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REGIONAL REPORT simply recruit fewer apprentices and graduates as a result ( 25 %). Two thirds ( 71 %) of the UK engineering workforce who are experiencing internal skills gaps say it is down to missing engineering or technical skills .

Almost all ( 96 %) engineering employers who had identified a skills shortage within general applicants say that this skills deficit impacts their business in some way . The most common impacts of a skills shortage amongst applicants are around the recruitment pathway – either causing difficulty recruiting ( 50 %) or making recruitment timelines longer ( 47 %).
A lack of recruitment from a diverse talent pool may also be fuelling the problem . Only a third of businesses are taking action to improve the diversity of their workforce across gender ( 33 %) or ethnicity ( 30 %).
When asked what support businesses need from government to improve skills nationally , more funding for apprenticeships came out on top ( 54 %), with more support to train or reskill in priority areas ( 51 %) and better careers advice and guidance in schools and colleges ( 49 %) next in line .
Simon Edwards , Director of Governance and
More funding is needed for apprenticeships .
External Engagement at the IET , said : “ Over the last 12 months the UK has continued to go through economic uncertainty , underpinned by Brexit and the COVID-19 pandemic . This , coupled with a drive to deliver on the UK ’ s net-zero targets and the emergence in engineering companies of new roles with a change to the skill-set required , has meant that we are seeing a sustained skills gap which will continue to grow unless government and industry take action .
“ Workers are in high demand but we don ’ t have the readily available recruits with the right skills to fill the labour market – something we have been reporting via the skills survey for the last 15 years . Frustratingly , nothing has changed . Additionally , this year , engineering employers are reporting a general lack of applicants for roles causing more difficulty in
Encouraging young people into manufacturing .
We are seeing a sustained skills gap which will continue to grow unless government and industry take action
Workforce diversity is key .
recruitment ( 34 %) – a marked increase on 2020 ( 22 %). Engineering companies across the UK must now look to improve profitability and productivity with fewer staff than before ,” he added .
“ We are urging more businesses to provide work experience opportunities for young people to help with the rollout of T Levels and more apprenticeships . To solve this skills crisis there needs to be deeper engagement between government , employers and the education system to produce a talent pipeline that can sustain a thriving UK economy . The IET has already started engaging with government by calling for the embedding of engineering in the existing science , technology and mathematics learning at primary school ,” he concluded .
The impact of the pandemic on staff recruitment and skills has been immediate , according to the IET ’ s research , with over half ( 55 %) having to deal with staff being ill or self-isolating as a result of COVID-19 . Nevertheless , it said , firms remain positive about the future , being confident about the economic prospects for their firm ( 79 %) and sector ( 77 %).
As the economic situation evolves , so do the priorities of businesses . While 12 months ago , the top priority was cutting costs ( 44 %), currently , the top priorities focus on improvements in profitability ( 67 %) and productivity ( 62 %), explained the IET .
“ However , one of the long-term impacts from the pandemic is skills related . Three-in-ten have experienced a decreased headcount over the last 12 months ( 31 %) and half attribute this directly to COVID-19 ( 52 %),” said the IET .
Design and manufacturing is recognised as a key area by 36 % of respondents and most ( 64 %) have the skills that they think they need . However , energy and environmental sustainability is the second most cited area for growth ( 35 %) and only half ( 51 %) have the skills they need for this .
“ In light of this lack of skills , it is unsurprising that only half ( 50 %) think it is achievable for their organisation to be net zero by 2050 , in line with the UK target ,” said the IET .
This is the fifteenth year that the IET has published its skills report . The fieldwork was conducted online with 1039 engineering and technology employers across the UK between 6 August and 2 September 2021 by market research agency , YouGov . The last skills survey with comparative data was carried out in 2020 . n
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