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New research shows that upskilling is given insufficient priority in the U.K., and workers are dangerously complacent about their skill levels

Sep 30, 2023 · 2 min read

Polling conducted by Opinium shows the gap between the skills employers require and the skills the workforce possesses has significantly worsened since 2020

6 February 2023, London – New polling commissioned by AICPA & CIMA shows that the U.K. workforce does not have the skills the country’s small and medium sized enterprises (SMEs) need to survive and thrive, and that the situation is deteriorating. It also indicates that there is a significant gap between the skills employers are looking for and the skills employees think will increase their productivity.

The research, conducted by Opinium, found that 82% of SME employers have identified skills gaps within their organisation in the past 12 months. When this question was last polled in 2020 the figure was 65%, so the skills gap has become significantly worse in that period.

For over a decade the U.K. has struggled to raise its productivity compared to its competitors in the US, Germany and France. Without plugging the skills gaps in the workforce, this pattern will mean a continuation of weak economic performance and depressed real wage growth.

Sadly, the research indicates that upskilling is not a priority in the U.K. Since the start of 2022, just one in three SME employees have undertaken any skills training or professional development. 67% of SME employees feel they already have the appropriate skills to perform their job effectively, and 62% do not see their lack of skills training and professional development as a barrier to progressing in their job or career.

There is also a mismatch between the skills employers are looking for and the skills employees think would be effective at increasing their productivity.

  • 25% of employers need a workforce with more numeracy and financial literacy skills. Only 5% of employees think developing these skills would increase their productivity

  • 40% of employers are looking for workers with more digital skills, but only 23% of workers think acquiring these skills would increase their productivity

  • 25% of employers want workers with better literacy skills such as reading, writing, and communicating with others. A mere 2% of workers think developing these skills would increase their productivity

Andrew Harding, FCMA, CGMA, Chief Executive – Management Accounting, at the Association of International Certified Professional Accountants, representing AICPA & CIMA, said:

“The U.K. is falling behind our global competitors because the workforce lacks the skills a modern economy needs. Without developing these skills there will be no improvement in productivity, which is vital for generating real economic growth and the improvement in living standards that would come with it.

"Sadly, the findings of our Mind the Skills Gap research show that things are currently heading in the wrong direction. This research should be a wake-up call for business leaders, employees and policymakers, who urgently need to work together to address the U.K.’s productivity woes, attitudes to learning and the widening skills gap.

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