Our fifteenth bulletin considers the scale of existing shortages, and indicates some ways the new government might begin to tackle them.
Edge’s 15th Skills Shortage Bulletin is published at a pivotal time for the UK. The election of a new government marks an inevitable shift in approach to skills and fresh hope for reform. However, despite a changing of the guard, the economic landscape remains challenging. We provide updates on the new Government’s skills inheritance and highlight how targeted interventions can mitigate persistent challenges. By focusing on innovation and cooperation, we see potential for a revitalised skills system that meets today’s and tomorrow’s demands.
There is considerable buzz around the recently created Skills England body and how it might tackle skills shortages. The Association of Colleges outlines its hopes for Skills England. This includes agreeing on and setting clear priorities among stakeholders while ensuring that local and national plans effectively align. The AoC offers constructive examples of how existing policies, such as the apprenticeship levy and LSIPs, could adapt or reform. Skills England must also overcome sector-specific barriers, such as obstacles to Labour’s industrial clean energy strategy. A report by Nesta reveals that women are projected to hold just 25% of green jobs by 2030, impacting the UK’s ability to meet labour demands and gender equality.
Meanwhile, despite a welcome reduction in skills shortages reported by businesses (62% down from 73% last year), the Open University’s latest Business Barometer report underscores the urgency of addressing continued skills gaps – particularly in AI and green tech. Currently, 68% of employers report an increase in existing employees’ workload, impacting staff morale. But with only 19% of organisations currently implementing skills plans, more action is needed. NFER’s latest research notes that over a million jobs in ‘high-risk’ occupations – such as administrative and retail roles – could be lost over the next decade, disproportionately affecting workers with low or no qualifications. To provide pathways to good prospects for all, NFER argues that the government must ensure young people and career changers can access the qualifications and Essential Employment Skills they need to thrive in growth occupations.
Meanwhile, The Learning and Work Institute's Great Skills Divide report reveals that the UK is failing to keep pace with other countries on skills. The UK’s qualification profile appears to be improving, but this results largely from young people bringing higher-level qualifications into the workforce compared to lower levels among departing workers. In reality, nearly half as many adults are enhancing their qualifications through FE as they were 2010/11. This decline correlates with a £1 billion (20%) cut to England's adult skills budget since 2010, alongside reduced employer investment. To meet rising demand for skills, these issues need tackling urgently. As always, skills challenges remain. However, small steps forward and the new pan-government Skills England offer some much-needed hope for the future.
Find out more, including results from Youth Employment UK’s Youth Voice Census 2024, a new report from the Resolution Foundation, initiatives in the off-shore wind sector from The Crown Estate and an insight into the dissonance between the UK creative industries’ growth ambitions and spending from Edge’s Kat Emms, in our Skills Shortages Bulletin 15.