A startling report from the Organisation for Economic Co-operation and Development (OECD) has revealed that workers in England are the most overqualified among 31 of the world’s largest economies. The findings indicate that 37% of English workers are employed in roles that do not fully utilize their qualifications, a significant figure that highlights a widespread mismatch between skills and job requirements in the UK economy.
The report further reveals that this misalignment has a financial impact: overqualified workers in England earn around 18% less than their peers in roles that appropriately match their skills and qualifications. This suggests that individuals are not only underutilized in the workplace but are also facing tangible consequences in their take-home pay.
Global comparison: Overqualification trends
England‘s overqualification rate surpasses that of Japan, which ranks second at 35%, and Israel, where 34% of workers are in jobs that require fewer qualifications than they possess. In stark contrast, Belgium, Singapore, and Poland report the lowest rates of overqualification, all standing at 14%—well below the OECD average of 23%.
The OECD’s findings are based on a comprehensive survey that assesses literacy, numeracy, and problem-solving skills in adults across 31 countries. According to the study, a worker is deemed overqualified when their highest level of educational attainment exceeds the qualifications typically required for their current role.
Government response and plans for action
The report has sparked calls for a renewed focus on aligning skills with the demands of the labour market. Responding to the findings, the UK government emphasized the need to better leverage the country’s talent pool as part of broader efforts to stimulate economic growth.
Skills Minister Jacqui Smith said: “We are determined to break down barriers to opportunity by developing a culture of lifelong learning, and this report shows that we can and must do more to ensure everyone has the skills they need to get on in life.”
Smith’s remarks underscore the government’s intention to foster a more adaptable and future-focused workforce. However, critics argue that addressing overqualification will require structural changes, including stronger links between educational institutions, employers, and training providers.
The bigger picture: Addressing skill mismatches
The high rate of overqualification in England raises questions about the efficiency of the job market and the effectiveness of educational and vocational pathways. Experts suggest that tackling this issue will involve improving career guidance, expanding reskilling and upskilling opportunities, and ensuring that employers recognize and reward workers’ full potential.
The Workers Union Says…
“With the government signalling its commitment to lifelong learning and economic growth, the findings present both a challenge and an opportunity. By addressing the underlying causes of overqualification, England could unlock the potential of its workforce and reduce the economic losses associated with underutilized talent.”
