Employers in parts of Northern Ireland are being forced to turn down work due to skill shortages, according to a new report from The Open University, which highlights the impact of low higher education participation in so-called ‘cold spot’ areas.
The report, In from the Cold, is based on a survey of employers in cold spots of low levels of higher education (HE) participation across the UK and reveals that more than a third (35%) have had to turn down work, contracts or investment opportunities because they could not recruit people with the right skills locally.
While the employer data focuses on non-urban areas, the report highlights that the underlying issue of low participation in higher education is not confined to rural communities. In Northern Ireland, participation gaps exist across both rural and urban areas, including in Belfast, where not all local communities are accessing the opportunities on their doorstep.
Local participation gap driving skills shortages
In Northern Ireland, lower participation in higher education is closely linked to social deprivation, financial pressures and long-standing perceptions that university is “not for people like me”.
Geography also plays a role. While Belfast has a strong higher education presence, many surrounding communities, including rural areas, face barriers such as transport limitations and the need to balance work and family commitments.
At the same time, Northern Ireland continues to experience a ‘brain drain’, with a significant number of students leaving to study elsewhere in the UK and many not returning, further reducing the local graduate talent pool.
Impact on employers
The report highlights growing pressure on employers in HE cold spot areas across the UK:
- Over half face competition for talent from larger organisations (53%) and other regions (55%)
- One in two say skills shortages are preventing them from diversifying their workforce
- Key gaps include digital and AI, creative, business services, finance and sustainability skills
These challenges risk holding back productivity and growth, particularly in regions like Northern Ireland where access to skills is already uneven.
Unlocking local talent
Despite the challenges, the report highlights a major opportunity to unlock skills within local communities.
Nearly two-thirds (63%) of employers in cold spots say they are often surprised by the ‘hidden talent’ within their workforce, suggesting more could be done to develop existing employees through training and education.
There is also strong demand for more accessible learning options:
- 78% of employers say flexible learning would increase participation
- 73% would support higher education courses delivered through local further education colleges
The Open University already works with all six further education colleges in Northern Ireland, providing flexible pathways to higher-level qualifications and enabling people to study locally without leaving their communities.
Expert comment
Michael Bower, Director of The Open University in Ireland, said:
“Across Northern Ireland, we see a clear gap between where opportunity exists and who is able to access it.
This is not just a rural issue. Even in places where higher education is available, not everyone feels able to take that step.
For employers, this translates directly into skills shortages, lost opportunities and constraints on growth.
The solution lies in creating more flexible, inclusive pathways into higher education, particularly through online supported learning and partnerships with further education colleges, so that people can develop skills in a way that fits around their lives.”
Recommendations
The report calls for stronger collaboration between employers and education providers to:
- Expand flexible and online supported learning opportunities in workplace
- Develop local higher education provision through further education colleges
- Support people from underrepresented backgrounds into work-based study
- Invest in upskilling existing workforces to address key skills gaps, including AI
To read the Cold Spots report in full visit: https://ow.ly/miNu50YQqN0