Labour pledges to reform skills system as businesses face ‘workforce shortage’

Scottish Labour has pledged to reform the skills system in Scotland to “unlock opportunities and grow the economy” as it accused the SNP of “wreaking havoc on businesses”.

The party said its analysis of the latest Business Insights survey showed nearly one in four (24%) Scottish businesses are experiencing recruitment challenges.

More than one in five (22.6%) also warned they are facing a “workforce shortage”.

The party said a Scottish Labour government would build a skills system “fit for the future” to ensure vacancies are filled.

The party said that despite the recruitment challenges facing companies, last year, modern apprenticeship starts hit their lowest levels outside of the pandemic since 2014 and are 10% lower than in 2019.

Labour accused the SNP of “harming businesses and holding back Scotland’s economy” by overseeing a “skills shortage”.

The party has made a series of pledges ahead of the 2026 Holyrood election as part of its Skills for Scotland plan.

Those include greater input and co-operation with industry, new Skills for School programmes to join up schools and employers and an expansion of the work experience scheme.

The party said it would create a digital skills passport, develop short courses to offer new skills or retraining and embed retraining into public procurement contracts.

Daniel Johnson, Scottish Labour’s economy spokesperson, said the current system is “outdated”.

He said: “Businesses across Scotland are struggling to recruit the staff they need to thrive, but the SNP isn’t listening.

“Damaging skills shortages are wreaking havoc with businesses and holding back Scotland’s huge economic potential.

“Under the SNP, Scotland is lumbered with an outdated skills system that no longer delivers for businesses or workers – but Scottish Labour has a plan to fix this.

“A Scottish Labour government will modernise our skills system so it is fit for the future and equips workers with the right skills.

“From improving our schools to supporting retraining, we will make sure Scots can choose the best career for them at any stage in life.

“Scottish Labour will turn the page on SNP economic failure and use the powers we have to grow our economy and unlock opportunities for all.”

Minister Graeme Dey said: “The Scottish Government is already undertaking a major programme of reform of the skills system to ensure that it meets Scotland’s needs and we are providing £185 million this year to deliver 25,000 new modern apprentices, 5,000 Foundation Apprentices and 1,200 Graduate Apprentices.

“A major driver of skills gaps which are holding Scotland back is Brexit and UK immigration policy, and the Scottish Government has put forward proposals for a Scottish Graduate Visa to ensure we can benefit from the skills of people who want to live and work here.”