Agenda item

The Committee had before it a report by the Director of Enterprise, Planning and Infrastructure which presented the “Draft 2010 Sector Skill Needs Audit”.

The report advised that the audit had commenced in late spring 2010, and through a survey which had asked respondents to highlight problem areas, areas of predicted growth, impact of economic downturn on recruitment and general recruitment and skill issues, had identified the current and predicted skill shortages within the local economy, across thirteen key sectors.  The audit had also provided an opportunity to evaluate how shortages in some sectors had increased/decreased since the last audit, and also provided an insight into the changing employment trends as well as the employment opportunities and restrictors for graduates and school leavers linked to the current economic climate.

 To date fifty-three companies employing over 27,248 staff had responded to the survey.

The objectives of the audit were represented/defined under the following three main headings:- economic impact, skill shortages and sector trends, and utilisation of local skills. An overview of the objectives and information sought in relation to each of the three headings was provided.

A detailed overview of the findings of the audit was provided, wherein the following issues were identified as the main points:-

·        Business confidence had decreased

·        Only 28% predict an increase in employee numbers over the next 12 – 18 months

·        34% of businesses reported an increase in part-time working

·        Dramatic increase in ratio of contract/temporary staff to permanent staff 2.15:1 (2010) from 5.44:1 (2006)

·        Only 33.96% had recruited (May 2009 – May 2010) – 98% recruited in same period of the 2008 audit

·        Key recruitment difficulties for Engineers, Technicians and Craft and skilled trades

·        Increase in number of businesses recruiting graduates

·         Decrease in number of businesses recruiting school leavers

Further details on each of the above were provided.

In conclusion, the audit had confirmed that the current economic climate had had a major impact on the majority of sectors across the city.  This had manifested itself in reduction of vacancies, increased part-time working, increased contract working, increase in graduate opportunities and decrease in school leaver opportunities.  The key skill shortage areas remained within engineering, technical and craft occupations, which would be further emphasised in the medium term by demographic change.  Finally, sectors outwith the oil and gas sector were having difficulties recruiting and retaining appropriately skilled and qualified staff due to the high salaries attainable within the oil and gas sector. A copy of the Sector Skill Needs Audit was appended to the report.

The Committee resolved:-

(i)         to support the production and circulation of the audit as a robust tool that was reflective of the current local skill situation;

(ii)        to agree to the use of the audit to inform partners on the current position regarding skills locally,

(iii)       to support the use of the audit to develop future skills development and employability programmes;

(iv)        to request officers to circulate a breakdown of migrant workers arriving in the city to all members of the Committee;

(v)        to request officers to provide details of future meetings of the Inward Migration Working Group to Councillor Crockett; and

(vi)       to commend Heather Farquhar for her work in this area.