POLITICS


Perfect storm looms on recruitment front


The East Midlands continues to outperform other parts of the country when it comes to contributing to the national economy, but there could be a perfect storm on the way when it comes to recruitment. Our unemployment level is lower than the


national average and we continue to create jobs and wealth better than anywhere in the country other than London and the South East. And despite the doubts and uncertainty facing


business as a consequence of the current political situations around the world, we continued last month (June) to see improvements in the number of people claiming Jobseeker’s Allowance. We continue to be the spine of manufacturing


in the UK and a global leader in advanced technologies. But there is a storm brewing. To stay ahead of the game and to ensure this


region holds on to its status, companies must have access to a suitably skilled workforce. The latest data from the second Quarterly


Economic Survey of the year suggests, however, that the perennial problem of finding the right people for available jobs is not going away. If anything, the situation is getting worse. The latest QES results show that nearly seven-


out-of-ten firms have vacancies they want to fill but an equal percentage of those firms struggled to find applicants who possess the skills or experience needed. Similar numbers said they didn’t see the


situation changing in the immediate future. While this figure has changed only marginally


in recent years, it creates a need for employers to invest in training, either for new staff – which defers the point at which they become of value to the employer – or of existing staff. Upskilling existing staff is not always the


viable option it should be. Staff with better skills become more


attractive to rival organisations and could easily be lured away with the promise of a better personal package. This creates a dichotomy: should the


employer who has paid for the upskilling match the better offer, thereby creating a threat of spiralling wage inflation, or should they begin the recruitment-v- training process all over again?


It doesn’t end there, though. With Brexit looming, the pool into which


employers can dip for suitably skilled workers could soon become considerably smaller than it is today. It will be necessary, therefore, to have home-


grown talent available to fill the gaps left by the absence of skilled staff from EU countries. “And this is where a complication becomes a


crisis which threatens to become a perfect storm,” said Chris Hobson, the Chamber’s Director of Policy. “Last year the Government introduced the


Apprenticeship Levy. The thinking behind the levy was that it would provide a reliable funding stream to ensure the creation of an additional three million apprenticeships by 2020. “The reality is that business paying the levy –


a tax of 0.5% on payroll of £3m or more – have yet to grasp how to claw back the payments by investing in apprentices or upskilling existing workforces, and smaller companies which previously employed apprentices don’t seem to understand how the new system works and have shied away from it. “This has resulted in fewer apprenticeships


being started, not more, which means there will be fewer people with particular skills sets needed by employers immediately post-Brexit. “And we have the ongoing disparity between


what employers need and the basic employability skills possessed by those leaving academia. “Poor skills among school leavers, fewer


apprenticeships leading to fewer skilled workers


and a smaller pool of workers from which to find suitably qualified and skilled staff is a serious threat to the prosperity of the East Midlands and of UK plc as a whole.” While the threat to the region and national


economies is very real, the findings from the latest QES suggest that spiralling wage inflation and falling business activity resulting from skills shortages have not yet begun to manifest themselves. “But it’s only a question of time,” said Chris,


adding: “The East Midlands might today continue to outperform other parts of the country but UK plc has gone from being one of the strongest economies in the G8 to being one of the weakest. “Being a strong contributor to a weak


economy is not as good as being strong in a strong economy. “We have to accede and recognise that many


of the monitoring bodies, including the British Chambers of Commerce, are downgrading their growth forecasts for the UK economy. This downgrading comes in the shadow of what our members are reporting in terms of recent domestic and overseas activity and the influences the activities of third parties might have on UK trade. “Among those influences are things such as


recent sharp fluctuations in the price of crude oil and the tariffs war breaking out between America and many of its trading partners. “These are influences over which the UK has


no control but which will strongly impact our economy.


Firms are struggling to find applicants who have the right skills and knowledge for the job


36 business network July/August 2018


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76