Advances in technology, including Artificial Intelligence, alongside longer working lives will see more people needing to change jobs and careers. But new research by Learning and Work Institute (L&W) has found that fewer people are switching sectors than before the global financial crisis. In part this is because doing so can come with a financial penalty, which is largest for those moving out of sectors like construction and retail.

The research finds that career changers working full-time face an average pay cut of £3,731 (14%) per year. This initial drop in income is likely to be difficult for many people to manage given financial commitments for home and family, even though people changing job see pay subsequently grow 2.9 times faster than those staying in the same job.

If training is needed in order to move sectors, career changers could face a potential retraining bill of up to £40,000: to take a one-year full-time course, the average worker would lose £30,000 in lost wages plus course fees on top of the subsequent drop in their earnings.

Longer working lives means 50-year careers will increasingly be the norm for people, so there will be a rising need for people to update their skills and change jobs and careers multiple times. We need to provide more support for people to adapt to these changes.

L&W is calling for an expanded Lifelong Learning Entitlement, which would aim to raise the awareness of opportunities for career change, create more flexible and tailored learning and increase the financial support available for those wanting to retrain. This would enable workers and businesses to adapt to labour market change and our economy to grow.

Find out about New Futures

New Futures, led by Learning and Work Institute and funded by the Covid-19 Support Fund, supported workers needing to reskill and change career as a result of the Covid-19 pandemic. This research paper was funded by the New Futures programme.

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13 March 2026

Training and skills needs: Trends and challenges in UK growth sectors

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2 March 2026

When it comes to lifelong learning, are we any closer to the College of the Future?

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2 March 2026

Why adult education is an investment, not a cost

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22 December 2025

From confusion to clarity: rethinking England’s 670 occupational standards

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7 November 2025

No train no gain

This research, supported by Multiverse, finds that access to training is a boon for people’s pay and careers. The training dividend is greatest for those on the lower rungs of the occupational ladder, helping them go further, faster.

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7 November 2025

Spotlight on Newport: Place within a Place

Ufi VocTech Trust, in partnership with Adult Learning Wales, Newport City Council and Learning and Work Institute, have launched an innovative place-based collaboration to integrate education and skills development opportunities within the communities of East Newport.

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7 November 2025

Working class people paid more when they get training from their employer

Experts are calling on the Government to do more to get employers investing in training, as research reveals it’s a “boon for people’s pay and careers” – particularly for working class people.

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5 November 2025

Investing in skills: International policy insights for the UK

This report is the first in a series of three publications supported by the Nuffield Foundation that present the findings from multi-year research into employer investment in upskilling and reskilling in a changing economy.

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