PwC - Workforce of the Future

This report, produced with PwC, highlights the mounting pressures facing local government employers amid rising service demand, financial constraints, labour market shortages and shifting workforce expectations.  

Drawing on extensive engagement with County Councils Network member councils and one of the largest workforce surveys of its kind, the report explores the challenges affecting recruitment, retention, skills, organisational culture and public perceptions.  

It sets out opportunities for councils to strengthen their employment offer, modernise workforce planning, and build a sustainable, future‑ready workforce.

Challenges identified in the report include:

• Councils face severe recruitment and retention challenges, uncompetitive pay and competition from other sectors, changing workforce expectations, and lack of awareness of what careers local government can offer.
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• As a result of funding pressures, workforce numbers have significantly reduced over the past decade, with CCN members witnessing the largest drop.
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• Younger staff seek flexibility, clear career pathways and purposeful work; traditional benefits like pensions are less influential.
  
• Public perceptions of local government are relatively weak, limiting its attractiveness as an employer despite strong internal pride.
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• Digital transformation and AI present major opportunities, but skills gaps and inconsistent adoption risk holding councils back.  

Recommendations for councils include:

• Develop a strong sector‑wide brand to promote the value and impact of local government careers.
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• Enhance career development pathways, including cross‑sector opportunities and flexible progression routes.
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• Devolve and strengthen local skills planning to address shortages and build future capabilities.
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• Invest in leadership development and build a resilient talent pipeline.
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• Adopt innovative workforce models, making better use of technology, automation and partnership‑based delivery.