More than half the businesses in the South West fear they will not be able to recruit enough high-skilled workers for their future success, according to an alarming new report.
The annual CBI/Pearson Education and Skills Survey – which gauged the views of 101 firms across the region – found that 68% say they need more highly skilled staff, particularly in key sectors such as science and engineering, construction and manufacturing.
But widespread skills shortages across the region means 56% are not confident that they will be able to find the high-level skills needed to meet demand and grow.
The report also highlights that the region’s businesses are already reporting real problems in recruiting people with science, technology, engineering and maths (STEM) skills – with 24% struggling to employ graduates with sufficient STEM skills. 
CBI regional director Deborah Waddell, pictured, said: “While the South West economy continues to make headway, we must be on our guard as local growth risks being undermined by a shortage of the higher-level skills businesses need to get on, and the situation is only set to get worse.
“High-growth, high-value sectors with the most potential are under the most pressure, like science, engineering, digital and manufacturing. We must make sure that our education and skills system is truly responsive to the needs of business, and that young people receive much better careers advice, if we are to propel the South West economy forward in the years ahead.”
More – and better-quality – apprenticeships are part of the answer and employers are stepping up to the skills challenge, the survey shows. Some 67% of firms intend to expand their apprenticeship programme or start one in the next three years – the best result since the survey began in 2008.
Across England, 78% of businesses are not satisfied with the current performance of careers advice in schools and colleges.
Just over half of business also wants universities to do more to improve the business relevance of undergraduate courses (52%) and help students become job-ready (42%) if the challenge is to be met.
President of Pearson’s UK business, Rod Bristow, said: “Building a world-class school and qualifications system is the best long-term solution for securing sustainable, skilled workers and economic growth.
"We must prepare young people for the world of work through closer engagement and collaboration between the business community, universities, schools and further education colleges."
Ms Waddell added: “Apprenticeships are part of the answer and plenty of firms are getting involved. But the risk with the Government’s new apprenticeship levy is that it focuses on quantity not improving quality or delivering the skills that the economy requires.
“As the levy applies to all large employers in the South West, it is essential that businesses across the region are consulted on the proposed rate before it goes ahead.”
The CBI/Pearson education and skills survey 2015 received responses from more than 300 organisations across the UK, collectively employing more than 1.2m people.
Participants ranged in size from firms with fewer than 50 employees – to those with more than 5,000. Just over a third were SMEs (small and medium-sized enterprises).
