Digital Skills Demand Drives New Standard Development

Skills England's latest Occupations in Demand report provides concrete evidence of what many in the apprenticeship sector have been observing firsthand: digital and technical roles are experiencing substantial workforce demand. The data, published in December 2025, reveals critical demand across IT occupations and validates the strategic importance of digital apprenticeship standards in addressing UK skills gaps.

The findings align closely with what we're seeing through our involvement in digital trailblazer groups, where employer feedback consistently highlights the challenge of finding qualified technical staff. With the apprenticeship sector responding through both standard revisions and new standard development, there's a clear opportunity to build the skilled workforce needed.

What the Data Shows

Skills England's analysis categorises occupations into three demand levels based on five labour market indicators: visa grant density, online job advert density, annual wage growth, wage premium, and changes in hours worked. The results for digital and IT roles are striking.

The information and communication industry has the highest proportion of workers in high demand occupations at 66.8%. Within this, several roles directly aligned with our digital apprenticeship standards show critical or elevated demand:

Critical demand occupations:

• IT business analysts, architects and systems designers (193,000 workers) - in critical demand for wage growth, job adverts, and visa density

• IT operations technicians (80,400 workers)

• IT user support technicians (132,000 workers)

• Data analysts (126,000 workers)

Elevated demand occupations:

• Programmers and software development professionals (533,000 workers) - elevated demand across wage growth, hours worked, and job adverts, with critical demand for visa density

• Information technology directors (66,000 workers)

These aren't marginal findings. The 1.1 million workers in high demand occupations within the information and communication sector represent genuine workforce challenges that employers are navigating right now. The elevated visa density across these roles indicates employers are looking internationally when they can't fill positions domestically.

The Broader Digital Skills Picture

Beyond the information and communication industry itself, digital skills feature prominently across other sectors. The professional, scientific and technical industry shows strong demand for business analyst roles, whilst the finance and insurance sector demonstrates critical demand for IT business analysts and financial technology specialists.

What's particularly notable is the skill level distribution. Of the 5.1 million workers in critical demand occupations across all sectors, 52.3% are at ONS skill level 3 (post-compulsory education but not normally to degree level). This aligns precisely with the level where apprenticeships have proven most effective at developing workplace-ready professionals who combine theoretical knowledge with practical application.

The wage premium data is also telling. IT business analysts show critical demand for wage premium, indicating that even when controlling for factors like age and experience, these roles command higher salaries than comparable occupations. This wage signal reflects genuine scarcity of qualified professionals, not just increased hiring volumes.

The Sector's Response: Standards Development Accelerates

Against this backdrop of demonstrated demand, the apprenticeship sector has been actively developing standards to address these skills gaps. The reform process we've been tracking throughout 2025, with its move towards principles-based assessment and streamlined approaches, has created a framework that can respond more nimbly to emerging occupational needs.

The latest addition to the digital apprenticeship landscape is the AI and Automation Practitioner standard, which received approval in late 2025. This Level 4 standard directly addresses the intersection of artificial intelligence and business process automation, areas where Skills England's data shows increasing workforce demand particularly within the "emerging data technologies" category that features in revised assessment outcomes.

The standard focuses on practical implementation of AI and automation solutions within business contexts, covering areas from machine learning fundamentals and process analysis to ethical AI deployment and automation testing. It sits alongside existing standards like Data Technician and Data Analyst but addresses the specific competencies needed as organisations increasingly integrate AI into their operations.

This isn't just another standard filling a theoretical gap. The development timeline suggests genuine employer demand drove its creation. When you see critical demand for data analysts and IT business analysts, and elevated demand for programmers and software development professionals, it's clear that organisations need people who can bridge these capabilities. The AI and Automation Practitioner standard provides a structured pathway to develop exactly that hybrid skillset.

Where This Connects to Reform

The timing is significant. As we covered in our November and December updates, the reformed assessment approach introduces assessment outcomes that group knowledge and skills into meaningful professional practice areas rather than assessing them as isolated components. This is particularly well-suited to emerging roles like AI and automation practitioners, where competency comes from integrating technical skills, business understanding, and ethical considerations.

The AI and Automation Practitioner standard will be developed and assessed under these reformed principles. Rather than prescriptive assessment plans specifying exact timings and question numbers, assessment organisations will have flexibility to design assessments that authentically test occupational competence. For a rapidly evolving field like AI and automation, this flexibility matters. Technology changes quickly, but core professional capabilities around problem-solving, ethical deployment, and effective implementation remain constant.

The standard also reflects learning from employer engagement in trailblazer groups. Our involvement across digital standards has shown that employers value apprenticeships that produce professionals who can contribute immediately, not just demonstrate theoretical knowledge. The AI and Automation Practitioner curriculum balances technical depth with practical application, something we've seen work effectively in similar standards like DevOps Engineer and Data Technician.

What This Means for the Digital Skills Pipeline

Skills England's data provides a useful benchmark against which to measure progress. The 126,000 data analysts in critical demand, the 193,000 IT business analysts, the 533,000 programmers in elevated demand - these numbers represent real workforce challenges. Apprenticeships won't solve these gaps alone, but they provide a proven route to developing work-ready professionals whilst addressing the diversity and accessibility challenges that often limit traditional recruitment pipelines.

It is encouraging that much of the demand sits at Levels 3 and 4, as these are well suited to apprenticeship training. These are precisely the levels where apprenticeship training combines academic rigour with workplace application most effectively. A data analyst or IT business analyst developed through an apprenticeship route brings both technical competence and understanding of how their role fits within business operations, something that employers consistently tell us they value.

The introduction of the AI and Automation Practitioner standard broadens this pipeline further. As we move into 2026, organisations will have a structured pathway to develop AI capability internally rather than competing for scarce experienced professionals or relying entirely on external consultancies. This should help address some of the demand pressure the Skills England data identifies, particularly as the standard becomes established and training providers build delivery capacity.

Looking Ahead

The Skills England report will be published annually, providing ongoing visibility into workforce demand trends. This data will inform which standards undergo revision and where new standard development might be needed. The current wave of digital standard reforms we've been tracking responds to demand signals from previous years, the next iteration will likely respond to the patterns we're seeing now.

For assessment organisations and training providers working in the digital space, this data validates strategic priorities. The standards we're developing and delivering aren't speculative, they address documented workforce needs. As the reformed assessment approach rolls out and standards like AI and Automation Practitioner move from approval into active delivery, the sector has an opportunity to demonstrate how responsive, employer-led apprenticeships can contribute meaningfully to addressing skills gaps.

We'll continue to track both the demand data and the sector's response through our ongoing involvement in digital trailblazer groups and assessment development. As implementation guidance for reformed standards becomes clearer and new standards like AI and Automation Practitioner begin delivery, we'll provide updates on what's working and where challenges emerge.

The data shows substantial demand. The standards exist to address it. Now it's about effective implementation and ensuring apprentices receive high-quality training and assessment that prepares them for these in-demand roles.

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Contact us to find out more information about the AI and Automation Practitioner standard and our assessment approach.