The UK labour market is undergoing a profound transformation, shaped by three converging megatrends: technological advancement, the transition to a net-zero economy and demographic change. These forces are redefining the nature of work, the skills in demand, and the distribution of opportunities across sectors and regions. While these shifts pose risks – particularly for lower-skilled and older workers – they also offer the potential for more fulfilling, higher-quality employment if supported by inclusive and forward-looking policies.

This report calls for a coordinated approach to skills development that supports individuals throughout their lives, aligns with industrial strategy, and ensures equitable access to opportunity.

Member tool: CIPD Buddy BETA
Experiment with AI to find answers on this topic with our prototype. Login to explore CIPD Buddy

Key findings

  • Technological change: Automation and AI are reshaping job roles. While routine and administrative positions decline, demand is rising for both technical and human-centric skills such as creativity, problem-solving and adaptability.
  • Green transition: The shift to a low-carbon economy is generating new roles and transforming existing ones. Regional and sectoral impacts vary, requiring targeted investment in green skills and equitable access to emerging opportunities.
  • Demographic shifts: An ageing population and growing workforce diversity are altering employment patterns. Older workers are staying in the labour market longer but face barriers to mobility and reskilling.
  • Skills forecasts: By 2035, UK employment is projected to grow by 7.4%, with high-skill occupations seeing the greatest expansion. Replacement demand will create 17.5m job openings, so even those occupations in decline will still require significant numbers of workers to fill roles.   
  • Lifelong learning gaps: Participation in adult education remains uneven. Older, lower-income and less-qualified individuals are least likely to engage, often due to time, cost, lack of employer support and limited awareness.
  • Policy divergence: Devolved nations are pursuing distinct skills strategies, with reforms underway in Scotland, Wales and Northern Ireland. However, funding constraints and fragmented delivery systems remain challenges across the UK.

Download the report for the full details and to find out why reskilling matters now.

Lifelong learning in the reskilling era: From luxury to necessity | Report

Download the report
PDF document 3.6 MB

More on this topic

Factsheet

Skills development in the UK workplace

Understand what we mean by skills in the workplace, UK skill levels and the government’s skills policy.

Woman sitting at a laptop with notebooks
Guide

Learning and development for people professionals

This guide provides a practical introduction to the role of an L&D function in an organisation. It offers support on the key steps to offering effective L&D, including creating a learning strategy, undertaking a learning needs analysis, designing learning interventions and measuring the impact of learning.

For Members
Man standing at the front of a classroom delivering training
Tools

Learning and development tools

Use our range of practical tools to help you develop a learning strategy, undertake a learning needs analysis, design learning interventions and measure the impact of learning.

Thought leadership

Briefing | Flexible and hybrid working practices in Scotland in 2025

Marek Zemanik, CIPD Senior Public Policy Adviser, UK Nations, examines how trends and practices in flexible and hybrid working are shaping organisational outcomes in Scotland

More reports

a mix of men and women at a construction site, wearing hard hats and high vis, gather round a woman talking and pointing to a clipboard
Report

Analysis of the public sector workforce

Research in this report suggests that improving leadership and people management can help raise the motivation and productivity of the public sector workforce

Report

Health and wellbeing at work

The CIPD’s biennial report exploring health, wellbeing and absence management provides invaluable trend analysis and practice insight to help employers and people professionals develop and maintain supportive, productive workplaces

Report

Labour Market Outlook

Read our latest Labour Market Outlook report for analysis on employers’ recruitment, redundancy and pay intentions

Report

Flexible and hybrid working practices in 2025

Our research explores how current flexible and hybrid working practices are impacting performance, employee engagement and wellbeing

See all reports