Regional focus: london - DEELETE
31 August 2012
London's labour market is the single most important in the UK economy, according to a round table debate hosted by the REC
Long-term employment projections by GLA Economics suggest that employment in the capital is likely to grow by over 950,000 between 2003 and 2026. However, there was general agreement among those attending the 'Future of the London Labour Market' debate that despite this apparently rosy picture, recruiters in the capital faced a number of challenges both now and in the future.
Roger Tweedy, director of research at the Recruitment and Employment Confederation (REC), said that skills shortages were "the number one issue" for agencies and employers. It was "a complex issue", he said. "As well as specific shortages in certain sectors, it included the lack of softer communication skills, and customer handling skills."
The importance of skills shortages is backed up by the latest CBI/KPMG London Business Survey, which found that 74% of firms that responded reported problems finding skilled staff, up from 61% a year ago. Four-fifths (81%) of the capital's employers expected to encounter further shortages over the next six months. Aaron Reid, executive director at Birmingham Professional, said that things would "get harder" as a result of the London Olympics in 2012. He said that skills shortages were a particular issue for smaller organisations who found it difficult to compete with larger ones.
Paul Gallagher, head of people policy at the London Development Agency, said that many skills shortages were long-standing ones that had not been solved despite numerous government initiatives.
John Thorpe, head of the Employment Agency Standards Inspectorate at the DTI (now the Department for Business, Enterprise and Regulatory Reform), said that his department and the Department for Education and Science (now the Department for Universities, Innovation and Skills) were aware of the skills shortage problem and were "looking to work in partnership with the industry".
Tom Hadley, director of external relations at the REC, said that skills shortages required recruiters to work in a more creative way. As an example, he pointed to a government initiative called Fair Cities, currently operating in the London Borough of Brent, where Jobcentre Plus put forward 'job ready' people to agencies "for us to make money out of".
The problem of how to get more people into employment was discussed. According to GLA Economics, at 69.3% of the working population London's employment rate remained more than 5 percentage points
Skilled staff shortage in london
working age employment rates (4 quarter
employment rates of black, asian and minority groups and white ethnic groups in london (4Q
Roger Tweedy, director of research at the Recruitment and Employment Confederation (REC), said that skills shortages were "the number one issue" for agencies and employers. It was "a complex issue", he said. "As well as specific shortages in certain sectors, it included the lack of softer communication skills, and customer handling skills."
The importance of skills shortages is backed up by the latest CBI/KPMG London Business Survey, which found that 74% of firms that responded reported problems finding skilled staff, up from 61% a year ago. Four-fifths (81%) of the capital's employers expected to encounter further shortages over the next six months. Aaron Reid, executive director at Birmingham Professional, said that things would "get harder" as a result of the London Olympics in 2012. He said that skills shortages were a particular issue for smaller organisations who found it difficult to compete with larger ones.
Paul Gallagher, head of people policy at the London Development Agency, said that many skills shortages were long-standing ones that had not been solved despite numerous government initiatives.
John Thorpe, head of the Employment Agency Standards Inspectorate at the DTI (now the Department for Business, Enterprise and Regulatory Reform), said that his department and the Department for Education and Science (now the Department for Universities, Innovation and Skills) were aware of the skills shortage problem and were "looking to work in partnership with the industry".
Tom Hadley, director of external relations at the REC, said that skills shortages required recruiters to work in a more creative way. As an example, he pointed to a government initiative called Fair Cities, currently operating in the London Borough of Brent, where Jobcentre Plus put forward 'job ready' people to agencies "for us to make money out of".
The problem of how to get more people into employment was discussed. According to GLA Economics, at 69.3% of the working population London's employment rate remained more than 5 percentage points
Skilled staff shortage in london
working age employment rates (4 quarter
employment rates of black, asian and minority groups and white ethnic groups in london (4Q
