Eit Deep Tech Talent Initiative Pledger, Generation UK, supported by JP Morgan, recently commissioned the Learning & Work Institute to undertake the necessary research to better understand the best ways to enable people from all backgrounds to develop skills to progress into digital and tech jobs. This recently published report highlights that, despite the tech sector being key in driving productivity and improved living standards, there are clear digital and tech skills gaps at a national level, with many employers reporting significant shortages.
Focusing specifically on evidence from England and Scotland, on people from lower-socio-economic backgrounds and with lower qualification levels, and including people in low paid work, underemployed or unemployed, the research aimed to:
- Understand the digital and tech employment gap
- Highlight which programmes and skilling pathways are most effective in enabling people from disadvantaged backgrounds to progress into digital and tech jobs, and why
- Make the case for investing in programmes that are most effective in achieving social mobility outcomes
Evidence was gathered from a poll of 490 employers and 1,979 adults, a desktop evidence review, secondary data analysis and qualitative research with a range of policymakers, training providers and employers.
Understanding the digital and tech employment gap
Overall, research with employers consistently shows that labour market skills shortages and workforce skills gaps are most acute in relation to digital skills. For instance, Forbes’ IT Skills Gap report found that 93% of businesses have an IT skills gap [1], while research by Lloyds Bank shows that 68% of employees are unable to complete one or more of the basic digital tasks considered necessary for effective participation in work under the UK’s Essential Digital Skills Framework [2]. Not only does the digital skills gap, according to a 2022 study by the UK’s Department for Digital, Culture, Media and Sport (2022), reportedly cost the UK economy almost £63 billion every year [3], with that figure set to rise, but there are significant impacts at an individual level for people struggling to enter the labour market or to advance their careers because they lack essential digital skills.
The Learning & Work Institute’s research for Generation, included running an employer poll that revealed half of employers (49%) are struggling to hire staff with the digital/tech skills that they need. Digital and tech skills shortages are a particular concern given there are over 40,000 vacancies that require digital and tech expertise. The employer poll also found that nine in ten (89%) employers reported that more of their roles will require employees to have digital and tech skills in the future. Digital skills shortages are a challenge at all levels and across functions but are particularly pronounced at senior levels and in leadership and management roles.
However, when it comes to hiring digital and tech roles, employers tend to stick to traditional hiring routes and mainly hire people with degrees. This means, they are missing out on the talents of people from more diverse and disadvantaged backgrounds who are under-represented in tech. At a time when a shortage of skilled digital and tech workers is holding back economic expansion, it is crucial that people from all backgrounds have opportunities to develop skills for these vital roles.
The most effective skilling pathways to enable people from disadvantaged backgrounds
Analysis of Department for Education (DfE) data, polling data and qualitative insights assessed the success of different digital and tech skills training programmes, which offer an alternative to traditional Higher Education and degree programmes. The report indicated that while there is limited data available around how successful these programmes are at delivering positive outcomes, such as employment or progression into more advanced training, different stakeholders identified a range of benefits of current programmes in supporting people from disadvantaged groups.
- Apprenticeships: While many employers agree that apprenticeships are effective in enabling people from non-traditional backgrounds to step into digital and tech jobs, many digital/tech apprenticeships start at Level 3. This requires candidates to have previous qualifications, which was felt to be a further barrier. For example, a combined authority stakeholder identified low levels of attainment in English and maths as a barrier to participation in apprenticeships for many young people. Consequently, policy stakeholders reflected that creating more effective digital skills training pathways into Level 3 is critical in improving opportunities for people from disadvantaged groups in digital/tech roles, for example, this could include pre-apprenticeship programmes or Level 2 ICT FE provision. DfE data shows that there are currently a very small number of Level 2 ICT apprenticeships, with the majority offered at Level 3 and Level 4. Stakeholders advocated offering more Level 2 apprenticeships in ICT, with fewer barriers to entry, to attract more people from disadvantaged backgrounds to enter digital and tech careers.
- Bootcamps: Bootcamps are short-term, flexible programs designed to provide rapid upskilling or reskilling, enabling participants to access jobs at Level 3 or higher. They benefit employers by addressing evolving skills needs, allowing for quick recruitment of workers equipped for fast-paced sectors, particularly those with emerging technologies. Those aimed at disadvantaged groups often include intensive one-on-one support to overcome barriers to employment and achieve positive outcomes. While these programs effectively prepare participants with specific skills for targeted roles, disadvantaged learners may struggle to compete with more experienced candidates.
- Further Education ICT provision is more effective than most other types of training at reaching people that are underrepresented in digital/tech occupations, suggesting that there are fewer barriers to entry. For example, these courses tend to have lower educational entry requirements and are often fully funded for learners. While this provision is successful at targeting people from disadvantaged groups, there is some evidence that it is less likely to result in immediate employment outcomes as courses are often a stepping stone on to more advanced or specialised training or equip people with essential digital skills rather than being a direct pathway into a job in tech.
During the research, stakeholders also discussed the features of specific digital/ and tech skills training programmes that they perceive as making a difference in delivering positive outcomes for people from non-traditional groups, such as:
- Contextualised Learning
- Outreach
- Learner Support
- Flexibility in Provision
Creating more inclusive digital/tech skills training
Findings from the research indicate that action to improve access to digital and tech skills training, jobs and careers should be a priority for governments and employers, to ensure that more people can develop the digital skills needed to address skills gaps, boost economic growth and improve social mobility.
To improve social mobility and increase the pool of skilled labour, stakeholders also highlighted a need for increased focus on digital and skills training provision for people from disadvantaged groups who are in work, as well as for those not working and further away from the labour market.
However, findings from this and wider research show that people from disadvantaged groups have lower levels of awareness and negative perceptions of digital/tech that can lead them to think that ‘tech jobs aren’t for me’. This suggests a need for action to ensure that people from all backgrounds have access to appropriate information and guidance on the digital and tech jobs available, what skills they have and can bring to these roles, and how to get there.
References
[1] Forbes (2023) The 2023 IT Skills Gap Report – Forbes Advisor UK
[2] Lloyds Bank (2021) Lloyds Essential Digital Skills Report 2021 (lloydsbank.com)
[3] Department for Digital, Culture, Media and Sport (2022) New Digital Strategy to make UK a global tech superpower – GOV.UK (www.gov.uk)
[4] Data for skills bootcamps is on a financial year basis (April-March), whereas for FE and apprenticeships it is for the academic year (August to July)
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