South West Regional Skills Enterprise and Employment Analysis 2007/2008

Final Report

4.2 Current Demand for Skills

4.2.2 Skill Gaps

The Leitch Interim Report states that skill gaps are a greater problem for the UK than skill-shortage vacancies; they are reported by a greater proportion of employers and affect a large proportion of employees. Most employers reporting skill gaps also report taking action such as training in response.

23% of employers in the South West (22% in England) believe that one or more of their employees is not fully proficient (about one in ten employees). The number of people with a skill gap has fallen by 46% in the South West between 2003 and 2005. Numerically, skill gaps are most frequently cited in the retail and hospitality sectors and in sales and elementary staff. The skills which are most frequently missing are in customer handling, team-working and oral communications.

Generally, therefore, whilst skill gaps are seen across all occupations, a large part of the problem is concerned not with skills at a technical level but with the lack of the fairly basic attributes required to perform fairly modest tasks. Notwithstanding this effect, other skill gaps remain and up-skilling remains an important objective (see Section 4.11).

NESS 2005 reveals that skill gaps are most numerous in:

• Retail (Skillsmart)
• Hospitality (People 1st)
• Construction (ConstructionSkills)
• Engineering (SEMTA)
• Social care (Skills for Care and Development).

As with skills shortages, there may be a basic division between the skill gaps of employers in retail and hospitality where many skill gaps may concern fairly routine, low-skilled jobs at low wage rates (though we should not forget chefs as the key craft occupation in the hospitality sector). However, skill gaps in engineering and construction may be more frequently located at higher levels, requiring at least Level 2 and often Level 3 skills, particularly in the craft occupations on which these sectors depend.

Figure 4: Employees who are not proficient, by SSC, 2005 (Click image to open in new window)

Source: NESS 05

Figure 5: Volume and intensity of skills gaps by SSC, South West, 2005 (Click image to open in new window)

Source: NESS 05

It is important to note that Food and Drink and Leisure and Tourism feature more strongly in the rural economy than the other priority sectors. It is particularly important that any actions taken in relation to these sectors are fit for purpose for rural businesses/customers.

Further information on skills gaps and skills shortages identified through the Sector Analysis is available in the South West Regional Skills, Enterprise and Employment Analysis: Sector Analysis, which accompanies this report.

Conclusions

As with skills shortages, the issues are largely concentrated in a few sectors. A sectoral focus will be necessary to tackle persistent skill gaps in the labour market.

The most frequently cited skills shortages are what may be termed generic employability skills.