The Industrial Strategy Council was an independent non-statutory advisory group, sponsored by the Department for Business, Energy and Industrial Strategy. Set up in 2018 to monitor the success of the UK's 2017 Industrial Strategy [available in VOCEDplus at TD/TNC 131.612], the council was disbanded in 2021. The council provided an impartial and expert evaluation of the government's progress in delivering the aims of the strategy and its impact on the economy. In this research paper, the council looks at which qualifications, knowledge and workplace skills are likely to face greater or lesser m
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The Industrial Strategy Council was an independent non-statutory advisory group, sponsored by the Department for Business, Energy and Industrial Strategy. Set up in 2018 to monitor the success of the UK's 2017 Industrial Strategy [available in VOCEDplus at TD/TNC 131.612], the council was disbanded in 2021. The council provided an impartial and expert evaluation of the government's progress in delivering the aims of the strategy and its impact on the economy. In this research paper, the council looks at which qualifications, knowledge and workplace skills are likely to face greater or lesser mismatch by 2030 as a result of the changing nature of work.
Existing evidence suggests the UK's demand for skills, particularly technology and interpersonal/people skills, will increase considerably over the next decade, while the supply of those skills will be constrained. Skills mismatch can reflect both skill shortage and skill surplus. For example, the spread of automation and AI could boost productivity in some sectors but also displace some lower skilled jobs, while the demand for highly skilled labour will increase, as R&D and innovation become critical in a future tech-led economy. Such trends are highlighted by the Industrial Strategy Grand Challenges.
A skills mismatch can act as a drag on economic growth by limiting the employment and earnings opportunities of individuals and impacting on firm performance and productivity. UK firms have previously reported that lack of access to the right skills was the number one threat to the competitiveness of the UK labour market. The new in-depth analysis in this paper shows that, with 80 per cent of the 2030 workforce already in the workforce today, reskilling the existing workforce will be the major challenge between now and 2030.
Edited excerpts from publication.
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