The Business, Energy and Industrial Strategy (BEIS) Committee is launching an inquiry into the state of play in the UK labour market post-Brexit, and the impact of the covid-19 pandemic on recruitment, skills shortages and the growth of the labour market.
The impacts of Brexit and the pandemic have been extraordinary, and will continue to have a profound effect on numerous aspects of life, including the labour market. As it stands, the UK has a growing skills shortages issue with a reported 35.2 million job vacancies in December 2021 and 86% of large organisations reporting challenges recruiting. Worryingly, 72% of organisations surveyed also stated that the impacts of these shortages have increased the workload on other staff, reducing productivity and outputs. Skills Shortages in the UK will continue to worsen unless the government takes action.
At the Edge Foundation we collate extensive research into current skills shortages in the UK and publish regular Skills Shortages Bulletins summarising the latest research - our most recently published bulletin can be read here. We are pleased to be able to contribute to this latest inquiry and here we summarise our key points:
- The UK does not have enough workers with the right skills in the right places. Notably, the construction sector has been greatly impacted by Brexit due to its reliance on workers born in the European Economic Area. Currently, bricklayers represent the most severe shortage within the industry, as well as steel fixers, concreters and scaffolders. There has been a historic lack of training in the sector meaning that government will need to develop a robust strategy to tackling skills shortages, alongside increasing quality, standards and green practices.
- The Covid-19 pandemic has created new staff shortages and worsen those that existed pre-2020. Notably, the Hospitality sector and the Health and Social Care sector have been greatly impacted.
- What can government do to ensure employers are able to recruit people with the right skills for the job?
- Refocus the current apprenticeship programme and levy on young people and away from adults already in employment.
- Reinstate and develop a Young Apprenticeships programme
- Create a range of high quality pre-Apprenticeship routes
- Broaden apprenticeship training
- Expand Degree Apprenticeships
Our full response to this consultation can be read here.