There are 273,000 fewer 16-24 year olds working since quarter one 2020. These workers typically take on variable demand, typically short-shifts and seasonal work which is going to impact the hospitality and retail sectors the hardest.
Whilst furlough has ended, the over 50’s - of which there was over half a million on the scheme, are looking at alternatives to returning to work with many taking retirement at the end of September. This could mean a large experience gap which may affect productivity in the business.
Brexit has brought about demographic changes in the workforce, with 208,000 fewer non-UK nationals and as almost as many as one in ten EU nationals which is affecting highly skilled to medium skilled jobs the most.
Rise of Automation & changing skills
In a recent survey by the World Economic Forum 7% of UK jobs were no longer required as a result of automation. Workforces are shifting toward increased automation which is changing what jobs people do with machines taking a higher share of information and data processing, administrative tasks and some aspects of manual labour. This means that there will be different skills needed such as managing, advising, decision making and interacting are going to come to forefront as we move to 2025.
While it could spell a reduction in the workforce in some industries, in others it may present an opportunity to upskill existing employees or create new positions.
Furthermore soft skills such as critical thinking, reasoning and emotional intelligence will be much higher on the training agenda due to the increase in automation.
UK businesses are facing a talent crisis in terms of higher vacancies, fewer workers and changing skills mix, with longer term implications of HR strategy.
Our full report The Talent Balance outlines:
The changing demographics of workers and how it affects your industry
Changing working habits including automation and location
Key sector impacts of the talent and skills shortage