Urgent improvement needed to improve skills base in NI, says watchdog

Urgent improvement is required to ensure that the level of skills exist within the working population to allow Northern Ireland to achieve its economic ambitions, a new Audit Office report has said.

Comptroller and Auditor General Dorinnia Carville said skills shortages are having a "detrimental impact on business and economic growth".

Her report "Developing the skills for Northern Ireland's future" focuses on the activities of Stormont's Department for the Economy (DfE).

The report said: "Whilst DfE leads on skills policy and is accountable for much of the spend on government-funded skills initiatives, the successful delivery of the Skills Strategy is dependent on collaboration across government and beyond."

It said support or skills and learning is the largest area of spend for the department, with approximately £470 million spent in 2023-24 funding a range of initiatives and programmes.

The report cites previous research illustrating the scale of the skills challenge facing Northern Ireland.

The 2022 Employer Skills Survey found that, of an estimated 39,500 vacancies in Northern Ireland, approximately 35% were considered by employers to be attributable to a lack of skills, experience or qualifications.

The most recent Skills Barometer, published by Ulster University's Economic Policy Centre in March 2022, forecast a continuing undersupply of skilled and qualified new workers needed to support a high-growth economy.

The report said many of the activities funded by the department have individually positive outcomes and evaluations but the latest monitoring information shows a "lack of progress" towards achieving the strategic goals of its Skills Strategy.

It said the most recent data shows the proportion of the working age population with qualifications of at least Level 2 or Level 3 has decreased since the prior year.

It also said there was no progress against the strategic goal to increase the proportion of individuals graduating with degrees in narrow Stem subjects and that the adult participation rate in education or training has decreased.

The report stated, "Significant improvements are needed to achieve the goals of the Skills Strategy in Northern Ireland."

"It is difficult to see how DfE ensures that all the skills programmes it funds, including provision by further and higher education institutions, align with the skills needs in Northern Ireland or how it measures the success and impact of its skills delivery arrangements as a whole."

"Substantial change is needed to deliver the volume of skills needed now and in future years to support the achievement of the overarching economic vision for Northern Ireland."

Ms Carville added, "Skills shortages are having a detrimental impact on business and economic growth in Northern Ireland. "

"Despite the range of support provided by the department, little demonstrable progress has been made."

"This will only make it more challenging for the department to achieve the ambitions set out in its Skills Strategy."

"Urgent improvement is needed, and my report has identified a number of areas which require action."

She said, "Addressing the skills challenges facing Northern Ireland requires all stakeholders to work together.

"Weaknesses in the arrangements to support a coherent approach to developing skills must be addressed.

"It is vital that the findings and recommendations of this report are considered closely, and that action is taken in order to ensure more meaningful and demonstrable progress in the years ahead."

Responding, a Department for the Economy spokesperson said: "The department welcomes the report published today by the Comptroller and Auditor General (C&AG)."

"Access to skills and talent is a key issue for businesses and an essential element of the minister's economic plans."

"The report comes at an opportune time as we develop a new skills action plan to complement the Skills Fund launched by the minister in July. Many of the outcomes contained in the original skills strategy require collaboration across government, academia and the business community."

"This partnership approach will be key in delivering better outcomes in this key policy area."