Skills & Workforce Shortages
We call on the next Scottish Government to:
Unlock workforce growth to ensure the Highlands can deliver the estimated 15,000 additional jobs that will be required across the region over the next decade to deliver the clean power revolution.
- Ease barriers to migration by simplifying relocation pathways and provide support for workers moving to Inverness and the Central Highlands, including targeted national recruitment campaigns and relocation incentives.
- Help workers from other regions to transition, at an appropriate pace, from oil and gas to these new industries and to relocate to the Highlands.
- Ensure UHI and other training providers receive sufficient funding to expand vocational courses to the volume that matches employer demand.
- Reduce the excessive and repeated evidence burden required to prove fair-work conditionality for employers accessing small scale grants.
- Expand childcare capacity and improve affordability to enable parents to participate fully in the workforce.
- Maintain and enhance support for Developing the Young Workforce to promote the opportunities that will be available in our region to our emerging workforce.
What is the issue that needs to be solved?
Highland businesses face recruitment and retention challenges that threaten growth. Real progress will only come through coordinated action on workforce attraction, training, childcare and public services that support labour market participation.
How do we know this is an issue?
- Employment in Highland remains high relative to national levels – around 76% of working-age adults in work – but tight labour supply persists, with a low unemployment rate of around 2.5% suggesting limited spare labour locally. This unemployment rate is lower than that for both UK and Scotland.
- A declining working age population and ageing demographic profile in the Highlands and Islands threaten long-term labour supply – trends exacerbated by out-migration of younger cohorts.
- Despite employment strength, economic inactivity remains slightly above Scottish averages, indicating segments of the population not participating in the labour market.
- HIE Regional Transformational Opportunities report points to the need for a further 15,000 people in our workforce.
Business View:
In our recent member survey (Sept–Nov 2025) 56% ranked skills & workforce shortages as their top priority and 24% as their second priority. Business concerns included:
- Difficulty filling vacancies at all levels
- Lack of suitably qualified applicants
- Poor alignment of training with employer needs
- Rising costs and administrative burdens of employment
- Limited access to affordable childcare
We have the jobs - but not the people to fill them. Unless we tackle workforce attraction and training at scale, business growth will stall.
What happens if the Scottish Government does not address the issue?
We will not have the workforce required to deliver the clean power revolution in the Highlands. As a result, Scotland and the UK risk losing their opportunity to secure a strong position in future global energy markets.
Our Manifesto Priorities
Click each box to read more:
Skills & Workforce
Unlock workforce growth and address skills shortages to support the estimated 15,000 additional jobs required across the Central Highlands.
Housing & Planning
Increase housing supply and reform planning to support population growth and economic expansion.
Transport Connectivity
Deliver the infrastructure needed to connect the Highlands with Scotland’s major economic centres.
Business Costs & Taxation
Provide certainty for businesses by reforming non-domestic rates and ensuring a competitive tax environment.
Development of Renewables
Ensure the region benefits fully from the clean energy transition and that local businesses can access supply chain opportunities.
Manifesto Home
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