A survey by the Recruitment and Employment Confederation (REC) highlights the urgency of prioritising workforce upskilling within the government’s “Invest 2035” industrial strategy. This ambitious 10-year plan aims to foster economic growth through high-quality, well-paid jobs.
According to the REC poll of 233 employers, 57% believe that skill development should be the government’s top priority. This is important since most of the workforce in 2035 is already employed today. Expanding vocational training pathways is also critical, with 41% of respondents emphasising its importance across the UK.
Digital training received strong backing in the South and London, particularly among larger firms with over 250 employees.
Fostering innovation and entrepreneurship is a key focus for 36% of employers nationally, rising to 60% in London. 30% of respondents highlighted the need for increased investment in STEM (science, technology, engineering, and maths) education, with stronger support in London, where 42% endorsed this area.
Addressing the recruitment challenge, 60% of employers cited skills shortages as their primary concern, a figure that climbs to 69% in the Midlands. Additionally, two-fifths of respondents expressed anxiety over the instability of the business tax environment, a worry that rises to 53% among London-based firms.
When considering international talent, 20% of employers felt it should be a government priority. Meanwhile, 36% of respondents pointed to insufficient support for SMEs and start-ups, particularly in the face of increasing regulation.
“Governments must work together on a more business-responsive approach to skills and deliver on the new Growth and Skills Levy so that employers can use funding more flexibly,” said Neil Carberry, REC chief executive.
The findings clearly indicate that substantial investment in skill-building and vocational training is essential for the UK’s industrial strategy to succeed.