Stories that Northern Rock had run out of cash had reached the mainstream media outlets and customers were in full panic mode. This was the first ripple in the water ahead of a global economic financial crisis that, in short, saw the world run out of cash. What followed was a full-scale depression where nobody was safe; the crisis claimed Lehman Brothers, the largest bankruptcy in US history, and even the US Treasury was put under intense scrutiny.
Fast forward 6 years and the UK, and much of the world, is making tentative steps towards recovery with economic growth returning and unemployment beginning to fall. However, we are not out of the woods yet and there is lasting damage to the economy that will take several years, if not decades to fully repair.
A full commentary on the economy is beyond the scope of this text but one specific area I wish to comment on is the skills shortage that is currently undermining the economic recovery.
Think about it logically; in 2008 the world entered what is commonly regarded as the deepest depression since the 1930’s. With the exception of some very shrewd businesses that thrived in poor economic conditions, Pizza Express and Groupon are great examples, the vast majority began to tighten their belts and cut costs. As a consequence many companies stopped hiring new staff.
The employment market started to improve at the beginning of 2014 but prior to that we had 6 full years where the majority of companies were not hiring new staff.
That is 6 years where entire industries did not employ and train new staff, 6 years of university graduates and school leavers having to accept jobs that were not in their chosen field and 6 years of people losing their jobs and being unable to re-enter employment in the same field. The result is a significant skills shortage.
6 years is a long time and most industries experienced significant change during that time. The problem is that new people have not been entering these industries and learning the skills required to thrive. Success Recruit has experienced the difficulties faced when attempting to find people for certain industries; in some cases the right people are just not available.
Unemployment is falling; however, the headline figure does not tell the full story, particularly when it comes to youth unemployment. Latest official figures estimate that 16.9% of all 16 – 24 year olds remain unemployed but even that does not fully illustrate the difficulties faced by that generation. For example; how many people do you know who have gone to university to gain an impressive degree that they are unable to utilise?
People can get trapped in a vicious cycle where they cannot get a job because of their lack of relevant experience so they are forced in to a job that offers them money and security but not relevant experience.
So how can your business help? The answer of course is by hiring a Trainee. There has never been a better time to hire Trainees; there is a large pool of talented individuals looking for a career path and a variety of grants available to businesses that hire them.
In the short-term companies will need to commit time and resources in the Trainee but the long-term benefits include a loyal, well trained member of your team.
If you need any help with recruitment in your business you should talk to Success Recruit. Our business was built on a desire to understand our client’s needs and to help them find the right individual for their team. The great thing about hiring a Trainee is that businesses seldom need them right now so you are likely to have time on your side. Speak to us about how we can help you attract the right person to help your business benefit from the opportunities offered by the economic recovery.