This morning, @alex_luke_ and I publish our latest research report of the @ukonward #GettingtoZero programme, Qualifying for the race to net zero.
The report assesses the labour market challenge of net zero and suggests a nine-point plan to plug the skills gap.
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The report assesses the labour market challenge of net zero and suggests a nine-point plan to plug the skills gap.
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The UK is lacking in the two key skills demands of net zero: high-level STEM skills and medium level technical skills.
We find that 32.1% hold degrees, of which more than 56% are in STEM subjects. 30% of net zero workers currently have qualifications no higher than Level 3. 2/
We find that 32.1% hold degrees, of which more than 56% are in STEM subjects. 30% of net zero workers currently have qualifications no higher than Level 3. 2/
Our lagging high-level STEM skills.
The UK has 30th highest proportion of engineering, manufacturing and construction graduates (9%) out of countries in the OECD. Conversely, the UK has the third highest proportion of Humanities, Languages and Arts degrees (16%).
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The UK has 30th highest proportion of engineering, manufacturing and construction graduates (9%) out of countries in the OECD. Conversely, the UK has the third highest proportion of Humanities, Languages and Arts degrees (16%).
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Our lagging technical skills, especially in STEM subjects
Since 2012, the number of vocational qualification certificates awarded has fallen by 33%. The number of certificates awarded has fallen in key subject areas for net zero such as Science and Engineering.
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Since 2012, the number of vocational qualification certificates awarded has fallen by 33%. The number of certificates awarded has fallen in key subject areas for net zero such as Science and Engineering.
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Net zero jobs mean good quality jobs
For every £1 earnt in a carbon-intensive industry, £1.30 is made in a net zero industry. The average wage in a net zero job is a fifth (18%) higher than the national average. 5/
For every £1 earnt in a carbon-intensive industry, £1.30 is made in a net zero industry. The average wage in a net zero job is a fifth (18%) higher than the national average. 5/
The net zero workforce will be male dominated without intervention.
Nationally, the workforce across all industries is around 53% male and 47% female. However, in net zero industries, approximately 82% of employees are male and just 18% are female. 6/
Nationally, the workforce across all industries is around 53% male and 47% female. However, in net zero industries, approximately 82% of employees are male and just 18% are female. 6/
There is a large net zero skills gap.
The average occupational skill level of an employee in the UK is 2.74. Among net zero industries specifically, the average is 3.19, around 26% higher, demonstrating the considerable upskilling requirement inherent in net zero.
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The average occupational skill level of an employee in the UK is 2.74. Among net zero industries specifically, the average is 3.19, around 26% higher, demonstrating the considerable upskilling requirement inherent in net zero.
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The size of this skills gap varies considerably by region.
Scotland, the North West and the East Midlands suffer from the most acute skills gaps, as these regions have particularly low average skill levels of 2.56, 2.57 and 2.58 respectively.
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Scotland, the North West and the East Midlands suffer from the most acute skills gaps, as these regions have particularly low average skill levels of 2.56, 2.57 and 2.58 respectively.
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This analysis highlights a number of "low-skill high-risk" areas.
These are areas with high reliance on carbon-intensive industry, twinned with a low-average skill level.
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These are areas with high reliance on carbon-intensive industry, twinned with a low-average skill level.
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And regions which are "high-skill low-wage".
These are the places which are underpaid relative to their average skill level, so could present potential commercial opportunities for prospective net zero industries.
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These are the places which are underpaid relative to their average skill level, so could present potential commercial opportunities for prospective net zero industries.
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And regions with a high-level of abatement opportunity and skill level.
These regions have the right skill level for net zero and the highest abatement potential by 2050. These are very much the "ones to watch" as we gear up towards 2050.
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These regions have the right skill level for net zero and the highest abatement potential by 2050. These are very much the "ones to watch" as we gear up towards 2050.
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And regions with low average skill level and high retrofit opportunity.
These are the regions which have a high potential for jobs in building efficiency and retrofit.
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These are the regions which have a high potential for jobs in building efficiency and retrofit.
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Overall there are over 3.2 million jobs in need of upskilling in the UK. These are widespread across the country.
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Conservative seats have on average a marginally higher proportion of jobs requiring upskilling than Labour.
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To help upskill the nation and plug the skills gap, we put forward nine recommendations for Government. Here are three of my favourite ones:
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We need a bold and practical skills policy package to correct our course. If we get this right, it will not just put us on track for net zero by the year 2050, but it will provide new, quality, well-paid jobs for people all across the UK.
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