New Report Highlights Future Skills Demands

Skills England has published its first Annual Skills Report, setting out the challenges and opportunities facing England's workforce over the coming decade. The report provides a detailed assessment of current and future skills needs and outlines actions to help ensure the skills system can respond to changing labour market demands.

The report forecasts that demand across priority sectors could grow by around 24% by 2035, requiring up to 1.8 million additional workers. Growth is expected to be particularly strong in areas such as digital technologies, engineering, construction, clean energy, health and social care, and the creative industries.

Skills England identifies five key challenges for the skills system:

• Addressing skills shortages and supporting workforce reskilling and upskilling.
• Encouraging greater employer investment in training and apprenticeships.
• Preparing workers for the increasing adoption of artificial intelligence (AI).
• Improving employability pathways for young people.
• Building more responsive, locally-focused skills systems that reflect local economic needs.

The report highlights the importance of place-based approaches to skills planning, recognising that labour market needs vary significantly across different parts of the country. Skills England says it will work with local partners, Strategic Authorities and employers to improve local skills data and better align training provision with local job opportunities.

The publication follows growing concern about the number of young people not in education, employment or training (NEET), while employers continue to report difficulties filling vacancies in key sectors. Skills England argues that stronger collaboration between government, employers, training providers and local leaders will be essential to ensure people can access the skills needed for future jobs and economic growth.

Read the full report here.

Kerry Booth, Chief Executive, Rural Services Network

Skills England is right to recognise that a one-size-fits-all approach to skills and employment will not deliver for every community. Our recent Delivering for All: Rural Realities research found that rural residents see a clear link between skills, employment opportunities, housing affordability, transport and connectivity. Too often, talented young people are forced to leave rural areas because the opportunities simply are not there, while local employers struggle to recruit and retain staff.

If we are to meet future workforce needs and unlock the full potential of rural economies, skills policy must be genuinely place-based and reflect the distinct challenges faced by rural communities. Rural areas have enormous potential to contribute to national growth, but only if people can access the training, jobs and infrastructure they need to thrive.