The UK’s Employability Skills Crisis

Supporting young people and employers to develop the essential skills for success

14 September 2026

At City & Guilds, we design programmes not simply to deliver qualifications, but to support the development of the skills, behaviours and experiences that enable people to progress confidently into work, further training or new responsibilities.

And, with more than one million young people in the UK currently NEET (not in employment, education, or training)* the case for vocational educational has never been more compelling.

Our latest report, ‘Counting the cost: The UK’s Employability Skills Crisis’, reveals a deepening employability skills emergency. UK businesses are now struggling to find candidates with face-to-face communication, problem solving, and effective time management skills, while young people face barriers to gaining these sought-after skills - with consequences that are already visible:

  • More than 1 in 3 employers say a lack of employability skills is holding back productivity – while 69% believe AI-powered applicant screening tools prioritise technical skills over these more human capabilities
  • Employers report operational errors and delays, increased staff turnover and low morale, lower efficiency, and poor customer service as a direct result of this skills shortage.
  • 51% of 18 to 24-year-olds worry that AI will reduce job opportunities for people their age
  • Apprentices are the most likely of any group to feel completely confident in face-to-face communication skills

Andy Moss, Interim Chief Executive Officer of City & Guilds, said:

“Employers are telling us loud and clear that employability skills – the ability to communicate, solve problems and manage time well – matter just as much as technical know-how, if not more. Yet at the exact moment these skills are most in demand, we’re seeing a growing human skills shortage, made worse by AI-powered recruitment tools that can filter out exactly the candidates businesses need most. Our findings reinforce what employers have long recognised: apprenticeships and vocational training are highly effective routes to developing the employability skills businesses are crying out for, combining practical experience with the communication, problem-solving and teamwork capabilities that are critical for success in today’s workplace.” 

Read the report