30 January 2026
Economic growth hit by declining employer investment in training
The Learning and Work Institute has published a briefing paper highlighting the fall in employer investment in training and the impact on the economy.
Employer investment in training is now down 36% per employee in real terms since 2005 and fell 13% between 2022 and 2025. Since the apprenticeship levy was introduced, investment has fallen 23%, undermining the aims of the levy.
Most industry sectors have seen a decline in investment, but it is particularly severe in public administration (-50%) and financial services (-47%), while utilities (+11% and education (3%) were among the few which saw a slight rise.
Some of the decline may be due to the availability of cheaper online training, though the report highlights concerns that this can be lighter touch than traditional training.
Underlying the top-level numbers, more people are receiving training from their employers, but that training is typically shorter now, raising questions about its impact.
Read the L&WI briefing on employer investment in training.
Employer investment in training is now down 36% per employee in real terms since 2005 and fell 13% between 2022 and 2025. Since the apprenticeship levy was introduced, investment has fallen 23%, undermining the aims of the levy.
Most industry sectors have seen a decline in investment, but it is particularly severe in public administration (-50%) and financial services (-47%), while utilities (+11% and education (3%) were among the few which saw a slight rise.
Some of the decline may be due to the availability of cheaper online training, though the report highlights concerns that this can be lighter touch than traditional training.
Underlying the top-level numbers, more people are receiving training from their employers, but that training is typically shorter now, raising questions about its impact.
Read the L&WI briefing on employer investment in training.
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