Almost half (49 percent) of UK workers are in jobs they are either under- or over-skilled for, according to new research from the CIPD. Its report ‘Over-skilled and underused: Investigating the untapped potential of UK skills’ surveyed 3,700 UK employees and found that more than a third (37 percent) of workers have the skills to cope with more demanding duties than they currently have. At the opposite end of the scale, one in ten (12 percent) employees said they lacked all the skills needed to carry out their job effectively. This means that as many as half (49 percent) of UK workers could be in the wrong job, based on their skill level. The UK has one of most skilled workforces in the world, with 42 percent of workers qualified to degree level, yet it also has the highest proportion of jobs within the OECD which require no qualifications at all.

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The CIPD is calling on the government to ease restriction on immigrants from non EU countries, in the wake of the publication of new official figures which show how the number of EU citizens moving to the UK has decreased over the last year. Earlier this month, the CBI issued a similar plea as fears mount over the impact of Brexit on the UK’s skills base.

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A noticeable fall in the flow of EU nationals into the UK has coincided with a drop in the quantity and suitability of job applicants being reported by employers, the latest quarterly Labour Market Outlook from the CIPD and the Adecco Group has revealed. The data suggests that while the short-term outlook for employment remains strong, labour and skills shortages are finally starting to bite, with evidence that the number of applicants per vacancy has dropped across all roles (low, medium and high-skill) since summer 2017. This strong demand for labour is finally increasing recruitment pressures for employers, exacerbated by a ‘supply shock’ of far fewer EU nationals coming into the UK. According to the latest official data, the number of EU-born workers in the UK increased by just 7,000 between Q1 2017 and Q1 2018, compared with an increase of 148,000 from Q1 2016 to Q1 2017. This represents a fall of 95 percent and has fed into a tightening of the labour market. The report also found that while wage growth for the wider workforce is set to remain at around 2 percent for the foreseeable future, new starters and key staff may be more likely to be getting a salary increase.

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Businesses are missing out on key opportunities to boost their skills base and productivity by not effectively employing well-qualified former military personnel, according to new information released by The Institute of Leadership & Management. According to The Institute, 86 per cent of veterans say business managers still don’t understand how military honed skills can transfer into boosting businesses on civvy street. Coinciding with both Armed Forces Day and the 100th anniversary year of the ending of World War One, The Institute of Leadership & Management has released its new report Tales of Transition (registration required), which claims to identify the barriers to helping ex-forces personnel enter the civilian workplace. The report also details the steps that business leaders can take to support the transition of around 15,000 people who leave the UK Regular Armed Forces each year.

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As the UK continues to navigate a period of uncertainty ahead of its exit from the European Union, new research published by the City & Guilds Group and Emsi claims that nine in 10 employers already struggle to recruit the skilled staff they need. With most industries expected to grow between now and 2024, a significant number of skilled workers will be needed to meet demand. However, People Power, a study based on City & Guilds Group interviewing over 1,000 C-Suite employers in the UK and work with Emsi to undertake extensive economic modelling, has found that two thirds of UK employers think that the skills gaps in their businesses are likely to get worse or remain the same in the next three to five years.

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Figures published yesterday showed that the jobless rate has fallen to 4.2 percent, the lowest since 1975 according to the Office for National Statistics (ONS). While good news for the economy, the challenge for employers will be recruitment. On average, over 40,000 job vacancies are left unfilled for over six months according to research by Robert Half UK. The figure doubles to 80,000 for roles left vacant for more than a month. The findings come following research into the UK job market looking at trends in the modern workplace which confirmed that high employment coupled with an ongoing skills crisis is leading companies to face a war for talent which is leaving many positions unfilled. A lack of skilled candidates (51 percent) tops the list of challenges, whilst difficulties in finding the right talent follows close behind (30 percent). Even when the right person has been found, many firms aren’t hiring fast enough and end up missing out on their preferred candidate (28 percent). UK organisations clearly recognise the detrimental effect that unfilled roles can have on their business. Reduced productivity (42 percent), increased stress (42 percent) and limited business growth (38 percent) are cited as the main consequences – all of which can cripple a firm’s performance.

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