Demand for managers set to rise sharply research shows

The demand for management skills in the UK economy is expected to rise significantly over the next few years, according to a new study published today (8 March 2005).

The study, undertaken by the Sector Skills Development Agency, found that certain sectors, such as computing services, could expect to see as much as an 80 per cent rise in total employment levels for managers.

However, the research also reveals skills deficiencies, a lack of capacity and a lack formal qualifications amongst a high proportion of UK managers, highlighting the need for action in terms of management skills development.

Indeed, between the period 2001 to 2003, the increase in reported skill gaps in management occupations is considerably higher than that for professional occupations. Management skills gaps are frequently cited as one of the main skills deficiencies in the UK. This report shows theyíre not - numerically speaking - but that they have a large impact on business performance.

The demand for management skills does also vary considerably across sectors, notably textiles and clothing and transport equipment, which are predicted to have a 20 per cent decline.

The composition of management also varies considerably across sectors. In terms of gender composition, Construction is well below the all industries average of 35 per cent, with just 10 per cent of managers being female. The highest proportion being found within education and health and social work, both with over 70 per cent.

The age of managers also has significant implications for employers. The greater the number of managers approaching retirement age, the greater the implications for succession and planning. In fact, between 2002-2012, for all occupations together, replacement demand (jobs that need to be filled when employees leave due to retirement, career moves and mortality etc.) for managers is predicted to be 7.5 times larger than expansion demand (arising from new growth).

Professor Mike Campbell, Director of Strategy and Research at the Sector Skills Development Agency, said:

A significant number of employers have identified management skills as being amongst the most important in terms of future skills needs. However, this research highlights how the nature of management skills required can vary from sector to sector.

Skills for Business, the new network of employer-led Sector Skills Councils, has been tasked by the government with informing and influencing policy on training and skills development relating to productivity. Sector Skills Councils have a key role to play by gathering labour market intelligence and understanding future skills needs, employment patterns and demographic trends and making the business case to employers so they can ensure their policies and practices are sufficient to deal with potential labour shortfalls.

Through the establishment of the network, we are not only working to ensure there are sufficient numbers of managers to meet employers needs, but that they are equipped with the necessary skills to do their jobs effectively.