Skills and Productivity: why does it matter?
Skills and Productivity: why does it matter?
Productivity in the UK has been sluggish since the financial crisis of 2008, continuing to lag other G7 countries. This is a problem which damages living standards and the ability to invest in public services. It is why the Government has made productive growth its number one mission. But how well do businesses and workers understand this as a driver for growth? This short paper considers the findings of a recent survey by City & Guilds which explores the perceptions of productivity and skills development in the UK workforce, focusing on how businesses and individuals assess productivity.
Published:
28 January 2025
Key recommendations include:
Increasing awareness: Employers need a deeper understanding of productivity and its drivers, including the critical role of skills. Tools like the ONS online productivity calculator can help businesses assess their performance and identify areas for improvement.
Investing in upskilling: Employers and policymakers must prioritise targeted training programs, especially in under-resourced sectors with high growth potential. Modular and accessible learning options can help workers overcome barriers to skill acquisition.
Regional and sectoral focus: Since productivity and skills challenges vary by region and industry, tailored solutions are essential. For example, addressing the needs of the automotive industry in the West Midlands or the construction sector in the South West requires place-sensitive strategies.
Bridging generational gaps: Younger workers generally feel more confident about their skills aligning with career opportunities, while older employees often face challenges adapting to new demands. Customising training programs for different age groups can enhance workforce confidence and capability.
Promoting inclusive growth: Skills development is central to achieving inclusive economic growth, enabling individuals to participate in and benefit from economic opportunities. Training initiatives that support inclusivity—such as unconscious bias training or programs for neurodivergent employees—can foster a more equitable and productive workforce.
Enhancing flexibility: Providing modular, accessible training options can address barriers to skill acquisition among the existing workforce.