To address workforce challenges, employers believe that the government should prioritise upskilling, expanded job training, fostering entrepreneurship, and attracting international talent.
By Maggie Mancini
Employers are urging the U.K. government to follow through on its commitment to focus on workforce issues in its new industrial strategy, according to a survey by the Recruitment and Employment Confederation (REC). Invest 2035 is the government’s upcoming 10-year plan for the economy. The government has said people and skills are central to the industrial strategy’s task to grow the economy.
“If the new industrial strategy’s focus on people is just a list of skills programmes that government will fund, then it will fail,” says Neil Carberry, chief executive at REC. “Skills are part of a complex web of workforce practices that, if we can get things right, have the potential to transform U.K. productivity. But that requires serious engagement from business and public authorities alike.”
REC commissioned research specialists at Whitestone Insight to conduct an online survey of 233 employers of different sizes and locations throughout the U.K. in November 2024. A key focus of the industrial strategy is ensuring a skilled workforce to encourage economic growth. The employers were asked which areas the government should prioritise to meet the skills challenge.
Over half (57%) say that it’s important to upskill the existing workforce. This area has sizable support across all regions of the U.K. and across all sizes of employers. Most of the people who will be in the workforce in 2035 are already in the workforce today. Similarly, 41% of respondents say that expanding vocational training routes is key to improving skills.
Approximately 40% believe that boosting digital training and skills development is key to meeting skills needs, particularly in the South, in London, and among large employers. Additionally, 36% say that it’s important to foster innovation and entrepreneurship. This was a particularly strong sentiment among employers in London, reflecting a growing concern in businesses that a more open attitude to risk and less reliance on government backing is key to a sustainable economy.
Nearly one-third (30%) say that it’s important to increase investment in STEM education and training, while 20% say that attracting international talent can help sustain the economy.
The government’s 10-year strategy aims to boost growth across the U.K. by addressing barriers like skills, shortages, infrastructure, and taxation. When asked about the biggest challenges in recruitment, employers said:
- skills shortages (60%);
- an unstable business tax environment (41%);
- insufficient support for SMEs and start-ups (36%); and
- lack of access to global talent (25%).
