It also noted that such action could help the country to increase its competitive position, while helping those who are in work hold on to their jobs.
In its Reforming skills funding – delivering productive results, the CBI claims that more funding could be put towards this by cutting any non-essential workplace training which is simply "nice to have".
Furthermore, the group notes that some finances should be moved away from basic skills training and put towards addressing higher level skills shortages, such as those in science, technology and engineering.
Susan Anderson, CBI director of education and skills policy, said the government needs to put the £4 billion of the money it spends on adult skills to more effective use.
"The challenge is to make businesses in Britain more competitive and to give individuals the productive skills required to sustain employment," she added.
A recent report by Ofsted revealed that the Train To Gain scheme was proving popular, while also improving qualifications and enhancing workplace motivation.
