Skills shortages in most sectors

Despite the huge problems in manufacturing, most of the rest of the economy is suffering serious recruitment problems, according to employment agencies Manpower and Reed Business Services.

Manpower's figures for the final quarter of 2000 showed that demand for staff in retail, electronics, telecommunications, leisure, transport and distribution and insurance was even stronger than it was in the health service.

Only in sectors hit by exchange rates such as the motor industry, textiles, clothing and food and drink, or in the utilities where there have been big job losses, was demand for labour still fragile. Nearly three-quarters of firms in its most recent "skills index" (October 2000) expressed difficulty in filling their vacancies with appropriately skilled staff.

Daniel Kasmir, director of human resources at Manpower, told Labour Research that it was difficult to attract what he called the "MTV generation" to "blue collar" work. He warned that employers would have to pay for and play a greater role in providing training this year to get the workforce they want.

James Reed, chief executive of the Reed recruitment group, described the skills shortages as a wake-up call to business: "While salary inflation may become a threat, a more immediate concern is shortages of the right talented people to enable organisations to continue to grow."