Skills England has published its latest data on future employment needs and the skills that will be required to fulfil them.
The skills body, formed just after last summer’s general election, predicts that demand for skills in key areas linked to the government’s Industrial Strategy will rise by 15% by 2030.
Employment demand in these 10 sectors will increase by 0.9 million by 2030, increasing 1.6 times faster than employment in other sectors. Just under half of the total current workforce (45%) is employed in a priority occupation.
According to Skills England, the 10 priority occupations are: creative industries; digital and technologies; housebuilding; clean energy; adult social care; professional and business services; life sciences; financial services; defence and advanced manufacturing.
In its Assessment of priority skills to 2030 report, it estimates that a third of the extra demand in priority occupations will require entry-level (level 2 or 3) qualifications, while the rest will require higher qualifications, although this varies between sectors.
This third report from Skills England follows a summary of priorities published in June, and its first report, in September 2024, which outlined how skills could drive UK economic growth.
Skills England believes that digital, adult social care, construction and engineering will have the greatest additional employment demand in the next five years – demand for home carers and care workers alone will account for one-ninth of demand across priority occupations.
Over a quarter of a million people enter priority occupations from the education and skills system each year. More than half (57%) of recent apprenticeship starts were studying something that aligned to a priority occupation, the body said.
Meanwhile, for those who complete their apprenticeship and move into employment, 80% are expected to work in a priority occupation.
Apprenticeships in engineering and manufacturing technologies; health, public services and care; and construction, planning and the built environment have the highest shares of employed learners in priority occupations.
In higher education, 53% of recent education leavers are in priority occupations. The highest shares of employed learners come from health and architecture courses, the report found.
In further education, a third of recent leavers are estimated to end up in a priority occupation, with the highest levels in engineering in construction.
The report acknowledges that there is great potential for change in both the labour market and the skills required.
In his introduction to the report, Phil Smith, chair of Skills England, said: “We also have to recognise that there is huge uncertainty at the moment, in how the economy may evolve, not least from the revolution in AI technology.
“This uncertainty makes future planning more important, not less. Skills England will be monitoring these changes and updating our analysis based on the new data.”
Rosalind Gill, director of policy at the National Centre for Universities and Business, said that universities are ready to bridge the skills gap outlined by the report.
“The growing mismatch between the skills employers need and the skills available in the workforce is already holding back business performance and innovation — and risks derailing the UK’s growth ambitions,” she said.
“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.”
She added that the government’s Lifelong Learning Entitlement would help to expand access, but needed a “sustainable funding model for universities” and better partnerships with employers.
Role of apprenticeships
In May, the government announced it would scrap funding for most Level 7 apprenticeships for learners over the age of 22. NHS England and the Department of Health and Social Care recently committed to continue funding for five key healthcare professions, however.
Gill said: “[Apprenticeships] offer a proven route into priority sectors, combining academic excellence with hands-on experience through university-business partnerships.
“Funding for Level 7 apprenticeships in critical health professions is a vital example of decisive action taken to open doors to in-demand roles and support continual professional development in critical sectors.
“If we are to meet 2030 skills demands, we must extend this [funding] commitment to other sectors, enabling more people to access these transformative pathways and helping the UK meet future skills needs.”
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