What does the Business Barometer tell us about the public sector skills gap?

Skills shortages, heavy workloads and wellbeing concerns were all messages resonating from the latest Business Barometer report, an annual temperature check on the UK skills landscape.

Further analysis of the employer survey that underpins the report shows that the public, third and private sector face many of the same challenges, with some variations.

Every year, The Open University (OU) conducts a survey into the UK skills gap and what steps are being taken to address the challenge. It asks a range of organisations from all sectors about the supply and demand of skills and how any skills gaps are affecting the workforce.

Digging into the data

The last three editions of the report have been in partnership with the British Chambers of Commerce. A mix of small to large organisations from the public, health and third sector took part, representing 15% of the 1,350 organisations that completed the survey.

This year’s survey found that skills shortages are endemic across all sectors but slightly more acute in the public/third sector (66%) than across organisations overall (62%).

The effect of these shortages is being felt by workers everywhere. Those working in the public sector say it has led to:

Impacts on the public sector

These figures show that the skills deficit is having a detrimental impact on workers, especially those in the public sector, with increased workloads leading to problems with morale and wellbeing in particular. There are well documented skills shortages in the NHS, for example.

The survey asked participants what their organisation is doing to address skills gaps. Only 19% of all organisations have a written skills plan for 2024, with 71% saying they don’t have a written plan and 10% being unsure. The numbers are slightly different in the public/third sector: 20% have a written skills plan for 2024, 44% don’t and 36% don’t know.

There are variations within the private sector – in manufacturing, 22% have a written skills plan, 69% don’t and 9% are unsure, while in B2B services 19% have a written plan, 72% don’t and 9% are unsure and in B2C services, 16% have a written plan, 74% don’t and 10% are unsure.

When asked why their organisation did not have a skills plan, there were some interesting differences: 26% of those working in the public/third sector say it’s due to a lack of resource or skill to write or implement a plan (it was 26% for those working in manufacturing and B2B as well and 25% for those in B2C). A total of19% say skills needs are changing too rapidly (12% also said this in manufacturing, 11% in B2B and 9% in B2C) and 37% don’t see the benefits of a plan (52% in the private sector).

The data suggests there could be a lack of communication and transparency – particularly in larger public sector organisations – in terms of the types of skills planning that may be in the process of being undertaken.

The role of apprenticeships

Organisations continue to invest in apprenticeships and other forms of vocational training. Around 29% say they are looking to take on apprenticeships in the next twelve months.

Like other organisations types, around half of public sector organsiations said it was primarily their own responsibility as employers to fund workplace training – rather than the government or employees themselves.

Skills for the future

The survey participants were also asked about new AI, digital and green technologies. The answers show that confidence levels are low – overall, 64% are not confident about applying either AI or green technologies.

AI and green skills are likely to be vital for the efficiency and sustainability of the public and third sector so identifying gaps and offering training is vital to address this gap.

Engaging diverse talent

There is a noticeable difference between the public/third sector and the private sector when it comes to recruitment, retention and training initiatives aimed at specific groups.

Whether it be engaging with people with disabilities (23%), diverse ethnicities (21%) or care leavers (13%), the public sector is more likely to have initiatives to help – but much more can be done.

In an example of best practice, The Open University has partnered with North Yorkshire Police to offer more flexible routes into policing, which has lead to more diverse apprentices joining the force, including women, people with autism and dyslexia, and learners changing career later in life.

Using learning as a benefit

When it comes to workplace benefits, the public sector traditionally outperforms the private sector in terms of providing learning opportunities as a recruitment and retention tool.

The survey shows the public/third sectors offering more structured learning opportunities in their employee packages (44%) and more wellbeing orientated services such a debt advice (37%) what can also help with retention.

For more insights please download the Business Barometer report, published in partnership with the British Chambers of Commerce.

Download report - Business Barometer 2024

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