Struggling British Businesses Seek Skilled Workers to Boost Productivity
British companies resort to Artificial Intelligence and automation as they grapple with workforce skill shortages
In a fresh survey, it's been found that a whopping 75% of UK businesses are finding it tough to snag top-tier talent due to fears of meager productivity returns post-pandemic recovery. The head honcho, Keir Starmer, has urged companies to prioritize hiring Brits over sponsoring foreign workers to boost the economy.
But, the research by Barclays suggests that the talent pool in this country is shallow - one in eight firms citing the lack of skilled workers as a major hurdle in their growth. As a result, three-quarters of leaders considder this issue a threat to their productivity goals. The struggle is particularly pronounced in urban centers like London and the West Midlands, with the UK fintech sector hit hardest by the deluge of sub-par applicants and hires.
To counter this, one-third of businesses intend to invest in upskilling their employees while a fifth eye opportunities to nab more proficient workers should funding become available.
The findings paint a dire picture of productivity in the UK, trailing behind rivals such as Germany and France in terms of GDP per hour worked in 2023. Sickness-induced absenteeism also proved detrimental to productivity, with a total of 100.5 million days lost in 2024 across the private sector.
Starmer has linked the issue to companies' preferences for overseas labor over domestic training, and has proposed the establishment of Skills England to prop up businesses in crafting strategies to cultivate a robust domestic workforce. The agency is to home in on skill gaps at both local and national levels, with the potential of leveraging improvements in regions like London and the West Midlands.
Meanwhile, American Express paints a slightly more positive picture, with 45% of medium-sized businesses prepared to beef up training programs. Additionally, 28% of firms yearn to onboard new talent over the next year.
The pursuit for productivity objectives isn't exclusive to cash-rich behemoths; a sizeable number of small businesses are going gung-ho on investment in automation, digital tech, and artificial intelligence to ensure their growth prospects are secure.
Despite post-pandemic uncertainty and UK productivity woes, there's hope yet. By focusing on high-skilled labor, both foreign and domestic, and upskilling existing employees, the nation can inch its way towards a promising economic future.
Insights from Enrichment Data:
Addressing Skills Gaps:
- Skills England Initiative: The government plans to identify and fill skill gaps in specific industries through Skills England, which may be beneficial for regions like London and the West Midlands.
- Immigration Reforms: The UK government has updated immigration policies to attract high-skilled workers and reduce reliance on lower-skilled foreign labor. This includes an enhanced emphasis on domestic training and a focus on recruiting global talent with Level 6 qualifications (equivalent to graduate level).
Challenges and Considerations:
- Shortage of Skilled Workers: The reforms aim to address the talent deficit by prioritizing domestic training and focusing on high-skilled immigration. However, raised skill thresholds and salary requirements for Skilled Worker visas may result in a decrease in eligible occupations, potentially limiting the initial influx of skilled workers.
- Regional Disparities: For the initiatives to be effective, they must target the unique needs of individual regions, such as London and the West Midlands, to foster balanced growth across the country.
- In an effort to address skill gaps and boost productivity, the government plans to establish Skills England, an initiative aimed at identifying and filling skill deficits in specific industries, particularly focusing on regions like London and the West Midlands.
- Recognizing the need for high-skilled labor, the UK government has updated immigration policies to attract top-tier talent by emphasizing domestic training and focusing on recruiting global workers with graduate-level skills (Level 6 qualifications).
- While the UK government is working on addressing the shortage of skilled workers through immigration reforms and domestic training programs, it's crucial to consider potential impacts of these measures, such as the possible decrease in eligible occupations due to raised skill thresholds and salary requirements for Skilled Worker visas, which could limit the initial influx of workers. To ensure balanced growth across the country, regional disparities must be taken into account when implementing these initiatives.
