The UK Skills Gap

What is a skill gap? A skill gap, or skills gap, is where an employer identifies missing proficiencies in an employee’s ability to carry out their role. It is the difference between the knowledge and skills needed for an employee to perform in their job and the existing ones in which they have. There could be many potential reasons as to why there is a lack in competencies such as rapid digitalisation, labour shortages and inequality to name but a few. According to the Office of National Statistics, as of September 2023, the UK skills gap currently sits at around 15% – that is, at least one or more employees are not fully proficient in their ability to carry out their duties, an increase on 13% in 2017. Overall, there was a countrywide workforce skills gap of 5.7%, up again from 2017 when it was at 4.4%.

The UK skills gap can be attributed to a number of different factors, all of which have had their own particular impact on the UK labour market. 

1. Rapid Digitalisation

Technology in the modern age moves at a frighteningly quick pace and is not afraid to leave people behind, which is exactly what it is doing! There are thousands of technologically inept workers in the UK that simply cannot use the required software and tools needed to perform their job. Perhaps they can use the basics and fundamentals needed, but the more advanced and efficient functions are lost on them. AI tools like ChatGPT, Sora, DALL-E, Midjourney and the rest are fast becoming useful in the workplace providing you know the prompts required, however, it’s also imperative for users to know not to rely on AI.

2. Brexit

The fallout from leaving the EU (European Union) has resulted in a swathe of workers moving from the UK to mainland Europe in search of protections and rights given by the European Convention of Human Rights. As a result, a labour shortage is left behind in the UK in industries and roles that require particular skillsets.

3. Covid-19 Pandemic

The implications of the Coronavirus Pandemic resulted in a shift in the way a lot of UK markets operate now. Not only did hundreds, if not thousands, of people lose their jobs, but there was a significant migration to remote working and increased digitisation. Business survival become the foremost important thing and so, investment in training employees was put on the backburner.

4. Inequality

Given the increase in digitalisation, those who do not have access to computers, the internet or money for training courses are put at a disadvantage despite their potential ability.

5. The Education System

The way in which the education system is set up and delivered does not match up with the current needs to fill the skills gap. The syllabus does not take into account enough what vocational skills are needed in a future workforce and what can be taught in schools and/or colleges to plug the gap.

The UK skills gap isn’t just affecting a particular sector, but is in fact impacting across the entire UK labour market.

1. Manufacturing

As aforementioned, the increase in digitalisation has resulted in a shortage of skills in the manufacturing industry. More emphasis is now being placed on automation software, robotics and IoT (Internet of Things) capabilities compared to the more traditional skills.

2. Software

Again, rather obviously, with the growth in the digital world there is an increasing demand for higher quality software skills. However, the demand for these skills is far greater than the supply.

3. Business and Finance

There appears to be a lack of high-quality leadership skills in the business sector. According to Oxford College, more than 60% of CFOs (Chief Financial Officer) say they are struggling to recruit people with the required qualities such as stakeholder relationship management, negotiation and persuasion, and commercial aptitude.

4. Engineering

With an ever-aging workforce in the engineering sector coupled with the increase in technology poses a similar problem as is present in the manufacturing industry.

5. Digital

More mention of the overarching theme of advanced digitalisation, the vocational skills required for on the job productivity is simply not reaching those entering the workforce. With an average of 170,000 tech jobs advertised in the UK every month, the demand is, again, outweighing supply. The government and the opposition party have both acknowledged the shortcomings in these areas and the NFER (National Foundation for Educational Research) has said that there is a requirement from the education system to adapt in order to provide young people with the relevant skills to enter the workforce at the level that they need to.

Ever as apparent, a large chunk of the skills gap issue is due to the increase in digitalisation at an exponential rate. According to Amazon, 82% of job descriptions list digital skills as a requirement and 92% of employers state that having a basic level of digital skills is important for their employees. The need for such qualities not only negatively impacts businesses but also employees. Because of a lack of digital skills:

• 20% of workers didn’t apply for a job
• 26% didn’t seek or achieve a promotion
• 13% had to apply for training outside of their organisation
• 11% were forced to change careers
• 11% thought about quitting
• 10% have been turned down for job opportunities
• 10% missed pay rises
• 8% quit their job

If the labour market continues to move in the direction it is currently travelling, we run the risk of hitting not only a skills gap but also a delivery gap. In order to plug the gap and avoid not delivering, a wave of upskilling in areas such as the following is a good step forward:

• Engineering, civil, mechanical, electrical, design and development
• Programming and software development
• IT communications, analysis and design
• Architecture
• Nuclear chemicals
• Veterinarians
• Graphic and web design
• Care work
• Actuaries, economists and statisticians
• Laboratory technicians
• Artists

At Netcom, we can contribute towards the skill gap solution with a host of free upskilling courses. Here’s just a few:

• Cyber Security Fundamentals
• Cyber Security Practices
• IT Support
• Digital Marketing
• Certificate in User Experience (UX/UI)
• Intel AI for Current Workforce

For a full range of courses available in your area, visit our course page and type in your postcode. If you have any questions regarding any of our courses, feel free to get in touch with one of our dedicated team on 0121 450 3900.