Andrew Wade

Skills Index shows UK failing to meet demand

News

The 2015 Hays Global Skills Index has been published, highlighting the UK’s struggle to keep pace with labour demands, and the increasing wage pressures arising from the talent shortage.

The report, published in collaboration with Oxford Economics, shows labour markets tightening in the UK, US, and Northern Europe, while demand slackens in BRIC countries as they face up to slowing growth. In total however, 21 of the 31 countries included in the Index are experiencing upward pressure on wages, pointing to a general return to growth globally.

The UK is struggling to bridge the skills gap

 “The world is generally back in growth mode,” said Hays’ chief executive Alistair Cox.

“However, this has exposed the huge challenges facing global labour markets, with demand for skilled workers outpacing supply, even though many countries still suffer from high overall unemployment rates. Businesses and governments must act to address these issues or risk jeopardising future economic growth.”

With UK growth of around 2.6 per cent forecast for 2015, the labour market has been subject to steady upward pressure. According to Nigel Heap, managing director of Hays UK, the worsening STEM skills shortage will continue to inflate wages across the technical sectors.

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