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Employers are finding it easier to recruit individuals with the right skills according to a report published by the Alliance of Sector Skills Councils in Scotland. However, there is a need for a renewed focus on addressing skills gaps amongst existing employees. The Alliance is the authoritative voice for 24 Sector Skills Councils, together articulating the voice of employers of around 90% of the workforce on skills issues.

This, the third report, aims to “take the pulse” of employers, along with a selection of trade associations and membership organisations on topical issues. It comes on top of research produced by Association of Graduate Recruiters earlier this week that revealed every graduate vacancy this year is attracting an average of 69 applications, compared with 49 last year and 31 in 2008.

The Alliance report indicates that over the last 6 months those surveyed have noted that on workforce and skills issues it has become easier to recruit people with the skills required – with 38% at the beginning of the year noting it was not possible to recruit people with the skills needed, down to 18% in the latest report. In addition, it is anticipated that staff numbers are less likely to change than was the case in the previous reports. The latest report indicates that 82% of those surveyed expect an increase in staff numbers or for those to stay the same, an increase from 77% at the beginning of the year, reflecting a stabilizing job market.

At the same time, an increasing number of employers have identified having ‘too few people with the right skills’ as a key challenge to their business (up from 9% at the beginning of the year to 20% in the latest survey), suggesting that, while the problem of skills shortages when recruiting for new roles is improving, there is a need for a renewed focus on addressing skills gaps amongst existing employees.

On the issue of training for their workforce, over 82% of those surveyed note that they are currently able to source training for their staff (or neither agree nor disagree with this statement), compared with over 74% at the beginning of the year.

Almost half of employers noted that reduced profitability and maintaining staff morale will be the challenges they face in the future as a result of economic conditions, The results indicate that maintaining staff morale has become more of an issue since the beginning of the skills monitor; this challenge was ranked fourth in the October 2009 and January 2010 waves and is now ranked joint 1^st along with reduced profitability.

Commenting on the report Jacqui Hepburn, Director of the Alliance of Sector Skills Councils in Scotland said: “It is great news to see that employers are finding it easier to recruit individuals with the right skills and to source training for staff. We did however note that while the problem of skills shortages when recruiting for new roles is improving, there is a need for a renewed focus on addressing skills gaps amongst existing employees.

“This comes at a time when employers are also potentially looking at reducing investment in skills and training and would urge that they look to take advantage of the training opportunities out there as it is the delivery of a skilled workforce that will be key to maintaining economic recovery.”