Britainâs economy is passing through a period of structural change. The transition to net zero, the rapid adoption ofartificial intelligence and an ageing workforce are rapidly shifting what work is available and what skills they require. This period of disruption is happening faster than the institutions that supply skills were built to move. The labour market is consequently under two kinds of pressure. The first is cyclical and cost-driven, as hiring has slowed to its weakest level outside the pandemic in over a decade.
In this paper, we examine why high worklessness and persistent technical shortages coexist, using a single case study, and we test that experience against the wider research literature. We find the constraint lies less with the people who are out of work than with the system around them.

