To ask the Minister for the Economy (i) for his assessment of current staff shortages across the economy; (ii) to detail the sectors most affected; and (iii) to detail the steps being taken to address these shortages.

(i)

Skills and general labour shortages are being reported across the UK. The reasons for this are two-fold. Firstly, we are seeing higher than normal staff absence levels as a result of Covid-19 infection and isolation. Secondly, as the economy builds further momentum following lockdowns and the easing of other Covid-related restrictions, we are seeing high levels of demand for labour but low availability of workers due to our relatively low unemployment rate.

I am glad to see that businesses have the confidence to invest in and hire staff here but such reported skills shortages can hamper economic and productivity growth. In that context, we need to ensure we are training workers to meet the needs of the economy and my Department’s Skills for a 10x Economy strategy will help achieve this.

(ii)

Data from the ONS Business Insights and Impact on the UK Economy Survey shows that 14.6% of UK businesses were reporting a shortage of workers in late December 2021. The percentage was highest in Accommodation and Food Service Activities (37.2%); Construction (24.6%); and Human Health and Social Work Activities (22.7%). These statistics are not available below a UK level, but are broadly in line with what my Department is seeing at the Northern Ireland level.

(iii)

Covid-19 and government responses to potential future variants remain a challenge to all business sectors. Invest NI has been working across a wide range of sectors to assess the impact of the latest wave on their operations. To date, the reported impact of staff shortages within these sectors have been mitigated by measures put in place on the ground and absences are reported to be within tolerable limits. The reports my Department has received from the Higher Education and Further Education sectors are of a similar nature.

In terms of more general skills shortages, my Department has a range of initiatives in place.

These include SkillUP, an initiative launched in August 2021 which delivers free training places in an investment worth up to £23million over three years. It supports the training of all citizens aged 18 and over who are eligible to work in Northern Ireland, helping them to skill, reskill and upskill to address staffing shortages. Skill Up will serve to reduce key skills imbalances at all levels of employment, increasing opportunities and supporting lifelong learning.

My flagship Assured Skills programme has also continued to deliver, despite the challenges presented by the Covid-19 pandemic. Last year, Assured Skills delivered 27 academies, against a target of 16, with 508 individuals upskilled and 470 gaining employment in 2020/21.

My Department has also introduced an Apprenticeship Recovery Package to maintain the pipeline of apprenticeship opportunities and reduce redundancies. As of the end of December 2021, the Apprenticeship Recovery schemes have supported employers to return over 1,100 apprentices from furlough and to support the recruitment of 2,000 new apprentices.