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Skills & Occupational Development in a Dynamic Labour Market: 30 April 2026

Skills & Occupational Development in a Dynamic Labour Market

30 April 2026

Lack of a unanimous definition and classification around skills in the UK limits communication, action and analysis of skills-related information in a shifting labour market, with recent research demonstrating

Launching the Classification

On 30 April 2026, the UK Standard Skills Classification was launched, following critical research completed over a two-year period by researchers from the 91福利鈥檚 Institute for Employment Research (IER) and partnering organisations. A critical intervention in a dynamic labour market, the Skills Classification provides a common language that brings together, defines and streamlines skills for occupational development in the UK.

Commissioned by , development of the Skills Classification was led by Professor Peter Elias CBE and Dr Jeisson Cardenas-Rubio (IER, 91福利), (University of Sheffield), and Neil Bachelor (, a not-for-profit job-matching service), with operational delivery by the IER鈥檚 Rosie Day, Luke Bosworth, Stefanie Poole and Lynne Marston. The launch at The Shard brought together stakeholders from academic, research, policy, impact, and financial sectors, highlighting the widescale applicability of this model.

Uncertainties around Skills

Demonstrating simultaneous significance and uncertainty around skills, Dr Hollie Chandler, Director of Policy at the , shares that 鈥榮kills鈥 are mentioned over 400 times in the recent government white paper yet, coincidentally, remain undefined. Further, rapid advancements in AI and other communication technologies are changing the nature of many occupations. Well-established occupations 鈥 from farming to finance 鈥 are adapting to these mass shifts to optimise their performance and delivery, while skills-based experiences through education and training remain rooted in traditional understandings of the occupations and often do not reflect this rapid digital change. Cumulatively, this can misalign (prospective) employers and employees and, as the skills gap grows, this leaves people underprepared in a landscape of labour precarity. In response to this crisis and longstanding ambiguity around occupational requirements, the Skills Classification offers a hierarchical framework and lists of standardised skills, knowledge and tasks needed across diverse sectors in the UK.

Phil Smith CBE, Chair of Skills England, advocates adoption of the Skills Classification as a forward-looking tool that helps people navigate their own pathways鈥. By standardising skills language and offering 鈥 a free online tool for mapping skills 鈥 it supports occupational development through clarity, consistency and accessibility. Through 22 skill domains, 106 skill areas, 607 skill groups, 3,350 occupational skills comprising 13 core skills and 5,056 knowledge categories, and 22,583 occupational tasks, the Skills Classification has potential for significant impact for users of diverse backgrounds.

The Need for a Skills Framework

To illustrate the need for, and purpose of, the Skills Classification, Claire Tunley, CEO of , uses a simple analogy: cake. She explains that occupational titles 鈥 despite being aligned to industry-benchmarked 鈥 can function as broad, sometimes imprecise labels. When employers state they want 鈥渃ake鈥 鈥 for instance, a Data Analyst 鈥 the job title and loosely defined skillset may elicit gaps between individuals鈥 training and experience and employers鈥 needs. As Tunley points out, many things qualify as cake 鈥 a Victoria sponge, a vanilla traybake or chocolate lava cake 鈥 but missing clarity on ingredients, flavours or occasions can leave expectations and needs unmet. This ambiguity is best presented by the Jaffa Cake, whose biscuit-like exterior has long sparked debates over its status as a 鈥 despite manufacturers confirming it is, indeed, a cake. The point, Tunley argues, is that asking for 鈥渃ake鈥 is not sufficient. What matters is specifying the unique medley of 鈥渋ngredients鈥.

In this regard, clear articulation of required skills 鈥 and their intended function 鈥 can better support individuals and organisations alike. To elaborate, beyond technical skills such as programming languages or tech stacks, different combinations of skills could distinguish a Data Analyst from a Data Engineer or Data Scientist. Equally, transferable or soft skills such as learning and investigating or numeracy may position someone for roles as varied as a Senior Officer in HM Revenue & Customs or a Sales Director. As Professor Elias states, We are providing a classification which is both flexible and robust.鈥

For instance, Tunley notes around 70% of FSSC employees have voluntarily engaged in active skills learning and development within the last 6 months. This demonstrates not only the individual level responses to the dynamic labour market and the organisational benefits this can bring for employers, but also the facilitative nature of the Skills Classification and its capacity to nurture positive impact for multifaceted beneficiaries and users.

Future Uses

1. Individuals鈥 professional development is supported through:

  • Clearer career pathways 鈥 Improved understanding of career options, skills required and how to close any gaps
  • Improved social mobility 鈥 Skilling may support long-term employability and financial stability
  • Skills passports 鈥 Increasing skills transferability across sectors

2. Employers can adopt:

  • Precise recruitment 鈥 Clearly communicating skills required and effectively sifting and employing candidates to meet business needs
  • Inclusive talent pools 鈥 Widening access to, and increasing opportunities for, employees from non-standard routes (e.g. self-taught and marginalised individuals)
  • Skills analysis and development 鈥 Upskilling or restructuring current workforce supports strategy and organisational delivery

3. Labour market analysts can:

  • Analyse skills within industries and workforces
  • Identify skills gaps and future skills pathways
  • Support evidence-led curricular development

4. Educators, practitioners and trainers can:

  • Align education and training with market demand
  • Improve skills literacy for sustainable career building
  • Streamline diverse industries through a standardised skills ecosystem

With the first version now available online, after a successful period of pilot investigations, the team behind the Skills Classification encourage its use as part of their embedded evaluation process. With greater implementation and user feedback, the framework and tools can be refined over time to provide a robust and reliable avenue for personal and professional development across diverse sectors in the UK.

Dr Anushka Chaudhuri

Impact Development Officer (Faculty of Social Sciences)

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