Skills deficiency in UK could hold back recovery, research suggests

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UK businesses suffered a drop in training four times greater than any other European country during the recession, according to JP Morgan and IPPR research.

The result of this is a skills deficiency that threatens to hold back economic recovery across Europe, according to the research, called European Jobs and Skills: a comprehensive review 2014.

The report also found that there has been an 18% increase in the number of high-skilled jobs and a 12% increase in low-skilled jobs contrasts with a 3% fall in mid-skilled jobs over the last decade.

The employment rate for younger workers (under age 25) has declined by 5.9 percentage points, the research stated. Additionally, young people, particularly those leaving education early, may not be fully equipped with the skills and training required to gain entry into the workforce.

“Europe’s economy is recovering but we need to ensure the fruits of that recovery are shared more widely. We are seeing that while more high skilled and low skilled jobs are being created, jobs in the middle are disappearing,” said Nick Pearce, director at IPPR.

“Employment of older people during the recession has held up, but it is becoming more difficult for younger people to find work. Underemployment – in which people are not able to work the hours they want at pay levels they need – is a growing problem.”

The study is part of JP Morgan and the think-tank’s New Skills at Work in Europe programme, a three-year initiative to tackle unemployment and skills shortages across the continent.

“With New Skills at Work, we as a firm are addressing the growing problem of unemployment across the globe – by investing in a demand- and data-driven system to ensure people are equipped for the jobs that are available today,” said Peter Scher, global head of corporate responsibility at JPMorgan Chase.