Skills Almanac - Unique report shows skills boost needed to drive UK productivity

Sector Skills Development Agency - 17/05/2007

The Sector Skills Almanac for the UK (2007) provides a clear portrait of the skills of the UK workforce sectors. It reveals that while the UK's employment rate is the fourth highest in Europe and that some sectors are more productive than their EU and US equivalents, the UK's overall productivity levels are 21 per cent behind the USA and eight per cent lower than Europe.
 
The Almanac's value is that it takes a sectoral approach to the skills and productivity challenge, mapping out and comparing the different skills needs and approaches across 27 economic sectors.
 
It also highlights the work of the Skills for Business network which comprises 25 employer-led Sector Skills Councils, whose goals are to:  reduce skills gaps and shortages; improve productivity, business and public service performance; increase opportunities to boost the skills and productivity of everyone in the workforce; and improve learning supply including apprenticeships, higher education and National Occupational Standards.
 
Professor Mike Campbell, Director of Development at the Sector Skills Development Agency which produced the study, said: "The Almanac, which will be an annual publication from now on, shows how vital it is that we raise skill levels in this country.  There is a shortage of basic and employability skills, vocational and technical skills, and intermediate and higher level skills are more plentiful in the workforces of other countries. Similarly the UK's productivity level relative to its competitor countries is weak. The difference is stark when per hour or per worker measures of productivity are considered."
 
Professor Campbell, who was the adviser to the recently published Leitch Review of Skills, said the Review identified the challenges to the UK's economy posed by the increasing pace of global demographic and technological change. He said skills were key to closing the productivity gap with competitor countries.
 
"The UK is starting from a position of disadvantage and significant progress is required if we are to ensure a strong economy for the future."
 
The Skills Almanac also found 25 per cent of all vacancies in England existed due to a lack of candidates with the required skills, qualifications or experience (i.e. a skills shortage vacancy). Employers in England reported six per cent of all staff was less than fully proficient to do the job required of them (i.e. have a skills gap).
 
Professor Campbell is co-editor with Sam Porter, of a new book entitled Skills and Economic Performance which considers the causes and consequences of the UK's international skills and productivity gap and the implications for policy, business and individuals.
 
The Almanac was launched on Tuesday May 8 at a reception in London co-hosted by the SSDA and leading think tank The Work Foundation where Professor Campbell spoke about the skills challenges facing the UK alongside Barry Sheerman MP, Chair of the Education and Skills Select Committee, which is currently holding a major review into skills policy, and David Smith, People Director at ASDA.

The Sector Skills Almanac UK 2007, published by the Sector Skills Development Agency, is free, please contact info@ssda.org.uk