Jacqui Hepburn: Training and skills at the heart of chances of recovery

The publication last week by the Scottish Government of its refreshed skills for Scotland strategy - and the subsequent debate in the Scottish Parliament - has proven a timely contribution to addressing the challenge of delivering a skilled workforce. These are skills that will prove essential to drive productivity, boost sustainable economic growth and accelerate economic recovery.

Official data shows a return to growth for the economy at the end of 2009, but the combination of constrained trading conditions in the private sector, weakening labour market conditions and an uncertain outlook for the public sector means that the impacts of recession are likely to be felt for some time. At a time of such constraints, the skills strategy aims to simplify the system, empower individuals and employers to access training help and support more effectively, and better meet the needs of the key economic sectors and industries of the future. The prize is worth it as a better skilled workforce is more employable and more productive, with a 1 per cent increase in the proportion of employees trained associated with an increase in productivity of 0.6 per cent.

While it is recognised that Scotland's skills base has improved considerably over recent decades, this has not translated into higher productivity and economic growth. It is recognised that more must be done to better anticipate and deliver the strategic skills requirements to respond to future economic challenges and opportunities. More can also be done to ensure the skills requirements of employers are better known and that employers are more closely involved in shaping the skills system, putting them at the very heart of this process. The skills strategy seeks to address these issues.

As the economy recovers, the key growth sectors will be construction, the low carbon economy, the creative industries and the services sector, and a skilled workforce is vital to meet the demands of both current and future growth in these areas, especially as new industries such as renewable energy are embraced. We must also look to support sectors of high participation as this is where the bulk of jobs will come from, such as retail and travel and tourism, and also those such as manufacturing, still responsible for contributing considerably to our economic growth.

The Scottish Government has identified "key sectors" in its economic strategy, sectors with high-growth potential and the capacity to boost sustainable economic growth and productivity. These are: financial and business services; energy; tourism; life sciences; food and drink; the creative industries; and universities.

The opportunities as outlined above are immense, but Scotland's ability to capitalise on these must not be constrained by a lack of individuals with the right skills, and public-private sector co-operation is essential in delivering the appropriate training opportunities.However, a CBI report earlier this year found half of employers fear they will not be able to fill jobs with suitably qualified candidates. Continued support will be required to develop the skills of young people and the long-term unemployed which, in many circumstances, will be required to fill these gaps.

To recover from recession and thrive in the new global economy, employers also need to be more productive and innovative, making them more capable of competing globally in the high-skills, knowledge-driven economy. However, a report published in the spring by the UK Inquiry into the Future for Lifelong Learning highlighted that business investment in training is dwarfed by public sector investment. In addition to public sector investment to deliver a high skilled workforce, there is an onus on businesses to invest in skills development in addition to areas such as health and safety which they already invest in.

Our colleges and universities also face a challenge presented by the current fast moving environment and need to be demand-led, aligning provision with both the current and future skills requirements of the economy and updating courses to reflect future needs.

The transformative power of skills to deliver us out of the recessionary rut and accelerate economic growth cannot be prized highly enough, and we must continue to promote a skilled workforce, giving employers the opportunity to access the relevant skills.

• Jacqui Hepburn is director of the Alliance of Sector Skills Councils in Scotland.