Skills gap a constraint on firms’ ability to grow

THE LACK of highly-educated people in Yorkshire is an area highlighted by the report, with the 33 per cent of the population educated to NVQ4 level or above more than five points below the national average.

The region also fares worse than the national average on the number of people with no qualifications, with businesses “frequently identifying skills (gaps and shortages) as major constraints on their ability to grow”.

According to the report: “Coordination of effort at the level of Yorkshire for such higher-level skills – given provision is usually centralised and higher-skilled/ higher-paid workers are more likely to travel long distances to work – may add value to current arrangements and raise employers’ use of universities above the national average.

“It should be noted, however, that the data on employers’ responses to skills gaps and shortages does not suggest a particular ‘Yorkshire-level issue’, as opposed to a northern or national issue in relation to employers’ approach to skills and development.”

It concludes: “One sign of concern to be noted from the data – given an ageing workforce and potential reductions in the availability of overseas workers as a result of Brexit – is that there may be call for Yorkshire-wide action to improve employers’ ability to respond to labour market change – as workers require new skills either to work in new sectors as they are displaced from current industries undergoing automation or to work in the same industries applying new processes.”