Conducted in the spring of this year, the survey took the views of senior executives from 291 UK employers of varying size, representing nearly 1.5 million employees. Respondents came from across all economic sectors including manufacturing, public sector, science/high-tech/IT and engineering, retail & hospitality, energy and water, banking and finance, construction, transport, education and professional services.
The latest survey is published against the backdrop of a recovering economy, employment rising overall but with youth unemployment still remaining high. On the policy front, recent announcements from the Labour Party have set out in greater detail its skills strategy to equip all young people with the skills needed to compete in the jobs market in the 21st Century. Announcements have included the introduction of Technical degrees and Lord Adonis’s Growth Review, whose recommendations include trebling the number of STEM apprenticeships, expanding the University Technical College programme, and encouraging further education colleges to focus more on teaching technician-level skills. Below are some of the headlines from this year’s survey:
Education and Skills Survey: the overall picture
“There is a serious risk that skill shortages will become a constraint as economic recovery gathers momentum and the pace of technological change increases”
From the employers’ perspective the education sector’s capacity to deliver meaningful skills is mixed. A number of issues stand out: the level of general employability skills - literacy and numeracy skills, problem-solving and communication skills among graduates and school leavers – remains a concern; STEM and language skills continue to be in high demand and there is increasing employer commitment to invest in skills; greater support and demand for apprenticeships, vocational and technician-level skills; careers advice continues to be seen as “not yet fit for purpose”.
The demand for STEM skills at all levels continues to outstrip supply
“There is an urgent need to improve the supply of STEM-skilled people if economic growth is not to be held back”
STEM skills continue to be in widespread demand with 48% of employers preferring graduates with STEM qualifications, up from 42% in 2013. However there are concerns over meeting current and future demands, particularly with employers expecting to increase the number of jobs requiring leadership and management skills and higher skills. 39% (as in 2013) of employers requiring STEM skills express difficulties recruiting staff, many of which expect similar problems over the next three years. Difficulties are expected in recruiting graduate, postgraduates, technicians and apprenticeships.
The shortage of STEM-qualified technicians and apprentices is particularly widespread and has increased from previous years. More than a quarter (28%) of firms in STEM-based sectors report current difficulties in recruiting technicians, and over one in four (22%) report difficulties recruiting apprentices. Around one third of businesses anticipate problems recruiting technicians (35%) and apprentices (32%) over the next three years.
Barriers to recruiting ‘employment-ready’ STEM-skilled staff
“Businesses want young people who are rigorous, rounded and grounded”
Nearly half of employers are concerned with the quality (48%) and quantity (46%) of STEM graduates, and this appears to arise from a perception about a lack of general work experience. Nearly two thirds cite relevant work experience as one of the most important factors when recruiting graduates. However only a quarter cited relevant work experience as one of the three most important factors in recruiting school and college leavers, but did not identify what relevant work experience they were looking for.
The majority of employers (77%) stated they provide work experience but nearly one third of those (31%) believe they do not receive sufficient support and guidance on how to make it valuable for students, up from 29% in 2013. Other concerns included a lack of practical experience/lab skills (19%), and the prevalence of qualifications not relevant to business (33%), with employers wanting higher education institutions do more to improve courses’ business relevance and to help students become job-ready.
The Science Council’s 2011 report looking at work experience opportunities for STEM graduates found that the number of vacancies in STEM industries was lower than in many other sectors, and that STEM graduates were themselves less likely than other graduates to pursue work experience and internship opportunities.
The quality of careers services has not improved
“Businesses believe the quality of careers advice is simply not good enough and is in need of major improvement”
Over the past three years, employers’ concern about the quality of careers advice for young people has increased. In 2014 80% of all employers viewed careers as inadequate, compared to 72% in 2013 and 2012. There were differing levels of concern across the three age groups (primary, 11-14 and 14-19). Improving careers advice was seen as a priority area in primary education by 5% of employers, 15% in 11-14 education and 32% in 14-19 education.
Employers realise that they can do more; a majority (66%) state a willingness to play a greater role in delivering careers advice. A majority (57%) also recognise that they have a key role in engaging with schools and offering more STEM-based apprenticeships (57%).
Business engagement in curriculum design
“Competitor nations across the world are continually driving up their educational standards. It is essential that the UK responds effectively and does not slip behind”
It is clear that employers want to be more involved in qualification design. One of the highest priorities, stated by more than four in five employers, was the need to base qualification design on employers’ needs and industry standards. Over half (54%) stated this as the single most important issue in employer ownership of the skills agenda.
Nearly two thirds (65%) of employers consider the shaping of design standards for vocational qualifications by employer-led partnerships as an important issue to ensure qualifications meet business needs. Employers want more to be done to raise employer awareness of existing initiatives. This is particularly important as 85% of employers say they have little or no awareness of the new vocational qualifications.
