Skills gap hampers growth for West Midlands business

LATEST recruitment statistics for the Midlands have shown that while the number of permanent placements is rising, the availability of suitable candidates to fill the vacancies is diminishing.

The Report on Jobs: Midlands, which analyses data from recruitment agencies, showed the overall number of staff placed in permanent jobs by recruitment consultancies increased sharply during October to its fastest rate in four months. Furthermore, the rate of growth was above the UK average for the second month running.

The Midlands also led the growth in temp billings, while nationally the number of temps placed in roles increased for the 32nd month in a row. Despite easing from September, the pace of expansion remained sharp and well above the long-run average. The UK as a whole recorded solid growth in October, although at the weakest rate since June 2013.

The demand for permanent staff in the Midlands increased in October, with the rate of growth sharp but slightly slower than the previous two months. Temporary vacancies in the region also rose at a marked rate. Despite both easing slightly from the previous month, rates of growth in the Midlands remained above the respective UK averages.

However, permanent staff availability in the Midlands worsened in October, extending the current sequence of contraction to 18 months. Furthermore, the rate of decline was marked and faster than the average over the current sequence of deterioration.

The figures bear out claims by employers that while vacancies exist there is a real shortage of suitably-qualified people to fill them.

As an incentive to attract quality people, permanent salaries continued to rise at a marked rate in October, with temp pay also rising but at a reduced rate.

Nevertheless, the problems have continued and it is one of the reasons why employers are having to cast their nets much wider in order to attract the staff they need.

Fast-expanding Jaguar Land Rover is thought to have hundreds of vacancies available due to its growth – recruitment at its newly-opened £500m engine plant near Wolverhampton is continuing and the company eventually hopes to employ around 1,400 workers at the i54 site.

However, reports have suggested that the business is now having to look at the likes of Rolls-Royce and JCB – both of which have recently announced job losses – in order to try and attract the people they need.

Commenting on the Jobs report, Mike Steventon, Midlands Regional Chairman at KPMG, said: “With the festive season now underway it’s not surprising to see that the demand for new staff in the Midlands continues to rise, with the pressure this time of the year places on the retail, leisure and hospitality industries.
 
“Whilst the number of vacancies continues to accelerate across all sectors, we’re still seeing a lack of talent available in the Midlands to fulfil these roles, with job placement dipping considerably in October. The shortfall in appropriately skilled candidates is the worst of both worlds in that it drives up wage rates while many candidates without the necessary talents remain on the bench.

“It is essential for the region’s aspiration to attract inward investors and deliver job opportunities to develop a pool of appropriately skilled talent and more needs to be done to bridge the skills gap to overcome thinning candidate availability.”