July 01, 2025
Gen Z Wants to Learn — Why Aren’t Employers Teaching Them?
Despite growing concerns over a widening skills gap, UK employers are largely falling short when it comes to supporting the very generation they believe holds the key to the future workforce. According to the latest Business Barometer from The Open University, over a third of employers (35%) believe that a lack of “work readiness” among Gen Z and younger workers will be one of the biggest drivers of skills shortages over the next five years. Yet just one in three organisations have implemented specific initiatives to train, recruit or retain workers under 25.
This disconnect is only widening, as employers struggle with current workforce challenges. Over half (54%) of the organisations surveyed said they are already grappling with skills shortages. Instead of developing young talent internally, many are waiting for work-ready candidates to appear — a strategy the report warns is both unsustainable and short-sighted.
Gen Z Feels Left in the Dark
The findings also highlight a fundamental miscommunication between employers and young workers. While many business leaders worry that Gen Z lacks the right skills, young people report they’re not being told what’s missing. In fact, 61% of 18- to 24-year-olds surveyed said no one has ever informed them they lacked specific skills, making it difficult for them to address gaps they may not even know exist.
But there’s no lack of motivation. Nearly seven in ten (69%) Gen Z employees said they’d be more likely to stay with an employer that invests in training and development. Even more telling, 71% are actively considering career paths based on where UK skills shortages are most acute, highlighting a generation that’s not just ambitious but also deeply pragmatic about their future.
The AI Ambition Gap
Nowhere is the expectation gap more striking than in the fast-moving world of tech. While 48% of Gen Z workers are either working in or highly interested in artificial intelligence, one in five employers (20%) say they’re not confident they can execute their AI strategies due to a lack of talent. In other words, the talent is ready, but the training pipelines aren’t.
The same issue exists in other critical areas like digital transformation and sustainability. Without clear entry points, employers risk sidelining a tech-savvy, eager generation that could otherwise accelerate innovation — if only they were given the tools to do so.
Talk of Diversity, But Few Follow Through
Diversity, equity and inclusion (ED&I) is another area where the report exposes a troubling gap between rhetoric and reality. While 84% of employers said ED&I is important to their business — and half believe it will grow even more critical over the next five years — nearly a quarter (23%) admit they have no initiatives at all for underrepresented groups. That includes returners, career changers, those with disabilities or neurodivergent conditions — key populations that could help address growing labour shortages.
This lack of inclusive action represents a missed opportunity to broaden the talent pool at a time when sectors across the UK are facing critical workforce challenges.