‘Mismatch’ of skills could trigger jobs crisis by 2030, warns report

MILLIONS OF people could be unemployed or in work they are over-qualified for by 2030 because of a potential skills “mismatch”, a new study suggests.

In the next decade more than five million low-skilled people could be chasing two million low-skilled jobs, according to research for the Local Government Association (LGA).

There could also be a surplus of millions of people with intermediate and high skills looking for suitable jobs, said the report.

The LGA said the Government should use the budget in March to devolve back-to-work skills, apprenticeships, careers advice and business support schemes to local areas.

This would give groups of councils the power and funding to improve the current system, it was argued.

Kevin Bentley of the LGA said: “Millions of people face a future where they have skills mismatched for jobs at a huge cost to people’s lives and the local and national economy.

“Councils are ideally placed to lead efforts to help the Government bring growth and jobs to all parts of the country and ensure everyone is fully equipped with the skills they need to compete for future jobs.

“For that to happen, our complex and fragmented national skills system needs to adapt to a changing jobs market.

“Better local coordination of services would provide better opportunities for young people to increase their skill levels and adults retrain and upskill for future jobs. This is key to driving up productivity, closing local skills gaps and boosting local economies.”

Stephen Evans, chief executive of the Learning and Work Institute, which conducted the research, added: “Other countries have continued to invest in skills, while progress in England has stalled over the last decade, the result of large cuts in England’s adult education budget which has left us lagging behind other countries and the number of adults improving their skills at a record low.

“We now need a decade of investment, in order to boost life

Kevin Bentley of the Local Government Association. chances, economic prosperity and to level up the country.”

It comes in stark contrast to messages from Westminster, as Northern MPs previously vowed to “hunt like a pack” in the new Parliament which is being billed as a once-in-a-generation opportunity to power up the North.

Up to £80bn of infrastructure funding in the North, and the idea of holding Cabinet meetings in a northern town or city every other week, were mooted following the Conservative Party’s election success.

Speaking last month, Northern Powerhouse Minister Jake Berry said: “This is the North’s moment – a once in a generation opportunity to power up the North and to make every arm of Government work for the people of the North.”

Mr Berry said: “Under Boris Johnson’s leadership we’ll be going further and faster than ever before to pour tens of billions of pounds into the Northern Powerhouse economy and to build that high-growth, high-wage economy that works for everyone.”

At the time Kevin Hollinrake, Conservative MP for Thirsk and Malton, warned it was vital his party offered something to the North because two of the key issues which drove voters to the Conservatives – Brexit and Jeremy Corbyn – would not be priorities in five years’ time.

Millions of people face a future where their skills are mismatched.