Widening gap | Employers warn AI recruitment tools are worsening the UK's human skills gap

More than one in three employers (38%) say shortages in employability skills - the more human capabilities such as face-to-face communication, problem solving, and effective time management - are restricting productivity and business growth, according to a new report.

Yet AI-powered recruitment tools are failing to prioritise these skills when screening potential candidates. The findings from City & Guilds come at a moment of national concern about young people’s economic prospects.

With more than one million young people in the UK currently NEET (not in employment, education, or training), the research suggests the pipeline into work is not just depleted but deteriorating.

The research, which surveyed 908 employers and 1,014 18-24 year olds, reveals that nearly two-thirds of UK businesses (64%) say candidates with these employability skills are becoming harder to find, and the consequences are already visible.