Immediate action is needed to address a growing mismatch between the skills employers require and those available in the workforce, according to new analysis of future needs in the UK economy.
Skills England, the government’s new national body tasked with assessing and planning for future workforce needs, forecasts that demand for skills across sectors identified in the UK’s Industrial Strategy — including advanced manufacturing, clean energy, life sciences and digital technologies — will grow by 15% over the next five years, with two-thirds of these future roles needing qualifications at level 4 or above.
The National Centre for Universities and Business (NCUB) says this gap is already affecting business performance and innovation, and could derail growth ambitions if left unchecked. Its call follows Skills England’s projection that employment in priority occupations will rise by 0.9 million to 6.7 million by 2030.
Universities ‘ready to bridge the gap’
“Universities are ready to bridge this gap. Two-thirds of future jobs will require advanced skills, and with the right investment and policy backing, universities can rapidly scale up agile, mid-level qualifications tailored to adult learners,” NCUB policy chief Rosalind Gill said.
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“The Lifelong Learning Entitlement offers a powerful tool to make this possible, expanding access, boosting productivity and strengthening our global competitiveness. But this must be underpinned by a sustainable funding model for universities and a culture of effective, long-term partnerships with employers.”
Gill pointed to higher-level apprenticeships as a proven route into priority sectors, combining academic study with practical training. She welcomed new funding for Level 7 apprenticeships in critical health professions, announced by the NHS earlier this month, as a vital step to opening more pathways into in-demand roles.
But she warned that access for adult learners was declining. “If we are to meet 2030 skills demands, we must extend this commitment to other sectors, enabling more people to access these transformative pathways and helping the UK meet future skills needs,” she said.
Skills England approach welcomed
The NCUB praised Skills England’s “data-driven, employer-led” method for assessing the current skills landscape and identifying future requirements. Its findings include:
- Two-thirds (66%) of future roles will need a level 4 qualification or higher.
- 57% of recent apprenticeship starts were in subjects aligned to a priority occupation.
- 80% of those completing these apprenticeships are expected to work in priority sectors.
Government priorities and challenges
Growth-driving sectors such as advanced manufacturing, clean energy, life sciences and digital technologies have been identified as key to the UK’s industrial strategy. But the Institute for Fiscal Studies has warned that funding for adult education and skills in England remains over a third lower than in 2010, despite growing demand.
Business groups including the CBI and British Chambers of Commerce have called for changes to the apprenticeship levy, arguing for greater flexibility to allow employers to invest in reskilling and upskilling at all levels.
The Lifelong Learning Entitlement, to be launched in 2025, will give adults in England access to a loan entitlement worth the equivalent of four years of post-18 education, which can be used flexibly over their careers.
NCUB says it could be transformative for workforce development but warns that universities will need stable funding to expand short, modular and mid-level qualifications quickly.
Employer engagement ‘essential’
Meeting 2030 targets will require close collaboration between employers and education providers, says NCUB. This includes co-designing courses, offering placements and providing opportunities for existing employees to upskill in line with emerging sector demands.
With only five years until the projected 15% increase in demand for advanced skills, the NCUB says there is limited time to act. Without intervention, shortages could slow progress on industrial strategy objectives, limit innovation and weaken the UK’s global competitiveness.
