'Grave consequences' over Scotland's failure to invest in skills as 88% of firms struggle to recruit

Four in 10 employers in Edinburgh area are cutting training following decision to axe Scottish Government fund

A college chief has warned of “grave” consequences from failing to invest in skills training, as 88 per cent of employers warned they are struggling to find trained workers to fill vacancies.

This comes as a new survey finds the Scottish Government’s decision to axe a £10 million scheme has dealt a “blow” to businesses.

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Edinburgh College

SNP ministers decided to end the flexible workforce development fund (FWDF) just over a year ago, despite previously saying it played a “crucial role” by enabling firms to address skills gaps by utilising training at colleges, the Open University and independent providers.

A new survey, carried out by Edinburgh College, gathered the views of employers in the Scottish capital and surrounding areas, with responses received from 57 companies who employ a combined 16,786 staff.

It found 88 per cent of employers said some of their vacancies were hard to fill due to difficulties finding applicants with the required skills, knowledge or experience, while a total of 42 per cent said hard-to-fill vacancies were increasing the workload faced by other staff.

Meanwhile, 61 per cent reported that a lack of funding was the biggest barrier to carrying out more training, with 39 per cent saying they would do less staff training as a result of the decision to end the FWDF.

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One employer said: “Just this morning I was in a meeting where we were discussing supervision training that Edinburgh College had delivered in that past. That was incredibly impressive and is still talked about years later in our organisation. But I can’t afford that right now.”

Another, who was asked about the removal of the FWDF, said: “Falling off the cliff is kind of how it feels”

Under the FWDF, Edinburgh College delivered training to more than 10,000 people in seven years, equivalent to around one in 43 workers across the entire Edinburgh, East and Midlothian region.

In 2023/2024, the final year of the fund, the college delivered training for more than 200 companies, both SMEs and large firms, across the private, public and third sector.

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Much of it related to soft skills gaps identified by employers, such as management and leadership, as well as training aligned to areas of key hard skills shortages, such as digital and data skills, green skills and engineering.

Audrey Cumberford MBE, principal and chief executive of Edinburgh CollegeAudrey Cumberford MBE, principal and chief executive of Edinburgh College
Audrey Cumberford MBE, principal and chief executive of Edinburgh College | Edinburgh College

Audrey Cumberford MBE, principal and chief executive of Edinburgh College, said: “What comes through strongly from our results is that the last five years have precipitated an even greater pace of change in the nature of work and the future skills needs of our economy.

“It suggests that the need to upskill our workforce and to drive up economic productivity through innovation has never been greater.

“Unfortunately, where upskilling is concerned, our research confirms that the axing of the flexible workforce development fund was a blow not just for the college sector but for employers across the region, who look set to reduce workplace training in response to this policy shift.”

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She added: “The consequences of not investing in skills are grave. The drive to net zero offers the prospect of a green reindustrialisation of Scotland, but this prospect will only become a reality if we ensure we respond quickly to the evolving skills needs of the green industries as they develop.”

In technology as well, Ms Cumberford said “significant upskilling” was required to reap the potential benefits from virtual reality and augmented reality, as well as artificial intelligence.

A Scottish Government spokesperson said: “The Scottish Government is determined to ensure we have a world-class skills system and employers across Scotland can continue to access support to develop a skilled workforce through our Modern and Graduate Apprenticeships.

“We work closely with Skills Development Scotland to maximise provision which will deliver about 25,500 new Modern Apprenticeship starts in 2024/25. Funding will also continue to provide support for around 38,500 apprentices already in training.

“We are currently undertaking a major programme of reform of the post-school skills system to ensure it meet the needs of the changing economy.”

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