There is limited knowledge about how UK employers make decisions about training and how employers and workers are responding to the need to upskill and retrain. This research helps fill that gap.

Supported by Gatsby Charitable Foundation, the report explores employer and employee decision making about training and the development of higher technical skills, providing insights to inform how national and regional policy can support changing skills needs and drive productivity. The project involved qualitative research with employers and employees in the advanced manufacturing and construction sectors. 

In England, how well the Lifelong Learning Entitlement and Growth and Skills Levy support the delivery of the UK’s Modern Industrial Strategy depends on the extent to which adults and their employers choose to invest their time and money in upskilling in key areas. As devolution progresses, Mayoral Strategic Authorities will also gain greater power over what education and training is offered in their regions, and how to incentivise uptake. 

Economic change, including advances in technology, automation and the transition to net zero, is impacting on the jobs available and skills required. Only one in ten adults are currently skilled to level 4 or 5, with people who don’t opt to go to higher education often struggling to progress at work. With 80% of the 2035 workforce having already left full-time education and people working longer, it is vital that workers can upskill and reskill throughout their careers.

Responses to our findings

Jamie Cater, Senior Policy Manager, Make UK, said:

“This timely research from Learning and Working Institute and Gatsby Charitable Foundation reflects one of the fundamental challenges facing the UK’s manufacturing workforce – that the evolution of job roles requires a much greater industry and policy focus on upskilling and retraining the workforce to higher levels of technical skill. The report is right to highlight the particular increasing demand at levels 4 and 5, and employer demand for short, modular training to meet demand for upskilling and these levels. The long-awaited Lifelong Learning Entitlement and flexibility delivered by the Growth and Skills Levy need to reflect these business needs. Make UK’s call for a ‘Skills Covenant’ between industry, education and government – as referenced by the report – could help to ensure that policy change meets the employer needs the report sets out.”

Sian Elliott, Director of Organising, Public Services and Skills, Trades Union Congress (TUC), said:

“This report illustrates that the skills challenge is one of investment, information, and clarity. The findings reveal common barriers for employers and workers—namely cost, time, and a critical lack of clear advice and guidance. This confirms the vital role that unions, alongside other stakeholders, can play. Unions are uniquely positioned to bridge this knowledge gap and drive-up employer investment in training through learning agreements and collective bargaining, ensuring upskilling is relevant, accessible to all workers, and structured within clear career pathways.”

Hannah Larsen, Policy Officer, British Chambers of Commerce, said:

“Higher technical skills are crucial to business productivity and economic growth, but there are hurdles in the way for employers trying to access them. It can be particularly difficult for SMEs who often don’t have HR resources to help them navigate the system. This report highlights the need to simplify the skills landscape for employers, provide more information and reduce complexity and jargon. Employers expressed a need for clearer, more accessible information and a centralised hub of resources to help navigate training options. Employer-led Local Skills Improvement Plans are a key part of the solution. They bring employers and training providers together to discuss what training is needed in the local economy and identify and co-create solutions.”