A workforce at a turning point
The UK’s workforce is at a pivotal moment. Economic inactivity, youth unemployment and rapid technological change - especially AI - are reshaping work, productivity and competitiveness. The transition provides significant opportunity for employers and employees but also risks widening existing skills gaps.
We bring together research, partnerships and practical insight on the future of work, skills and opportunity - with a particular focus on young people - to assess how the UK can build a workforce fit for the UK’s future. As one of the UK’s leading employers - particularly of early‑career talent - as a vanguard employer supporting the Government’s Keep Britain Working campaign and through our work with organisations across the country, we are turning insight into action by working closely with government and business.
Setting the scene
Key issues
"If we are serious about reducing economic inactivity and contributing to the Government’s ambition of economic growth, then we need joined-up action not only helping people back into work, but more importantly stemming the flow of people out of the work."
Economic inactivity remains one of the most significant barriers to UK growth, productivity and regional prosperity. Our Turning the tide on economic inactivity research highlights rising long‑term sickness and mental health conditions, caring pressures and the affordability of childcare are keeping people out of the labour market.
Addressing this requires coordinated, place‑based action that integrating health, employment and skills.
Our work with employers and local partners shows that inclusive job design, targeted reskilling and removing practical barriers can widen participation and help organisations access under‑utilised talent.
"Meeting this challenge is increasingly urgent, but there are roadmaps. If the rest of the UK matched Northern Ireland’s NEET levels, GDP could be boosted by around £13-26bn."
Youth unemployment and uneven NEET rates risk long‑term impact to earnings, progression and wellbeing. Transitions from education to work remain inconsistent, particularly for those with poor mental health, low confidence or limited access to work experience.
- Evidence we submitted to the NEET Review highlights clearer, reliable pathways into high‑quality jobs can be done through strengthening access to apprenticeships, paid placements and employer‑led programmes. This can accelerate progression and create a diverse and sustainable future talent pipeline.
- Our Youth Employment Index measures, benchmarks and monitors progress across countries in employing and training young people. Find out how young people in the UK fare versus others in the OECD.
"With the right investment in skills and inclusion, technology can open more doors than it closes. Helping young people build confidence with digital tools and technology is how we turn uncertainty into resilience and that’s what will really shape the UK’s future economy."
AI investment is accelerating across the UK, reshaping roles and opening new opportunities — yet workforce participation, especially among younger people, is heading in the opposite direction. Our Workforce Hopes and Fears Survey called for a radical rethinking across UK businesses to make sure all their people feel they have a role in the future of their work.
Building digital skills and strengthening the human skills - problem‑solving, adaptability, collaboration and good judgement - will matter most. Approaches such as apprenticeships, modular learning and practical on‑the‑job upskilling can help people feel confident and ready for change.
Our work with organisations across the UK shows responsible AI adoption matched with real investment in people, boosts productivity, supports inclusion and helps workers navigate technological change with confidence rather than concern.
Insights
Interviews with our people
Podcast
How to solve UK youth unemployment
This episode of The Business with The Times features our Chief People Officer Phillippa O'Connor and Government adviser Alan Milburn in a discussion on youth unemployment, the rising number of NEETs (not in employment, education or training) and first jobs. Drawing on research from the Social Market Foundation and PwC, they explore why British business must invest in entry-level talent, how industry leaders can help young people build a career, and what’s needed to keep young people out of long-term unemployment.
Podcast
Could an AI revolution keep Britain working?
In this episode of The Business from The Times, PwC UK Managing Partner Carol Stubbings joins Sir Charlie Mayfield (Lead Reviewer, Keep Britain Working) to discuss how artificial intelligence is reshaping the world of work, in a conversation hosted by The Sunday Times Associate Business Editor Hannah Prevett and The Times columnist Dominic O’Connell.
There is no single solution
Tackling inactivity requires coordinated, place-based action across health, skills and employment, supported by closer public and private sector collaboration.
System-wide change
Integrated health and employment support, better job design, flexible working, and reduced barriers such as childcare and transport.
Local delivery
Combining services, scaling proven pilots, expanding childcare provision and supporting hybrid work and wellbeing.
Stronger pathways into work
More high-quality apprenticeships, employer led placements and paid work experience, with targeted support for vulnerable young people.
Employer leadership
Widening talent pools, investing in reskilling and apprenticeships, and embedding inclusive, flexible roles. Clear AI adoption strategies that involve employees through evolution.
Skills priorities
Targeted AI, data and digital upskilling; apprenticeships and micro credentials; and support for career transitions. Education and training should be codesigned with employers and aligned to local labour demand.
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