According to the Organisation for Economic Co-operation and Development (OECD), over one-third of workers aged 25 and older in England are overqualified for their current roles, marking the highest rate among 31 advanced economies. This proportion has risen from around 30% in 2012 to over 37% in 2023, far exceeding the OECD average of 23%. By comparison, countries like Germany and France maintain overqualification rates closer to 20%, indicating better alignment between worker skills and job opportunities. (ft.com)

In Italy, the overqualification rate is lower than England’s but remains notable, with around 25% of workers in roles that do not fully utilize their qualifications. This reflects structural issues such as labor market rigidity and uneven distribution of job opportunities, particularly between northern and southern regions. While northern Italy offers more career prospects for graduates, the south continues to suffer from a chronic shortage of qualified positions.

Challenges Beyond London

The OECD’s findings highlight England’s persistent challenge in creating sufficient graduate-level job opportunities outside of London. Economists attribute this issue to the capital’s concentration of professional services, which creates barriers to addressing overqualification. High housing costs further exacerbate the problem. Similar dynamics can be observed in Italy, where major cities like Milan, Rome, and Turin attract most high-skilled jobs, leaving rural and southern areas lagging behind.

Policy Responses and Implications

In response, the UK Labour government plans to implement a new industrial strategy focusing on high-growth sectors such as advanced manufacturing and clean energy. Italy has initiated similar programs for industrial revitalization and technological innovation, though these efforts often face bureaucratic hurdles and insufficient funding.

Despite a growing number of graduates, many workers in both countries, particularly those in retail and hospitality, remain in roles that do not leverage their qualifications. This mismatch underscores the need for better productivity and job-matching mechanisms. Experts also stress the societal benefits of higher education and call on employers to make better use of their employees’ skills.

Literacy and Numeracy Trends

OECD data also reveal slight improvements in numeracy skills in England, while literacy levels have remained static. In Italy, however, adult literacy and numeracy skills remain among the lowest in Europe, highlighting a critical need for investments in education and lifelong learning.

Aligning Education with Market Needs

The findings emphasize the importance of aligning educational outcomes with labor market demands. This is not only vital for England but also for other countries like Italy, where significant mismatches persist between workforce skills and employer needs. Addressing these gaps could enhance productivity, economic growth, and reduce the brain drain of young talent to other countries.

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Workers in England more likely to be overqualified than global peers, finds OECD