FIRMS are footing the bill for too many school leavers failing to make the business grade, according to the CBI.

The employers’ organisation has warned of growing dissatisfaction with the quality of school leavers as a new survey shows a third of companies needed to give school leavers basic training in literacy and numeracy over the past year and compensate for failures in the education system.

Excerpts from a new survey of over 500 firms have revealed that 37 per cent of firms are not satisfied with the basic literacy and numeracy of school leavers. This figure is up from 34 per cent in the 2003 survey and illustrates growing business concern about the ability of the education system to deliver basic skills.

The latest figures from the CBI estimate employers spend over £23bn each year on training. However, it is concerned too much of this is being spent resolving basic problems that should have been resolved by state education.

Nigel Bourne, the CBI’s South East regional director, said: "Our concern appears to be borne out by the government’s own figures which show that 50 per cent of 16 to 19-year-olds lack the applied numeracy skills expected of an 11-year-old.

“Too many school leavers are failing to make the business grade. A fundamental working knowledge of English and Maths provides a vital foundation for every day-to-day business task. But the education system is letting down many young people and leaving them unprepared for the world of work.

"Many employers are having to resort to basic training to compensate for the short-comings of an education system that they have already paid for through increased business taxation.”

Employers fear Government proposals to reform the education system will distract attention from the key task of improving young people's skills.