What factors are driving the reduction in employer investment in skills training in the UK, and what policies could help to reverse this? What lessons can we draw from differences in these trends across the Industrial Strategy sectors and among firms within them, and what additional insights emerge when comparing UK patterns with international counterparts?

Background

The Industrial Strategy places skills at the heart of the UK’s growth ambitions. In an era of rapid technological change, the strength of the skills pipeline, from early education to digital literacy and leadership capability, will be pivotal. The government aims to enhance skills and increase access to talent. It is reforming the skills and employment support system to create a strong pipeline into the IS‑8 and future growth priorities, with opportunities for good jobs across the country. Building this future-ready workforce is essential for attracting globally mobile investment and enabling businesses to innovate and scale.

Next steps

Get in touch with [email protected]

Related UKRI funded projects


  • SkillsPulse

    The study will address significant gaps in the understanding of skills deficiencies in Europe – i.e. the extent, causes, and implications of skills shortages and skills gaps. Skills shortages refer to where employers fac...

    Funded by: Horizon Europe Guarantee

    Lead research organisation: UNIVERSITY OF WARWICK

    Why might this be relevant?

    The project specifically addresses skills shortages and gaps in Europe, which is directly related to the reduction in employer investment in skills training.

  • Supporting the Industrial Strategy

    1) Developing Skills: Strengths and Weaknesses in the System, and What can be Done. The new Industrial Strategy must consider how the education system can create the general and specific skills needed by businesses toda...

    Funded by: ESRC

    Lead research organisation: London School of Economics and Political Science

    Why might this be relevant?

    The project focuses on developing skills, driving growth, supporting businesses, and encouraging trade, all of which are relevant to the question about policies to reverse the reduction in employer investment in skills training.

  • ESRC RCUK Innovation Fellowships

    Skills and management practices are important determinants of firm productivity, but the UK has persistent problems in both areas. Recent developments create new challenges. New immigration arrangements following Brexit ...

    Funded by: ESRC

    Lead research organisation: London School of Economics and Political Science

    Why might this be relevant?

    The project investigates the relationship between skills and firm performance, management practices, and the impact of Brexit on skills and investment, directly addressing the question about factors driving the reduction in employer investment in skills training.

  • Skills2Capabilities

    The Skills2Capability project is about understanding how skill systems across Europe can reduce the level of skills mismatch in their labour markets. It is recognised that future labour markets will be more mobile with m...

    Funded by: Horizon Europe Guarantee

    Lead research organisation: UNIVERSITY OF WARWICK

  • Ethos SkillsPlanner

    Matching the skills output of educational establishments with the needs of industry, particularly in a rapidly changing economy, is problematic. The inability to integrate the various bespoke datasets has meant the holis...

    Funded by: Innovate UK

    Lead research organisation: ETHOS VO LIMITED

  • Developing talent through apprenticeships

    Investing in apprenticeships is an excellent way for the UK economy to recover from the effects of COVID-19\. Apprentices each generate an average **£34,000 of economic benefit each year** in the UK and Government ...

    Funded by: Innovate UK

    Lead research organisation: WORKPLUS APPRENTICESHIPS LTD

  • Skills at work: an analysis of the interaction between training and occupations in the labour market

    My research explores policy-relevant topics in labour economics, with a methodological emphasis on applied econometrics. More specifically, my main research agenda focuses on studying the specificity of human capital wit...

    Funded by: ESRC

    Lead research organisation: Institute for Fiscal Studies

  • Workforce productivity skills diagnostic platform - research and experimental development.

    Forget the productivity ‘puzzle’… Britain faces a productivity crisis. National and firm-level productivity in the UK has worried policy makers and business leaders for decades. But now flat growth, a debt overhang from ...

    Funded by: Innovate UK

    Lead research organisation: EXCEL WITH BUSINESS LIMITED

  • A new approach to benchmarking the skills of companies and their employees, which then delivers the shortest and most efficient path to learning and career progression.

    Skill shortages are a major issue in the UK and arise because there are not enough people with particular skills to meet demand. The Open University estimates that skill shortages cost the UK £2bn a year in higher ...

    Funded by: Innovate UK

    Lead research organisation: KNOWLEDGE OFFICER LTD

  • Skillsplanner

    The research to be carried out focuses on providing academic knowledge in the area of skills and employment to the project as it develops to ensure a robust evidence base. It will also react to employer needs for researc...

    Funded by: ESRC

    Lead research organisation: University of Plymouth