Research published by the Department for Education explores the changing demand for skills needed in specific occupations over the next decade
Technological developments and a shift towards digitalisation accelerated by the COVID-19 pandemic have brought about important changes to skills needs across the UK labour market.1 Meanwhile, previous research has revealed that many talent leaders are not optimistic about the ability of universities to produce graduates with the skills needed to fill skills gaps in the 21st century economy, whether these be 'hard' or 'soft' skills.2
Wishing to better understand how the tasks within four priority areas (i.e., health, science and technology, managers, and skilled trades) are expected to change over time and how this will impact skill demand. With a focus on a few specific skills groups, the Skills and Productivity Board (SPB) commissioned RAND Europe and the Institute for Employment Research (IER) to undertake qualitative research looking into changing skills needs over the next 5-10 years.
These skills groups include:
- Digital skill: the ability to use digital devices, communications applications and networks to carry out tasks such as accessing and managing information, communicating and accessing services either in daily life or the workplace.
- Technical skill: the ability to carry out practical tasks using specific and expert knowledge and particular tools.
- People and/or communications skill: the ability to have positive and productive interpersonal and social relations with others and/or to communicate successfully with others so as to jointly carry out tasks; these relations and communications could be with colleagues, other professionals or public audiences such as customers or patients.
Technical and digital skills
Such skills are and will continue to be necessary across all sectors in the UK labour market - to varying degrees depending on differences between how different occupations are expected to engage with future technologies. For instance, digital literacy is already seen as a basic skill requirement for workers to have, with varying degrees of digital skill currently required in different sectors and different occupations.
As digitisation and automation become more widespread, skills around the understanding and use of data will only increase in importance in the future as responsibilities for data handling and data security are shared across organisations.
There was a huge emphasis placed on the need to understand and work with large amounts of data. Some interviewees stressed the need for more people with skills in big data analytics and machine learning in the workforce. Previous research found that a quarter of data scientist and advance analyst job adverts require skills in both machine learning and big data analytics.
This issue was more pronounced among science professionals - where a lack of understanding of data science and statistics was noted as an existing concern - and managers. Some noted that the ability to collect, process, interpret and communicate data on performance (a point we will come back to) will be needed more in future at managerial positions across different sectors to improve productivity.
Moreover, while digital literacy and the ability to adapt to new technology will be vital in the future economy, the skills needed to operate specific new hardware and software will still need to be developed as future technologies emerge.
The following are some examples of emerging technologies that will require the development of appropriate technical skills:
- Science and technology: digital systems, robotics and AI in aerospace; new laboratory and technician procedures for experiments; new software for analysing scientific data; new coding languages or other programming software.
- Managers: data analytics software; new and increasingly complex data storage solutions.
- Skilled trades: heat pumps; electric vehicle charging; smart homes; green power products and infrastructure; modern methods of construction; including with timber.
- Health: AI hardware and software; new surgical and diagnostic tools; software for analysis of big data or genomic medicine research; tele-healthcare hardware and software.
Overall, participants seemed to agree that technical skills in handling data and correctly communicating about its insights would soon be expected from workers in almost all roles rather than being seen as bonus skills.
Communication and people skills
The ability to communicate with others was frequently mentioned by interviewees across all areas. Specifically in science and technology professions and skilled trades where workers are expected to have the ability to explain scientific or technological products or processes to colleagues, clients or the general public.
A holistic approach to address skills needs in the 21st century economy must include such interpersonal skills, as these skills are often understood as complementary to the effective use of digital and technical skills, and industry specific skills. As firms invest in major technology systems, the demand for industry specific skills - as well as soft and social skills - tends to increase the most.3
Tied into this are the skills necessary to work on or take action to promote equality, diversity and inclusion in the workplace as sectors of the economy continue to become more diverse – especially for those in managerial roles. As an example, communication skills will be necessary when discussing unacceptable or unethical behaviour with other colleagues and wider teams. This will also require strong interpersonal skills such as empathy, active listening, mediation skills and conflict management.
Continuous professional development
It was also suggested that, in order to address skills shortages and improve recruitment, multiple routes into occupations should be facilitated and promoted. Interviewees pointed to apprenticeships as an important tool.
Additionally, participants expressed support for both public and employer-provided funding for 'modular or real-life' learning opportunities throughout careers. Encouragingly, the Government released their Skills for Jobs White Paper last year, which sets out their plans to 'reform further education so it supports people to get the skills our economy needs throughout their lives'.4
An increase in variable and flexible pathways to learning and professional development alongside work would make 'upskilling' more accessible, especially for those already in roles, with little financial flexibility or with additional commitments such as childcare. The idea of flexible postgraduate courses without time limits on completion were suggested.
At a more fundamental level, there were also concerns national levels of numeracy and digital literacy, suggesting that intervention on technical and digital skills early in educational timelines would have long-term benefits for entry into these sectors.
Notes:
- Skills needs in selected occupations over the next 5-10 years, Department for Education, 2022.
- Digital skills must go hand-in-hand with human skills, Luminate, 2022.
- The future of work: impact of automation on graduate jobs, Luminate, 2022.
- Skills for Jobs: Lifelong Learning for Opportunity and Growth, Department for Education, 2021.
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