This new research has helped launch Learning and Work Institute’s Get the Nation Learning campaign, which we are proud to have supported.

Somebody starting work in the UK today could have a career spanning five decades. In the context of longer working lives, learning, training and skills development are likely to become ever more important both to people’s experiences of work and to the success of the UK economy. In our previous research, we found that 70% of the public agreed that today’s economy makes retraining more important than ever before. If learning supports longer working lives, it could help to increase earnings and savings over a lifetime, helping more people to prepare for their retirement.

But does participating in learning or training as an adult actually increase your chances of being in work?

The answer is yes, according to brand new research, conducted by Learning and Work Institute and commissioned by Phoenix Insights.

Accessing learning or training boosts employment chances

The new report, Lifelong Learning and Skills for Longer Lives, aims to assess whether learning as an adult actually causes improved outcomes. This is done through sophisticated data analysis: the method is to compare two groups of people who are similar to each other in every way, except that Group A took part in learning/training, while Group B did not.

The results show that learning or training does increase the likelihood of someone being in employment. After two years, 4% more of the adults who accessed learning or training were in work, compared to those who did not. This is one of the first research studies in the UK to find evidence of this causal link.

People with lower qualifications gain the most from learning or training as an adult

The research finds that people with lower levels of qualifications (at or below GCSE) gain the most from learning/training as an adult. People with either no qualifications or level 1 qualifications were 6 to 8 percentage points more likely to be in work two years after starting learning or training.

In contrast, among those with a level 4 qualification or above (mostly degree holders), learning or training did not have any impact on the likelihood of being in employment two years later. However, those with level 4 qualifications or above already have a high level of employment.

The research also assessed how learning or training affects the likelihood of people receiving benefits such as Universal Credit. Here again, there was a clear positive impact for those with no prior qualifications: the proportion receiving benefits fell by 8 percentage points as a result of participating in learning.

Lifelong learning increases wages in the long term – but there may be a short-term hit

Previous studies suggest that lifelong learning has a positive impact on people’s wages over the long term. However, the findings from this new research are mixed, with some groups reporting higher and others lower earnings over a two to three year period.

The research confirms that for some people, accessing learning or training can reduce their earnings in the short term. There are likely two explanations for this. First, people may choose to work fewer hours in order to undertake longer or more time-intensive learning. Second, people may be accessing learning or training before changing career or sector.

For some people, changing career can reduce their earnings in the short term. Previous Learning and Work Institute research found that the average sector switcher working full-time faces a £3,700 per year pay penalty – “people often have to take a step down to take a step across”. The good news, however, is that their pay subsequently grows three times faster compared to those who stay in the same job.

Our own Careers can change campaign, which aims to inspire people to see that careers can change successfully across the course of people’s working lives, has looked at the financial impact of career change. We have developed a ‘Financing your career change toolkit’ to support people to navigate this.

Employer-provided training can benefit employers and workers

The new research also included interviews with employers to understand their perspective on providing learning or training to their staff.

Employers who took part in the research highlighted several benefits of providing learning and training. These include employee retention and progression, employee confidence and performance, and improved job satisfaction. The main challenges to workplace learning identified by employers were time, resources and financial implications.

A separate academic research paper which was recently published supports the argument that employer-provided training benefits both individuals and employers. The paper finds that workers who received employer-provided training saw their wages increase by 2-5% more than workers who did not receive any employer-provided training. This positive wage impact lasted at least five years after the training – a significant long-term impact.

Despite this evidence and the positive views of employers towards workplace learning/training in the interviews, UK business investment in training has declined in recent years. Employer spending on training per employee has fallen by 19% since 2011.

Policy makers and employers should invest in lifelong learning

The research shows that lifelong learning for adults can benefit individuals, employers and government finances. But, what are the implications of this new research for policy makers and employers?

First, government and employers together should aim to promote a culture of lifelong learning for adults in the UK. With longer working lives, we need collectively to promote the value of learning in mid- and later life. Our previous research examined what the UK can learn from other countries in promoting a culture of lifelong learning. The government has an opportunity to develop this in the forthcoming Post-16 Education and Skills Strategy – building on the commitment Jacqui Smith, the Minister for Skills, made in a recent speech to “develop a culture of lifelong learning, where learning does not stop at 18 or 21.” Employers also have a key role in promoting, and investing in, learning, training and skills development.

Second, national, regional and local policy makers should aim to join up learning and skills policy and wider efforts to increase employment. The government has set a long-term ambition to reach an 80% employment rate in the UK, as part of its economic growth mission. The new research shows that learning and training for adults is an important tool to help achieve this target. Specifically, the research provides a strong case for enabling people qualified at or below GCSE level to access learning, for example via the Adult Skills Fund and employment support programmes. In England, Mayors and Combined/Strategic Authorities should set out how they will strengthen integration between skills and employment support in forthcoming ‘local Get Britain Working plans’.

Third, there is an opportunity to improve the provision of advice on learning/training/skills through the National Jobs and Careers Service. We have previously published research on the value of careers advice for adults, and the new report shows it is important to ensure this includes advice on learning, especially for people interested in changing their career or sector. There is a great opportunity for DWP and partners to trial different ways of providing advice on learning as part of a ‘test and learn’ approach to reforming Jobcentres and designing the National Jobs and Careers Service.

To find out more about the research and recommendations, you can find the full report here: Lifelong Learning and Skills for Longer Lives.

Get the Nation Learning is a new campaign led by Learning and Work Institute, designed to make and win the case for lifelong learning. It builds on their 30-year legacy of running Festival of Learning, the biggest celebration of adult learning in England.