The skills issue

20 February, 2023

The data, provided by the network of job boards, Broadbean Technology, suggests that vacancies across the engineering sector increased 11% between June and August before eventually slowing, dropping 2% between August and October. This slowdown in recruitment activity as economic uncertainty began to affect the UK, saw vacancy levels drop 1% in October when compared with January.

While the growth in jobs has stalled, the analysis suggests skills are still not plentiful enough, with the amount of people applying for engineering roles dropping 44% between January and October 2022. With staff in short supply and the country being hit by a costof-living crisis, it can come as little surprise that average salaries in engineering increased throughout 2022. Pay increased steadily between January and July, up 4% during this period, while October saw a 1% increase in remuneration for engineering roles.

Engineering, like many other sectors, is also incorporating more digital technology, resulting in greater speed, accuracy, control and traceability. Again, however, there is paucity of digital skills in engineering as indeed there is in other industrial and commercial segments. The World Economic Forum has estimated that 150 million new technology jobs will be created globally over the next five years, and 77% of all jobs will require digital skills from workers by 2030. However, businesses currently face a global shortage of digital skills, with only 33% of technology jobs worldwide filled by the necessary skilled labour.

According to a recent global survey by Capgemini and LinkedIn, half of today’s organisations concur the ‘digital divide’ is getting wider, with 54% of business leaders admitting they have lost their competitive advantage due to talent shortages.

“This global digital skills gap urgently needs addressing,” says Rehan Haque, CEO of metatalent.ai. “Too many young people are ill-prepared for the jobs of the future, due to a lack of exposure to the digital tools and skills needed for the future of work. To prepare for the adoption of advanced emerging technologies, such as artificial intelligence (AI), machine learning, blockchain, virtual reality and more, organisations need to train the next generation of their workforce through the use of digital skills training and mentoring.”

Haque adds that Generation Z and Generation Alpha will make up around a quarter of the UK workforce by the end of this decade, and nine in ten of their jobs will require digital skills as a minimum. Haque believes the most immediate challenge for today’s businesses is how to empower these emerging generations with the tools they need for the future of work. “Providing employable skills training for the future workforce is critical for businesses to keep up with the increasing demand for digital skills over the next decade,” he emphasises.

A sustainable skilled and plentiful workforce within engineering and manufacturing in the UK is of course vitally important for our economic health and continued reputation as a leading industrial nation. The evidence points to failings that can only get worse if not addressed head on by industry, government, educational establishments and the media.

One thing that holds no concern, however, is the next editor of Hydraulics & Pneumatics. Aaron Blutstein will be taking over the editorial custodianship as of the next edition. The journal is in safe hands.

Ed Holden, editor