New research from Pearson (FTSE: PSON.L), the world’s lifelong learning company, reveals gaps at career and learning transition points is costing the UK an estimated £96 billion in lost earnings.
Paying the price for broken career pathways
Key findings from the report include:
- The total cost – career transition inefficiencies and skills mismatches cost the U.K. economy £96 billion in earnings annually, or 4% of national output. That figure is broken down as follows:
- Automation disruption – as parts of jobs become automated, individuals needing to find new roles accounts for £64 billion in lost earnings.
- Education to work – the delays in moving between formal education and full-time employment accounts for £23 billion in lost earnings.
- Changing jobs – £9 billion is lost in the transition from one job to another as a result of involuntary job separations, such as redundancies.
- Generation at risk – There are an estimated 1 million people aged 16 to 24 not in employment, education, or training (the highest in a decade). Halving this number would mitigate losses by £6 billion.
