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UK Skills Mismatch 2030 – research paper

, People, Skills

Skill mismatch – which can reflect both skill shortage and skill surplus - can act as a drag on economic growth. The Industrial Strategy Council, in collaboration with the McKinsey Global Institute, conducted analysis to estimate skills mismatch in the UK workforce in 2030.

The analysis finds that by 2030, 7.0 million additional workers could be under-skilled for their job requirements – this would currently constitute about 20% of the labour market. 0.9 million additional workers could be over-skilled.

Workplace skills are set to experience the most acute under-skilling in 2030;

  • The most widespread under-skilling is likely to be in basic digital skills, with up to two-thirds of the workforce facing some level of under-skilling, and 5 million workers could become acutely under-skilled in basic digital skills by 2030
  • 2.1 million are likely to be acutely under-skilled in at least one core management skill
  • 1.5 million workers are likely to be acutely under-skilled in at least one STEM workplace skill.
  • 0.8 million workers are likely to face an acute shortage in teaching and training skills (the ability of those in the working environment to upskill others.) 

With 80 percent of the 2030 workforce already in the workforce today, reskilling the existing workforce will be the major challenge between now and 2030.

Estimated under-skilling in the workforce in 2030 [1]

Source: UK Skills Mismatch 2030 – Industrial Strategy Council

[1] Note: The aggregate projection includes workers that are under-skilled across the weighted skill bundle required for their job. An individual could be under-skilled in a certain skill but might not be across their weighted skill bundle. The red bar shows a subset of specific workplace skills.

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