In his keynote speech at Pinewood Studios last week, Sir Keir Starmer sought to ‘relaunch’ his Government’s plans for office, providing the greatest clarity yet that its mission to grow the UK economy is expressly linked to raising living standards and employment prospects for Britain’s workers. Whilst perhaps not the first policy lever that comes to mind, career guidance is central not only to these objectives, but to numerous economic and social goals.

In the 2021 report, Transition to Ambition, Policy Connect and the Skills Commission examined the careers information, advice, and guidance system in England. The report advocated for changes to England’s career guidance system so that more people could be supported with their transitions into employment. 

Transition to Ambition and other recent research has outlined the immense value of career guidance to the UK economy. In “Investing in Careers: What is Career Guidance Worth?”, the Career Development Policy Group detail how career guidance supports the labour market to function effectively. Higher employment; better skills alignment; and increased productivity not only create a better-functioning economy but also generate higher tax returns. 

The CDPG argues that investment in career guidance could drive fiscal benefits that offset the investment made, with every pound spent on youth guidance the country could expect to receive £2.50. For every pound spent on guidance with unemployed adults the figure rises to £3.20.

High-quality career guidance has social as well as economic value, benefitting individuals as well as the economy. Good career guidance is not just about giving people information or suggesting to them what to do but empowering them to make informed decisions about their learning and employment. 

In Skills 2030, the Skills Commission highlighted the role of career guidance in enabling lifelong engagement with the skills system, and lifelong learning more generally. The Government must work to ensure individuals are informed about the benefits of lifelong learning and have access to the skills training necessary to manage transitions in their education and employment pathways. 

Career guidance is vitally important to ensuring individuals have a clearer sense of the industries where employment is available and to help them successfully enter the right education, training, and employment. This is vital support not only for young people, but adults too. Whilst we have seen improvements in career guidance for young people, guidance for adults remains limited, even though adults require as much support to develop their skills and manage career transitions. High-quality career guidance can better support adults in- and out-of-work to develop their careers by gaining new or additional learning and skills. By enabling people at different stages of their career to realise their potential, career guidance is a key enabler of social mobility.

With green and high-tech industries set to prove crucial to Britain’s economic performance in the 21st century, individuals must have the advice and support to upskill and retrain. Career guidance can address skills shortages and mismatches, help people adapt to a changing labour market, and smooth the transition into growing industries. Spending on careers guidance is ultimately an investment in both the country's economy and human capital that can provide Britain’s workers with a greater degree of skill, satisfaction, and security.