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.

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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

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