Skills for the Future: Demand for and Supply of High-Skilled Labour Across England

This study maps employer demand for higher-level qualifications (at Regulated Qualifications Framework (RQF) Level 4 and above), the supply of residents with these qualifications, and the resulting demand-supply gaps across England’s 38 Local Skills Improvement Plan (LSIP) areas (as defined in 2023). It combines online vacancy data and official labour market sources to examine patterns of higher-level skills demand, supply and mismatches across places. By combining spatial analysis, correlation evidence and econometric modelling, the analysis identifies structural factors associated with local demand-supply gaps and highlights the importance of place-based skills policies.

The findings show that high-level skills mismatches differ significantly by area and that policy responses should reflect local differences in demand, supply and labour market structure. LSIPs provide a framework to coordinate these actions locally. In high-demand areas, there is a need to expand higher-level pathways and graduate retention. In low-demand and low-supply areas, skills policy could connect more closely with local growth strategies, business support and sector development.

This research is for the Local Policy Innovation Partnership (LPIP) Hub which seeks to address nationwide issues through local partnerships and place.

By working with local LPIPs, the Hub aims to understand and solve local challenges around the UK through an innovative and effective service-driven approach to place-based policy-making and public service delivery. The LPIP Hub is designed to lead to a step-change in the quality and impact of the evidence created by universities and their local place partners.

The Hub has £3.6 million from the Economic and Social Research Council (ESRC), Arts and Humanities Research Council (AHRC), and Innovate UK. It is a national consortium, led by the University of Birmingham, convening stakeholders across the research and policy ecosystem.