Scotland faces skills crisis

Monday, February 15, 2010

Scotland needs to improve its skilled workforce if it is to survive the economic downturn, a report from the UK Commission for Employment and Skills has warned.

'Towards Ambition 2020: skills, jobs, growth for Scotland' looks at Scotland's future prospects, its route out of recession and its chances of a successful recovery.

It found that despite significant progress in skills over the past decade, Scotland is not "world class" in skills and will not be by 2020. It says this is due to the country's lack of "high skill" businesses and industries and employers do not utilise the available skills effectively.

Current employment and skills systems in Scotland are "neither fully integrated and consistent, nor always sufficiently aligned to labour market needs", the report added.

It warns the situation will deteriorate as public spending tightens unless more cash is invested in skills and workforce development.

UK Commission for Employment and Skills chairman, Sir Mike Rake said: "Despite having what is acknowledged as a high quality education and training system, and achieving higher levels of qualifications than other UK nations, Scotland has not achieved the economic impact it was hoping for in terms of improvements in productivity and competitiveness.

"Greater business ambition, better innovation, leadership and management, and more effective skills utilisation within employers – private, voluntary and public – are essential if Scotland and the other UK nations are going to achieve a quantum improvement in the return on our investments in skills."

Responding to the report, Jacqui Hepburn, Director of The Alliance of Sector Skills Councils, Scotland, said: "The UK Commission for Employment and Skills' report comes at an important time for Scotland. As it recovers from recession, and the skills and employment system responds to the different needs of business, it is vital that the skills system is able to respond effectively to the changing needs of individuals and employers.

"Through the work of Sector Skills Councils, up-to-date Labour Market Intelligence and insight is readily available, which is a key component to ensure the skills system can respond effectively to the skills needs of each sector in Scotland. For individuals, there is a growing need for information, advice and guidance on routes into each sector and beyond, so there is a clear understanding of the qualifications needed to enter each sector, and the available jobs."

Hepburn added that employers, with the support of the skills sector, must "incentivise" employees to continue to re-skill and up-skill employees as industry changes.

"Sector Skills Councils in Scotland have a key role to play in helping the skills system understand the needs of employers in individual sectors, designing Modern Apprenticeships, and in developing training standards that are used to design qualifications," she said. "Through this work, employers are able to access the skills they require to increase productivity and competitiveness and help grow Scotland's economy."