G20 must work to avoid 'global skills crunch'

Gordon Brown and the G20 must work together to avoid a "global skills crunch", the CIPD has said ahead of tomorrow's meeting in London.

In Message from Management, the institute has urged leaders to ignore short-term approaches to job creation and instead concentrate on four long-term priorities - 'more in work', 'smart work', 'inclusive work' and 'green work'.

Governments should conduct 'employment potential audits' to ensure public spending programmes maximise the job-creation opportunities, the CIPD said. Public resources should be allocated to vocational education and training and people management skills; to drive the green agenda through financial incentives; and governments should not allow members of Generation Y to become disillusioned, in turn affecting the global skills base.

John Philpott, the CIPD's public policy director, said a global skills agenda was of the utmost importance.

"For the sake of the long-term benefit of the global skills base, this should be as much of a priority as freeing the credit markets," said Philpott. "With training budgets under pressure, line managers will have a big role to play in ensuring on-the-job learning is delivered and in prioritising the training needs of their teams. Let's avoid the global credit crunch spawning a global skills crunch."

"In addition, governments should act to build open and flexible labour markets to maximise the use of available human resources and talent."

Last week, the government announced £22m of new European funding to improve employment opportunities in the UK and develop people's work skills.