Trend Skills shortages and mismatches rising with technological and demographic change

Summary

Skills shortages arise when employers cannot find candidates with the skills a job requires, while skills mismatches occur when workers' skills do not fit the needs of a role. The report sees technological, social and economic change driving both problems up in the UK. As digitisation, artificial intelligence and the shift to net zero rapidly reshape the economy, some workers' skills are becoming obsolete and they need retraining to stay in the labour market. The ageing population is another cause, raising demand for health and social care while shrinking the share of people of working age. The report judges that shortages and mismatches reduce productivity, limit growth and also hit essential public services.