Home > News > April 2005 > 15-Apr-2005

Survey finds UK skills shortage at 12-year high

The UK skills shortage is at a 12-year peak, according to the Business in Britain survey from Lloyds TSB Corporate.

Over half (52 per cent) of the companies who responded to the survey experienced sustained difficulty in recruiting skilled staff in the last year – the highest level over the 13-year life of the survey.

Across the sectors, finding talented employees is a problem for 60 per cent of the respondent businesses in retail, transport & communications, and construction – the highest figures across all industries.

In addition, despite 49 per cent of respondents anticipating an increase in turnover over the first half of 2005, only 25 per cent expect to take on more staff – a drop on last summer’s figure when 28 per cent of firms expected to increase their employee numbers.

Staffing is lower on the investment agenda than equipment and machinery for many companies, with 27 per cent of respondents expecting to increase their capital investment, compared with 25 per cent looking to raise their employment levels over the first half of 2005.

Peter Navin, banking director at Lloyds TSB Corporate, commented: "A skilled workforce is integral to business success. Tax breaks and a favourable economic climate are only part of the picture. Because of the tight labour market, finding the right person for the job remains a challenge.

"Thanks to its general stability, Britain remains an attractive and profitable place to do business, but we need to ensure our workforce can compete globally, in terms of its level of expertise. Traditional employment pulls such as wages and benefits packages help maintain a competitive edge. By continuing to invest in management, training and resources, we can wage the war for talent with confidence."

Training and development books

Discover books on a variety of training and development topics at the Training Reference Bookshop

Source suppliers

Visit the Training Reference Directory to view supplier details for a wide range of courses, products and services.

Sponsored links

Back to top