Skills England publishes Sector skills needs assessments
Contents |
[edit] Background and introduction
On 2 June 2025 Skills England published the findings of its analysis and engagement with sectors on the growth and skills offer, and skills needs assessments for 10 priority sectors.
The first report Skills England:Sector evidence on the growth and skills offer, notes how Skills England’s analysis supports UK growth by aligning training with evolving skills needs. It highlights that employers find current apprenticeships too rigid and outdated for rapid tech changes. SMEs struggle with administrative burdens. Stakeholders call for shorter, flexible apprenticeships, AI and leadership add-ons, expanded boot camps, and streamlined systems to boost workforce entry and adaptability.
To read the full reports on each of the areas visit Research and analysis. Skills England: Skills for growth and opportunity.
- Advanced manufacturing
- Clean energy industries
- Construction
- Creative industries
- (Defence)
- Digital and technologies
- (Financial services)
- (Health and adult social care)
- (Life sciences)
- Professional and business services
[edit] Advanced manufacturing summary
Manufacturing drives economic resilience and innovation across the UK, supporting many service sectors. Advanced Manufacturing (AM) integrates advanced science, digital, and automation technologies within production. While AM is a key focus, this briefing emphasises the broader manufacturing sector due to data availability. Industrial Strategy Sector Plans will soon provide detailed growth and skills analyses.
[edit] Priority jobs , skills, feedback and trends
In 2024, manufacturing employed 2.6 million people (7% of total UK employment) and contributed £220 billion (9% of GDP). Roles range from lower-skilled assemblers to higher-skilled engineers and scientists. Workforce diversity is low, with 74% male and 88% white. The sector faces recruitment challenges worsened by a 47,000-worker shortfall post-EU exit. Manufacturing had 49,000 vacancies in 2022, with 42% classified as skill-shortage vacancies, up from 29% in 2017. High-demand roles include metal machinists, electricians, engineers, and carpenters.
Future skills demand in manufacturing is driven by three key trends: automation, digitalisation, and environmental sustainability. Automation impacts jobs heavily, with 59% of manufacturers noting its influence, but 46% struggle with technical skill shortages to adopt it. Digitalisation requires enhanced digital skills, while 37% highlight green skills for sustainable production and innovation.
[edit] Training routes and gaps in securing a future workforce
Apprenticeship starts in Engineering and Manufacturing Technologies in England declined from 49,060 in 2021/22 to 45,800 in 2023/24. Only 7% of science graduates joined manufacturing in 2020/21. Reskilling is vital but under provided—just 54% of employers offered training in 2022, averaging 2.5 days per employee. Manufacturing suffers from poor industry perception, limited school advocacy, and wage misconceptions, deterring new talent. Employers stress better collaboration between industry, education, and government, alongside increased investment in education and work experience, to improve outreach and attract young workers.
Manufacturing faces skills gaps, especially at Levels 4-5, hindered by limited funding, outdated apprenticeship standards, and weak industry-education links. Flexible, modular apprenticeships and short courses, supported by better funding and infrastructure investment, are needed to upskill workers, attract diverse talent, and address evolving tech demands like AI and automation.
[edit] Clean energy industries summary
Clean energy jobs, vital for the Clean Energy Superpower Mission and net zero goals, span renewables, nuclear, hydrogen, CCUS, and more. Key roles focus on STEM, skilled trades, and management. A forthcoming Clean Energy Workforce Strategy will guide workforce planning and skill development across the UK’s clean energy sectors.
As of 2022, 272,400 people worked in low carbon and renewable energy jobs, growing 27% since 2020—five times faster than overall UK employment. Net zero transition could create 135,000-725,000 new jobs by 2030. Meanwhile, oil and gas jobs are declining, highlighting the need to reskill workers for clean energy roles.
[edit] Priority jobs , skills, feedback and trends
A skilled workforce is vital for clean energy growth, but shortages exist in engineering, trades, planning, STEM, leadership, and specialist roles like electrification. Cross-sector demand, especially from construction, intensifies skills gaps. Diversity is low—women and ethnic minorities are under represented highlighting a critical need to widen access and improve workforce data.
Clean energy job shortages will worsen due to an ageing workforce and retirements. Job adverts are spread nationwide, with clusters like hydrogen in industrial regions and heat pumps broadly distributed. However, some areas lack quality training centres and employer partnerships, limiting local talent development and upskilling opportunities.
Meeting clean energy demand requires both new entrants and reskilling around 3 million workers. High-demand roles include Level 6+ engineers, welding and mechanical trades (Level 2+), electrical trades (Levels 2-4 and senior roles), planners to speed project approvals, and managerial positions—especially construction project managers and retrofit coordinators.
[edit] Training routes and gaps in securing a future workforce
Policy certainty and clear funding are vital to encourage skills training investment in clean energy. Challenges include low awareness of green careers among youth, shortages of qualified trainers—especially for emerging fields like hydrogen—and SMEs struggling with complex training systems and limited resources. Collaboration between employers, educators, and government is needed to address these gaps.
DESNZ, alongside partners, is advancing initiatives like the Energy Skills Passport and Regional Skills Pilots to aid worker reskilling for clean energy roles. However, stakeholders highlight the need for more flexible, modular training and better alignment of education with industry needs. Challenges include skill mismatches, limited access for younger workers in hazardous sectors, and inadequate apprenticeship funding impacting program availability and capacity.
[edit] Construction skills summary
In 2022, the UK construction sector contributed £140 billion (6.2% of GDP) but has lagged in productivity and R&D investment. Demand will rise due to government plans to build 1.5 million homes, retrofit for net zero by 2050, upgrading 5 million homes, and develop green infrastructure. Increasing future skill needs is a requirement as estimates do not yet reflect these new commitments.
In 2024, the UK construction sector employed 2 million workers, 36% of whom were self-employed. Key roles included social housing professionals, surveyors, and architects. To meet output needs by 2028, 251,500 more workers are required, including 40,000 in engineering construction—many needed for offshore wind, hydrogen, and carbon capture projects.
[edit] Priority jobs , skills, feedback and trends
The CITB identifies high skills demand in private housing, infrastructure, and maintenance. Fastest-growing roles by 2028 include carpenters, metal workers, and HVAC specialists. Skills shortages are a major challenge, with 52% of vacancies hard to fill. In-demand roles include bricklayers, planners, welders, crane drivers, and electrical maintenance workers.
Employer feedback highlights the need to improve gender and ethnic diversity in construction. In 2024, women made up 15% of the workforce, with 96% of homebuilders being male. Ethnic minorities represented 9% of workers. Regional differences are notable, with London showing a younger and more diverse workforce, especially in housebuilding.
Emerging trends like automation, modular construction, and Modern Methods of Construction (MMC) are reshaping the sector, demanding new skills and boosting productivity. However, barriers to MMC adoption remain. Net zero goals and green infrastructure will also drive skill changes, especially in retrofitting, requiring deeper knowledge of building physics and systems.
[edit] Training routes and gaps in securing a future workforce
In 2023/24, there were 24,200 construction-related apprenticeship starts, with intermediate apprenticeships making up 47%. Construction was the second most popular apprenticeship route. Over 50,000 people joined the sector via DWP’s SWAPs. Training is often hands-on, with apprenticeships preferred. Town planning requires postgraduate study or apprenticeships with professional accreditation.
The construction sector faces challenges with workforce retention and apprenticeship completion, with a low 53% achievement rate in 2022/23. Teacher shortages and complex, costly training models hinder progress, especially for SMEs. Short-term contracts and fast-evolving technology also limit employer engagement and strain the alignment of training with industry needs.
Key gaps in construction training include the need for greater flexibility in using the apprenticeship levy, support for shorter and modular training, and ensuring college graduates have site access credentials. Employers support modularised courses in trades like bricklaying and plumbing to make learners job-ready more quickly and ease entry into on-site roles.
[edit] Creative industries summary
The UK’s creative industries, contributing over £124 billion and employing 2.4 million people in 2023, are a major economic and cultural force. Growing faster than the national economy, they span sectors like advertising, architecture, crafts, design, film, music, video games, performing and visual arts. London leads in employment and output, though industries like video games are largely outside the capital.
[edit] Priority jobs , skills, feedback and trends
The UK creative industries face significant skills shortages, with 33% of vacancies due to skill gaps, especially in professional roles (41%). Key shortages include soft skills (e.g., presentations, problem-solving), technical skills, and advanced IT skills like graphic design and app development. Informal hiring and project-based work may mask true demand, suggesting policy should focus on coordination and skill mismatches as well as shortages.
The creative industries are evolving rapidly with technological convergence, creating demand for "fusion" or "createch" skills that combine tech expertise (AI literacy, digital analytics) with creativity and problem-solving. About 69% of creative employers expect their workforce to upgrade skills due to new technologies and innovation.
[edit] Training routes and gaps in securing a future workforce
Young people face major barriers entering creative careers due to poor career guidance, limited advisor resources, and weak industry links—especially in screen industries. Apprenticeships are underutilized (2.1% starts despite 7% workforce share) due to high costs, inflexible formats, and scarce training providers. The sector relies heavily on higher education, with 69% holding degrees.
The creative industries’ workforce development faces key challenges beyond skills gaps, including financial instability, poor workplace conditions, systemic barriers for freelancers, gender imbalance (62% male), and low social mobility. Many freelancers struggle with insecure income and long hours, while low employer investment in training hampers talent retention and growth.
Industry stakeholders highlight key priorities to improve creative sector training: enhancing technical and mid-career upskilling in green tech, digital skills, and AI; valuing practical and transferable skills; focusing on lifelong learning beyond entry-level; promoting flexible, modular learning combining theory and practice; strengthening education-industry partnerships; and ensuring training access for freelancers and SMEs.
[edit] Digital and technologies summary
Advances in digital technologies are reshaping the economy and workforce skills. This briefing focuses on key occupations and skills in the digital and technologies sector, emphasizing future growth areas like AI and quantum computing. Definitions for Industrial Strategy sectors are evolving, with detailed analysis forthcoming in Sector Plans
[edit] Priority jobs , skills, feedback and trends
As of June 2024, about 4 million people work in digital and tech-related jobs, expected to grow by 10% (380,000) by 2035. High skill shortages exist in roles like telecom engineers (75%) and development engineers (58%). Basic digital skills gaps affect 7.3 million adults, with emerging roles in AI leadership and data architecture adding to demand. Competitive salaries will be key to attracting talent amid this shortage.
Women comprise just 25% of digital roles and 23% in critical tech, with high early attrition. Ethnic minorities make up 18% of the digital workforce, slightly above the national average. Lower socioeconomic groups are vastly under represented at 9%. These disparities highlight urgent needs for targeted diversity and inclusion initiatives.
[edit] Training routes and gaps in securing a future workforce
Critical tech roles mainly require higher education (61%), with apprenticeships covering 13%. Digital T Levels and Higher Technical Qualifications offer alternative pathways. Skills Bootcamps, focused on digital skills, accounted for 61% of 2022/23 starts, supporting flexible, accelerated training to meet growing workforce demands in AI, quantum, and related fields.
Apprenticeships are vital for addressing digital sector skills gaps, but flexibility is key. Most employers are small businesses (99%) lacking resources for long apprenticeships, preferring shorter, adaptable courses. Employers call for better alignment between sector needs and government support to balance youth employment, diversity, career shifts, and social justice goals.
Skills England highlights the need for flexible, modular training and clear career pathways in the digital sector, especially for SMEs. Expanding further education supports upskilling amid limited workforce growth. Increasing AI apprenticeships for SMEs is vital to build technical skills and address recruitment challenges caused by high salary demands.
[edit] Professional and business services summary
The UK’s professional and business services (PBS) sector drives economic growth, contributing over 12% of GVA. It supports business expansion and innovation and employs 20% of graduates and 13% of apprentices in England. Spanning fields like accounting, legal services, and consultancy, PBS is key to future industrial strategy planning.
[edit] Priority jobs , skills, feedback and trends
By June 2024, the UK’s professional and business services (PBS) sector employed 5 million people (14% of all jobs), with strong growth in legal, consulting, and R&D. By 2035, nearly 3 million new employees will be needed, driven by automation, upskilling, and rising demand for high-level professional roles.
The PBS sector faces rising demand for hybrid roles blending tech, data, and industry expertise, especially in AI, software, and data science—roles hard to fill due to competition. Employers also cite gaps in communication and resilience skills. Regional inequalities persist, with London attracting top talent, straining other UK regions.
[edit] Training routes and gaps in securing a future workforce
The PBS sector is highly skilled, with 58% of workers holding degrees and 84% qualified to Level 3 or above—both above national averages. Key roles require professional qualifications. Top graduate entry routes include business, law, and engineering. In 2021/22, over 40,000 PBS apprenticeships started, mainly in accountancy and legal roles.
Apprenticeships are highly valued in the PBS sector. Employers report they boost staff retention, support talent development for smaller and public sector employers, and produce well-rounded employees familiar with business practices. Apprenticeships also promote diversity and social justice in traditionally elitist areas of the sector.
PBS employers raised concerns about foundation apprenticeships not aligning with professional standards. They called for more flexibility in the apprenticeship levy to fund shorter, targeted upskilling courses—especially in digital, AI, and transferable skills. Other priorities include reducing bureaucracy, enabling short-term workers to train, and revisiting rigid entry/exit requirements.
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