British employers reduced their investment in staff training by £6 billion in 2024 compared to 2022, spending £53 billion on workforce development as job vacancies and skills shortages fell to their lowest levels since the survey began, according to new government data released today.

The Department for Education’s Employer Skills Survey 2024, covering over 22,000 employers across the UK, reveals that training spend per employee dropped to £1,700, down from £1,960 in 2022 and representing a 29.5% decline since 2011 when adjusted for inflation.

While the immediate skills crisis appears to be easing, with only around one in six employers (17%) reporting vacancies compared to nearly a quarter (23%) in 2022, the sharp reduction in training investment raises concerns about the UK’s long-term competitiveness and productivity growth.

Skills Shortages Show Mixed Picture

The survey found that 6% of employers experienced skill-shortage vacancies, roles that are hard to fill due to a lack of suitable applicants’ skills, qualifications or experience, down from 10% in 2022. However, when vacancies do occur, more than a quarter (27%) are still skills-related, indicating persistent mismatches between available talent and employer needs.

Construction leads sectors struggling with skills shortages, with 45% of vacancies classified as skill-shortage positions, followed by Education (36%) and Manufacturing (34%). Meanwhile, 12% of employers reported having staff who lack full proficiency in their current roles, affecting 1.26 million workers nationwide.

Training Provision Continues Decline

Just under three-fifths (59%) of UK employers provided training for staff in the past year, continuing a downward trend from 66% in 2017. The reduction in training investment was felt across all regions and company sizes, with total training expenditure now 18.5% lower in real terms than 2011 levels.

Employers provided 111 million training days in 2024, equivalent to 5.7 days per trained employee, down from 6.0 days in 2022. Online training continued to grow, with 70% of training employers using e-learning platforms, up from 67% in 2022.

Survey Background

The Employer Skills Survey is conducted every two years and provides the UK’s most comprehensive assessment of employer skills needs. The 2024 survey included 22,712 telephone interviews with employers across England, Scotland, Wales and Northern Ireland, with fieldwork conducted between June 2024 and January 2025.

Sector Reaction

Stephen Evans, chief executive of Learning and Work Institute (L&W), said:

“New data show employers are investing 19% less in training than in 2011, with spend per employee falling 29% to £1700 over the same period. Every sector has seen falls, with the largest drops in training spend per employee in hospitality, health and social work, and public administration. This comes on top of a £1 billion cut to Government adult skills funding in England since 2010. The UK is systemically underinvesting in learning and skills, holding back productivity and opportunity. That needs to change.”