Employer Skills Survey 2024 - Scotland
Scotland results from the UK Employer Skills Survey 2024
The internal skills challenge
This chapter explores the prevalence and impact of current skills gaps within the Scottish workforce, i.e., the extent to which employers have staff that are not fully proficient in their job role. Some skills gaps may be temporary by nature, for example, where new staff have been recruited who are not yet fully trained or experienced. However, others can be more persistent and a result of under-investment in training and development, staff reluctance to develop existing skills, or high staff turnover. Persistent skills gaps can affect a site’s productivity and ability to innovate.
(Brunello, Giorgio and Wruuck, Patricia, Skill Shortages and Skill Mismatch in Europe: A Review of the Literature (May 2019). IZA Discussion Paper No. 12346, Available at SSRN: https://ssrn.com/abstract=3390340 or http://dx.doi.org/10.2139/ssrn.3390340)
The Employer Skills Survey (ESS) measures the incidence, volume, density of skills gaps, overall and at a national, sectoral and occupational level. Also covered in this chapter are the specific skills that employers identified as lacking among their employees, and the causes and the impacts of these. Finally, this chapter also covers the incidence and density of skills being under-utilised as well as the expected need for upskilling in the next year.
- Skills gap incidence is the proportion of sites judging at least one employee not fully proficient.
- Skills gap density is the number of employees that were judged not fully proficient as a proportion of all employees.
- Skills gap volume is the number of employees that were judged not fully proficient.
Incidence, volume and density of skills gaps
Overall, 14% of employers had skills gaps within their current workforce. This marks a slight decrease compared to the 15% who reported this in 2022. In 2020, 12% of employers had skills gaps, though this was not a statistically significant difference from the 2024 result.
As in 2022, skills gaps were more common among larger employers, with 42% of those with 100 or more employees reporting a skills gap, compared to 5% of those with between 2 and 4 employees.
By sector, employers in Manufacturing and Education were more likely than average to have skills gaps (19% and 17% respectively). Both Manufacturing and Education employers were also among the most likely sectors to have skills gaps in 2022. Employers in Primary Sector & Utilities were the least likely to have skills gaps (6%), again in line with 2022.
Overall, a total of 94,500 employees were judged as not fully proficient in their role in 2024, representing 3.8% of the Scottish workforce. This represents a decrease in skills gap density compared to 2022, when 4.8% were not fully proficient, and is the lowest skills gap density for Scotland found in the ESS series which began in 2011.
The proportion of staff that employers felt were not fully proficient was highest in Hotels and Restaurants (7.2%), Manufacturing (6.5%) and the Primary Sector & Utilities (6.3%). In contrast, employers in Information & Communications (1.7%), Education (2.1%) and Public Administration (2.2%) recorded the lowest skills gaps densities. Skills gap density remained stable compared to 2022 across most sectors, although there were statistically significant decreases in Education (2.1% in 2024 vs. 8.8% in 2022) and Construction (3.3% vs. 6.6% in 2022). Primary Sector & Utilities was the only sector where skills gap density increased significantly compared to 2022, rising from 2.9% to 6.3% in 2024.
By broad occupational group, the highest skills gap density was found among labour-intensive skill occupations (6.0%) (more information on broad occupational groupings can be found in the full UK report, which will be available on DfE’s website). This was due to a strong concentration of skills gaps among Elementary occupations (7.3%), which form part of this broader occupational grouping. The next highest skills gaps densities were recorded in the Skilled Trade (5.1%) and Sales and Customer services occupations (5.1%). The occupations with the lowest skills gap density were Professionals (1.4%) and Managers (2.0%).
Skills gap density varied by ROA region (Figure 11). The highest proportion of staff with skills gaps was recorded in Dumfries and Galloway and West Lothian (6.0% and 5.2% respectively). By contrast, skills gaps density was relatively low in the Glasgow and Forth Valley regions (1.9% and 2.1% respectively).
Skills gaps were most common among employers in Lanarkshire ROA, though the highest skills gap density was found in Dumfries and Galloway ROA.
Figure 11: Incidence and density of skills gaps by ROA region, 2024 compared to 2022
Base: All sites in Scotland (2024: 5,080; ROA regional base sizes range from 150 in Borders Region to 690 in Highlands and Islands Region. 2022: 5,207; ROA regional base sizes range from 165 in Borders Region to 777 in Highlands and Islands Region.)
Further data on the incidence and density of skills gaps, and corresponding 2022 results, can be found in Tables 48 to 53 of the Background Tables.
Causes of skills gaps
Most skills gaps (84%) were caused at least in part by transient causes, such as employees being new to the role, or not having completed their training yet. Around one in seven (14%) were caused entirely by transient causes. A greater proportion of skills gaps in 2024 were at least partly due to transient causes compared with 2022 (80% in 2022), however, in 2024 skills gaps were comparatively less likely to be solely due to transient causes (20% in 2022).
Nearly two fifths (39%) of all skills gaps were caused at least in part by positive transformational causes, including the introduction of new working practices (25%), the development of new products (22%) and the introduction of new technology (18%). Positive transformational causes as a whole accounted for the same proportion of skills gaps in 2022, although individually, there was a decrease in the proportion of skills gaps caused by the introduction of new working practices and new technology (31% and 26% in 2022 respectively).
Other common causes of skills gaps included staff lacking motivation (44% of skills gaps) and employers struggling to recruit staff with the required skills (36%). The full breakdown of the causes of skills gaps are presented in Figure 12.
Transient causes such as being new to the role or training being incomplete remain the most common cause of skills gaps.
Figure 12: Causes of skills gaps in occupations followed up (prompted)
Base: All sites in Scotland with skills gaps (2024: 967; 2022: 1,100). Figures shown are based on skills gaps for up to 2 occupations randomly selected for each site – so, for example, “they are new to the role” was a cause of 76% of skills gaps followed up.
Further data on the causes of skills gaps, and corresponding 2022 results, can be found in Table 54 of the Background Tables.
Skills lacking internally
Employers were asked what skills were missing among their workforce. Following the same approach as was covered earlier for skill-shortage vacancies, the lacking skills were split into two broad categories: technical and practical skills, specific to the particular function of the job role, and people and personal skills, the “softer”, less tangible skills required to manage oneself and interact with others in the workplace.
Considering technical and practical skills first, the most common specific skill lacking among those with skills gaps was specialist skills and knowledge required for the role (52% of skills gaps); this was also the most common skill lacking in 2022 (54%). When grouping lacking skills into broader categories, a lack of operational skills was most common (contributing to 49% of skills gaps). This included, specifically, knowledge of how the organisation works and knowledge of company products and services (each 38%). Though operational skills remained the most common group of skills lacking, the proportion of skills gaps affected was lower than in 2022 (54%) and 2020 (57%).
The next most common group of skills lacking was complex analytical skills (44% of skills gaps); this included a lack of complex problem-solving skills (38%) and complex numerical or statistical skills (20%). The proportion of skills gaps affected by a lack of complex analytical skills again represented a decrease compared to 2022 (52%). Basic skills including basic IT skills and basic numerical skills also decreased compared to 2022 (32% vs. 40% in 2022).
Digital skills gaps were a factor in 31% of skills gaps, lower than the 38% affected in 2022 and continuing a downward trend from 47% in 2020. The digital skills most commonly felt to be lacking were foundation digital skills (27%), basic Microsoft Office skills (23%), specialist knowledge of internal systems or hardware (21%), and advanced Microsoft Office skills (12%). Both basic and more advanced Microsoft Office skills accounted for a much lower proportion of digital skills gaps than in 2022 (32% and 21% respectively).
The full list of technical and practical skills lacking among employees with skills gaps is shown in Figure 13.
Specialist skills are the most common technical and practical skill lacking among employees with skills gaps.
Figure 13: Technical and practical skills lacking among staff with skills gaps followed up (prompted), 2024 compared to 2022
Base: All sites in Scotland with skills gaps (2024: 967; 2022: 1,100). Figures shown are based on skills gaps for up to 2 occupations randomly selected for each site – so, for example, “specialist skills or knowledge” was lacking in 52% of these skills gaps.
Considering the types of people and personal skills lacking, when grouping these self-management skills were most commonly found to be lacking (70% of skills gaps). This was also the case in previous years (70% in 2022 and 72% in 2020). This included the ability of staff to manage their own time and prioritise tasks, which was the most common specific people and personal skill lacking (63%), and managing their own feelings or those of others (45%).
Skills relating to management and leadership of others were lacking among 50% of staff with skills gaps, lower than in 2022 (56%). Included in this grouping were a lack of skills in managing or motivating other staff (37%), persuading or influencing others (30%), and setting objectives for others and planning resources (19%).
Lacking sales and customer handling skills affected 43% of skills gaps, lower than the 52% observed in 2022. Considering these separately, lacking customer handling and sales skills affected 40% and 22% of skills gaps respectively. The overall reduction in sales and customer handling skills gaps were due to a reduction in customer handling skills gaps specifically (down from 48% in 2022). The proportion of skills gaps affected by a lack of sales skills remained similar (23% in 2022).
Though not allocated to a broader grouping, a lack of team working skills was a contributing factor in more than half of skills gaps (52%), making it the second most common specific people and personal skill lacking (as was the case in 2022, when it affected 54% of skills gaps).
Across all individual people and personal skills, there were no skills which accounted for a higher proportion of skills gaps in 2024 than they had in 2022. The largest decrease in prevalence was observed for lacking skills in setting objectives for others and planning human, financial and other resources, which decreased from 31% to 19%, bringing it back in line with 2020 levels. Figure 14 shows all people and personal skills lacking among employees with skills gaps.
Self-management skills remain the most commonly missing personal skills among those with skills gaps.
Figure 14: People and personal skills lacking among staff with skills gaps followed up (prompted), 2024 compared to 2022
Base: All sites in Scotland with skills gaps (2024: 967; 2022: 1,100). Figures shown are based on skills gaps for up to 2 occupations randomly selected for each site – so, for example, the “ability to manage own time and prioritise tasks” was lacking in 63% of these skills gaps.
Employers who had staff with skills gaps were asked whether these skills gaps could be at least in part attributed to their efforts towards being more sustainable or carbon neutral. Most employers disagreed that their skills gaps were due to this (83%), the same proportion as in 2022. Just over one in ten (11%) agreed that some of their skills gaps could be attributed to efforts towards sustainability.
Further data on skills missing and corresponding 2022 results, as well as data on sustainability efforts as reasons for skills gaps can be found in Tables 55 to 58 of the Background Tables.
The impact of skills gaps on employers
Overall, almost two thirds (65%) of employers with skills gaps reported that these had an impact on their organisation. This is consistent with results from 2022 (64%).
One in ten employers (11%) with skills gaps felt these had a major impact on their performance, similar to the 13% in 2022. Skills gaps were most likely to have a major impact on the smallest sites: 18% of those with between 2 and 4 employees reported a major impact, compared to 7% of those with 25 or more employees.
As in 2022, employers with only transient skills gaps were less likely to experience major impacts (1%), compared to those with at least some non-transient skills gaps (14%). This is an even smaller minority than in 2022, when 6% of those with only transient skills gaps reported major impacts.
Figure 15 shows the specific impacts of skills gaps experienced by employers. As shown, these impacts were very similar to those reported in 2022. Increases in workloads for other staff remained the most common impact (54%); indeed, for around one in seven employers (14%), this was the only impact experienced. Other common impacts of skills gaps included higher operating costs (26%), difficulties meeting quality standards (24%), difficulties introducing new working practices (24%) and losing business or orders to competitors (18%).
Further data on the impact of skills gaps can be found in Tables 59 to 62 of the Background Tables.
Almost two thirds of employers with skills gaps reported that these had an impact, most commonly by increasing workloads for other staff.
Figure 15: Overall impact of skills gaps and specific implications of skills gaps (prompted), 2024 compared to 2022
Base: All sites in Scotland with skills gaps (2024: 967; 2022: 1,100).
Under-use of skills and qualifications
One in three (33%) Scottish employers said they have any under-utilised staff, i.e. staff that have both qualifications and skills higher than the level required by the job. This represents a decrease compared to 2022 (37%) but is in line with 2020 (33%). Overall, 7% of employees were under-utilised at their job; again a decrease compared with 2022 (9%) but in line with 2020 (8%).
The proportion of employers with under-utilised staff was similar across size bands. By sector, employers in the Hotels and Restaurants sector were most likely to have under-utilised staff (50%), as in 2022 (49%). Employers in the Arts and Other Services sector were also slightly more likely than average to have under-utilised employees (43%). Construction employers were the least likely to have under-utilised staff (24%).
By region, employers in Lanarkshire ROA were less likely than other regions to have under-utilised staff (25%). Dumfries and Galloway ROA and the West ROA were most likely (both 36%).
At an employee level, a greater proportion of the workforce were under-utilised in the Hotels and Restaurants (14%), Arts and Other Services (13%) sectors. By employer size, smaller sites were more likely to have under-utilised staff; 20% were under-utilised at sites with 2 to 4 employees while just 4% of those at sites with 100 or more staff members were under-utilised.
Further data on under-use of skills and qualifications can be found in Tables 63 to 66 of the Background Tables.
Upskilling
Upskilling refers to the employer anticipation of the need for their staff to acquire new skills in the next 12 months. Overall, just over three fifths (61%) of employers foresaw a need to upskill their staff in the next year.
The proportion of employers with upskilling needs decreased compared to 2022, when 66% reported a need for upskilling in the next 12 months. This continued the downward trend from 2020 (74%), and marks the lowest proportion reported in the ESS series since it began in 2011.
As in previous years, the need for upskilling was more pronounced among larger employers, with 76% of those with 25 or more employees reporting this compared with 53% of employers with between 2 and 4 employees.
By sector, employers in the Public Administration sector were by far the most likely to report a need to upskill (90%) (Note, this figure should be interpreted with some caution due to low base size (39)). Employers in Education and Health and Social Work were also more likely than average to need to upskill (69% and 68% respectively). Hotels and Restaurants was the sector least likely to have a need for upskilling (53%), in line with the finding in the previous section that this sector was most likely to report under-utilised staff. There were no sectors where the need for upskilling increased compared to 2022. Business Services and Health and Social Work saw the largest reductions in terms of the proportion of employers with upskilling needs compared to 2022 (60% and 68% in 2024 compared to 70% and 78% respectively in 2022).
Just over three fifths of employers foresee a need for upskilling, mainly due to new technologies and legislative requirements.
Figure 16: Overall proportion of employers with a need for upskilling and the reasons for needing to upskill, 2024 compared with 2022
Base: All sites in Scotland (2024 (Modules A and B): 2,613; 2022 (Modules B and D): 2,547).
Reasons for a need for upskilling
The most common reasons for needing to upskill staff in the next 12 months were the introduction of new technologies or equipment and new legislative or regulatory requirements (each mentioned by 39% of employers). While the ranking of these reasons was mostly consistent with 2022, the proportion of employers citing each upskilling need decreased slightly across all prompted reasons.
Larger employers were more likely to cite each of the prompted reasons for needing to upskill, but were especially more likely than smaller employers to mention the introduction of new technologies or equipment (58% among those with 100 or more employees, compared with 32% of those with 2 to 4 employees) and new working practices (55% vs. 24%).
By sector, employers in Public Administration, Financial Services, Education, and Health and Social Work were most likely to cite new legislative requirements as a reason for upskilling needs (75%, 69%, 49% and 47% respectively). Employers in the Information and Communication sector were most likely to mention the introduction of new technologies or equipment as a reason for upskilling needs (57%).
The full list of reasons for an upskilling need can be found in Tables 67 and 68 of the background tables.
Occupations most affected by the need for upskilling
Skilled Trades (49%) were the occupation most affected by the need for upskilling, followed by Professional occupations (43%), Managers (40%) and Caring, Leisure and Other Services (39%). The proportion of sites that identified an upskilling need among their staff in each occupation is presented in Figure 17.
The need for upskilling was most prevalent among Skilled Trade occupations.
Figure 17: Occupations most affected by the need for upskilling in 2024
Base: All sites in Scotland that identified an occupation in need of upskilling and employ that particular occupation: Managers (1,650); Professionals (435); Associate Professionals (303); Admin and Secretarial (1,026); Skilled Trades (526); Caring, Leisure and Other Services (299); Sales and Customer Service (491); Process Plant and Machine Operatives (282); Elementary Occupations (602).
Skills expected to need upskilling
Looking at groups of technical and practical skills that employers felt their employees needed to develop in the next 12 months, operational skills were most commonly identified as needing development (51%). Just under half (48%) identified a need to upskill digital skills and a similar proportion (45%) felt employees needed to develop their complex analytical skills.
In terms of specific technical and practical skills, employers most commonly reported a need to adapt to new equipment or materials (50%), to develop specialist skills or knowledge needed to perform the role (48%), and to improve knowledge of products and services offered by the organisation (45%). These were also the top three skills expected to need upskilling in 2022.
Among sites that said IT or digital skills would need development in the next 12 months, the most common specific skills mentioned were skills using new or updated company software or systems (38%). Overall, just over a fifth (22%) mentioned the need to develop basic digital skills such as using Microsoft Office applications (12%) or foundation digital skills (11%) like turning on devices, changing passwords, or accessing the internet.
When grouping people and personal skills together, the most common upskilling needs related to self-management skills (48%). This included the ability to manage own time and prioritise tasks (39%; this was the most common specific people and personal upskilling need), and managing their own feelings (34%). Upskilling needs for management and leadership skills were also common (43%), including managing or motivating other staff (33%), setting objectives for others (24%) and persuading or influencing others (23%). Employers also foresaw a need for their employees to improve their team working skills (38%), and sales and customer handling skills (36%).
The full list of skills that employers expected to need upskilling in the next 12 months can be found in Tables 70 to 72 of the Background Tables.
Contact
Email: FHEstatistics@gov.scot