The UK automotive sector is struggling to close its skills gap, according to new analysis from the Institute of the Motor Industry (IMI), with recruitment processes also falling.
The latest data, released by the Office for National Statistics (ONS) and inspected by the IMI, shows motor trades vacancies at 20,000 with 3.5 vacancies for every 100 employees.
However, despite the continued high level of vacancies, separate IMI analysis of job postings suggests employers have retracted recruitment plans over the last year, which is a serious concern for motorists requiring vehicle repairs and servicing.
Recruitment efforts falling
Overall job postings reported in the IMI’s Labour Market Report, decreased by 38% year on year (July 2024) with 51% of these positions for Vehicle Technicians, Mechanics, and Electricians. A complicated mix of factors are likely to be behind this decline including employer apathy and recruitment fatigue after failed hiring attempts, combined with caution due to economic uncertainty.
“The proposed increase in employers NI contributions announced in the Autumn Budget Statement has the potential to impact recruitment as well as salaries, and this raises serious concerns that the already significant skills gap is only likely to be further exacerbated,” said Azlina Bulmer, Managing Director of the IMI.
“Lack of access to qualified and continuously trained automotive experts presents a serious risk to road safety and social mobility, which we will raise in our response on behalf of our members to the government’s Industrial Strategy green paper: Invest 2035: The UK’s Modern Industrial Strategy.”
The IMI strongly believes that creating a pipeline of talent through apprenticeships, vocational training, and upskilling programmes is the only way to meet the urgent need for skills in the automotive sector.
By integrating the sector into broader skills and industrial strategies, government can ensure that the UK not only meets its decarbonisation goals but also secures a leading position in the global automotive industry for decades to come.
The IMI Automotive Vacancies report can be downloaded here.
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