Employers warned over 'skills timebomb'

Employers who fail to invest in staff training are facing a 'skills timebomb', according to new research.

A study of 13,000 employers, carried out by the Skills for Business network, revealed that three out of every five businesses are anticipating skills problems, with training levels remaining static despite the ageing of the workforce.

The report also demonstrated that two out of every three employers experience difficulties recruiting staff with the appropriate skills.

Skills for Business is warning that the failure to invest in training could have a damaging effect on the UK economy.

Mike Campbell of Skills for Business said, 'Our productivity levels are already 8% lower than the EU average, amounting to some £80bn of lost output to our economy. If this situation continues there is a very real risk that it could have serious economic implications for the future prosperity of the UK'.

New figures from the Office for National Statistics show that the gap in productivity between the UK and its main rivals increased in 2004, with UK productivity lower than the average of all other G7 countries.