Warning over financial sector skills shortage

There is a continuing skills shortage in the financial services sector, according to the Chartered Insurance Institute (CII).

The CII's second annual skills survey has revealed that three-quarters of bosses in the financial services sector have a shortage of workers who possess technical skills, which is a rise of 5% from the 2007 poll.

Employers also condemned the skills of graduates entering the industry, with 61% claiming that degree holders lack basic numeracy and grammar skills.

Lord Hunt, the President of the CII, said employers and the Government must focus on the problem, despite unfavourable economic conditions at present.

He remarked: 'In this period of economic instability it is vital that we do not take our eye off the skills issue, tempting though that may be. Cuts to training budgets in order to make a quick saving will in the end prove to be a false economy.'

The industry 'must continue to commit time and resources to training and development,' Lord Hunt added.

Meanwhile, Mervyn King, the Governor of the Bank of England, stated that he was concerned about graduates being lured to the finance sector by the prospect of big bonuses.