Ufi Ventures and Tyton Partners explore market dynamics and green transition challenges in our latest workforce development report
Our latest quarterly market analysis for Q3 of 2024 provides a detailed examination of current market conditions, including insights into declining inflation rates and economic growth patterns, alongside comprehensive data from the UK, continental Europe, and North America. We also feature a summary of developments from the recent UK budget announcement.
Against the backdrop of evolving economic conditions, our research reveals complex market dynamics, with persistent challenges in workforce development, particularly in sectors like green energy, education, and healthcare. The analysis points to mounting pressures across various industries, notably in the green technology sector where consumer adoption rates are declining, and European manufacturers face intense international competition. AI investment remains a significant theme, demonstrated by major funding activities including OpenAI's substantial capital raise, though questions persist about long-term impact.
The broad economic picture remains mixed: Whilst inflation and interest rates are broadly falling, growth remains elusive, except in the USA. Labour markets are becoming a little tighter but continue to be challenged by demographics and gender disparities. Skills gaps remain, particularly in sectors that we have long monitored: the green economy, education, healthcare and technology.
We are seeing particular challenges around the green transition. Consumer purchases of key technologies such as EVs and heat pumps should be driving employment growth and consequent upskilling. Forecasts of job growth remain strong. Yet the required consumer adoption is erratic and arguably slowing. Furthermore, key European organisations are starting to be affected by cheaper Chinese competition: For example, Volkswagen is considering shutting down factories in Germany for the first time in its history. In the US, many investments driven by the Inflation Reduction Act are being delayed.
In our Q3 2024 report we explore 4 key framing questions:
- As AI skills begin to move from nice-to-have to need-to-have, what role do organisations, educational institutions and large stakeholders need to play to enable an AI-skilled workforce?
- How can the skills and technical know-how of retiring workers be retained in an organisation or passed down to early career workers?
- Are the benefits of hybrid working greater than the collaborative and culture-building benefits of in-person work?
- What can UK organisations do to make teaching and healthcare roles more attractive to workers and prospective students?
For more reflections, prompts, and opportunities for investors looking at the past year and the year ahead, read our annual report The Jobs Frontier 2024.
