Where have all the workers gone?

Some companies have had to turn down work

By Rob Pittam of BBC2's Working Lunch

The news that unemployment in the UK had fallen below one million for the first time in quarter of a century was warmly welcomed by politicians.

But at the sharp end of industry, it is causing big problems.

Companies are finding it increasingly hard to get workers, and some losing business as a result.

Across the UK, the unemployment rate, judged by the number of claimants, is 3.4%.

But statistics in some areas show a much lower rate - and anything below 3% is considered full employment.

In Northampton in the East Midlands, the figure in parts of the town is as low as 1.8%. In a county where one-third of the workforce are in manufacturing, the resulting skills shortages are causing deep concern.

We are trying to develop a fresh business plan to grow and the only restraint is getting the people to do the work

Mark Deane, Director, Deane & Amos

"We know from our surveys that seven out of 10 local employers are telling us they are having difficulty recruiting," said Will Rossiter, policy researcher with Northampton Chamber of Commerce.

"What we are noticing that is different is that it is not just at higher skill levels, we are finding shortages. It is really from the shopfloor upwards - unskilled as well as skilled."

One company where that is evident is Deane & Amos, a shopfitting business on the outskirts of Northampton.

Established in 1967, it employs 120 people and has a number of big-name clients such as Selfridges, Nationwide and the British Airports Authority.

But director Mark Deane is having to turn down work because he cannot find people with the right skills.

"Last week we put a big advert in the local paper for bench joiners and we had one applicant," said Mr Deane.

"That seems to happen every time we advertise - we just cannot get craftspeople to come and work."

In Northampton where one-third of the workforce are in manufacturing, the resulting skills shortages are causing d

Mr Deane is jokingly referred to as the company's sales prevention officer.

"We are trying to develop a fresh business plan to grow and the only restraint is getting the people to do the work. I can go out and get the contracts but it is getting the people to do it."

The problems faced by Deane & Amos are particularly common in the construction sector.

The industry is currently trying to recruit 300,000 people across the UK.

This shortfall is largely the result of the downturn in the 1980s, when few recruits were taken on and as skilled men retire, there are too few people to replace them.

Deane & Amos believes training is an important part of its operation and still offers three or four apprenticeships each year, that is how senior team leader Kevin Neale started with the company.

"I always wanted to be a chippie so that is what I do, whereas they tend to push children now towards computers," he said.

"In this company you can work with computers as well, so you can start on the ground floor but then you can work your way up to the drawing office and use computers."

Current apprentice Aaron Thorneycroft also sees benefits in studying a craft the traditional way.

"You're learning all the time and you're getting paid," he said.

"At the end of it you've got a trade you can do what you want with it, like go on to run your own business."

A major survey is currently under way of 10,000 businesses in the East Midlands to find the extent of the problem.

"That will tell us precisely which sectors the greatest shortages are being experienced in and which particular skills we need to look at developing," explained Will Rossiter.

In the meantime, Deane & Amos is taking its own practical steps because the regular stream of job applications from school leavers has dried up.

"We are actively promoting ourselves with local schools to sell the trade and the company to young people," said Mark Deane.

If the company cannot train its own recruits, it fears the shortages will put pressure on wages.

And in the present competitive climate, any extra costs can have a big effect on a company's future.