Too many employers continue to use generic qualifications for candidate selection, which reduces employment opportunities and contributes to the ongoing skills shortage
The following contribution comes from the CIPD website, which defines itself as: Promoting better work and a better working life.
This has been our purpose since our founding in 1913 by a group of people responsible for the well-being of factory workers. We remain true to our purpose because we know that organizations thrive when they prioritize people. And because thriving, responsible organizations lead to stronger economies and societies.
This article is based on recent CIPD research.
The CIPD is urging employers to think strategically about their workforce requirements in a new report.
A new CIPD study highlights that the majority of employers (57%) still primarily look for degrees or postgraduate qualifications when recruiting. While a qualification is a requirement for certain occupations and roles, the CIPD warns that, all too often, employers base their recruitment decisions on qualifications, regardless of their relevance. By doing so, the CIPD warns that employers may be missing out on key talent, exacerbating skills shortages and reducing employment opportunities.
It urges employers to carefully consider whether a qualification is required for roles when recruiting
and to invest in diverse vocational training options to enhance the skills of existing staff. This appeal comes at a time when the UK is facing a challenging labor market and businesses are struggling to find the skills they need among candidates and within their own workforce.
The CIPD, the professional body for human resources. A study on skills and workforce development surveyed over 2,000 senior managers and found that:
Only 32% of employers have conducted strategic workforce planning in the past 12 months.
64% of employers believe that at least some of their employees lack some of the skills needed to perform their jobs effectively.
The skills employers find most difficult to find in job applicants are, overwhelmingly, technical skills (according to 68%).
Most employers look for specific qualifications when hiring, while only 24% do not.
More than half of employers (57%) look for undergraduate or postgraduate degrees in job applicants. While some positions require a degree, for others this is often just a way to filter through large volumes of applications and can disadvantage job seekers with relevant experience but not specific qualifications.
Being able to acquire technical skills
46% of employers in England have heard of T-levels, which offer a vocational pathway for young people to acquire technical skills.
Despite the continued focus on qualifications, a third of employers (33%) agreed that university/higher education graduates are fairly or very poorly prepared for the world of work, and those finishing school and university are even less so.
Lizzie Crowley, skills advisor at the CIPD, stated:
«Employers need to stop thinking that generic university degrees are always the best indicator of a person’s employment potential. They believe they are acquiring prefabricated skills rather than assessing the specific skills required for roles, and then they wonder why they continue to have skills gaps.
More employers need to adopt a strategic approach to skills to understand current and future needs. This involves valuing a wider range of experience and qualifications when recruiting for jobs and understanding all the training and development options available to employers to enhance the skills of existing staff.»
CIPD research also suggests that many employers are unaware of the training opportunities available
at higher education (HE) or continuing education (CE) institutions. Only one-fifth (19%) currently access external training at CE centers, and one in four (25%) turn to universities or other HE institutions. Among those who did not receive training from these centers, three in ten (29%) said they did not know why they were not accessing training from these providers. The CIPD warns that this disconnect represents a significant obstacle to the Government’s vision of a revitalized, employer-focused university sector and its broader goal of a high-skills, high-wage economy.
Crowley continues: “Very few employers engage with EF institutions, and their awareness of the Government’s technical education reforms and new vocational training pathways remains low. For the Government’s reforms to succeed, it is urgent to raise awareness and share examples of the positive impact that higher education institutions can have on developing workplace skills.”
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Is it worth studying for a postgraduate degree in the UK?
The following contribution comes from the IES (Institute for Employment Studies) website, which defines itself as follows: The mission of the IES is to contribute to the sustainable improvement of employment policies and human resource management.
We achieve this objective by fostering understanding and improving the practices of key decision-makers in policymaking bodies and employer organizations.
The author is Helena Sáenz de Juano Ribes, Research Economist (Fellow).
The UK is world-renowned for its prestigious universities, such as the University of Oxford and the University of Cambridge, which attract thousands of international students each year. Many of these students pursue postgraduate studies such as master’s degrees, MBAs, and doctorates, drawn by the promise of a world-class education.
According to a recent publication by Universities UK (UUK), higher education contributes an astounding £130 billion to the UK economy. The University of Cambridge alone contributes almost £30 billion and generates 86,000 jobs, while the University of Oxford adds £15.7 billion and 28,000 jobs.
Despite this impressive academic infrastructure for academic excellence and intellectual development, a crucial question arises: does postgraduate education in the UK translate into better job prospects in the country?
Postgraduate Degrees vs. Labor Market Demands
There is a significant disconnect between the degrees offered by British universities and the demands of the British labor market. Data from the Adzuna Intelligence Portal indicates that less than 5% of job offers in the UK require postgraduate qualifications, such as master’s or doctoral degrees.
In contrast, a bachelor’s degree is required for approximately 30% of positions, while 65% of job offers require lower academic qualifications.
Breakdown of job demand by sector for fiscal year 2023/2024, published on the Adzuna Intelligence portal:
Postgraduate degrees (Master’s and PhDs) are the most sought after in:
Professional, scientific, and technical activities (with a total of 16,746 Master’s positions, 12,194 PhD positions, and 2,414 MBA positions).
Education (with a total of 10,878 PhD positions and 2,119 Master’s positions).
Accommodation and food services (with a total of 8,565 positions requiring a Master’s degree).
Financial and insurance activities (with a total of 1,998 vacancies requiring an MBA).
Bachelor’s degrees predominate in:
Professional, scientific, and technical activities (33,737).
Financial and insurance activities (17,830).
Information and communication (13,763).
Accommodation and food services (with a total of 8,565 positions requiring a Master’s degree). This suggests that while advanced degrees are valuable in specialized fields, the overall labor market is likely to prioritize practical experience, vocational skills, and specific certifications over postgraduate education.
Experience vs. Education
The emphasis on practical experience is evident in labor demand data. Sectors such as wholesale, retail, trade, healthcare, and hospitality—the industries with the highest demand in fiscal year 2023/2024—typically prioritize practical skills over academic credentials.
Surprisingly, 90% of the job postings collected do not specify experience requirements.
Among those that do, less than 1% require more than six years of experience, although demand for candidates with three to five years of experience has increased compared to those with less than two years.
Using the Adzuna Intelligence portal, we can assess the relationship between education and years of experience with average salaries offered during the 2023/24 fiscal year.
The first thing to highlight is that higher education offers financial rewards, but these benefits are nuanced. Average salaries reveal that a master’s degree generally increases earning potential.
However, a doctorate only surpasses master’s salaries in positions requiring more than six years of experience, a category that represents less than 1% of total demand.
An MBA, on the other hand, typically offers the highest salary premium, especially in management positions.
Another approach to better understanding the level of experience required for the most in-demand jobs in the UK is to evaluate data from the Adzuna Intelligence portal, which distinguishes by seniority level.
Similarly, regarding years of experience, approximately 80% of job postings do not specify seniority. Among the specific positions, junior and senior roles are the most common, representing 10% and 11% of job postings, respectively. Furthermore, following COVID-19, junior positions have shown steady growth, which could reflect a shift in market needs.
In addition, when examining average salaries for the 2023/2024 fiscal year by seniority level, we observe once again that holding postgraduate degrees compensates for lower overall salaries. Data on average salaries by seniority further underscores the financial benefits of postgraduate training. For many positions, the additional years of research and experience gained through a PhD increase earning potential, although master’s degrees, particularly MBAs, remain highly competitive for senior roles.
The Talent Retention Dilemma
Thanks to its strong academic reputation, the UK attracts a significant number of international postgraduate students. HESA data for the 2022/2023 academic year highlights 455,780 international students enrolled in postgraduate programs, compared to 426,515 UK postgraduate students.
In total, 758,855 international students enrolled in UK universities, compared to 2,175,530 British citizens. While international students contribute to the UK’s academic and economic ecosystem, many face barriers upon graduation, such as a job market that undervalues their qualifications and restrictive visa policies. As a result, this highly skilled talent often migrates to other countries that better recognize their qualifications.
Socioeconomic barriers
The underrepresentation of UK citizens in postgraduate programs may be due to socioeconomic barriers.
According to the Institute for Employment Studies, fewer than one in five young people from lower socioeconomic backgrounds pursue further education. This inequality limits the pool of domestic talent for advanced degrees, leading to a reliance on international students and failing to fully leverage local potential.
Is it worth it?
Postgraduate education in the UK offers clear advantages in specialized fields and certain roles, particularly those requiring advanced experience or specific qualifications, such as an MBA.
However, the labor market generally prioritizes experience and practical skills over academic credentials, limiting the immediate value of advanced degrees for many graduates. For international students, the challenge lies not only in finding positions that match their qualifications but also in navigating complex visa requirements.
Meanwhile, socioeconomic barriers prevent many British citizens from accessing postgraduate opportunities, exacerbating talent retention issues. For postgraduate education in the UK to be truly cost-effective, a more cohesive strategy is needed to align academic output with market demands, promote equitable access to higher education, and create pathways to retain national and international talent in the labor market.
After All
Projections of Jobs, Education, and Training Requirements through 2031
The following contribution comes from the Georgetown University portal (Center on Education and the Workforce).
Authorship by the team
By 2031, 72% of jobs in the U.S. will require post-secondary education and/or training. Between 2021 and 2031, there will be an average of 18.5 million job openings per year, and approximately 12.5 million of these annualized openings will require at least some level of college education.
After All: Projections of Jobs, Education, and Training Requirements through 2031 includes a national summary of job projections and their educational requirements across different industries, occupational groups, and detailed occupational groups. These latest projections demonstrate the central role that post-secondary education plays in preparing the workforce of the future.
Source: Georgetown University Center for Education and Workforce Forecast, based on data from the U.S. Census Bureau and Bureau of Labor Statistics, Current Population Survey (CPS); U.S. Census Bureau, American Community Survey (ACS); U.S. Bureau of Labor Statistics; IHS Markit; Lightcast; and U.S. Census Bureau and Bureau of Labor Statistics, Current Population Survey (CPS), 1983.
*Note: Prior to 1992, the education variable in the Current Population Survey was identified as years of schooling. Therefore, we cannot differentiate between «some college or certificate» and «associate’s degree» in those years.
Column sums may not equal 100% due to rounding.
The sum of the columns may not be 100% due to rounding.
A Bifurcated Economy
Increasingly, the workforce is splitting into two economies: the managerial and professional economy, in which the majority of workers have post-secondary education, and the manual and skilled trades economy, in which slightly more than half of the workers have a college education.
Managerial and Professional Economy
The managerial and professional economy comprises five occupational groups: science, technology, engineering, and mathematics (STEM) and social sciences; education; health professionals and technicians; community services and arts; and administration and office. Between 2021 and 2031, in these occupational groups, 95% of total job openings will require at least a post-secondary level of education.
Manual and Skilled Trades Economy
The manual and skilled trades economy comprises the following four occupational groups: sales and administrative support, healthcare support, personal and food services, and manual labor. Between 2021 and 2031, in these occupational groups, 42% of total job openings will be available to workers with a high school diploma or lower.
Source: Georgetown University Center for Education and Workforce Forecast, based on data from the U.S. Census Bureau and Bureau of Labor Statistics, Current Population Survey (CPS); U.S. Census Bureau, American Community Survey (ACS); U.S. Bureau of Labor Statistics; IHS Markit LLC; and Lightcast.
Note: Column sums may not equal 100% due to rounding.
Employment Projections Through 2031 by Occupation
High-growth industries require workers with disproportionately higher levels of education compared to lower-growth industries. Between 2021 and 2031, all industries are expected to experience employment growth, but health care services, professional and business services, government and public education services, and leisure and hospitality services are projected to grow the most.
The educational concentrations required for job openings from 2021 to 2031 in each education
