One of my pet hates is the persistent claim that there is a skills gap in the UK. As someone who has worked in the engineering sector for almost two decades, I can assure you this is far from the truth.
As a small and growing engineering business in the UK, we face a daunting challenge: universities seem to be shielding graduates from the real-world skills and opportunities they and we desperately need.
Every day, we search for fresh talent to invigorate our projects, yet finding graduates prepared to dive into practical work is increasingly difficult. This is not because the talent does not exist – more so the lack of accessibility to it. Recent interactions with a prominent university highlighted a disturbing trend: academic institutions favour large corporations over SMEs like ours. After applying to exhibit at a university’s graduate jobs fair, T12 Engineering’s application was unsuccessful. Despite our ability to offer internships, employment and career development, universities seem more inclined to support bigger names. This bias is erecting barriers for talented graduates, leaving them underutilised and demoralised.
This mismatch not only hinders our growth but also stifles the bountiful skills available and the potential of these talented individuals who could thrive in a dynamic environment. The real barriers erected by universities prevent us from tapping into a diverse pool of capable engineers. Graduates are often steered towards larger corporations or industries perceived as more stable, neglecting the invaluable opportunities and experiences that SMEs can offer. This prevents a mutually beneficial relationship where graduates could gain practical experience while contributing meaningfully to projects from day one.
Navigating this landscape requires collaboration and understanding between educational institutions and businesses. By fostering partnerships that integrate real-world applications alongside theoretical knowledge, universities can better prepare graduates for the challenges of the industry. Simultaneously, small businesses must advocate for greater accessibility, opportunity and visibility among students, showcasing the unique career paths and growth opportunities they offer.
In essence, the ‘boffin fallacy’ – the view that technologists are ill-equipped to enter the world of business, which is so entrenched that engineers themselves have come to believe it – highlights there is no gap in skills, but a missed opportunity for innovation and growth of SMEs and graduates created by university business models.
Our engineering graduate numbers back this up. Based on the 2020-21 data from the Higher Education Statistics Agency, there were 38,615 first-degree engineering and technology undergraduates in their first year of university. This equates to 6.1% of all first-degree undergraduates.
It is time for higher academia to face reality. If universities believe their mission is purely profit-driven, they are mistaken. Their failing financials reflect this misguided approach, illustrated by a report by the Office for Students highlighting an increasing number of universities in England facing “a material risk of closure” unless they dramatically cut costs or merge over the next few years. A shift in attitude towards supporting SMEs is essential for progress. Until then, the problem will only worsen.
Contrary to the notion of a skills gap, the UK has seen a consistent rise in educational attainment. In 2023, 48% of 25-34-year-olds held a tertiary education degree – a significant increase from 30% in 2000. This surge in qualifications indicates a highly educated workforce ready to meet industry demands. Furthermore, the UK’s investment in vocational training and apprenticeships has grown, offering practical skills to young people. In the 2022-23 academic year, there were over 700,000 apprenticeship starts, presenting a robust alternative to traditional academic routes. The labour market efficiently absorbs the workforce, with unemployment rates at a low 4.2% as of early 2024. This balance of supply and demand for labour suggests no significant skills shortage. Additionally, the employment rate for those aged 16-64 was 75.7% in 2023 – one of the highest in Europe.
It is high time universities start recognising the potential of SMEs and collaborate to empower our graduates
The UK’s diverse economy spans finance, technology, healthcare and creative industries, consistently attracting skilled professionals. For example, the tech sector’s annual growth rate of 4.5% reflects competitive job vacancy fulfilment. Moreover, the UK remains a prime destination for global talent due to its high-quality universities and favourable immigration policies. In 2023 alone, more than 300,000 skilled work visas were issued. UK employers are investing heavily in training and development. In 2023, 87% of employers provided regular training opportunities, demonstrating a commitment to upskilling the workforce. Regional initiatives like the Northern Powerhouse and Midlands Engine have significantly boosted local skills, showing tangible improvements.
The data clearly argues against the existence of a significant skills gap in the UK. Instead, it highlights the country’s effective education, training systems and labour market dynamics. It is high time universities start recognising the potential of SMEs and collaborate more effectively to empower our graduates. The future of our skilled workforce depends on it.
Small engineering firms are eager to nurture the next generation of talent, but without meaningful support and collaboration from universities, both sides will continue to struggle against outdated perceptions and barriers that hinder progress. See you at the next university job fair? I highly doubt it.
Graham Melroy is director of business development at T12 Engineering.
Do you agree with Melroy, or do you think the lines of communication with universities are strong? And is the skills gap a real thing? Send your opinions to [email protected]
