Employers are investing less in training and training is getting shorter, holding back productivity. The reasons for this differ by sector depending on the nature of product and labour markets, firm characteristics, and institutions. To change this, we need to raise skills demand by supporting economic growth and public sector leadership.

Employers in the UK invested 29% less in training per employee in 2024 than in 2011. The proportion of employees participating in training each year has remained relatively high at 60%, but training has got shorter, falling from 7.8 days per trainee in 2011 to 5.7 days in 2024. The UK stands out on this internationally, with the highest proportion of training episodes that last less than one day.

This project, funded by the Nuffield Foundation, aimed to understand why, using a mixed methods approach of a desk-based review, interviews with experts, employers and training providers, and data analysis. It looked at the whole economy, with a deeper focus on key growth sectors: financial and business services; creative and cultural; clean technologies; and information and communications. It included international comparisons.

The project was led by Learning and Work Institute (L&W), in partnership with University of Strathclyde and Ulster University. An advisory group of experts from government, employer groups and the learning and skills sector helped to inform its work.