Recession hits engineering recruitment, but is recovery in sight?
14 Sep 2009
IET’s annual Skills and Demand in Industry report shows that only 31% (compared to 63 per cent last year) of employers are planning to recruit staff over the next 12 months. Of the
London - The recession has taken its toll on recruitment in the engineering and technology sector, but the end could be in sight, according to the Institution of Engineering and Technology’s (IET) annual Skills and Demand in Industry report.
The study, published 11 Sept, shows that only 31% of employers (compared to 63% last year) are planning to recruit staff over the next 12 months. Of the companies surveyed, 40% said they were concerned about losing their skills base because of the recession.
According to the IET, a third of those companies not recruiting this year named financial constraints as the primary reason. However, only 12% thought that this would be a problem in two to three years, fuelling speculation that the recession is coming to an end.
The survey also indicated a reduction in the recruitment of postgraduates entering engineering roles (down from 24% to 12%). This, it said, suggests that companies are cutting back on R&D and not diversifying their business at the risk of losing out when the economy picks up.
Nigel Fine, chief executive of the IET, said: “Unlike other surveys, ours is entirely focused on engineering and technology and gives a clear view of what is happening in this sector.
“The results show that although financial constraints are preventing many companies from recruiting, it appears the situation will ease over the coming years and that the end of the recession may be in sight. In two to three years when companies expect financial constraints to have eased, they once again anticipate a skills shortage in the engineering and technology profession.
“Retraining and professional development will be needed to re-engage the skilled engineers lost during the recession. Without a concerted effort now, it is likely that the UK will quickly experience a greater shortage of engineering skills than before the recession.”
To view the Skills and Demand in Industry report, visit http://www.theiet.org/publicaffairs/education/skills-survey2009.cfm?type=pdf.
