Key facts
- Nearly 31% of defense firms report a skills shortage when trying to hire graduates.
- A report by the University of Manchester and CBI Economics highlights difficulties in recruiting skilled young people.
- Many firms find graduates lack necessary sector-specific technical skills and STEM knowledge.
- Businesses cited administrative hurdles for R&D tax reliefs and restricted subcontracting as contributing factors.
- The report coincides with government efforts to increase defense spending and address youth unemployment.
A new report from the University of Manchester and CBI Economics reveals that nearly one in three defense firms are struggling to find qualified university graduates to hire, despite high youth unemployment. The research indicates a significant skills gap, with many firms reporting that graduates lack the necessary sector-specific technical skills and knowledge in science, technology, engineering, and mathematics (STEM).
Nearly three-quarters of defense companies engage with universities, but the skills shortage persists. Around 31% of defense firms cited skills shortages, a figure higher than in the clean energy (27%) and financial services (25%) sectors. Businesses responding to the survey attributed some of the issues to the administrative costs associated with R&D tax reliefs and restrictions on overseas subcontracting. They also pointed to a general "quantity issue" concerning the availability of skilled graduates.
Professor Duncan Ivison of the University of Manchester urged universities to be more proactive in connecting graduates with employers. The findings emerge as the government considers increasing defense spending and addresses the country's 11-year high in youth unemployment. A separate report by Alan Milburn suggested focusing on improving employment outcomes for graduates, rather than solely on qualification quality.