There is no denying that the skills challenges facing the government are stark. Today, the UK has close to one million young people aged 16-24 not in education, employment or training (NEET) and in two of the country’s biggest sectors – manufacturing and engineering – apprenticeship starts are well below the level they reached in the early and mid-2010s, with over 500,000 starts a decade ago compared with 340,000 starts in 2023-24. Apprenticeships are essential for building our future workforce, improving productivity and creating accessible vocational routes into high-demand sectors. Yet, the route for young people to access these industries is lagging. Not only does this jeopardise the potential of these future workers, but it also undermines the UK’s global competitiveness. This picture is particularly acute for SMEs (small and medium sized businesses). In our latest ‘SME snapshot’ survey, we found that labour and skills shortages are negatively impacting their businesses. Sixty per cent of businesses have engaged in recruitment over the last six months, and of those, 80 per cent said they experienced difficulties getting suitable staff, with 60 per cent citing lack of candidates with appropriate technical qualifications as the biggest driver of skills gaps. Become a member for unlimited access to FE Week subscribe Our members enjoy early access to exclusive content and in-depth articles before anyone else. Get expert journalism on FE and skills, experience fewer ads, and unlock a growing range of member benefits.