The world of work is anticipated to undergo a significant transformation over the next decade and beyond. New technologies, coupled together with demographic and environmental change are expected to fundamentally reshape the labour market in terms of the nature of jobs workers do and the type of skills that they need. Skills such as creativity, critical thinking, team work problem solving and resilience – which complement the new technologies and other changes taking place - are likely to become increasingly important for jobs across the economy.
Understanding the skills needed most in the labour market in the future, how this demand will be met, and where any skills gaps are likely to be are essential. However, the transformation and its implications for education, employers and the workforce is not well understood. Without evidence-based long term planning to address future skills needs, the risk of higher rates of underemployment and unemployment and enduring social and economic problems increases.
New research and insights
To address this, the NFER is leading a five-year strategic research programme to increase understanding of the future skills needs, funded by the Nuffield Foundation. NFER is leading a multi-disciplinary team, including co-investigators from the universities of Sheffield, Warwick and Roehampton, as well as with Cambridge Econometrics, Kantar, and the Learning and Work Institute.
New technologies, coupled together with demographic and environmental change are expected to fundamentally reshape the labour market
We aim to provide new insights into the demand for and supply of employment skills most needed in future, when new technologies and other effects are expected to become more embedded in the labour market. From this, which essential employment skills will be most needed in future, where the skills gaps are, which groups are most at risk of not having the skills needed, and how best to support those affected to identify key areas where they need to re-skill, can be identified. We will also investigate how the education system can support the development of the essential employment skills needed in future.
Understanding the challenge and planning for the future
Armed with the evidence generated by our programme of research – the nature of the challenge will be better understood and used by government, educationalists and employers to inform the planning and delivery of a future skills strategy designed to meet employment needs in the coming decades.
With the right strategy implemented at the right time, people will work and flourish in their jobs, helping to secure a prosperous future for our economy and society.