SKILLS
Retraining essential as one in five firms consider job cuts The British Chambers of Commerce (BCC) has called for the government to extend skills training as new research showed nearly one in five companies are considering staff redundancies as the next phase of furlough tapering begins. With older workers much more likely to still be on furlough, there’s concern that they could go unutilised unless support for retraining is immediately put in place. Carried out by BCC, the survey asked more than 250 businesses with employees still on furlough what their response might be to employers’ contributions to the scheme rising. Nearly one in five (18%) said they would make staff redundant. The BCC survey comes after HMRC data showed older workers were far more likely to remain furloughed than younger ones, raising concerns about what plans are in place to re-skill those who are left without jobs as the scheme winds down – with skills shortages continuing to bite across the UK labour market. Jane Gratton, head of people policy at the British Chambers of Commerce, said: “Recent changes to the furlough scheme is likely to result in many thousands of people being released back into the labour market, as employers who are still struggling to recover from the recession are forced to make redundancies and cuts to working hours. “With widespread skills shortages across the economy, some will find new jobs where their skills are in demand, while others will need to retrain for opportunities in a different sector.
“Whether furloughed workers are returning to the workplace or the wider labour market, it’s crucial that employers and the government give them the support and training they need to be re-engaged and productive. Alongside rapid retraining opportunities, the government should extend the Kickstart scheme into 2022 and expand it to enable older workers to gain new skills and experience.”
Jane Gratton said: “As firms are released from lockdown restrictions, the skills and labour shortages they experienced before the pandemic are once again starting to bite. The encouraging increase in job creation across the manufacturing and services sectors is being held back by recruitment difficulties at all skill levels, jeopardising growth and productivity.
While some workers may need re-skilling or upskilling to re-enter the labour market, firms that are looking to grow their workforce are finding it hard to source suitably skilled staff.
“Whether people have found work in a different sector, changed their working patterns or left the UK during the recession, firms are now struggling to find the people they need. It’s vital that business, government and the skills system work together to find solutions.
A recent BCC survey showed that seven out of ten firms were having difficulty hiring the right talent for their business. The sector with the highest proportion of firms reporting difficulties was construction at 82%, followed closely by hotels & catering at 76%. Of respondents in production & manufacturing, 68% reported difficulties in recruitment. Consumer services firms were the least likely to report difficulties but even in that sector the proportion facing issues was 61%.
“Adopting more remote and flexible working patterns will help firms attract skills from a wider talent pool. But we also need access to rapid and agile training and reskilling opportunities for adults in the workforce, alongside a flexible and cost-effective immigration system that ensures fast access to skills when these can’t be recruited locally.”
“While some workers may need re-skilling or upskilling to re-enter the labour market, firms that are looking to grow their workforce are finding it hard to source suitably skilled staff.” Business Connexions | 21
