Greater Manchester Local Skills Plan reveals shortages across key growth sectors

The first Local Skills Improvement Plan (LSIP) for Greater Manchester has been launched, highlighting current and future skills shortages affecting the city-region.

Drawn up by the Greater Manchester Chamber of Commerce (GMCC) and funded by the Department of Education, the plan is built on the survey responses of 3,000 employers in the city-region, as well as local authority investment plans and granular data analysis on vacancies and skills requirements. The Greater Manchester LSIP outlines where the skills shortages are in each sector and across all ten boroughs, and sets out the steps to bridge the skills gaps through ongoing work with local skills providers.

Research to deliver the plan commenced in October 2022 and the report details specific areas in each sector of the economy where action needs to be taken to fulfil current and future demand. Key areas of concern include: retrofitting skills in construction to meet demand for net zero solutions; skills surrounding waste, efficiency and sustainability in the manufacturing sector, as well as skills surrounding emerging technologies and digital skills; and ‘future’ skillsets in the logistics and distribution sectors to meet the shift to automated processes, both operationally in warehouses and for back-office coding roles.

Commenting on the results of the data collected and the Local Skills Improvement Plan, Chris Fletcher, Policy Director at GMCC and Contract Director for the LSIP, said:

“For many, the priorities that have emerged from our research will not come as a surprise; some of these skills gaps have been known about for a long time. However, our remit from the Department for Education is to use the quantitative and qualitative evidence of skills and labour shortages that we have collected from employers and start to bridge these gaps.

“We have worked closely with colleges and other training providers and outlined the skills priorities in each sector and area of Greater Manchester. Together, as we enter the next phase of this project, we will look at current skills provision and identify where it needs to change, increase, or bring in new courses and training that meets the needs of employers.

“The next part of the LSIP will also see a focus on ensuring that employers fully understand what training is currently available to them and encourage more take up of provision and reverse the decline of investment in training.

Businesses surveyed also highlighted concerns over ‘soft’ skills in new recruits, such as presentation and communication skills, objective-setting and time management, and in some cases basic IT, numeracy and literacy skills.

Subrahmaniam Krishnan Harihara, Deputy Director of Research at GMCC, said:

“Soft skills are a major issue for employers, and this is also recognised by providers. Whilst some technical skills shortages may be easier to address, it would be wrong to ignore the issue of soft skills if current and future skills and recruitment issues are to be tackled successfully.

“Basic, soft skills specific to the workplace, basic IT and digital skills and essential literacy and numeracy skills have been highlighted as Strategic Priorities within the LSIP, which means we will aim to address these with skills providers, alongside the skills shortages specific to sectors. Within our Strategic Priorities, we have also included Net Zero/Sustainability skills as many employers now require individuals with basic knowledge of these skills specific to their industry. If Greater Manchester is to meet its net zero targets, these skills need to be embedded within the workforce and that starts with education and upskilling.”

The Greater Manchester Local Skills Improvement Plan is available to read in full, including a full set of recommendations and the next steps to deliver the Plan, via the Plan’s website.