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Latest NewsEconomics, government & businessLearning & developmentTraining policiesTraining strategies

Employers cite skills as top growth priority, says REC

by Jo Faragher 2 Jan 2025
by Jo Faragher 2 Jan 2025 Pic: Shutterstock
Pic: Shutterstock

The government needs to prioritise support for employers to upskill their workforces if its industrial strategy is to succeed, according to a poll of Recruitment and Employment Confederation members.

Invest 2035 was launched in November as the government’s “modern industrial strategy”, and sets out a 10-year plan for growth with “high quality, well-paid jobs” at the heart.

In an REC poll of 233 employers, 57% said that building skills should be at the top of the priority list, pointing out that most of the people who will be in the workforce in 2035 will be in it today.

Two-fifths (41%) said that expanding vocational training routes should be prioritised, and this was the case across UK regions and nations.

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There was particular support for boosting digital training and development in the South and London, and particularly among employers with more than 250 staff, the REC said.

Nationally, 36% said that fostering innovation and entrepreneurship was most important, with 60% of respondents in London feeling this to be the case.

Thirty percent advocated increased investment in STEM (science, technology, engineering and maths) training, and again this was higher in London, where 42% were in favour.

A fifth of employers polled by the REC said that attracting international talent should be a priority.

When asked about their biggest challenge in recruitment, 60% said skills shortages, with this rising to 69% in the Midlands.

Two-fifths were worried about an unstable business tax environment, rising to 53% in London. A quarter felt access to international talent was a concern, and 36% said there was insufficient support for SMEs and start-ups, who have to deal with an increasing level of regulation.

“Governments must work together on a more business-responsive approach to skills and deliver on the new Growth and Skills Levy so that employers can use funding more flexibly,” said Neil Carberry, REC chief executive.

“There are many vacancies that require shorter learning curves and that can be filled quickly by someone who is ready to learn if they have the right support. A stable, long-term approach will help businesses step up with confidence, ensuring public money crowds in private sector commitment.”

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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