Why is Female Unemployment Rising in the UK?

PwC’s 15th annual Women in Work Index finds that women are more likely than men to be neither in education, employment or training (NEET).

Reducing that number through an investment in women’s skills development in rapidly transforming industries could add nearly US$4bn to the GDP of the UK, says PwC. 

Carol Stubbings, UK and EMEA Managing Partner at PwC, says of the research: “While the UK has regained its position as the highest‑ranking G7 economy for women in work, the story beneath the headline is more complex. 

“Rising female unemployment, especially among young women, points to underlying weaknesses in our labour market at a time when AI is reshaping the economy and the skills needed.”

A rapidly evolving need for skills

According to PwC, women are more likely than men to take on job roles impacted by AI – but the skills required for these roles are evolving 66% faster than in other sectors. 

PwC’s Workforce radar also showed that fewer women report using AI at work compared to men, despite the technology being more likely to impact women at work. 

This skills gap is further exacerbated by widespread employee anxiety around AI. In Dayforce’s 16th Annual Pulse of Talent survey, only 27% of employees say they use AI at work, compared to 87% of executives. 

To best manage this, there is a rising need for targeted AI skills development to empower women in the workplace, says PwC. 

Many businesses are already recognising the need for this – such as Accenture, which has invested US$1bn in AI upskilling for its employees. 

This includes the development of its Accenture LearnVantage platform, which blends learning opportunities for employees with business applications, and uses AI recommendation engines to develop personalised learning opportunities for staff. 

Using this model, the company has reportedly trained 550,000 of its global employees in generative AI with this investment, and developed 77,000 skilled data professionals working on advanced AI projects. 

Speaking at the New Delhi AI impact summit, Julie Sweet, CEO of Accenture, said of this approach to AI learning: “What the last decade has taught us is a critical lesson. When companies and countries embrace new technologies and then use them to drive growth and productivity, they prosper. Advanced AI should be the same”.

Increasing vocational training for women

PwC’s research finds that Germany and the Netherlands have some of the lowest NEET rates in Europe, which it suggests is as a result of an investment in vocational training. 

According to PwC, Germany builds vocational awareness early, with companies offering work-based learning programmes, while learning bodies in the Netherlands prioritise designing qualifications that mirror the needs for the future labour market. 

The research recommends that the future workforce should be given the opportunity to explore vocational options in early secondary training, as well as advising that employers should co-design qualifications to ensure better harmony between education and employment. 

Bentley has developed a tailored qualification such as this as it looks to upskill its workforce alongside plans to go fully electric by 2036. 

The company has developed a three-year apprenticeship programme with the City of Wolverhampton college, which gives prospective employers training in maintaining and developing electric systems for EVs. 

It is also looking to increase the representation of women in its workforce as part of its Beyond100 strategy – a plan to redefine the brand as a leader in sustainable luxury mobility. 

The company has previously reported a 50/50 gender split in its trainee cohort, which it credits to initiatives such as female mentoring initiatives and the development of dedicated employee networks for women in the automotive industry.