The Ongoing Underutilisation of Women in the Workforce

The Office for National Statistics (ONS) has dropped a real eye-opener today with their latest report, Understanding Skill and Qualification Suitability in the Labour Market, UK: August 2024. If you’re anything like me, you might have glanced at the headlines and felt a familiar frustration creeping in. Once again, we’re faced with cold, hard data that confirms what many of us have been banging on about for years: women’s skills are being massively underutilised in the workplace, and it’s high time employers did something about it.

The Data We Can’t Ignore

Let’s start with the basics. In 2022, the Annual Population Survey found that 2.3 million people of working age—6.6% of the UK’s workforce—had the skills to work in at least one other occupation outside of their current one. That’s millions of people sitting on a goldmine of talent, stuck in jobs that don’t fully tap into what they can offer. And yet, they’re not budging. Why? Because our labour market is still hung up on old-school hiring practices that focus more on qualifications than on what someone can actually do.

Now, here’s where it gets really interesting—and frankly, infuriating. The 2021 Census data shows that just over half of employed adults in England and Wales had qualifications that matched the average for their occupation. But here’s the kicker: one in five workers were more qualified than their current job required. That’s 20% of people effectively underemployed, wasting skills that could be better used elsewhere.

Women Bearing the Brunt

And guess who’s bearing the brunt of this mismatch? Women. According to the report, women are more likely than men to be overqualified for their roles—21.8% compared to 18.7% of men. Even more telling is the fact that women are also more likely to have the skills to transition into another occupation (7.4% of working-age women compared to 5.9% of men in 2022). This isn’t just a minor discrepancy; it’s a clear sign that women’s talents are being consistently overlooked and underutilised in the labour market.

It’s not just about qualifications either. The report points out that the two most critical skills for today’s labour market are "establishing and maintaining interpersonal relationships" and "updating and using relevant knowledge". And guess what? Employed people are far more likely to demonstrate these skills than unemployed ones. The gap is especially stark in places like Yorkshire and the Humber, where 71.1% of employed people have these skills compared to just 41.8% of the unemployed.

Time for a Shift: Skills-Based Hiring

So, what’s the takeaway here? For me, it’s blindingly obvious: we need to shift our hiring practices away from this obsession with qualifications and start focusing on skills and outcomes. There’s a massive pool of talent out there—especially among women—that’s being wasted because employers are still stuck in the past, hiring based on what’s written on a piece of paper rather than what someone can actually do.

Skills-based and outcome-driven hiring isn’t just a trendy buzzword; it’s a practical solution to a very real problem. By focusing on what people can do, rather than where they’ve studied or what degree they’ve got, employers can unlock a wealth of untapped potential. This is especially true for women, who, as the ONS report shows, are often more skilled and capable than their current job roles suggest.

Bridging the Gap

Let’s not forget the regional disparities either. The report highlights that employed people in the North East are most likely to be overqualified for their current jobs, while those in the East of England and the South East are least likely. This suggests that some areas are doing a better job of matching people to the right roles, but there’s still a long way to go.

We need to be offering more support to unemployed people, helping them develop these critical skills so they can compete on a level playing field. This isn’t just about fairness; it’s about making sure our labour market is as dynamic and efficient as possible.

Wrapping It Up

The ONS report is a stark reminder of the inefficiencies in our labour market and the untapped potential that’s sitting right under our noses. Women, in particular, are being let down by a system that values qualifications over actual skills. It’s time for employers to wake up and realise that skills-based hiring isn’t just a nice-to-have; it’s essential for building a more inclusive, effective workforce.

So, let’s stop talking about it and start doing something. Employers need to look beyond the CV and start focusing on what really matters: what people can bring to the table, not just what’s written on their certificates. The talent is out there—let’s make sure we’re using it.