West Midlands businesses ready to invest in young people but barriers remain – research

More than half (53 per cent) of West Midlands businesses have recruited early careers talent in the past year, but the real challenge is connecting firms with the candidates they need, according to new research from Lloyds.

The latest Lloyds Business Barometer reveals a strong and sustained commitment to investing in young people and, of the companies in the region that hired early careers talent in the past 12 months, 89 per cent of West Midlands firms expect to recruit more over the next year.

Even among West Midlands businesses that did not recruit early careers talent in the last year, 44 per cent say they would do so if they felt able, suggesting the barrier is access to suitable candidates rather than willingness to invest.

When asked what factors would most increase their confidence to invest specifically in early careers talent, West Midlands employers highlighted external collaboration, better access to suitable candidates and greater financial certainty.

Nearly a third (31 per cent) cited access to free work readiness or employability skills programmes for new hires. This was followed by better access to suitable candidates (29 per cent), more relevant local training provision (28 per cent) and greater certainty over government funding (27 per cent).

More than a quarter (27 per cent), also pointed to access to finance to smooth cash flow while training pays back.

Businesses confident on funding skills extends to the wider skills investment picture where more than eight in ten West Midlands businesses (85 per cent) are confident they can secure the capital required to invest in training, apprenticeships or new hires over the next one to three years.

This is the third highest of any UK nation or region, after Scotland (89 per cent) and Yorkshire & Humber (87 per cent) and ahead of the UK average of 80 per cent.

On the types of skills businesses need, sales and business development (34 per cent) was the most cited by West Midlands businesses followed by AI and automation (32 per cent) and digital and data (27 per cent).

When it comes to addressing anticipated skills gaps, West Midlands businesses are taking a practical approach with internal training and upskilling of existing staff leading the responses at 45 per cent, just ahead of the national average (43 per cent).

This research comes after Lloyds announced an investment of £100m in future skills in August as it expanded its support for young people.

Graham FitzGerald (pictured), regional director for the West Midlands at Lloyds, said: “There’s real ambition among West Midlands businesses to invest in the next generation, which is a strong vote of confidence in the region’s future.

“With most employers confident they can access the capital to invest in training, apprenticeships and new hires, the challenge now is connecting that investment with the right talent.

“The West Midlands has a powerful mix of major employers, growing industries, universities, colleges and training providers.

"Bringing those strengths together and making it easier for early careers talent to access the opportunities on their doorstep will help build the skilled pipeline businesses in the region need to grow.”