This blog shares details from a recent research paper published by the Department for Science, Innovation and Technology (DSIT). The study explores long-term trends, challenges, and future skills needs in the R&D workforce.
Introduction
A strong research and development (R&D) workforce is vital for the UK. Skilled R&D professionals play a crucial role in driving innovation and supporting economic growth. They also play an important role in addressing significant issues related to climate change, an ageing population, and emerging technologies. However, many employers face difficulties finding people with the right skills. In fact, skills-shortage vacancies across all occupations in the UK more than doubled between 2017 and 2022 – with R&D roles among those most affected.
A research collaboration between City-REDI/WMREDI and the Department for Science, Innovation and Technology (DSIT) shed more light on some important issues related to the R&D workforce and skills. The goal was to improve our understanding of the composition of the R&D workforce across UK regions and nations, the demand for related skills, and the adequacy of the current labour force. A research paper titled UK R&D Skills Supply and Demand: long-term trends and workforce projections was recently published by DSIT. It was co-authored by Dr Kostas Kollydas (based on work during his secondment to DSIT between 2022 and 2023), Professor Anne Green, Dr Abigail Taylor (City-REDI), and Daniel Ruggieri (DSIT).
The study used a range of both quantitative and qualitative methods. The research combined various national survey datasets, online job postings data, and interviews with R&D employers and employees. One of the key contributions of this study was its effort to define the R&D workforce using the ONS Standard Occupational Classification (SOC), alongside estimating the total number of R&D workers in the UK over time.
Research objectives
The study had five core aims:
- A review of academic and ‘grey’ literature focused on skills matches and mismatches, employers’ perspectives on labour demand issues, and workers’ perspectives on supply issues.
- Extensive data and econometric analyses using the Annual Population Survey and Lightcast online job postings data. These analyses helped describe the characteristics of the R&D workforce and explore the demand for R&D-related jobs and skills across UK regions and sectors.
- Analysis of skills mismatches in R&D-intensive industries across UK regions, investigating skills-shortage vacancies and skills gaps using data from the Employer Skills Survey.
- In-depth interviews with R&D employers, organisations and employees in the West Midlands. These aimed to qualitatively explore the challenges employers face in recruiting and retaining R&D workers, identify current and future skills requirements related to innovation, understand barriers to equality, diversity and inclusion (EDI) in the R&D workforce, and illuminate the role of the education and training system in developing and nurturing the talent pipeline for R&D skills.
- Building on the ‘Skills Imperative 2035’ research to project the future demand for R&D workers in the UK under various scenarios.
Main findings
The total number of R&D workers in the UK rose from 1.7 million in 2012 to 2.8 million in 2023. Much of this growth was reflected in the demand for IT and digital roles. For example, ‘Programmers and software development professionals’ and ‘IT business analysts, architects and systems designers’ made up 42% of all R&D-related job advertisements during 2013-2022.
Notwithstanding this, it appears that the demand for R&D workers and skills is still greater than the supply. In 2019, 92% of R&D hard-to-fill vacancies were open because of skills shortages. Employers struggle to find candidates who have both technical expertise and soft skills (including communication, teamwork, time management and the ability to prioritise tasks).
Of concern, the R&D workforce does not reflect the whole labour force. Women, some ethnic minorities (such as Black, Bangladeshi, and Pakistani ethnic groups) and individuals with disabilities are underrepresented in R&D activities. For instance, women are almost three times less likely than men to work in jobs related to R&D (3.1% of women versus 8.8% of men). Some regions, such as London and the South East, show higher shares of R&D employment. On the other hand, certain occupations (such as technicians) remain underpaid or undervalued.
Interviewed employers emphasised that it is important for R&D careers to be more ‘visible’, especially to young people and underrepresented groups. They highlighted the low number of women and ethnic minorities applying for STEM[1] roles. One reason for this is that fewer people from these groups study relevant subjects at school and university. Furthermore, some STEM workers tend to switch to better-paying sectors like banking and finance. Diversity in the R&D workforce could be improved if there were more role models, flexible working arrangements, inclusive recruitment strategies, and alternative pathways to R&D roles (such as through apprenticeships).
Looking ahead, under high-tech or human-centric scenarios from the ‘Skills Imperative 2035’ research, the number of R&D professionals could reach 3.5 million in 2035. But without targeted interventions, this expansion might worsen current regional and demographic inequalities in the adoption and implementation of R&D-related activities. New technologies often demand new skills. Hence, the education and training system must keep up with this demand. It will remain important to train and develop the current workforce through upskilling and reskilling. Also, one way to get more people interested in R&D is to have STEM ambassadors in schools. Such steps would likely help establish a diverse R&D workforce that is more ready for the future.
[1] STEM: Science, Technology, Engineering, and Mathematics
This blog was written by Kostas Kollydas, Research Fellow at City-REDI, University of Birmingham.
Disclaimer:
The views expressed in this analysis post are those of the author and not necessarily those of City-REDI or the University of Birmingham.