Nine out of ten English businesses are grappling with a lack of suitably skilled workers, with entry-level vacancies posing the biggest challenge, according to a study by the Department of Education.
The research, which surveyed 1,500 employers, revealed that 32 per cent of skills gaps at small and medium-sized enterprises lie in entry-level positions, while specialist roles account for a further 29 per cent.
Specsavers, the optician chain, was used as a case study in the report. Dena Wyatt, the company’s head of apprenticeships, said: “We’re looking for qualified people in the field and they’re just not there.” Wyatt highlighted a shortage of both technical and IT capabilities, alongside softer skills such as customer service and team management.
Despite these shortfalls, the study found a decline in the number of businesses offering training schemes like apprenticeships, Skills Bootcamps or Higher Technical Qualifications (HTQs). Just over half of companies (54 per cent) considered or implemented such programmes in 2025, compared to 60 per cent in 2024. Of those reluctant to invest in further training, a third said costs were the main barrier and almost a quarter were unaware of the available options.
Wyatt emphasised the value of apprenticeships in closing the skills gap at Specsavers, which trains 650 to 750 apprentices annually. The company’s initiative has led to a 60 per cent qualification achievement rate, above the national average for further education colleges. Part of its apprenticeship spending is covered by the government’s levy, introduced in 2017 to help fund vocational training.
Baroness Smith of Malvern, minister for skills and equalities, insisted that government and industry cooperation is critical to meet the country’s future workforce needs, including the growing demand in areas such as AI, green technology and construction. “Meeting the skills needs of the next decade is central to delivering the government’s Plan for Change,” she said.
The report also recorded a drop in employer worries over staff retention, down to 27 per cent from 40 per cent in 2024, signalling some progress in keeping trained employees. However, for smaller firms such as Newcastle-based software company Mesma, competing with larger employers remains a challenge. Chief executive Louise Doyle said apprenticeships and technical education routes are vital for finding and developing fresh talent, allowing small businesses to “grow” employees in ways that fit their specific needs.
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Nine in ten businesses face recruitment struggle as entry-level skills fall short