London Daily

Focus on the big picture.
Thursday, Jan 29, 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
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
BlackRock Executive Rick Rieder Emerges as Leading Contender to Succeed Jerome Powell as Fed Chair
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
FBI and U.S. prosecutors vs Ryan Wedding’s transnational cocaine-smuggling network: the fight over witness-killing and cross-border enforcement
×