Report

Skills for the future: Demand for and supply of high-skilled labour across England

This report from UK think tank City-REDI finds that high-level skills mismatches differ significantly by area and that policy responses should reflect local differences in demand.

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.