The UK, along with other industrial countries, is experiencing rapid technological change associated with robotics and artificial intelligence, precipitating significant transformations in terms of how work is organised, what tasks are performed and what skills are essential for success. Quantifying the scale and nature of these changes to skills requirements is important as we aim to better understand how the UK labour market is being impacted by these automation technologies. Without the right mix of skills, economies cannot respond and adapt, nor take advantage of new technologies that could increase productivity. This is why research into skills is a central part of the Pissarides Review into the Future of Work and Wellbeing.

Analysing data from millions of job ads, this report - published jointly with the Centre for Economic Performance - finds that: IT skills are rapidly emerging and then becoming obsolete, there is a huge difference in the pace of skills change across occupations, and the importance of interpersonal skills continues to endure. This rapidly evolving skills landscape presents many challenges for businesses, policymakers, and education and training providers that seek to bridge the gap between skill supply and demand. The implications for policy are clear: not only must there be more opportunities for training, with skills demands in constant flux, the skills offered by education and training providers have to be better aligned with those demanded by employers in growth sectors and occupations.

---

21 February 2024

Institute for the Future of Work

Old Skills, New Skills - what is changing in the UK labour market?

Link To Website

This External report is part of the centre's Labour programme.