It’s time to rethink employability

The crisis we can’t ignore: NEETs

In the wake of economic upheaval, shifting demographics and rapid technological change our approach to employability must evolve. Tweaking here and there won’t work - it’s time for a ‘ground up’ rethink of employability.

The UK is facing a national employability crisis. Economic inactivity is rising, with over 20% of the working-age population not currently in employment or training. This includes three key groups: young people leaving education, individuals with long-term health conditions or disabilities, and the over-50s who have exited the workforce (many during, or after, the pandemic).

While we often see the Covid-19 pandemic as a trigger for employability struggles, it merely exposed and accelerated existing problems in the system. From older workers choosing to step back to care for family, to young people disengaged from education and work, the workplace and supporting systems have failed to provide the right support at the right time for NEETs (those not in work, education, employment & training).

This is a longstanding challenge that has not yet reached the level of attention it truly deserves - it is time for there to be a real focus on change and how to support future generations.

Innovation isn’t optional - it’s urgent

Changing an established narrative isn’t easy; it requires innovation and a cross-sector approach. Indeed, Government policy has struggled to keep pace with the realities of how modern work is evolving. AI, for example, is evolving at such a rate that it is hard for anybody to keep up. But it’s not just AI, emerging sectors like green energy and advanced manufacturing are growing rapidly, but the skills pipeline isn’t keeping up.

By 2030 an estimated 6.5 million people (around 20% of UK’s workforce) could be significantly under-skilled for their roles."

Without investment in adult education, we risk leaving entire communities behind and increasing capability gaps in our most critical sectors such as health & social care, education and defence.

Capita has been bridging the gap between policy and practice by partnering with strategic partners (AWS, Microsoft, Salesforce and Servicenow) and government departments to showcase the art of the possible.

Our approach to innovation is rooted in co-creation, having a deep understanding of stakeholder needs, and developing tailored solutions that reflect the complexity of real-world challenges.

An example of this in practice is how we’re working with the DWP to show how AI-driven enhancements can improve customer experience and the customer journey through services such as the Functional Assessment Service, that supports people who have health disabilities’

Motivation: the missing link

Innovation alone isn’t enough, motivation is critical. Many people face a stark reality: returning to work may leave them only marginally better off financially, while increasing stress and logistical challenges. 

Mental Health for England reports 79% of employees are experiencing moderate to high stress levels, with younger employees (16-24) and women showing the highest stress levels."

Without wraparound support, including mental health services, coaching, and flexible work options, employability programmes risk setting people up to fail. It’s not just about ‘you’re unemployed, here’s a job’; that doesn’t solve the whole crisis. We need to understand what makes people feel fulfilled, confident, and ready to contribute - that means designing services that are tailored, inclusive, and human.

What we’re doing about it

At Capita, we’re not waiting for answers, we’re shaping solutions. Our approach is rooted in:

• Partnerships: Working with strategic partners, government departments, and local authorities to co-design solutions that reflect real-world complexity.
• Pilots: Testing AI and automation in live environments to improve efficiency and user experience.
• Policy Influence: Engaging with DWP and other stakeholders to shape the next generation of employability programmes, including the upcoming £800M Pathways to Work initiative.
• Holistic Design: Bringing together health, education, defence, and employment services to create joined-up support that meets people and industry where they are.

Our vision for the future

We believe employability shouldn’t be a one-size-fits-all solution. It should meet the needs of individuals, employers, and communities equally. Data needs to do more than measure results it should help shape policy decisions. Innovation must be at the forefront of how we address the growing skills gap and keep pace with the demands of tomorrow’s workforce.

At Capita, we’re not just delivering services we’re helping to redefine employability, through partnerships that shape solutions to deliver sustainable growth.