Business News : Department for Education and Employment
UK / Spain Skills.

15 January 2001

UK and Spanish Ministers Tackle Skills Shortages.

Employment ministers from the UK and Spain came together this week to discuss how to deal with the issue of skills shortages across Europe.

Education and Employment Secretary David Blunkett and Employment Minister Tessa Jowell joined their Spanish counterpart Juan Carlos Aparicio at the UK / Spanish employment seminar in Birmingham.

Mr Blunkett said:

"The UK and Spain have contributed significantly to the total growth in employment in Europe accounting for almost 40 per cent of the increase. We are at the forefront of those who argued for modern social policies, which will carry forward the Lisbon Summit agenda of lifelong learning and social inclusion against further attempts to over-regulate the labour market at European level.

"We are all familiar with the phenomenon of skill shortages co-existing with persistent high unemployment. A skilled and productive workforce will increase employment, reduce inflationary pressures and create the conditions for sustained economic and employment growth. That was the message of the Lisbon summit and I hope this seminar will identify those policies and programmes that will make it a reality.

Tessa Jowell said:

"In the UK our Employment Service reports one million vacancies and yet we also have one million unemployed people and a further 7.6 million people of working age who are inactive in the labour market.

"There is a mismatch between the skills and attributes that employers say they need and those that unemployed people have to offer. And the skills mismatch is not just restricted to those out of work; many employers are also reporting skill gaps amongst existing employees.

"A particular challenge for the future will be in IT skills shortages. We already know that over 18 million UK workers now require basic IT competence to do their job. There are 1.2 million currently employed at technician level, expected to grow by 20-25 per cent in the next three years.

"Some commentators have estimated that if we do not do anything to address this skills gap, 12 per cent of vacancies for professional IT jobs could go unfilled in 2002. Furthermore we know that one of the principal consequences of skills shortages is increased cost to employers."

Mr Blunkett and Ms Jowell outlined areas of action to tackle skills shortages in the UK:

. The New Deal, which gives people the skills they need to move off benefits and into work.

. Improving basic skills with a target to help 750,000 people by 2004.

. The highly successful Skills Task Force in England advised on main skill gaps and shortages.

. The new Learning and Skills Council is working with National Training Organisations and regional development agencies. There are similar developments in other parts of the UK.

. Employment Zones and Education Action Zones aimed at providing the qualifications and skills needed in the knowledge economy.

The Spanish delegation accompanied by Tessa Jowell visited Birmingham Employment Zone to see how the programme is helping the long-term unemployed in inner city areas back into work. The Birmingham zone, set up in April 2000, is the largest in the country and is managed by Pertemps Employment Alliance. So far it has helped over 700 long-term unemployed people into sustained jobs.

Spanish students from the Hotel School Marbella presented the ministers with an example of their skills, a celebratory cake to mark the occasion. Following a previous employment seminar between UK and Spain a link was developed between the Hotel School in Marbella and Westminster Kingsway College in London, which involves an exchange of students.

Further Details and Background Information

This is the fourth in the series of joint employment seminars between the UK and Spain, which started in Seville in 1998, followed by Oxford in 1999 and Toledo in 2000.



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last modified: 15-Jan-2001