The Skills Imperative 2035 (And Similar Initiatives): Implications for Higher Education

What is the Skills Imperative 2035

The rapid pace of technological advancement, alongside global challenges like automation, demographic shifts, and environmental sustainability, is reshaping the world of work. The Skills Imperative 2035 is a forward-looking initiative funded by the Nuffield Foundation to identify the essential skills needed for future employment. This research explores the skills in high demand by 2035, how higher education (HE) institutions can adapt to fill these gaps, and what steps are needed to ensure that individuals and institutions are prepared for the future labour market.

The primary goals of this research are to:

• Identify essential employment skills: Determine which skills will be most in demand by 2035, with a focus on both technical and transferable skills such as problem-solving, communication, and adaptability.
• Understand supply and demand for skills: Explore where gaps may exist between the supply of these essential skills and the needs of the future workforce.
• Prepare for future transitions: Assess how individuals and institutions—such as schools and employers—can better prepare the workforce for these changes; this includes examining how to develop and assess these skills effectively in education and workplace settings.

The initiative also highlights the importance of skills like creativity, critical thinking, teamwork, resilience, and leadership, which will complement the growing reliance on digital and technical competencies.

Implications for Higher Education (HE) Institutions.

The Skills Imperative 2035 research underscores the need for universities and HE providers to be agile in responding to future labour market demands. It calls for a holistic approach to education that balances technical skills with interpersonal abilities, offers flexible learning pathways, and maintains close connections with industry to ensure graduates are well-prepared for future employment. As the job market evolves, universities that integrate these principles into their strategies will play a crucial role in shaping the future workforce.

“By 2035, more than 11 million additional graduates will be required in the UK to fill roles in industries such as computing, engineering, teaching, education, and health.”

Jobs of the Future – Universities UK

Key areas of impact on HE providers:

1. Curriculum Design and Delivery

• Focus on Essential Skills: Universities must adapt their curricula to ensure students develop the essential employment skills highlighted in the research, such as problem-solving, critical thinking, creativity, communication, and adaptability. These are not just technical or subject-specific skills but transferable ones that complement technological advancements like automation and AI​.
• Integration of Digital and Human Skills: As technological skills will be crucial, universities will have to balance the development of digital competencies (e.g., AI, data analytics) with interpersonal skills (e.g., teamwork, leadership). Embedding these skills into the core curriculum and across disciplines will be essential for future employability​.

2. Work-based Learning and Experiential Opportunities

• Increased Role of Work Experience: The research emphasises that work experience will remain critical in developing employability skills. Universities will need to expand opportunities for students to gain practical experience through placements, internships, and project-based learning​; this aligns with the industry’s demand for graduates with hands-on experience and theoretical knowledge.
• Collaboration with Employers: Universities must form stronger partnerships with employers to ensure their courses remain relevant to the labour market. This collaboration can include co-designing courses, offering mentorship programmes, and aligning teaching outcomes with industry requirements​.

3. Support for Lifelong Learning and Upskilling

• Lifelong Learning Entitlement: With the UK government introducing policies like the Lifelong Learning Entitlement (LLE), which promotes continuous education and upskilling, universities will be expected to offer flexible learning options; this includes modular courses, part-time learning, and shorter, more targeted qualifications that help workers reskill or upskill in line with the changing job market​.
• Adaptability in Programme Offerings: Universities may need to develop new qualifications in growing fields like AI, green technology, and digital health. These programmes should also focus on transferable skills, making graduates adaptable to shifts in employment needs​.

4. Emphasis on Employability Outcomes

• Tracking Graduate Success: The Skills Imperative research highlights the importance of universities preparing students for “high-skilled” jobs, and HE providers will be increasingly measured on their graduates’ employment outcomes. Universities will likely have to enhance their career services, providing better career advice and embedding employability throughout the student experience​​.
• Confidence Building in Graduates: Research has shown that many graduates, particularly those from disadvantaged backgrounds, lack confidence in their skills, which can prevent them from securing high-skilled roles. Universities will need to address this through initiatives that enhance students’ self-efficacy, possibly through mentoring, leadership programmes, and tailored career support​.

5. Preparing for Technological and Sectoral Shifts

• Addressing Future Job Market Trends: The research highlights sectors likely to grow, such as health, digital industries, and the green economy, while others, like administrative roles and manufacturing, are expected to decline. Universities will need to align their programme offerings with these trends, ensuring that they are equipping students with the skills for jobs that will be in demand​​.
• Automation and AI: As automation replaces certain roles, universities will be tasked with preparing students not only for jobs that currently exist but also for future jobs that may not yet be fully defined; this will require flexible and future-proofed educational approaches that focus on skills that are resistant to automation, such as creativity, problem-solving, and social intelligence​.

6. Inclusivity and Widening Participation

• Bridging Skills Gaps: The research suggests that those with lower educational attainment or limited access to higher education could be at greater risk in the changing job market. Universities will need to focus on widening participation, ensuring that underrepresented and disadvantaged groups have access to the education and skills required for future employability​​.
• Supporting Diverse Learning Paths: With increased emphasis on flexible learning routes, universities must accommodate a broader range of students, including non-traditional learners, through more accessible and inclusive teaching methods​.

“Universities will need to focus on widening participation, ensuring that underrepresented and disadvantaged groups have access to the education and skills required for future employability.”

The Skills Imperative 2035: – National Foundation for Educational Research (NFER).

Other Initiatives Addressing Future Workforce Needs

Several other initiatives in the UK are aligned with the Skills Imperative 2035 in addressing future workforce needs, preparing graduates for emerging industries, and equipping them with essential skills. These initiatives are driven by government, industry bodies, and educational organisations to ensure that the UK workforce can meet future labour market demands.

Seven initiatives similar to Skills Imperative 2035:

1. Lifelong Learning Entitlement (LLE)

• Overview: The Lifelong Learning Entitlement is part of the UK government’s broader skills reform, aiming to provide people with the ability to study, retrain, and upskill throughout their lives. Starting in 2025, this entitlement will enable individuals to access funding for qualifications at Levels 4 to 6 (including degrees) across their working life, with a particular focus on shorter, modular learning​.
• Alignment with the Skills Imperative: The LLE is closely aligned with the Skills Imperative in its emphasis on flexibility in learning and equipping individuals with the skills required for a rapidly changing job market. It also responds to the same megatrends of automation and digitalisation by encouraging continuous skills development.

2. National Retraining Scheme (NRS)

• Overview: The National Retraining Scheme was designed to help adults whose jobs are at risk of automation or redundancy due to technological advancements. The scheme focuses on retraining adults with the skills needed for employment in growing sectors, particularly digital skills and other transferable abilities.
• Alignment with the Skills Imperative: Like the Skills Imperative, the NRS focuses on preparing the workforce for technological disruption, ensuring that workers can transition into new sectors less susceptible to automation. It underscores the importance of lifelong learning and upskilling in response to the changing nature of work.

3. The Industrial Strategy: Skills for Jobs

• Overview: Part of the May Conservative government government’s Industrial Strategy, the Skills for Jobs initiative is focused on improving technical education and ensuring that people are equipped with the skills to secure high-quality jobs. It includes the introduction of T Levels, apprenticeships, and other technical qualifications to close skills gaps in industries such as healthcare, engineering, and the digital sector.
• Alignment with the Skills Imperative: Both initiatives seek to address the future skills gaps in critical sectors and ensure the workforce is prepared for high-skilled, high-demand jobs. The Industrial Strategy emphasises vocational and technical skills, highlighted as necessary in the Skills Imperative​.

4. Skills Builder Partnership

• Overview: The Skills Builder Partnership is a cross-sector initiative aimed at building essential employment skills like problem-solving, communication, creativity, and leadership from early education through to the workforce. The partnership works with schools, colleges, and employers to develop these skills in learners and workers.
• Alignment with the Skills Imperative: This initiative mirrors the Skills Imperative’s focus on transferable skills critical in a future workplace characterised by automation and digitalisation. It recognises that interpersonal and cognitive skills will be just as essential as technical abilities​​.

5. T Levels

• Overview: T Levels are new technical qualifications in England, designed as an alternative to A-levels and focused on providing students with practical skills in sectors like construction, digital, healthcare, and engineering. These two-year qualifications combine classroom learning with substantial industry placements.
• Alignment with the Skills Imperative: T Levels address the need for highly skilled workers in specific sectors, particularly those expected to grow in the coming years; this aligns with the Skills Imperative’s focus on preparing students for future employment through targeted skills development and hands-on experience​.

6. The Institute for Apprenticeships and Technical Education (IfATE)

• Overview: The Institute for Apprenticeships and Technical Education oversees developing and approving apprenticeships and technical education qualifications in England. It works closely with employers to ensure that the qualifications align with industry needs and prepare students for future roles.
• Alignment with the Skills Imperative: The IfATE initiative supports developing technical and vocational skills directly aligned with industry needs, particularly in fields that are growing or transforming due to technological advances; this corresponds to the emphasis on technical and employability skills in the Skills Imperative​.

7. The Gatsby Foundation’s Technical Education Programme

• Overview: The Gatsby Foundation supports initiatives to strengthen technical education in the UK, including improving STEM (Science, Technology, Engineering, and Mathematics) education, which is critical for future industries. The foundation works with policymakers, educators, and employers to ensure that technical education prepares students for the skills needed in emerging sectors.
• Alignment with the Skills Imperative: Gatsby’s focus on STEM and technical skills aligns closely with the Skills Imperative, highlighting the importance of equipping students with the technical knowledge necessary for industries expected to grow over the next decade​.

These initiatives, like the Skills Imperative 2035, recognise the evolving demands of the labour market and the need to equip future workers with a combination of technical and transferable skills. They collectively push for educational reforms, more flexible learning pathways, and stronger links between employers and academic institutions to ensure that the UK workforce is prepared for the challenges and opportunities of the future.

Common Themes Across Skills Initiatives

There are several common phrases and themes that consistently appear across these UK skills initiatives, reflecting shared goals in addressing the evolving labour market. These phrases highlight key priorities such as preparing for future jobs, lifelong learning, and developing essential skills.

Ten of the most common themes:

1. Essential Skills / Employability Skills

• Definition: These refer to transferable abilities like critical thinking, communication, problem-solving, and adaptability. Many initiatives focus on these as essential for success in a rapidly changing job market.
• Examples: The Skills Imperative 2035, Skills Builder Partnership, and T Levels all emphasise developing essential skills to complement technical competencies​​.

2. Lifelong Learning

• Definition: The concept of continually updating skills and knowledge throughout one’s career to adapt to changing job requirements and technologies.
• Examples: The Lifelong Learning Entitlement and the National Retraining Scheme stress the importance of flexible, ongoing education to help individuals stay relevant in the workforce​​.

3. Future of Work

• Definition: A focus on anticipating the needs of future industries, particularly regarding technological, environmental, and demographic shifts that will shape the job market.
• Examples: Both the Skills Imperative 2035 and the Jobs of the Future reports framing their objectives around preparing students and workers for the future of work​​.

4. Digital Skills

• Definition: The abilities required to use digital technologies effectively in various industries include proficiency in data analytics, AI, and digital communication.
• Examples: Initiatives like T Levels, Jisc’s Future Skills Plan, and the National Retraining Scheme highlight digital skills as essential for employability in future job markets​​​.

5. Green Economy

• Definition: Refers to jobs and skills required for environmentally sustainable industries, focusing on sectors such as renewable energy, sustainable construction, and environmental management.
• Examples: The Industrial Strategy and the Skills Imperative 2035 both recognise the importance of preparing workers for roles in the growing green economy​​.

6. Upskilling and Reskilling

• Definition: Upskilling refers to improving workers’ existing skills, while reskilling involves teaching them entirely new skills to move into different jobs or sectors.
• Examples: The National Retraining Scheme and Lifelong Learning Entitlement focus heavily on these concepts to help workers transition into new roles as industries evolve​​.

7. Technical Education

• Definition: Education focusing on practical, job-specific skills, often through vocational programmes like T Levels and apprenticeships.
• Examples: The Gatsby Foundation and IfATE are particularly focused on improving the quality of technical education to meet the demands of key sectors like engineering, construction, and healthcare​​.

8. Work-based Learning / Experiential Learning

• Definition: Hands-on learning experiences, such as internships, apprenticeships, and industry placements, that prepare students for real-world employment.
• Examples: Work-based learning is a key component of T Levels and various employability-focused initiatives within universities​​.

9. Industry Collaboration / Employer Engagement

• Definition: Educational institutions need to work closely with employers to ensure that training programmes align with industry needs and prepare students for actual job market demands.
• Examples: The Skills Imperative 2035 and initiatives like Skills for Jobs promote partnerships between employers and educational providers to align skills development with current and future labour market demands​​.

10. Transferable Skills

• Definition: Skills that can be applied across different job roles and sectors, such as communication, leadership, and teamwork.
• Examples: The Skills Builder Partnership and Skills Imperative highlight the importance of these skills in preparing for a future of work that may involve shifting between roles and industries​​.

Summary

The Skills Imperative 2035 and similar initiatives underline a shared recognition across the UK that the workforce must be prepared for a rapidly changing job market. HE providers play a critical role by reshaping curricula, integrating work-based learning, and aligning with industry needs. Initiatives such as the Lifelong Learning Entitlement and T Levels complement this by providing flexible learning paths and focusing on essential skills like creativity, problem-solving, and digital proficiency. Through these efforts, the UK can ensure its workforce is equipped to survive and thrive in the future economy, contributing to personal success and national growth.