The Importance of Apprenticeships in Closing the Skills Gap

The prevailing skills gap crisis in the United Kingdom has brought into focus the pivotal role of apprenticeships, particularly for small business proprietors. Recent studies have disclosed that nearly 60% of business owners consider apprenticeships to be a valuable alternative to university, with almost half expressing the opinion that not enough is being done to promote consideration of apprenticeships among young people.

Government statistics reveal that 1.72 million employees are affected by skills gaps, representing an increase of 45,000 compared to 2017 figures. In response to this issue, a third of firms have instituted their own apprenticeship programmes, with slightly over half expressing a readiness to take on apprentices if financial support were available to aid in contributing towards wages or training.

The National Apprenticeship Service has reported that 96% of employers with apprentices have experienced at least one benefit from engaging them, with most being able to enumerate at least eight benefits. Among these, 74% of employers state that apprentices have enhanced product or service quality, and 78% indicate improved productivity. Furthermore, 73% assert that staff morale is boosted by the presence of apprentices.

Steve Gee, Chief Executive Officer of Close Brothers’ Asset Finance’s Industrial Equipment Division, underscored the necessity and value of apprenticeship schemes in fostering new talent in industries that necessitate them. He further emphasised the significance of perceiving apprenticeships as an investment rather than an expense, as they can aid small and medium enterprises (SMEs) in prospering while simultaneously nurturing the individual apprentice.

Nikki Jones, director of the University of Sheffield AMRC Training Centre, underscored the urgency of investing in apprenticeships and supporting employers in taking on apprentices to address the substantial skills gap in the industry.

Tech startup Multiverse identified Wigan as the prime area for apprenticeships based on a set of criteria from government and ONS data. This included the number of apprentices per business, growth in the number of new apprentices, the area’s employment rate, and the affordability of renting. Stoke-on-Trent and Newcastle-under-Lyme also garnered high rankings, particularly due to the high number of apprentices per business.

Euan Blair, Chief Executive Officer of Multiverse, accentuated the importance of apprenticeships in promoting social mobility throughout the United Kingdom and providing equal access to economic opportunities for all.

As the issue of skills gaps persists as a cause for concern, the significance of apprenticeships in addressing this challenge cannot be overstated. It is imperative for businesses and governmental bodies to invest in apprenticeship schemes and offer support to employers in taking on apprentices to bridge the skills gap and establish a more resilient workforce for the future.