AAT backs Financial Services Skills Compact to support upskilling and boost employability as unemployment rises and job vacancies fall

AAT has announced support for the Skills Compact, a landmark shared agreement between government, the Financial Services Skills Commission, and employers to close skills gaps. This follows UK labour market data published recently which reveals 30,000 job vacancies in the finance and insurance sector, down 2.6% compared to the last quarter.

Despite an environment where more job seekers are hunting down fewer opportunities, employers are struggling to recruit people with key skills, including communication, management and digital literacy. These skills can help maximise the benefits brought about by technology, such as AI, while ensure ethical and responsible oversight. AAT research shows that the accounting and bookkeeping sector could grow by £8bn through productivity gains realised by AI, yet skills shortages are impeding progress. AAT’s findings also show that over a third of employers in the sector have struggled to recruit for finance and accounting positions in the last year, meaning substantial economic gains remain out of reach. 

The ONS data follows AAT research that reveals businesses are looking elsewhere to secure talent and plug skills gaps, with 27% of private sector accountancy firms are already outsourcing work overseas. This demonstrates the need to invest in domestic skills supply, not only to address immediate shortages in the finance sector, but to build a strong talent pipeline that can add value across the wider UK economy.

The potential benefit of closing skills gaps is significant, with AAT research demonstrating that upskilling in power skills such as leadership could add £1.2bn to the economy. Research also shows that targeted investment in digital literacy training could reduce these skills gaps in accounting by up to 9%. As a supporter of the Skills Compact, AAT supports the goals of investing in upskilling, including in AI, while building routes for new talent to help make these potential sector gains a reality.

Claire Bennison, Executive Director of Customer, Partnerships, and Innovation at AAT said:

“Supporting the Skills Compact is an extension of our firm commitment to tackle skills shortages in professional and business services. It’s why we embed digital skills across our entire qualification suite, ensure our CPD offering to members matches skills needs, and deliver short courses for finance and non-finance workers alike.

“Taking action to close skills gaps is vital if we are to unlock individual potential and drive growth. ONS data shows that productivity is in the doldrums with a persistent drop in employment at the same time as employers are crying out for skilled talent. Through the collective action of the Skills Compact we can make the essential progress needed to meet workforce demands and in turn power productivity.”

Claire Tunley, Chief Executive, Financial Services Skills Commission, said:

“The skills challenge facing the sector cannot be addressed by employers alone; it requires collaboration across industry, professional bodies, educators and government. Through the Financial Services Skills Compact, we have a once-in-a-generation opportunity to bring these partners together, meaning that more than 270,000 workers will benefit from investment in their skills.

“That’s why we’re pleased to welcome the AAT as supporters of the Skills Compact. As a leading professional body, they will help us to make progress by representing the voices of 150,000 members and students. We look forward to working with the association on this collective effort to invest in people, develop talent pipelines and close the sector’s skills gaps.”