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A mock-up of the Essential Skills Tracker 2025 report. Is shows pages of the report arranged on top of each other in a fan shape.
Read the full report for a detailed account of essential skills and AI

Introduction

You don’t have to attend many roundtables, or scroll very far on Linkedin, before encountering the question: which skills do we need for an AI-enabled future? This paper finds that essential skills - the highly transferrable skills defined by the Universal Framework - are a core part of the skillset required.

We do not seek to make predictions about the trajectory of AI and its impact on jobs. Instead, this paper focuses on what is happening right now and locates that within the existing literature.

This research finds higher levels of essential skills are crucial for individuals and the economy to successfully navigate the AI transition: driving AI adoption, boosting productivity and wages, and mitigating negative impacts on social mobility. Failure to invest in these skills risks exacerbating inequalities.

UK workers value opportunities to build essential skills almost as much as pay, and want to see their employers using the Universal Framework to inform staff development.

The job market is changing, and most workers are concerned about the future. Essential skills emerge as vital not just for society today, but to help us adapt to new technologies and ways of working.

Essential skills enable AI adoption.

Line graph showing predicted essential skill score on the y-axis and age on the x-axis, with three lines representing different AI usage categories (never, sometimes, frequently). The lines show that predicted skill score varies with age, generally decreasing slightly in middle age before increasing, and that higher AI usage is associated with a higher predicted skill score across all ages shown.

Essential skills and AI drive higher wages

Line graph showing predicted pay on the y-axis and mean skill score on the x-axis, with three lines representing different AI usage categories (never, sometimes, frequently). The graph shows a positive correlation between skill score and predicted pay. It also shows that higher AI usage is associated with significantly higher predicted pay across all skill score levels.

AI deepening the skills trap and inequality

Scatter plot showing Skill Score (standardised) on the y-axis and AI Usage Score (standardised) on the x-axis. Data points are colour-coded and shaped to represent three different clusters (Cluster 0, Cluster 1, and Cluster 2). The clusters appear to group individuals based on their combination of skill score and AI usage, suggesting different profiles within the population.

Anxiety, AI and the essential skills counterbalance

Stacked horizontal bar chart, answering the questions ‘How important do you think it is to explicitly teach essential skills in order to prepare students/pupils for work?’, and ‘How important do you think it is to explicitly teach essential skills in order to prepare students/pupils for life?’. The bar is split with 0 central and responses very unimportant and fairly unimportant to the left of the 0, and fairly important and very important to the right.  The chart shows a majority of respondents responded ‘fairly important’ or ‘very important’.

Essential skills can ease the job transition

A horizontal range chart showing responses to how important different factors are in succeeding within education, and in securing employment opportunities. One end of each range shows the percentage of responses who view the factor important in education, and the other side showing this importance for securing employment opportunities. The different factors are – Literacy skills, Essential skills, Numeracy skills, Qualifications, Digital skills, Technical skills, Academic knowledge - and listed on the left.  The chart shows Essential skills, Qualifications and Technical skills as being perceived as more important in securing employment opportunities.

Workers call for opportunities to build essential skills

Stacked horizontal bar chart, answering the questions ‘How important do you think it is to explicitly teach essential skills in order to prepare students/pupils for work?’, and ‘How important do you think it is to explicitly teach essential skills in order to prepare students/pupils for life?’. The bar is split with 0 central and responses very unimportant and fairly unimportant to the left of the 0, and fairly important and very important to the right.  The chart shows a majority of respondents responded ‘fairly important’ or ‘very important’.

Implications in education and impact

A teacher presents to her class. In the foreground a student raises their hand - they are wearing a blue school blazer with a white shirt collar.

For a government targeting inclusive productivity growth, the evidence is clear that essential skills are core to harnessing the AI revolution. As technology changes rapidly, the skills that underpin rapid learning and effective application of ever-evolving technical skills must form a core part of the skills landscape.

AI looks likely to continue to be contained within products and tools (as the adage goes, AI is whatever doesn’t work yet). So its use follows that of any other technical tool or skill: to be rapidly adopted and made fully effective, individuals require essential skills.

By the time children who are in primary school now enter the workforce, AI tools and products are likely to be unrecognisable from their current instantiation. So while just “teaching AI” might be an instinctive reaction to technological change, the research suggests that building learners’ essential skills should form a core part of a complete education. This way, learners will have the skills not only to adopt the AI of today, but also fully realise the benefits of the tools of tomorrow.

Implications for employers

A line manager shows their colleague how to operate an advanced robotic arm in a brightly lit design engineering workshop.

Workers are calling out for more high-quality opportunities to build essential skills. Three-quarters think their employers should use the Universal Framework as part of professional development and two-thirds think it should form part of performance appraisals.

In the workforce, anxiety and concern for the future are high. But not in individuals who have higher levels of essential skills. Creating opportunities for building these highly transferable skills is a way for employers to help workers embrace inevitable technological change.

This upskilling is likely to improve worker retention and attraction - particularly for higher skilled and higher paid employees. Opportunities to build essential skills are in the top three considerations for employees looking to move jobs.

As well as keeping workers happy, building essential skills is likely to have two waves of positive outcomes on productivity: firstly through the direct benefits of higher essential skill levels and secondly through effective adoption of AI.

A mock-up of the Essential Skills Tracker 2025 report. Is shows pages of the report arranged on top of each other in a fan shape.
Read the full report for a detailed account of essential skills and AI