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Skills Shortages in the UK Economy: Edge Bulletin 2 August 1 2018

Latest government figures that there are at least half-a-million young people aged 16-14 who are unemployed, and some estimated put the figure significantly higher. At the same time, businesses are clearer than ever about the scale of skill shortages and the impact of the Fourth Industrial Revolution and Brexit in causing them to grow further.

In our second skills shortage bulletin, we feature the latest data from a wide range of sources, which together show the scale of the challenge. The Open University’s 2018 Business Barometer estimates the direct cost of skills shortages at £6.3 billion each year. 

We shine the spotlight on the tech industry with techUK, who highlight that there are an estimated 600,000 tech vacancies in the UK, a figure predicated to reach 1 million by 2020. Over half of digital businesses report that vacancies are hard to fill and this costs the UK economy an estimated £63 billion per year.

We are grateful to the colleagues who form our Skills Shortage Analysis Group. Our third bulletin later this year will focus on the creative and cultural sector.