Financial services, pharmaceuticals, petroleum, automotive, aerospace, telecommunications and other technological industries all play important roles in the UK economy. Nonetheless, skill shortages currently exist in sectors such as medicine, health, social work, science, secondary education teaching, IT/computing, engineering and certain other specialist, technical and arts occupations. The number of job roles requiring intermediate and higher skills and education is rising in the UK, and it is expected that it will become even more important to possess these specialist skills in the coming years to qualify for a more technologically advanced labour market.
Employment levels passed their pre-2014 financial crisis levels in 2013/14 and are expected to continue to rise. Most employment growth over the period to 2025 is projected to be in construction and in business and other services, with most job opportunities being for professionals.
In this period, the UK can expect to see an increase in demand for high- and low-skilled workers, whilst demand for medium-skilled workers declines. Meanwhile, the share of the UK’s labour force with high- and medium level qualifications is projected to increase, and the share of workers with low or no qualifications to decrease.
The working-age population (15-64) is forecast to grow in the period to 2025, with falling labour market participation. Looking to the future, United Kingdom is expected to have an old-age dependency ratio significantly lower than the EU28 average.