A WIDENING skills gap is threatening to derail business competitiveness in the coming year, warns the Confederation of British Industry (CBI).
The latest CBI/Accenture survey, Growth for Everyone, reveals half of British businesses expect to create jobs and grow their workforce in every part of the UK, with permanent jobs created at a faster rate than part time positions.
Despite this, for the first time in the survey’s 17-year history, concerns about skills have overtaken employment regulation as the most significant threat to workforce competiveness and is expected to remain so for the near future.
In keeping with the trends reported in 2014, private sector jobs growth is expected to continue in 2015
In keeping with the trends reported in 2014, private sector jobs growth is expected to continue in 2015 with half of firms planning to take on new recruits. Jobs growth is predicted across the UK – with Scotland leading the way, closely followed by the North West. The outlook for young people is also looking brighter as firms plan to boost their graduate in-take and expand apprenticeships.
The survey also reveals that, although most employers expect pay rises at or above retail price inflation (RPI) in 2015, a cautious approach to pay will continue to be the order of the day, reflecting weak productivity and an increasingly competitive business environment.
Ensuring growth works for everyone will remain a challenge as economic growth continues to bed in over 2015. Long term issues such as productivity and education need to be tackled, and the flexibility of the UK labour market needs to be protected, if businesses are to help people get into, and get on in, work.