Towards a Skills-First Scotland: Pathways to Prosperity
- 20th Nov 2025
- Kate Bines
Scotland’s economy is changing fast. This landmark report outlines how a unified, modern skills system can unlock potential, strengthen productivity and support meaningful work for all.
Scotland stands at a defining crossroads. Amid rapid technological change, widening inequality and economic uncertainty, the nation’s skills system is no longer keeping pace with what people and employers need. A country that once powered the industrial revolution must now lead a new skills renaissance – one built for a dynamic, future-focused economy.
Today, too many learners struggle to progress into fair, secure and productive work. Graduate underemployment is rising, and labour market disconnection is deepening, particularly for disadvantaged young people. At the same time, economic transformation – driven by artificial intelligence, automation and the transition to net zero – is reshaping jobs faster than existing structures can adapt. Scotland’s legacy, sector-based models are no longer fit for a 21st-century “learning economy” that demands agility, creativity and lifelong adaptability.
This discussion paper, written by Jonathan Clark, former director of Skills Development Scotland, sets out a bold vision for a skills-first Scotland: a unified, responsive system that helps every individual think, do, grow and adapt throughout their lives. A skills-first approach values deep expertise, transferable capabilities and adaptable mindsets across schools, colleges, universities and workplaces. Crucially, it positions meaningful work as a central outcome of skills policy – not a secondary consideration.
The paper presents a framework for renewal built on five pillars: placing work at the centre, aligning skills with economic priorities, strengthening employer-led development, rebuilding colleges as engines of opportunity and creating a flexible, future-ready system. The report outlines practical reforms – from a national skills strategy and integrated pathways to funding changes and regional skills accelerators – that can deliver early impact while enabling long-term transformation.
Scotland now faces a choice: invest in the potential of its people, or risk a generation being left behind. This report charts the path forward.
As Scotland considers this call to action, voices from across industry, education and the public sector are already signalling strong support for the policy recommendations:
Stuart Patrick, CBE, Chief Executive, Glasgow Chamber of Commerce
“Nothing is currently more important to employers than tackling the chronic skills shortages affecting so many crucial sectors that provide the economic growth we need so much. This report is a very helpful contribution to the policy debate with principles of funding flexibility, employer demand and the vital importance of the college network all emerging from the conclusions. It adds further weight to the need for a change in direction.”
Marek Zemanik, Senior Public Policy Adviser, UK Nations, The CIPD
“Skills must be at the heart of our response to the defining trends reshaping the world of work – be it demographic, technological or net zero transitions. There is much to do to ensure skills supply and demand are better aligned in Scotland’s labour market. We warmly welcome this discussion paper, which articulates the key challenges and opportunities for policymakers and employers well. The CIPD and our members will continue playing our part as Scotland’s skills system evolves.”
Professor Sir Anton Muscatelli, University of Glasgow
“The Report ‘A Skills-First Scotland: Pathways to Prosperity’ identifies many of the key issues that are holding back economic growth and productivity growth in Scotland. Scotland must join up its education system, from schools to colleges and universities, to make it more flexible and responsive, and to create a future-focused system which will help to drive our economy. As I highlighted in my recent report on regional economic development in Scotland, skills mismatch is a serious issue which has been highlighted by employers, and which must be addressed by Scottish Government.”
