A majority of UK employees believe that current government efforts to close the country’s digital skills gap will improve global competitiveness, according to new research from learning company O’Reilly. The study, conducted in April 2025 by Censuswide, found that 58% of employees are confident in the strategy’s potential despite contrasting views among business leaders.

The research, released ahead of Learning at Work Week, explored the perspectives of 2,000 UK employees on workplace learning and development practices. It follows recent government actions including the creation of Skills England, which aims to tackle long-term skills shortages through initiatives such as apprenticeships and digital upskilling.

More than half (53%) of employees believe access to flexible learning opportunities, including apprenticeships, will have the greatest impact on addressing the skills gap. Almost two in five (39%) pointed to increased investment in apprenticeships as key, while nearly one-third (31%) saw higher education as a contributing factor.

Alexia Pedersen, SVP International at O’Reilly, said, “The first Skills England report highlighted that the nationwide skills gap continues to grow. As many young people question the financial viability of higher education, Learning at Work Week provides an important reminder for employers that continuous, in-the-flow-of-work learning opportunities offer an alternative path into high-demand careers. Particularly in fields such as AI, cybersecurity and cloud computing.”

Disconnect Between L&D Investment and Measurement

While employers appear to recognise the need for learning and development, the research reveals a lack of alignment between investment and the effective use of L&D in employee performance management. Nearly a third (30%) of UK employees said L&D is not discussed or measured as part of performance reviews. Of these, 14% reported that learning is not linked at all to performance conversations, and a further 16% said it is rarely or never discussed.

Pedersen added, “At the same time, employees should feel empowered to drive forward their own learning, building skills for the future that will make them an invaluable asset to their organisation. This joint responsibility will be key to creating a highly skilled workforce that keeps British businesses at the forefront of their industries globally.”

In previous research, O’Reilly found that employers in large UK organisations view digital upskilling as more cost-effective than hiring new staff. The most sought-after skills include AI, cloud technologies, cybersecurity and software architecture.

Despite growing demand, over a quarter (27%) of employees said they lack clear expectations or structured support from their employers to pursue learning opportunities. A third (33%) reported that while workplace technology adoption has increased over the past year, the availability of tech-focused L&D has remained static or declined.

Digital Learning Gaps and Employee Interest in AI

Interest in technical upskilling is high, with 43% of employees citing generative AI as a preferred learning topic. Automation and machine learning (35%), robotic process automation (16%) and quantum computing (13%) were also noted. However, 34% said limited time prevented them from pursuing L&D opportunities, while 19% cited a lack of access to materials at the point of need.

Confidence in employer-led AI training is relatively strong. Sixty-one percent of employees said they believe their organisation is offering regular AI training to support workforce development in line with technological change.

Looking ahead, investment in L&D appears to play a significant role in retention and recruitment. Almost one-third (30%) of employees said continuous learning and being part of a highly skilled team would be among the most important factors when evaluating future job opportunities.

Pedersen concluded, “With a stronger focus on upskilling, businesses will continue to build a sustainable talent pipeline that helps them truly bridge the skills gap. Only by fostering a culture of continuous learning—through on-the-job training, with access to contextually relevant and high-quality learning materials at the employee’s point of need—will organisations be equipped to enhance innovation that drives business competitiveness and growth.”