Skills providers can help firms tap into economically inactive talent

Supporting the ‘economically inactive’ back into jobs presents an opportunity for skills providers to collaborate with businesses in developing innovative recruitment strategies

Supporting the ‘economically inactive’ back into jobs presents an opportunity for skills providers to collaborate with businesses in developing innovative recruitment strategies

11 Aug 2025, 5:17

Across multiple sectors, UK employers face critical skill shortages that traditional recruitment channels can no longer address effectively.

Meanwhile, a significant workforce remains on the sidelines – the economically inactive population that has grown substantially since the pandemic. This misalignment represents both a challenge and an opportunity for businesses to pioneer approaches that solve staffing problems while addressing wider social challenges.

The economic inactivity rate for those aged 16 to 64 stood at 21.5 per cent between November and January 2024, with 9.27 million people classified as economically inactive. Many of these individuals possess valuable skills and experience but encounter barriers to workforce re-entry. This population represents a significant untapped resource for companies with positions to fill.

Long-term unemployed individuals can be supported in returning to work by developing training programmes that connect businesses with untapped talent.

Participants in these programmes often face multiple barriers to employment, including health issues, caring responsibilities, previous offending history, or insufficient skills and training.

But skills providers can work closely with employers to optimise their recruitment strategies to engage a more diverse range of potential employees.

Building a socially conscious recruitment model

Encouraging job applications from the widest possible sources creates a talent pool, rather than the talent puddle that businesses often select from due to overly narrow search parameters.

When developing a socially conscious recruitment approach, employers benefit from access to diverse skills and perspectives, which can support with driving innovation and productivity.

Many economically inactive individuals have substantial work experience in related fields. With targeted upskilling, they can quickly become valuable team members, bringing soft skills – reliability, communication, teamwork – that complement technical training.

Investment in these workers fosters loyalty and establishes a sustainable talent pipeline. An individual with no relevant electrical qualifications, skills or experience can be fully trained as a smart meter engineer within 12 weeks.

Despite the clear benefits, several obstacles prevent employers from fully embracing this approach.

Unconscious bias in recruitment processes remains prevalent, with many employers unwittingly favouring candidates from similar backgrounds or with traditional career paths.

Many firms also have short-term cost concerns that often overshadow the long-term benefits associated with initial investments in upskilling economically inactive workers, while inflexible workplace practices can exclude talented individuals with caring responsibilities or health conditions.

But skills providers can support employers to overcome these hurdles through designing bespoke training models or redesigning processes.

Specialist partnerships

Skills providers function as vital intermediaries between employers and potential employees. They understand businesses’ requirements and help develop both recruitment and upskilling strategies while identifying prospective candidates through community channels and job centres.

Tailored training programmes

Collaborations between skills providers and employers can strengthen programmes specifically designed to bridge skills gaps by considering how to accommodate the unique challenges these workers might face.

Supportive onboarding

Many economically inactive individuals encounter barriers beyond skills gaps. Skills providers can support employers to implement flexible working arrangements and comprehensive support systems that help these workers transition successfully into sustainable employment.

Clear progression pathways

Establishing visible career progression routes demonstrates to new recruits that they have a future within the organisation. This approach enhances retention and maximises return on training investment.

Creating lasting change

The challenge extends beyond simply filling current vacancies. What’s required is a fundamental shift in how businesses conceptualise talent acquisition and development – a shift that places social responsibility at its core.

Skills providers can be a central cog in this mission by providing tailored support to those businesses and ensure they consider the bigger picture in their recruitment strategies.

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