CCN Dialogues: Serco - Meeting the County Skills Challenge

Our Dialogues publications are a series of think pieces dedicated to specific subjects, supported by our partners.

This report explores the skills challenges facing county areas in England and the policy changes needed to support economic growth. Counties play a major role in the national economy, accounting for 41% of Gross Value Added, but face significant workforce challenges, including ageing populations, out‑migration of young people, and skills mismatches with emerging sectors.

Although qualification levels in counties are close to the national average, many workers are concentrated in sectors such as manufacturing and skilled trades that are vulnerable to automation and Brexit-related disruption. At the same time, there are shortages in high‑growth industries like technology and professional services. This creates a “skills gap” that could limit future productivity and economic resilience.

The report highlights a complex and fragmented skills system, with multiple funding streams, agencies, and programmes but limited coordination. Devolution of skills funding has largely focused on mayoral combined authorities, leaving counties with fewer powers to shape local provision.

It argues for a more localised approach, with counties given greater control over skills budgets, adult education, and apprenticeship funding. Stronger collaboration with businesses and training providers is essential to align skills with local labour market needs.

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