Digital skills shortages are becoming urgent. The UK’s relatively low ranking in the global skills table highlights the need for the UK to update skill sets nationally
In the 1970s, the UK was sometimes referred to as the ‘sick man of Europe,’ an unkind term, but it reflected the country’s poor economic performance compared to the Continent. Fifty years later, the ‘70s moniker threatens to reemerge, as the UK’s digital skills shortage and sluggish economy hampers the country’s potential.
The British economy grew just 0.1 percent in the first three months of this year; the little growth there was, was partly driven by the information and communications services industries, which includes computer programming and consultancy. By contrast, Germany’s economy grew by 6% during the same period and the Eurozone as a whole outperformed the UK.
The UK is ranked 64th globally in skills development
Coursera’s Global Skills Report 2023 also unearthed the digital skills gap the UK faces when preparing for the future of work. Analysing the career readiness of over 124 million learners worldwide, the report identifies leaders in business, technology and data science skills proficiency among 100 countries supported by Coursera.
The study ranked the UK 64th globally in skills development, behind the Dominican Republic and Bolivia, down from 38th place in 2022.
The top three countries were Switzerland, Spain and Germany, with Europe ranking second globally for technology and data science. Compared to other regions, European learners are more likely to invest in data science skills, including artificial neural networks and deep learning, supporting the emerging AI market.
Learners in Europe also show a strong interest in business skills, including innovation
By contrast, UK learners were more likely than others to take courses teaching entrepreneurship, scoring well in business skills, notably human resources and marketing. Learners scored competitively in technology skills such as web development, yet it was found UK leaders could further invest in software engineering.
Though showing positive signs in their skills development, the UK’s relatively low ranking in the table highlights the need for the UK to update skill sets. In particular, the nation’s Emerging categorisation for Technology skills – 31% – is of particular concern in an economy increasingly driven by rapid technological development and automation.
The global digital economy is predicted to grow from 66 million jobs today to 190 million by 2025, and these jobs are likely to be found in data analysis, artificial intelligence, machine learning, big data, digital marketing and strategy, and process automation.
Within the Technology domain, key areas in which British learners perform particularly poorly, relative to their global peers, include Software Engineering (23%), Mobile Development (26%), Security Engineering (33%), and Computer Programming (41%).
The pressing need for digital literacy in Britain is also recognised by the UK government
Its 2021 Quantifying the Data Skills Gap Report reported just under half of UK companies struggling to recruit for data roles over the previous two years, with a limited supply of graduates with specialist data skills from universities.
Half of all workers surveyed reported they had not received data skills training within the last two years despite having an interest in digital training.
This is also reflected in the Data Science domain in this year’s Global Skills Report, with UK performance indifferent for key data science skills including Statistical Programming (45%), Data Management (49%), and Data Analysis (55%).
How did education standards get here?
Educational reform in the late 1980s and early 1990s brought curriculum uniformity and accountability to schools, yet the country remained uncertain about what to do about higher education.
Expensive fees were incurred for a range of degrees, regardless of market demand for the skills they taught. Meanwhile, vocational education was not generously subsidised or updated.
For too long, vocational education was considered to be on a tier below academia, and a disconnect emerged between education and business. Employees throughout the 2000s would express concern about entry level hires lacking adequate numeracy and literacy for the workplace, and now we see the same disconnect as the world shifts towards the digital economy.
What can be done to improve access to digital skills training?
It’s time to close the gap between business and education by making education more relevant, flexible, affordable, and accessible. It must be tailored to the high-growth areas of the labour market, and to the most urgent digital skills shortages.
It must also make use of non-traditional delivery modes, such as online learning and digital technologies to make education more immersive and interactive. Above all, governments and businesses must act on the link between digital skills and GDP, by supporting skills training.
The combined average GDP per capita of countries where learners have demonstrated cutting-edge proficiency scores is four times higher than that of countries where learners are falling behind in skills proficiencies.
Embrace online learning
Online learning can be more affordable and accessible than traditional methods. Through online delivery, educational providers have lower overheads and courses can be provided at little or no cost. For students, there are no additional expenses like commuting or accommodation, expenses often tied to conventional apprenticeships.
Online tutoring can also fit into everyday work routines, which helps digital skills to be continually updated, essential for an evolving digital world. Access to high-quality, job-focused online education creates social and economic mobility and 91% of learners in the Coursera skills report career benefits from enrolling in a Coursera training program.
Embrace digital and AI
Almost everyone will need AI proficiency in the future. Up to 49% of workers could have half or more of their tasks impacted by language models like those that power ChatGPT. A survey of UK employers has found that 67% of respondents believe it will be important for candidates to have AI skills, experience, or qualifications.
Learners without postgraduate degrees are already investing in the foundational skills needed to work with AI, and business leaders should continue investing in foundational AI-related skills training across their workforces.
Reconsider qualifications
While traditional degrees will continue to be valued by employers, non-traditional vocational qualifications are growing in importance. Demand for Coursera Professional Certificates, a type of microcredential in specific skills, has risen by 24% year-on-year in the UK. Microcredentials are also effective in preparing talent for new careers, and are considered valuable by 76% of employers.
Accordingly, the Ministry of Science and Education in the Republic of Kazakhstan, for example, launched a nationwide initiative to prepare 20,000 students across 25 public universities for the digital economy by embedding over 600 career credentials into degree programs.
Investment in digital skills will be key
Businesses, governments, institutions, and other education providers can achieve more together when their skills provision is aligned. Pairing online learning with traditional apprenticeships, we can create a more holistic, flexible, and responsive system.
This integrated approach can enable more tailored, sector-specific training – encompassing digital, data and business skills. This would benefit employers seeking to meet changing skills requirements and apprentices who require greater flexibility to learn in accordance with their circumstances.
Businesses, government, and higher education leaders investing in the skills also invest in greater economic advantages through employment. Investment in digital skills will be key.
This is understood by the European Commission, which plans to ensure that 70% of adults have basic digital skills by 2025. The UK must make similar commitments to digital literacy. Combined with the versatility of online learning, vocational skills training will underpin the UK’s readiness for a thriving digital future.
This piece was written and provided by Hadi Moussa, Managing Director EMEA, Coursera.
