Financial services firms in the UK are suffering from a record skills shortage

Financial services firms in the UK are suffering from a record skills shortage

UK financial firms are struggling with their worst job vacancy rates on record, underscoring skills shortages caused by the digitization of banking, investment and insurance.

The industry had more than five unfilled vacancies for every 100 jobs between April and June 2022, according to data compiled by the Office for National Statistics. It’s the highest since records began in 2001 and puts the sector behind only hospitality and technology companies.

A skills gap created by the fact that more companies are going digital and requiring employees to have new skills, added to the challenges of the labor market, with people changing their work habits or moving away from work during the pandemic COVID-19, has caused vacancy pressure. Claire Tunley, chief executive of the Financial Services Competition Commission, said in an interview.

It means recruiting employees takes more time and effort than expected, with one FSSC member company recently describing recruitment as “painful”. The talent shortage in the labor market is causing employers to shift to a “reskilling approach,” CEO Tunley said.

The data underscores the continued tightening of the labor market even at a time of broader economic strain.

To counter the talent shortage, some companies have begun training their staff in new areas such as machine learning and automation, Tunley said. “We can’t wait for schools to do this, it’s here and now.”

Photo: Morning commuters cross London Bridge in the City of London, United Kingdom on Monday, March 14, 2022. Photo credit: Jason Alden/Bloomberg

Copyright 2022 Bloomberg.

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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!