• New report from Phoenix Insights suggests better careers guidance could contribute billions to the UK economy 
• Phoenix Insights modelling indicates over £70 billion of economic value is lost every year in the UK because people have skills better suited to other jobs in their industry
• Greater national and regional investment and promotion of adult careers guidance and employment support is required to boost the UK labour market 
• Phoenix Insights calls on the Government to ensure the new National Jobs and Careers Service extends the reach of publicly funded adult careers guidance, especially to those in work

A new report,’Work in Progress – Unlocking the value of adult careers guidance’ has found that better adult career guidance could contribute billions to the UK economy and calls on the Government to fundamentally change the way it is offered to adults, through the newly created National Jobs and Careers Service, to help more people access good quality work and develop their careers.

According to the report by Phoenix Insights, Phoenix Group’s longevity think tank, and research consultancy Public First, more investment into adult careers guidance, alongside awareness raising of the service and a focus on career guidance as a key policy issue, could help people get into jobs that better suit their needs, enable longer working lives, reduce economic inactivity, help people to reskill, and boost the economy.

Modelling shows over £70 billion is lost every year in economic value due to skills overmatch in the UK, where individuals have skills that could be employed more effectively elsewhere in the same industry.

Phoenix Insights has recommended seven ways in which the Government can expand the focus of the National Jobs and Careers Service and extend its reach so that it offers accessible careers guidance to everyone, irrespective of whether they are working or not, and actively support those most likely to benefit from this.

It also calls for the National Jobs and Carers Service to shift focus from getting people into any available job and instead focus on interventions to support people through providing better career guidance – at a national and regional level – so they can move and progress into meaningful, well-paid work. 

Nearly two in five (37%) workers in England are overqualified for their current job, the highest proportion in the OECD, while over a third (34%) are over-skilled, well above the OECD average of 26%.^.

The report suggests that closing the skills mismatch gap with France by just a fifth by 2030 could add up to £15 billion to the UK economy – three times the current budget for improving adult skills.

OECD country comparison of over-qualification and over-skilling amongst employed adults aged 25-65 who are not self-employed, OECD Adult Skills Survey

Phoenix Group’s Catherine Foot, Director of Phoenix Insights, comments: “Helping people to identify job opportunities that are more suited to their skillset could inject billions into the UK economy. 

“The Government’s plans for a new National Jobs and Careers Service have the potential to reinvigorate the UK labour market, by ensuring people can find jobs that are right for them at different stages of their life, boosting productivity and enabling more people to stay in paid work that suits them all the way to retirement.

“Careers guidance for adults does not currently work as we need it to. We must see accessible support tailored to local employment needs made available to all the people who would benefit from it, irrespective of their employment status.

“The Government has repeatedly stated that improving the UK’s productivity is one of its core ambitions. A comprehensive and well-funded careers service that values adult career guidance is a pivotal step towards achieving that goal.”

The report outlines seven design principles which the new National Jobs and Careers Service should implement for a new approach to career guidance: 

1. Rebrand and extend the reach of publicly funded career guidance to a wider range of people  
2. Proactively target those who could benefit from career guidance  
3. Invest in capacity, technology and the workforce 
4. Provide high profile leadership for the career guidance sector
5. Deliver a national service in a local context 
6. Integrate into wider government policy 
7. Focus on long term impact.

The full report can be accessed here: https://www.thephoenixgroup.com/phoenix-insights/publications/work-in-progress-unlocking-the-value-of-adult-careers-guidance/

A panel event at Central Hall, Westminster on 5^th March, taking place during National Careers Week, will discuss how adult career guidance can be provided to the millions of UK adults who would benefit from it. Please sign up to attend the event virtually here: Webinar Registration – Zoom