 9000).
Manufacturing and engineering industries are not dying industries but only struggling in finding the right skills. What could be beneficial to businesses, is having the right training provided as well as learning from employees that already have the right skillsets.
Finance & Business
According to FinTechFutures.com, the main reported soft skill gaps in the finance industry are digital and technology skills. In the world of automation in the goal to remove repetitive tasks, the future of accountancy might well become fully AI-controlled. Many experienced accountants report that tasks are now automated and controlled by emerging softwares, becoming more and more challenging to catch up with digital skills.
Although the goal of AI is to give more brain space to focus on fulfilling tasks a human can work on, many young skilled individuals find it challenging to keep up with the new technology & demand from the companies. Or a fear of being replaced by an AI-robot altogether.
New sustainable trainings would make the young generation more certain and prepare for the future of digital skills & demands in the finance industry.
Construction
Although similar to the challenges Manufacturing & Engineering face, the construction industry finds it difficult to source skills. Projects at scales are facing a demand influx since a few years, now facing skills shortage. It is becoming difficult to attract talents and meet the inflated salaries for long-term projects.
The construction industry is also facing a unique challenge when it comes to finding the right demographic to fill in positions. It is admitted that a certain type of demographic (middle-aged men) will be preferred for the positions which restricts the pool of choice to the employer. If the demographic gap was closed and would consider different demographic in the industry (e.g. women), it could solve a large chunk of the skills shortage on the market.
Transporation & Logistics
Since Brexit, UK faced a significant skills shortage when EU-workers returned to their home countries. There have been campaigns set by the government to fight against this crisis, but skills shortage remains an issue to this day.
Additional to the Brexit issue, the Calais Crisis and other political challenges are amongst factors why it’s proven difficult to retain skilled drivers in the industry. There is big battle of image and standard that this industry needs to fight for.
Attracting young workers into this career path should starts with directing to the right training & access the industry for all demographics. Although private industries can offer larger salaries and retain their talents in this way, it is proven more difficult for the public sector.
Energy Sector inc offshore wind
With the UK government target of becoming Net Zero by 2050, it is estimated that 200,000 workers will need training to fill in the skills shortage in order to meet the target. Skills from oil & gas can be transferrable, making it easier for some companies to make the switch, but as projects are booming, the skills gap is felt for many companies.
It would be ideal for the government to work with school programs to educate the young generation at early stage, but companies will have to provide a long-term job security to retain young talents.
Retail, Hospitality & Tourism
Similar to transportation & logistics challenge, hospitality is facing a shortage of EU workers since Brexit. EU-workers in the UK accounted for more than 42% in the hospitality sector and has come down to 28% since, creating the skills gap we are now facing. However, it is not news that this sector is facing highest turnover of staff, positioning this sector as the least appealing for long-term career choice.
Many young people look at hospitality as an entry-level to their careers, deemed as low skilled jobs with the lowest salaries on the market with little possibility of growth. There are no dedicated education towards hospitality, making it difficult for employers to find the right talents and retaining them.
It has been pointed out that the government should relax requirements for immigrants to work in this sector, making it easy on external talents to enter the job market and close the skills gap where possible.
Communication is also the main skills gap challenge employers find. Recruits might not have the knowledge about how to handle a customer-centric situation or fail to adopt a business etiquette. Because there are no regulated trainings towards communication for hospitality, it is hard to find the right talents that will represent the company to their customers.
Health care
According to the UK Commissions for Employment and Skills (UKCES), “the UK population is growing and ageing which is likely to lead to a 20% increase in demand for residential care, home care, day centres and meals for decades to come. However, the health and social care sectors have relatively low rates of innovation and investment compared to other sectors.” [PDF download]
Since the pandemic and the rise in scandals with pay freeze and low investment in the sector, young talents are not looking at the health sector as a safe environment to grow their career in. With the right trainings & investments, there are ways to retain talents and upskill existing workers.
The improvement of communication skills generates an obvious shift in how staff members interact toward patients. Staff members exhibit greater empathy, greater sensitivity to patient cues, and superior questioning techniques. Evidence suggests that long-term change is maintained.
In Conclusion
Skills & talent shortages are widening in most industries, with the majority struggling with communication & digital soft skills. In recent years, the Brexit & the pandemic have been the main culprits for these shortages, leaving the UK with less individuals available on the market.
Some sectors also struggle with skills awareness and lack of available specialised trainings to fill in most demanding positions. With the right investments from the government and the right institutions in place, there are ways to help the young generation in embracing the innovation in the working place and retaining them.
Is there something that we’ve missed? Is your company seeing different challenges we haven’t mentioned here?
Feel free to raise your voice and become part of the skills gap solutions in East Anglia by filing in this employer form: https://form.jotform.com/223474490001043
