politics
UK Manufacturing Sector Reports £7.1 Billion Annual Productivity Loss from Skills Shortage
A survey by In-Comm Training found nearly three-quarters of manufacturers cite insufficient government support for skills gaps. Data from Make UK estimates the shortfall costs the sector £7.1 billion yearly in lost output.
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Nearly three-quarters of UK manufacturing businesses reported a lack of government support for addressing skills shortages after last year's Budget, according to the latest annual Training Barometer released by In-Comm Training. The survey also found that 21 percent of the current manufacturing workforce is aged 55 or older and that the number of new apprenticeships in the sector has fallen 23 percent since 2019.
UK data cited in the report estimates the talent gap costs the sector £7.1 billion a year in lost productivity.
Last year the government published an Industrial Strategy that included plans to reduce electricity costs, ease planning delays, and improve access to finance and skills training. Yesterday the government announced a new Youth Jobs Grant that will pay businesses £3,000 for each eligible young person they hire.
In-Comm Training's managing director stated that the cost difference between hiring a skilled worker and an unskilled apprentice is narrowing, making companies more reluctant to take on apprentices. Only one-third of manufacturers surveyed believe the Industrial Strategy will support their development, and fewer than half plan to hire an apprentice.
