PROFESSOR DYLAN JONES-EVANS

A constant theme of this column of the last few months has focused on skills and people and I make no apology for that given it is probably the most important issue facing our economy. Unfortunately, it is still not being taken seriously enough by politicians and policymakers within the UK Government or the devolved administrations with significant knock-on effects for the economy and the labour market. We know that vacancy rates remain high across the UK with more than 40% of employers finding it difficult to fill jobs. Yet, at the same time, 35% of workers feel they do not have the skills necessary to undertake their current role, never mind the jobs of the future.  Given this, it is no surprise that productivity rates remain shockingly low within the UK and that the economy is stagnating rather than growing. More importantly, with studies showing that as many as one out of every two jobs will need new skills due to digitalisation and automation, those economies that embrace chan...

This week, we saw yet another report demonstrating that the ‘great resignation’ theme which this column has been discussing over the last six months continues to dominate the future of the workplace. The “Global Workforce Hopes and Fears Survey 2022” from professional services firm PWC questioned over 52,000 adults who are in work or active in the labour market on a range of issues affecting their future. It found that, as with many other studies, employees are increasingly looking for new opportunities elsewhere.  According to the study - which was undertaken in 44 countries across the world -  one in five workers are likely to switch to a new employer in the near future with those aged between 18 and 41 being more likely to take that step to change their careers.  Of those who are looking for new positions, 44% are less likely to find their job fulfilling, 43% don’t believe their team cares about them, and 41% don’t feel that their manager listens to them.  More re...

As the economy emerges from the slowdown caused by the Covid-19 pandemic, there continues to be skills shortages in the UK Economy. That is the message from the latest Business Barometer published recently by the Open University in partnership with the Institute of Directors.  Through surveying 1,500 senior business leaders across the UK last month, it focused on examining a range of issues including recruiting due to skills shortages, recruitment spend, training intent and ability, and future challenges. The results are fascinating and, more importantly, a significant wakeup call to politicians and policymakers at both a national and devolved level on what is needed to ensure that we have the skilled people in place to support future economic growth. For example, the number of business leaders reporting that their organisation is experiencing a skills shortage has increased since last year from 56% to 61%. More relevantly for the UK economy, the majority also believe that these sk...

As we emerge out of the pandemic, it is becoming clear that many businesses will need to focus on improving their productivity over the next few years if the UK economy is to not only recover but also grow substantially. A key part of any improvement in productivity is that of increasing investment in skills and that is why this month’s survey from the CBI’s annual education and skills survey provides useful reading as to the future intention of businesses. The good news is that as we slowly emerge from economic downturn caused by the Covid-19 pandemic, most businesses will be increasing their investment in training and skills over the next twelve months. In fact, four out of ten will have a higher rate of investment in this area than prior to the start of the pandemic suggesting that owners and managers of firms are seeing this as a way of developing competitive advantage in the future. Whilst there is demand for skilled people at all levels, there is a greater need for those with hig...

  As we move into a new economy where there will be considerable changes to the way we manage work after the pandemic, various studies are beginning to focus on the increasing importance of soft skills within the economy.  Certainly, some have suggested that during the lockdown, skills such as empathy, flexibility and self-determination, have become increasingly important in managing not only ourselves during a challenging time but also others who work with us. This is not surprising as unlike the hard subject-related skills we teach students in schools, colleges and universities, soft skills are more to do with improving an individual’s ability to listen well, communicate effectively, be positive and manage conflict.  They are also about building trust, working well with others and managing time effectively. In other words, these are the type of skills that many of us would assume that most organisations would be developing amongst their employees every day.  The go...

How has the Covid-19 pandemic changed the prospects for workers around the World?  This was the focus of the “ The Future of Jobs Report ” from the World Economic Forum which brings together the views of business leaders with the latest data to create an understanding of the current situation and the future outlook for jobs and skills. A worrying trend for those in work is the finding that, in addition to some of the displacement in the labour market that the pandemic has created over the last eleven months, there are indications that any lost jobs will not be replaced as companies move to accelerate the adoption of automation.  For example, half of the businesses will be increasing the rate of automation of jobs, more than one-quarter of employers expect to temporarily reduce their workforce, and one in five expect to permanently lose employees. This raises the spectre of a jobless recovery that will be very different to previous recessions. However, the good news is that des...

As we all know, developing better skills amongst the workforce is critical to ensuring a more competitive economy. This is especially the case amongst those small to medium sized enterprises (SMEs) that are responsible for the majority of employment in the UK.  Whilst research from the Federation of Small Businesses (FSB) show that nine out of ten SMEs recognise this issue and the value of staff training, less than half are actually putting their hands in their pockets to invest in learning and development.   Why is the case?  Various studies have suggested that much of the training on offer does not consider the requirements of those entrepreneurs running SMEs especially as, unlike large firms where there are various layers of management cushioning chief executives from what is happening on the ground, entrepreneurs play a far more pivotal role in the day-to-day running of small businesses.  As a result, the founders of small businesses tend to be directly invo...

According to a report last week from the think-tank Centre for Cities, cities play a significant role in the national economy by being home to home to 56 per cent of businesses, 59 per cent of jobs and 63 per cent of output despite covering only nine per cent of land.  As such, they are attractive to firms, especially those operating in consumer and retail services because of the scale and density of people and businesses located in one place In particular, they play an important role as locations for consumers, with amenities such as shopping centres, theatres and restaurants not only being important to those living and working within these conurbations but also in attracting those living outside to spend their money.  The study shows that not only do cities offer a more diverse set of amenities than other parts of the country, two-thirds of specialist amenities are to be found in cities as their size means they can cater for more niche and expensive markets. For example, 69 ...

  Today’s businesses thrive on talented individuals at all levels of the workforce. As a result, the attraction and retention of employees with the right skills, experience and aptitudes has become one of the main competitive tools for firms across the globe. In particular, there is increasing evidence of a growing demand for millennials, namely those individuals born between 1980 and 1995 who have grown up with digital technology during the last two decades. There are currently around 14 million millennials in the UK yet many employers still have little understanding of this group despite the fact that they will be the future leaders in many organisations. This lack of knowledge has been examined by a report from the accountants KPMG. “Meet the Millennials” explores the characteristics of those who grew up during a period of rapid change and, more importantly, how companies can attract and retain them. According to the study, millennials are quite different to previous generations...

Imagine finishing work on a Thursday evening and then not having to go back to your employer until Monday morning? The idea of a four-day working week is what an increasing number of economists, thinktanks and even businesses are contemplating for a whole variety of different reasons including increased productivity, greater work-life balance and more efficient use of resources within both large and small organisations. Whilst some in industry may be thinking that this may have a negative impact on their businesses, the reality is that for many years there has been a realisation that too many hours of working are not good for productivity or, more importantly, for the health of workers. In fact, John Maynard Keynes suggested back in 1930 that advancements in. technology and living standards would result in a fifteen hour week by the end of the century with the main challenge being the use of an individual’s time to live “wisely” rather than working for other people. And whil...

It is fair to say that in recent years, manufacturing in the UK has enjoyed a renaissance that few would have envisaged a decade ago. In overall economic terms, it accounts for 11 per cent of GVA and directly employs over 2.6 million people. Many of the jobs are highly skilled and the sector is responsible for 70 per cent o¬¬f all business R&D and 44 per cent of total UK exports. It has grown faster (37 per cent) than the UK economy as a whole (30 per cent) over the period 2009-2017 including the services sector. In fact, it has accounted for 11.9 per cent of all economic growth since the recession as compared to 0.1 per cent for financial and insurance activities. In Wales, the impact is even more pronounced with manufacturing posting a growth of 52 per cent since 2009 as compared to 30 per cent for the overall Welsh economy. More relevantly, it accounted for a quarter of all Welsh economic growth between 2009 and 2017 and its share of the economy has grown from 14.8 per ...

Politicians and policymakers have long recognised that one of the real challenges holding back the UK economy is the low level of productivity, especially when compared to our nearest competitors such as the USA, France and Germany. In fact, sixty years ago, the UK had a highest level of productivity in Europe but this has declined considerably since then. As a result, there have been a broad array of potential solutions proposed to address this problem in the last few years including developing a highly skilled workforce, building a modern infrastructure and encouraging greater openness and competition. As yet, it would seem there has been only a small impact on the productivity of the UK as a result of these initiatives which form a vital part of the UK Government’s Industrial Strategy. Indeed, the latest figures from the Office of National Statistics (ONS) released last month show that for the third quarter of 2018 (July to Sept), labour productivity measured by output per ...

With skills being seen as the top priority by chief executives in every business survey carried out in recent times, the latest “The Future of Jobs” report from the World Economic Forum is required reading for anyone associated with developing our economy. Not surprisingly, the study focuses on the impact of technological changes on employment and the transformations being faced by a range of different industries. It states that whilst there are threats that could negatively affect competitiveness and jobs as the so-called Fourth Industrial Revolution begins to take shape, there are also great opportunities for developing better and more productive jobs that could improve the quality of life in all economies. In fact, whilst 75 million jobs may be displaced by a global shift in the division of labour between humans and machines, 133 million new roles may emerge that are more relevant to this new reality in the workplace. But what are the main issues facing policymakers here i...

When I was younger, my grandmother was always able to pluck out a Welsh proverb from thin air to describe any situation. One of the ones she was particularly fond of quoting, especially when I came back home from university, was “Nerth gwlad, ei gwybodaeth” or roughly translated, “a nation’s strength is its knowledge”. As this nation looks set to go through another period of change and uncertainty, that proverb rings truer every day and the importance of the development of skills and knowledge has become even more critical to the competitiveness of the UK economy. The importance of the challenges we face have been pointed out in a number of recent studies. For example, a survey by the Federation of Small Businesses found that, at an owner-manager level, the low levels of management and leadership competences is affecting productivity by having a negative effect on the growth potential of small firms. In fact, only a quarter of smaller businesses had undertaken management tra...

As we enter the final phases of negotiation for exiting Europe, it is critical that the UK puts itself in the strongest competitive position possible to make the best of any opportunity that may arise for the economy as we look to develop new trading partnerships globally. One of the greatest concerns of businesses remains the availability and development of skills, especially in a fast-changing global environment and a study from the UK Government suggests that addressing this is not going to be easy going forward. The report “Future of Skills & Lifelong Learning” demonstrates unequivocally that there needs to be some dramatic improvements across the whole spectrum from not only in raising the level of qualifications across the population but in using those qualifications effectively within the workplace. One of the key issues raised is the fact that not only do young adults have poor literacy and numeracy but that the UK is falling further behind international competitors...

Across the World, higher education has become big business and a major contributor to the economic prosperity of many nations. For example, it has been estimated that in the UK alone, universities generate £95 billion for the country’s economy and support more than 940,000 jobs. However, an increasing number of experts believe that rather than expanding further, the university sector in many countries will actually contract due to the changing environment for learning. Indeed, one of the world’s leading experts on innovation has suggested that a significant number of universities in the USA will fail over the next decade.  In examining how the education sector may be disrupted over the next few years, Professor Clayton Christensen of Harvard Business School believes that due to innovations such as online learning, 50 percent of the 4,000 colleges and universities in the USA could be closed within the next fifteen years. Whether this will turn to be the case (and whether UK...

In an analysis of the changes facing the global workforce, the World Economic Forum concluded that most of the skills that many employees currently have will be largely irrelevant by the end of this decade. And as other research studies have also demonstrated, many of the new competences that will be needed are related to digital skills not only in knowledge-based industries but across all sectors. Given this, the key question for many employers in this scenario is which digital skills will be most needed in the future? This is the conundrum that the innovation body NESTA has been analysing in detail through the novel method of examining online job adverts between 2012 and 2017 and the study reveals some fascinating and sometimes unexpected findings. First of all, the amazing number of digital skills across all sectors – 1,358 different types including 756 types of software - demonstrates the challenge in developing a coherent and comprehensive approach to training. These r...

The major challenge for educational systems across the World is not only about developing skills within young people (although that is a critical issue in many countries). In fact, the real issue is about addressing the need for reskilling amongst the existing workforce with the OECD reporting that over 25 per cent of adults have reported a mismatch between their current skillset and qualifications needed for their jobs. More critically, 35 per cent of the skills that are needed across industries will change over the next two years. That is why a recent report from the World Economic Forum (WEF) should be compulsory reading for politicians and policymakers who are trying to address some of the key competitiveness and productivity questions within their economies. “Accelerating Workforce Reskilling for the Fourth Industrial Revolution” examines some of the key challenges for greater lifelong learning for the existing workforce and comes up with a series of key recommendation...