The Jobs Frontier 2025

Ufi Ventures, the UK's specialist investor in vocational technology, together with Tyton Partners, the leading strategy consultancy and investment advisor in global education, and have published our fifth annual report on the future of workforce development, The Jobs Frontier 2025.

The report reflects on a year marked by political upheaval, economic uncertainty, and rapid technological change. It also explores how these trends are shaping investment priorities and public-private responses across the UK and globally, with a strategic review of the implications of 2024 alongside scenarios for the remainder of 2025.

The report also highlights growing momentum behind new public-private partnerships and a renewed policy focus on adult education, apprenticeships and regional skills development, as well as areas where further action is urgently needed.

We have now been publishing this report for five years. Our coverage has included the COVID-19 pandemic, dramatic political shifts in the UK, and the war in Ukraine. In every edition, we have talked about uncertainty and change. Yet as we look towards the remainder of 2025, the range and speed of potential developments are more extreme and unprecedented than ever.

2024 saw the continuation of many established and challenging trends in workforce development. Rapid technological advancements, economic uncertainty and shifting labour market demands defined the landscape. Skills shortages remained a pressing concern, particularly in digital, green energy, healthcare and manufacturing sectors. While unemployment levels fluctuated, worker shortages in critical industries persisted, putting pressure on policymakers and businesses to find sustainable solutions.

National elections introduced policy shifts with significant economic implications. In the US, the new administration's foreign policy decisions, introduction of tariffs, and immigration enforcement, raised concerns about international relations and global trade dynamics. The unexpected unpredictability and extremity of the decisions and rhetoric from President Donald Trump and his team have started to make markets materially more volatile. In Europe, a right-leaning political shift across multiple national elections, notably in France and Germany, reflects the overall sentiment prioritising economic growth. The conversation around immigration and its role in filling labour shortages remained politically charged, influencing workforce planning at national and local levels. As we have moved into 2025, the abrupt and extraordinary change in the US approach to the war in Ukraine and European security introduced by the Trump administration is likely to herald major changes in spending priorities amongst European governments, with a much greater emphasis on rapidly building defence capabilities to meet the threat of Russia to the continent. A silver lining to Europe’s cloud may be accelerated momentum towards co-operation between its governments, including the UK.

The just transition to a circular and regenerative 'green' economy is threatened in this political context. As the US discards Biden administration commitments related to the climate crisis, Europe faces multiple challenges: a slowing in consumer enthusiasm for and adoption of key technologies, including electric vehicles and heat pumps, and the need to prioritise immediate economic stability and security. Some major companies, notably German car manufacturers, have already pulled back on commitments to investment and change. However, the clear need for European self-sufficiency across energy, defence and advanced technologies may mean for renewed focus in this area.

Artificial intelligence and automation continued to dominate technology discussions, reshaping job roles and the skills required to remain competitive. AI-powered learning tools gained traction, and the debate around AI’s impact on jobs and education intensified, with regulators working on frameworks for its responsible use – at least outside the USA. Clear risks to competitive markets and a healthy diversity of cultural approaches to AI remain, given the continuing dominance of a few, largely American, technology companies. Employers responded with a greater emphasis on upskilling and reskilling, attempting to address labour shortages from within their existing workforce. Investors in workforce development technologies remained cautious but selective; key areas such as corporate learning, AI-driven HR tools and immersive training technologies continued to attract interest.

The role of education in workforce preparedness was a key focus. Vocational education and apprenticeships gained renewed attention as viable pathways to employment, though investment in these areas remained inconsistent. Public-private collaborations expanded, with governments and businesses seeking scalable training models to address talent shortages. In the UK, local skills improvement plans (LSIPs) gathered momentum as one such initiative, aiming to align training with employer needs. Skills England was launched as the cornerstone of a new governmental approach to addressing key workforce challenges, although its precise roles and responsibilities remain unannounced. Uncertainty in Britain meant for delayed decisions about making use of and establishing apprenticeships.

The impact of hybrid and remote work remained a key theme. Businesses continued to evolve expectations around workplace flexibility, balancing operational needs, talent retention strategies and demographic preferences regarding the nature of work. Some notable employers adopted more robust requirements for employees to attend the office in person.

Despite ongoing challenges, 2024 laid some groundwork for a more resilient workforce ecosystem in the UK. The country is at a policy inflection point, with the potential to build a system that fosters innovation and long-term economic growth alongside security and sustainability (both economic and environmental). There are hard decisions to be made in an urgent, complex and unpredictable context. Government, investors and the third sector will all need to work together more closely. If corporate learning and development departments choose to adopt practices that ensure effective, measurable learning and can consequently demonstrate a return on investment, this will serve to accelerate the necessary shift. Thinking hard about data security and integration in this context will be vital. The coming years will be critical in determining whether these emerging possibilities translate into meaningful workforce transformation.