New research shows how qualifications in tech subjects – subjects related to computing, information technology and design and technology - can support young people’s career and pay progression. It also explores how Artificial Intelligence (AI) and automation are reshaping the future of tech jobs.
The findings come from one of three new NFER reports, funded by The Hg Foundation, examining how education pathways and changing labour market trends in the UK tech sector are shaping opportunities for young people and the future workforce.
The Tech Pipeline - Investigating educational pathways into the tech sector in England, finds that:
- Students taking Level 3 vocational qualifications or degrees in tech subjects tend to have lower GCSE results than their peers studying other subjects. Yet, by age 28, tech graduates earn around £2,000 more than the average graduate* in any subject - just under £28,000, compared to £26,000. Underlining the strong earning potential of technical education and digital skills.
- Similarly, apprentices in tech subjects also tend to have lower GCSE results than their peers who study other subjects, but by age 28 they out-earn their peers from other apprenticeship fields and qualifications at the same level. This suggests expanding access to apprenticeships in tech subjects could be a powerful way of helping those with lower attainment thrive in the labour market.
- Those who have A-levels in tech subjects and maths or science tend to have even higher earnings than those who do either tech or maths/science subjects.
Published alongside a complementary technical report, the study analyses how young people move through education into tech careers and how those pathways can support upward social mobility - particularly for those with lower attainment at school.
However, the research highlights a stark gender gap, with girls substantially less likely to study tech subjects despite outperforming boys at GCSE, and less than half as likely to work in tech at age 28 than men. The tech sector is a key engine of growth and a priority within the UK’s industrial strategy.
Strengthening the UK's own talent pipeline is therefore critical – particularly into the types of roles that are likely to grow in the years ahead. The new research identifies areas of future growth, the benefits of tech careers for individuals, and the actions needed to build a stronger skills pipeline into the tech sector.
NFER research published earlier this year, also funded by The Hg Foundation, found a sharp slowdown in UK tech hiring. This trend underlines the importance of developing domestic skills pathways to ensure young people can access growing, future-facing tech roles.
NFER Research Director, Luke Bocock, said:
“Our research shows that tech qualifications can play a role in levelling the playing field.
“Young people who start out with lower attainment at school can, through studying tech subjects, go on to achieve higher earnings and enter well-paid, future-facing careers.
“Tech jobs can be drivers of social mobility – but there is still work to do to ensure more girls, disadvantaged young people and others underrepresented in the tech sector can benefit from these opportunities.
“The tech workforce is undergoing one of its biggest transformations in decades. Economic pressures, AI, automation and offshoring have driven a sharp slowdown in tech hiring over the past three years, and these forces are reshaping the roles that exist.”
The studies also find:
- Students who take tech subjects at GCSE are more likely to continue studying them. In the main analysis cohort**, 13 per cent of those who studied a tech GCSE took a tech A-level, which is higher than the eight per cent of all GCSE students who take a tech A-level – showing early engagement with tech subjects pays dividends.
- There was some evidence that tech workers from ethnic minorities earn less at age 28 than their white counterparts.
- Those from lower-income backgrounds are less likely to study tech subjects (except at degree level) or work in the tech sector. Much of this is explained by differences in prior attainment at GCSE.
NFER research also finds economic pressures, offshoring and the rapid adoption of AI has reshaped the UK’s tech labour market. While hiring has slowed – especially at entry level – employers are increasingly prioritising candidates with practical digital skills, problem-solving ability and adaptability. Many report they are turning to apprenticeships and skills-based hiring to find and develop talent.
James Turner, Chief Executive of The Hg Foundation, added:
“Tech and STEM qualifications, combined with AI and data literacy, strong essential skills and real-world work experience, offer a strong platform for social mobility in an uncertain and rapidly changing tech labour market. Yet not all groups have the same chances to develop these skills and pursue these pathways.
“Without intervention the shifts highlighted in this research risk exacerbating existing inequalities. At the Hg Foundation we will continue to support our partners to adapt to this changing landscape, as well as supporting new initiatives that address new challenges and the evolving skills-needs of employers.
“By doing so we hope to help underrepresented talent not only successfully navigate this period of upheaval, but to positively seize the new opportunities that will emerge.”