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UK auto sector faces 160,000 shortfall in workers over next decade

A shortfall of 160,000 workers will bring the biggest skills challenge of the last two decades for the UK auto sector, potentially impacting fleet operators.

The ‘EV revolution’, Covid, Brexit and a fall in the number of people of working age are creating an escalating skills crisis for the auto sector

A new report from the Institute of the Motor Industry (IMI) confirms an aging population, decreased immigration and the green agenda are creating a major skills challenge for the automotive labour market.

It’s fuelled in part by the ‘EV revolution’ – the IMI has been warning for many months about a lack of EV-ready technicians in the run-up to the 2030 ICE phase-out – but is also the culmination of the pandemic, Brexit and fewer people of working age. All of which are creating an escalating skills crisis.

Despite forecasting a 2% decrease in the number of jobs available in the automotive industry by 2031, the report highlights that rising employment replacement demand – due to retirement, migration and occupational mobility – will significantly contribute to the expected and unprecedented number of available vacancies. The role most in demand will be the vehicle technician, which will account for 16% of vacancies.

Steve Nash, CEO of the IMI said: “We have been lobbying government, the automotive industry and the education sector for a long time to invest in addressing the shortage in qualified EV technicians, and the majority have stepped up to the challenge. But our latest report worryingly reveals that the UK’s lack of EV skills are just the tip of the iceberg.

“An aging population is a significant contributor to the dilemma. Many of our older workers are set to retire over the coming years and fewer younger workers are joining the labour force.”

The IMI is working hard itself to address issues – its Diversity Task Force conducted a ‘Perception of the Automotive Sector’ survey and found that alongside common misconceptions about the industry, a lack of understanding about the range of roles, qualifications needed and salary expectations was a key factor in young people not pursuing a career in the automotive sector.

The IMI is also exhibiting at this year’s British Motor Show – taking place from today until 22 August at Farnborough, to highlight its concerns on the UK’s skills shortage and showcase the industry’s career opportunities for people of all ages, abilities, race, ethnicity, gender or sexual orientation.

But it’s also calling for a more concerted effort from the Government, the auto industry and the education sector to support its work.

Nash added: “Without doubt, more needs to be done to attract young blood into the UK’s automotive sector.”

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.