Employers could overcome skills shortages by creating more accessible routes into work for those not in employment, education or training (Neet), according to research from the Open University.

The OU’s annual Business Barometer found that 57% of employers feel there is currently a skills shortage in their organisation, yet almost a fifth (19%) have cut back on recruitment for early-career roles.

Meanwhile, 68% of Neets would be willing to train or upskill to improve their job prospects, it found.

The barometer, based on a survey of 1,500 UK employers and 1,000 young people between the ages of 16 and 24, revealed that 42% think their skills issues will worsen.

Half (51%) said they had seen an impact on hiring due to artificial intelligence. Forty-two per cent of those who had cut early-career hiring said this had been down to the wider adoption of AI for entry-level tasks.

Unsurprisingly, young people feel under threat from the rise of AI, with 42% agreeing that it threatens their future job prospects, and 49% wary about the technology.

However, while 80% of employers say they are prepared to train young people coming into their workforce, only 42% offer work experience placements, 34% graduate schemes, and 33% paid internships.

Around a third (34%) have initiatives for workers under the age of 25, and just 11% targeted Neets specifically.

Respondents to the survey who are Neet said they face barriers including mental health challenges (40%), lack of experience (37%) and feeling underqualified (35%).

Within organisations, the skills shortages are affecting performance and productivity – 54% said workloads had increased, 44% said morale was lower, and 35% felt staff wellbeing was in decline.

Mark Durkin, pro vice-chancellor for partnerships and enterprise at The Open University, said that skills providers and employers needed to work together to address future skills pipelines and harness young people’s digital skills.

“If we are as serious about growth as we say, we must be acting with the same urgency when it comes to creating opportunity and providing our young people with the knowledge and skills to convert such opportunity into value; for themselves, the economy and wider society, “ he added.

Alan Milburn, author of the recent review into young people and work, has called for employers to focus schemes such as apprenticeships on new starters struggling to get into work, rather than existing employees.

Research from Robert Walters earlier this week found that the UK could face a shortage of more than 160,000 AI professionals by 2028, with employers having to tap into international recruitment to find talent.

 

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Source: www.personneltoday.com

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