Recruitment partnerships needed to plug skills gap

June 17th, 2025

Recruitment partnerships needed to plug skills gap

Only by businesses, Government and education centres working together can we plug the skills gap that is threatening the economic growth of the UK.

Speaking at the Midlands Economic Summit, in Birmingham, Pertemps Network Group Chair Carmen Watson said the country’s productivity puzzle could be solved with constructive collaboration, end-to-end planning and embedding diversity, equality and inclusion (DEI) in the skills ecosystem.

A White Paper on the topic, launched by Pertemps at the event, further pushed that unlocking business leadership skills was key to maximising Apprenticeship Levy returns on investment.

Carmen said: “Building a robust skills ecosystem is vital – not only to fill vacancies but to future-proof the economy.

“Failure to utilise skills represents a core bottleneck in the system, which requires a shift from a transactional labour market approach to a partnership-based work strategy.

“Real change requires a shift in mindset, from viewing skills as a support function, to treating them as a strategic asset.

“The best time to act was yesterday. The second best time is now.”

The White Paper document, Creating an Effective Skills Ecosystem to Future-proof UK Productivity, states there are currently 761,000 job vacancies in the UK – but the figure masks significant, deeper issues that threaten productivity and jobs across the country.

These include:

• Sectors like engineering, social care and logistics face acute shortages
• Digital transformation has outpaced training provision
• Recruitment strategies are not evolving to recognise that candidates have significant bargaining power in many sectors.

Four pillars must underpin recruitment reform strategies for organisations to help boost the economy.

Carmen said: “Businesses must use meaningful, localised data to get a realistic view of their skills landscape.

“Employers must collaborate with education establishments to ensure the next generation of workers have the skills needed by industry.

“In addition, end-to-end workforce planning is essential, and DEI skills must be embedded into the skills ecosystem as diverse teams are more productive, better at problem-solving and more engaged.

“Employers must lead the way in reshaping the skills landscape, taking action to create a more productive, inclusive and future-ready workforce.”

You can read the full report here.