Demand for skills in key occupations will increase by nearly 25% in the next 10 years, says Skills England in its first Annual Skills Report .
This landmark analysis reveals that up to 1.8 million extra workers will be needed to fill vital skills gaps particularly in growth areas such as AI and digital, engineering, clean energy and adult social care. It sets out plans to maximise employer investment in skills, respond to the accelerated adoption of AI, support young people’s employability and build a more responsive and locally integrated skills system.
To achieve these priorities, and to ensure training matches real jobs, the report calls for stronger partnerships between training providers, local leaders and government. It also recognises that different regions have different needs in terms of sustaining economic growth locally, so a one-size fits-all approach isn’t the solution.
This report follows the recent publication of the interim report into young people and work, which showed that nearly one million 16 to 24-year-olds are currently NEET – not in education, employment or training. Together these publications’ findings highlight the need for a more agile skills system which delivers quality jobs and works for SMEs as well as bigger businesses.
Phil Smith, Chair of Skills England, said the expected strong growth in priority jobs presented a huge opportunity for the UK, but to realise it, the skills gaps holding people and businesses back needed to be urgently addressed.
He added: “Employers – especially small and medium-sized businesses – also have a critical role to play in investing in apprenticeships, training and reskilling staff. I’m proud of what Skills England has achieved in its first year. This report sets out how we will work with partners across the system to tackle these long-term challenges and make sure people and businesses can thrive.”
And, commenting on its findings, Laura-Jane Rawlings MBE DL, CEO of Youth Employment UK, said Skills England’s first annual report had landed at ‘a critical moment.’
She added: “Young people are not short of aspiration, but too many are still locked out by unclear pathways, limited access to work experience, uneven local support and employers who often want to help but find the system difficult to navigate. A more responsive skills system must make it easier for employers, especially SMEs, to invest in young talent and to understand the practical steps they can take. Youth Employment UK welcomes Skills England’s focus on employability, employer engagement and place-based skills systems.”
As the leading learner management platform, we at Onefile applaud measures that will help apprentices and other learners acquire essential workplace knowledge and skills, now and into the future.
Promoting a partnership approach, we support training providers and employers to skill, upskill and reskill their people so that they are ready to meet ever changing economic needs.
And, thanks to more than 20 years’ experience of the sector – and 2.3milion users – we know that employers value the peace of mind that comes with using Onefile. Employers looking to invest in skills training can be put off by rigorous compliance, reporting and funding rules, but our Eportfolio and tracking tools, ensure they stay compliant while keeping learners engaged.
Smart, yet user-friendly, Onefile takes the legwork out of learner management – unlocking funding and removing what can be an obstacle to apprentice recruitment.
To learn more, contact us for a discovery call.
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Onefile Ltd is registered in England with company number 4404879. The registered office is: 6th Floor, Cornerblock, Quay Street, Manchester, M3 3HN. VAT Number 792825685. © Onefile Ltd 2026. All Rights Reserved.