New Vodafone Working Nation research reveals the skills gap emerging within the North West as a result of the recession •Nearly a third of managers within the region say they have a skills gap as a result of recession •Over 40% of workers in the North West say that having to learn new skills has increased their stress levels at work •Blending traditional skills with emerging 'soft skills' such as innovation and leadership, is seen by experts as the way to succeed The latest Vodafone Working Nation report, launched today, identifies details of the skills gap in UK companies brought on by headcount losses and shrinking training budgets. While 11% of employees based in the North West say they have had to learn some new skills to cover for departed colleagues, a quarter of employees says that a reduction in headcount has left them with a skills deficit. This loss in headcount is taking its toll on the workers within the region leading to an increase in stress among 41% of those surveyed. New skills include softer skills for coping in tough economic times, where growth is limited but a workforce needs to be motivated. Gary Browning of Penna Plc says "Leaders need a new set of skills. The tough single minded focus of previous years needs to be balanced with humility, respect and an ability to be visionary in adversity. It's a tough call for any leader but these softer skills need to be learned by many." Peter Kelly, Enterprise Director, Vodafone UK commented: "Organisations of all sizes in all sectors are either considering or have already had to make difficult decisions regarding their people. It's important to investigate how reorganisations of workforces are impacting the skills base; what makes the difference between surviving and succeeding; and what advice can be given in managing costs without destroying old and new skills. This Working Nation report offers valuable insights into these areas." The report also uncovers the human impact that the current skills deficit is having on the workforce as well as the views of managers trying to defend their skills base in the face of recession. 46% of employers in the North West say that they have had to make headcount reductions in the past 12 months. And while 27% of businesses say they are continuing to invest in skills unabated, the majority (73%) are either reducing or stopping investment in skills development & training. As a result nearly a third of businesses in the region say they now have a gap between the skills they have in the workforce and the skills they need to survive and succeed. Despite this awareness there is a danger that some businesses are not taking action to resolve the issue because they feel that their competition is in the same situation as them - 59% of businesses say they do not feel at any real disadvantage (or advantage) compared to the market or the competition for when the economy recovers. Professor John Brooks, Vice-Chancellor, Manchester Metropolitan University, said: "The North West Universities Association has established a group, to look at how universities can help to stimulate economic recovery in the North West. The Working Nation report comes as no surprise as we see the combined effect of the recession and the growth of the knowledge economy. The North West Universities recognise that the supply of appropriately skilled graduates into the workforce, and the provision of flexible continuing professional development (CPD) packages to bridge the skills gap that is emerging within the existing workforce, are two important roles we have to play. "The North West cannot compete within the world economy on price and quality alone, but it must gain competitive advantage from exploiting advanced knowledge. We are well-placed to do so both from the technology-rich base of our manufacturing and service industry, and from the responsive structures now in place within our universities. My own institution, the Manchester Metropolitan University, has a clear mission to be the University for World Class Professionals and places employability and employer engagement as our highest priorities. "In the North West it is vital that we start to build our higher skills base to fully exploit the opportunities for growth that will appear when the recession is over. The perceived gap in the skills base must be seen as an opportunity to gain competitive advantage by strategic planning to fill the gap now. Our two-pronged attack, of informing the graduate supply chain and providing employer-led flexible CPD packages, will address the problem and give us the advantage we need to strengthen the North West economy." The full report and related video and blog content are available at the Working Nation website: www.workingnation.co.uk.