There are currently an estimated 20,000 unfilled jobs in the consultancy and engineering sector, a new damning report by the Association for Consultancy and Engineering (ACE) has revealed.

The findings of the ACE HR Review on skills shortages and recruitment agency behaviours underline the urgent need to address the current skills shortage gripping the consultancy and engineering industry with a further 2,400 vacancies expected in the next 12 months.

The report has been produced from the results of a survey sent by ACE to the industry to examine the extent of the skills crisis. The review highlights the shortfall of high-calibre graduates joining the profession and predicts that skills shortages will worsen in the lead up to 2012 if action is not taken.

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The report sets out the full range of recruitment challenges and criticises the unethical behaviour of recruitment consultants. A staggering 80 per cent of respondents said recruitment agencies provide an "average to poor quality" service. It also condemns the artificial market created by unscrupulous practices including poaching staff within six months of placing them.

ACE chief executive Nelson Ogunshakin, said: "The Review confirms that recruitment and staff retention is a serious issue affecting our sector. ACE will be taking steps to address the issues raised, including plans for the introduction of a Recruitment Agency Charter, the development of a recruitment portal, and the implementation of a new ACE Business Academy in 2008."

The organisation will also continue to lobby Work Permit UK to recognise engineering in the skills shortage category and open up a dialogue with the Recruitment Employment Confederation (REC). The report will be released on 18 September.

(JM/SP)