UK Employers Experience Widespread Skills Shortages Amid Gen Z Disconnect

A series of reports from The Open University reveal a significant disconnect between UK employers and Generation Z workers, contributing to persistent and growing skills shortages across the UK, especially in digital, AI, and sustainability sectors. While over half of organizations in the UK, including 58% in Wales and 56% in Scotland, report skills shortages, only about a third have initiatives to recruit, retain, or train under-25s, despite Gen Z's strong interest in and willingness to develop relevant skills. Many young workers are aware of the skills gaps and are considering careers in high-demand areas, with a majority expressing readiness to stay longer with employers who offer training and development. However, many Gen Z employees report a lack of feedback on their skills and insufficient guidance to become truly work-ready, highlighting a mismatch in expectations between employers and younger workers. Employers also express concerns about their ability to deliver AI strategies due to talent constraints, underscoring the urgent need for investment in training and inclusive development initiatives. Experts urge organizations to actively bridge this gap by creating structured skills plans, investing in flexible learning, and fostering diverse talent pipelines to future-proof the workforce.