London Daily

Focus on the big picture.
Saturday, Sep 05, 2026

UK employers feel the strain of missing skilled workers

UK employers feel the strain of missing skilled workers

Frustrated with England's education system, Simon Biltcliffe spends a lot of time training new hires at his marketing firm in the "soft skills" he and many employers say the country's sluggish economy badly needs.

Finding that new starters often struggle to think on their feet, he sets them workplace challenges to learn to solve problems at pace and in teams. Many don't adapt, leading to high attrition after three- and six-month reviews.

Across Britain, Biltcliffe's frustrations are shared by businesses who say the nation's schools, technical colleges and apprentice schemes are not turning out the workers they need, from software coders and designers to skilled machinists.

"There needs to be a step change," Biltcliffe said, speaking at the offices of Webmart - which advises clients on the carbon footprint of their marketing operations - in an industrial estate in Barnsley, a former coal town in northern England. Neighbouring businesses include an IT security firm and other companies far removed from the region's mining past.

Biltcliffe described the education system as "not fit for purpose" in a changing economy where the growth of automation and artificial intelligence will make creative skills and adaptability all the more important.

While Britain boasts world-leading universities, top scientists and a growing share of young people who continue academic studies after 18, less than a fifth of 25-64 year-olds have a vocational qualification, compared with more than half in Germany, according to the Organisation for Economic Co-operation and Development.


Finance minister Jeremy Hunt is expected to address this skills shortage in a budget statement on Wednesday that he will frame as a growth plan for Britain's economy - still the only one in the Group of Seven yet to recover its pre-coronavirus pandemic size.

But past attempts to train up more workers have seen the problem get worse by some measures, and any big improvement to the post-16 skills system is likely to take years.

The shortage of qualified workers is not unique to Britain but it has been exacerbated by the country's exit from the European Union, which has created more paperwork and cost for employers hiring workers from the bloc. That has contributed to a surge in unfilled vacancies to record levels last year.

Digital roles are growing four times faster than the workforce as a whole, and there are an average of 173,000 vacancies per month for digital occupations, costing the economy tens of billions of pounds each year, according to the government.

Biltcliffe and other employers argue that changes need to be made not only in post-school training, but in schools themselves, which they and some educational campaigners criticise for increasingly promoting memorisation for tests at the expense of creative thinking and practical learning.

The Edge Foundation, which seeks to improve ties between education and employers, says time for subjects such as computing and practical science work has been squeezed over the past decade, and that 71% fewer pupils studied design and technology courses to exam level in 2022 than in 2010.

Subjects that have seen big increases over the past decade included geography and history.

Despite the focus on exams, around 100,000 people leave school every year without required standards in English and maths and Britain has one of the highest rates of young people not in education, employment or training among the world's leading economies.


"We don't do nearly as well for the 50% of school leavers who do not go to university as we do for those who do," Hunt said in January.

In response to a question from Reuters about the Edge Foundation data, the education ministry said every state-funded school was "required to teach a broad and balanced curriculum."


TRAINING REVAMP


Without a rapid overhaul of the training system, Britain's pool of highly skilled adults is likely to shrink further relative to other countries, the OECD has warned.

Employers groups are calling on Hunt to tackle a key part of how training is funded in his budget speech.

Since 2017, firms with an annual pay bill of more than 3 million pounds have been required to pay an Apprenticeship Levy - a tax placed in a fund the companies can draw on for training.

Employers say they often cannot find suitable training courses, and over 2 billion pounds of unused funds raised have gone to government coffers.

A House of Commons Library report said in January that the government acknowledged the number of apprenticeships had fallen since the levy was introduced, but argued that the quality of apprenticeships had improved.

The Confederation of British Industry, a business lobby group, wants Hunt to allow firms to invest the money in a wider range of training, not just apprenticeships, citing its own research predicting nine out of 10 British workers will need to retrain by 2030 to adapt to changes in the economy.

The Treasury said on Saturday that Hunt will announce training for older people returning to work that would be more flexible and shorter than other programmes, alongside the expansion of a scheme for reskilling in industries such as construction and technology.

Corporate leaders acknowledge employers also need to do more themselves, and prioritize training even in lean times.

"Training is the first thing that goes when the budget is squeezed," Robert West, head of education and skills at the CBI, said.


BRIGHT SPOTS


At Webmart - with 43 staff and annual sales of about 20 million pounds - Biltcliffe says getting new hires up to speed in how to engage with clients or meet deadlines acts as a brake at a time when demands are getting ever more immediate.

"You're slowing down really quite a lot to go at the pace of the education system," he said of his company, which began as a print management firm in 1996.

Olly Newton, executive director of the Edge Foundation, says there are bright spots, including schools trying out new ideas.

"I think there's a real head of steam to do something different," Newton said.

One such school is the publicly funded XP in Doncaster, 20 miles from Barnsley.

Children joining XP at age 11 immediately go on a trip to the mountains of England or Wales to learn to cope with new challenges and the importance of teamwork.

Inspired by project-based learning schools in the United States, XP sends students out of classrooms to dig into issues such as migration or the impact of the closure of the local mining industry, requiring them to engage with adults and understand the world around them.

"Our students are more reflective than a lot of adults," Claira Salter, XP's principal, said. "Our students can walk into any interview with confidence and talk about themselves."

By the time they leave XP at 16, all pupils have experience of speaking to groups of 250 people about their work.

Last year, all 50 students who graduated from XP stayed in education or went into employment or training while Doncaster's not in education, employment or training rate for 16-17 year-olds stood at nearly 5% in early 2022.

"We're interested really in things that go on beyond normal school life and equipping kids for their future," Salter said.

Newsletter

Related Articles

0:00
0:00
Close
Thousands Join Anti-Abortion March Through Central London
UK Beekeepers Call for Nationwide Tracking as Asian Hornet Sightings Increase
England Sees Sharp Rise in Property Subsidence Claims After Record Summer Heat
House of Lords Advances Financial Services Reform Bill
House of Lords Begins Detailed Scrutiny of Railways Bill and Great British Railways Plan
UK Treasury Cuts Green Book Discount Rate to Support More Regional Infrastructure Projects
Reform UK Suspends Two Senior Aides After Undercover Report on Foreign Donation Rules
UK Chancellor Warns Autumn Budget Will Require Tough Choices as Energy Shock Squeezes Public Finances
UK Parliament Raises Concerns Over Funding Structure of £400 Million Tropical Forest Initiative
Andy Burnham Launches Number 10 North as Part of UK Devolution Push
UK Reaffirms Falkland Islands Sovereignty Amid Renewed Regional Pressure
Andy Burnham to Abstain From Assisted Dying Vote as Ministers Are Told to Remain Neutral
Kemi Badenoch Sacks Shadow Chancellor Mel Stride in Conservative Economic Strategy Shake-Up
UK Government Drops Early Prisoner Release Plan in Favor of Deportations and Wider Prison Reform
UK Farmers Warn Drought-Hit Harvests Could Push Grocery Prices Higher
UK Economy Faces Persistent Stagflation Risks Ahead of October Budget
Masked Protesters Block Port of Dover Roads, Disrupting Cross-Channel Traffic
Reform UK Suspends Senior Officials After Undercover Investigation Into Foreign Donation Plans
UK Urges Households to Keep Emergency Supplies Amid Severe El Niño Warning
Prime Minister Andy Burnham Sets Out Regional Industry and Prison Reform Agenda
Siemens Energy Wins Rolls-Royce Small Modular Reactor Manufacturing Contract
UK Mortgage Costs Rise as Gilt Yields and Swap Rates Climb
Bank of England’s Huw Pill Calls for Prompt Rate Rise as Inflation Risks Persist
National Audit Office Warns UK Is Unprepared for Major Food Supply Disruptions
British Army Suspends Some Training Exercises as Budget Pressures Intensify
HMS Queen Elizabeth Deploys as NATO Allied Response Force Command Ship
Reform UK Suspends Two Senior Officials Over Alleged Foreign Donation Scheme
UK Reasserts Falkland Islands Sovereignty After Argentina Threatens Sanctions
Scottish Tech Company PureLifi Enters Administration With More Than 40 Job Losses
Scottish Government Names Alyn Smith Innovation and Education Minister
Green Party Co-Leader Zack Polanski to Contest By-Election for Keir Starmer’s Former Seat
Palestine Action Activists Appeal Terrorism-Related Prison Sentences
PwC Report Highlights Persistent Regional Spending-Power Divide Across Britain
UK Names Hundreds of Employers for Minimum Wage Violations
UK Commits £400 Million to International Tropical Forest Fund
UK Extends £2 Bus Fare Cap Across England Through 2027
UK Warns Travellers as US-Iran Tensions Disrupt Middle East Security and Shipping
Andy Burnham Faces Kemi Badenoch in First Prime Minister’s Questions
Kemi Badenoch Names Andrew Griffith Shadow Chancellor in Conservative Reshuffle
UK Treasury and Markets Focus on Fiscal Headroom Ahead of Autumn Budget
UK Government Reverses Early Release Plans for Serious Violent and Sexual Offences
UK and France Review Border Cooperation After 48,000 Small-Boat Crossings Prevented
UK Growth Outlook Weakens as Inflation and Energy Costs Rise
Breeding Tropical Mosquitoes Discovered in East London
Sadiq Khan Agrees to Search of Digital Communications in Palantir Lawsuit
Scottish Protesters Call for Moratorium on AI Data Centre Expansion
Uber Drivers Bring London Class Action Over Algorithmic Management
Reform UK Accepts £4 Million Donation From Cryptocurrency Billionaire Pardoned by Trump
Justice Secretary Tightens Early Release Scheme to Exclude Manslaughter Offenders
Kemi Badenoch Reshuffles Conservative Team as Reform UK Pressure Grows
×