Demand for graduates in Wales set to soar by 2035

More than 400,000 extra graduates will be needed in Wales by 2035 in order to respond to skills gaps and workforce challenges of the future. This is the finding of new report, Jobs of the Future, by Universities UK.

• By 2035, 95% of new jobs in Wales will be at graduate level, with 88% of UK jobs set to be at graduate level.
• UK businesses will need more than 11 million extra graduates by 2035, with the fastest-growing demand for graduates seen in STEM, health, education and business services
• Welsh universities hailed for fostering valuable skills and experience in emerging industries, including robotics and artificial intelligence (AI).

More than 400,000 extra graduates will be needed in Wales by 2035 in order to respond to skills gaps and workforce challenges of the future. This is the finding of new report, Jobs of the Future, by Universities UK (UUK), which estimates that 95% of new jobs in Wales by 2035 will be at graduate level.

Meanwhile, a survey of FTSE 350 companies carried out alongside the report shows that businesses are setting their sights firmly on the Welsh talent pool, with one in five looking to recruit talent from the Cardiff area over the next five to 10 years.

Across the UK, more than 11 million extra graduates will be needed to fill jobs by 2035, with the fastest-growing demand for graduates seen in STEM, health, education and business services. There are currently 15.3 million graduates in the UK workforce, so this represents a significant increase in demand.

The rise of AI in particular is expected to have a significant impact on employment trends, with graduates set to benefit from this rapidly growing area. Due to AI, there will be around a 10% net increase in UK roles that require a degree over the next 20 years, including almost 500,000 more professional and scientific jobs.

The Institute for Creative Entrepreneurial Development (IICED) at the University of Wales Trinity Saint David (UWTSD) has integrated AI into its teaching framework. This significantly enhances the entrepreneurial capabilities of students, a vital need given the burgeoning demand for AI competence in the job market. By leveraging AI, the PGCert Enterprise Skills programme integrates a unique blend of self-paced learning and interactive, collaborative experiences that mimic real-world scenarios. IICED understands that real-world experience significantly enriches learning, which is why placements that allow students to work directly with AI are also integral to the programme.

These significant changes to the employment landscape also underline the increasing importance of lifelong learning. More than half (54%) of respondents to the FTSE350 survey said that they expect the future workforce will need to retrain at least once in their career due to the rapid pace of technological change.

Universities Wales’ Director, Amanda Wilkinson, said:

“More than a quarter of the current UK workforce are underqualified for the job they are in – and the many years of unbroken growth in demand for graduates means we are playing catch-up to give our employers the tools they need to succeed.

“From health and tech to digital skills and education, university graduates are a vital component to the success of the economy, but it is important that we are given the tools to continue to meet this need – and to ensure that higher education is affordable and accessible while maintaining the high level of education our institutions currently provide.”

Alex Hall-Chen, Principal Policy Advisor for Sustainability, Skills, and Employment at the Institute for Directors, said:

“Persistent and acute skills shortages is one of the most pressing concerns for UK businesses. The demand for transferable skills – such as critical thinking and communication – remains strong across all sectors, and the UK’s higher education sector will play a crucial role in building a talent pipeline with the skills that businesses need to thrive.”

In highlighting the need for more skilled workers, UUK has hailed Welsh universities for fostering highly sought-after skills and experience in emerging industries – from integrating AI into curricula and teaching frameworks, to supporting graduate startups in virtual reality and developing cutting edge robotics technology.

Further Information

Rebecca Davies

Executive Press and Media Relations Officer    
Corporate Communications and PR    
Email: rebecca.davies@uwtsd.ac.uk    
Phone: 07384 467071