Skills gap means firms are “driving with the handbrake on”

Top employers working with government at new Skills for Growth conference to address skills shortages and drive economic growth.

The government’s Business Connect -Skills for Growth conference has taken place, hosting some of the biggest British and international companies to discuss how we can create a workforce fit for the future and address the urgent recruitment needs of businesses.

The Education Secretary Gillian Keegan spoke at the event, alongside Chancellor of the Exchequer Jeremy Hunt, Business and Trade Secretary Kemi Badenoch, Skills Minister Robert Halfon and Business Minister Kevin Hollinrake alongside the government’s independent skills policy adviser, Sir Michael Barber.

Among the major employers attending to discuss the future of skills are Google and Amazon, as well as BP, BAE Systems, Virgin Atlantic, Thames Water, Greene King and Travis Perkins.

In May 2023, there were 1,051,000 job vacancies in the UK, according to the Office for National Statistics. In 2019, 24 per cent of vacancies were the result of skills shortages.

Education Secretary, Gillian Keegan said: “I know from my years in business that organisations drive innovation and create opportunities, but without skilled workers, it often feels like you’re driving with the handbrake on.

“The Government is investing in building future skills for growth and calling on businesses to work with us, so that together we can build the workforce of tomorrow.”

In addition to the conference, the government is urging employers to hire more apprentices, especially younger workers, and to invest more in training and upskilling their workforce. It is highlighting the wide range of government-backed courses and support which is available, including Skills Bootcamps and Free Courses for Jobs as well as £2.7 billion of additional funding to support businesses to take on more apprentices and the ongoing rollout of T Levels.

CEO of Travis Perkins plc and Construction Leadership Council Industry Sponsor for People & Skills Nick Roberts said the skills gap is one of the biggest challenges facing the UK at present

“Construction makes a significant contribution to the UK’s economy (just under 9% GDP), so addressing this and developing a more diverse and skilled workforce is vital,” he explained.

“The Construction Leadership Council has set out a clear plan for how to tackle these challenges by creating more entry routes for high-skilled, well-paid jobs, encouraging businesses to invest in their workforce and to adopt modern methods of construction, particularly focused on the transition to net zero.

“Working in partnership with the Government is paramount, if we are to deliver this plan and create a built environment that we can all be proud of.”