Pro Installer August 2015 - Issue 29 | Page 45

45 PRO INSTALLER AUGUST 2015 PRO SKILLS @proinstaller1 Warning over apprenticeship levy Business leaders have spoken out over Government plans to introduce an apprenticeship levy, after research revealed that firms in sectors including construction are struggling to recruit higher-skilled workers. A survey from the Confederation of British Industry (CBI) found that over two thirds of firms believe they will need highly-skilled staff in the coming years. More than half of businesses, 55%, think they will be unable to find the right talent to fill job vacancies, according to the poll which was carried out with education specialist Pearson. The CBI has warned that plans announced by Chancellor George Osborne in July may do little to deliver the quality training the country needs. In his post-election Budget, Mr Osborne said he would levy large firms to fund apprenticeships, as part of efforts to create three million extra on-thejob training schemes. Katja Hall, the CBI’s deputy director, said: “The Government has set out its stall to create a high-skilled economy, but firms are facing a skills emergency now, threatening to starve economic growth. “Worryingly, it’s the highgrowth, high-value sectors with the most potential which are the ones under most pressure. That includes construction, manufacturing, science, engineering and technology. “The new levy announced in the Budget may guarantee funding for more apprenticeships, but it’s unlikely to equate to higher quality, or deliver the skills that industry needs.” ‘demand for skilled staff is rising’ The CBI’s survey of 310 businesses, which employ some one million workers between them, found the skills crisis is having the biggest impact on some of the country’s most important sectors. It found that around 73% of construction firms and 69% of manufacturers said that demand for skilled staff is rising. Ms Hall pointed out that the building sector already has a levy on training, which is run via the Construction Industry Training Board (CITB). Steve Radley, director of policy at the CITB, said: “Levies alone won’t deliver quality apprenticeships - it is also critical to have proper forecasting of skills demand and better engagement with training providers to meet employer needs. “But well-designed levy systems, if they have buy-in from employers, can play a positive role in tackling the skills challenge.” Source: www.citb.co.uk Shortage of skilled workers drives up pay A shortage of skilled workers in the construction industry is driving up pay, a report on the state of the UK jobs market shows. Engineers were the most sought-after workers in June, with construction workers also in high demand. Pay inflation increased in July well above the historical trend for June due to the shortage of skilled staff. Weekly earnings in the construction industry saw a month-on-month rise, according to the Report On Jobs, which is compiled by Markit, the Recruitment and Employment Confederation (REC) and accountancy firm KPMG. Ingrid Waterfield, a director at KPMG, says workers who are skilled in a high-demand profession can have their “pick of jobs”. That means that anyone wanting to train in the construction industry can expect to find a good, well-paid job with plenty of prospects for career progression. The report found that hiring activity is being hampered by a lack of candidates, while the number of permanent positions filled by jobseekers has slowed to the lowest rate for two years. It is feared the skills shortage could harm productivity and hinder the UK economy’s ability to grow. Ms Waterfield told The Telegraph it could be the “start of something worrying” and could have an impact on organisations’ ability to grow. The market tends to slow down during the summer months because people assume hiring is put on hold until after the summer holidays. Also, the impact of a fresh crop of graduates on the ‘could have an impact on organisations’ ability to grow’ There are several contributory factors causing the jobs market to stagnate, according to Ms Waterfield, as firms come up with increasingly innovative ways to hold on to their skilled staff. labour market is unlikely to be felt for another month. Ms Waterfield is calling for improved communication between the recruitment and education sectors to try to encourage more young people to learn sought-after skills. Tom Hadley, director of policy at REC, says: “Businesses are really struggling to find the people they need. Vacancies continue to rise, candidate availability has fallen steeply and we’re seeing this affect the amount of placements being made each month. “Large-scale infrastructure projects such as railway upgrades could also be held back if we haven’t got the right people to fill roles.” Source: www.citb.co.uk Pick up the PRO Installer, FREE, from one of over 600 trade counters.