Six soft skills now matter as much as qualifications, employers say

A five-year study by the National Foundation for Educational Research has concluded that six transferable skills now carry the same weight as formal qualifications when employers decide who to hire and promote. Communication, collaboration, problem-solving, organization, creative thinking, and data literacy have moved from the margins of job requirements to the center, reshaping how young people should prepare for work in an era when artificial intelligence and automation are expected to eliminate up to three million low- to mid-level positions by 2035.

The timing of this research matters. More than one million young people in the UK are currently outside education, employment, or training—the highest figure in over a decade. At the same time, employers are struggling to find candidates who possess these softer competencies. According to an independent review led by former health secretary Alan Milburn, 42 percent of employers cite a lack of soft skills or work readiness as a significant challenge when hiring young people. Only 10 percent pointed to resilience as their next biggest concern, suggesting that the skills gap is both real and widespread.

At North Bar in Leeds, co-founder Christian Townsley has built recruitment around observing these skills in action. Rather than relying solely on interviews, the company offers trial shifts where job seekers can demonstrate their ability to organize, multitask, and communicate under pressure. Townsley watches how candidates interact with customers and colleagues, how they stay calm during busy service, and whether they can manage multiple responsibilities—ordering stock, pricing items, planning social media, and recruiting new staff. "It's important that you can organise, you can multitask, you can identify who's next at the bar and remember that," he explains. This approach recognizes that the ability to prioritize and structure your own work becomes essential the moment someone leaves the predictability of school or university.

Problem-solving and decision-making are inseparable in most modern workplaces. Maria Aderonmu studied political science at university before joining Morgan Sindall Infrastructure, a company managing infrastructure projects across energy, defence, and rail. Now working in strategy, she finds herself adapting to new situations constantly and thinking on her feet. She credits her involvement in the university debating society with preparing her for this aspect of work—a reminder that soft skills develop in unexpected places and can be demonstrated through experiences far removed from formal employment. India Chaplin, the people director at Morgan Sindall, doesn't expect young candidates to have encountered every possible scenario. Instead, she looks for evidence that they can think through problems, whether those problems arose at school, in team settings, or elsewhere. "There's lots of different ways that people can show the softer skills that we're looking for," she says, "even if it was a scenario they've maybe not come across."

Communication extends beyond simply speaking clearly. Jake Readman, general manager at North Bar, emphasizes the importance of de-escalating conflict and resolving tension in high-pressure environments. When El Cousins came in to hand-deliver her CV, Readman was struck by her willingness to meet potential employers face to face. "They get an idea of your personality," Cousins explains. "I think that matters quite a lot and that doesn't always come across on a piece of paper or online." Readman was impressed enough to offer her shifts. This small interaction illustrates how communication skills—confidence, presence, the ability to show initiative—can open doors that a polished resume alone cannot.

Collaboration takes on particular importance in manufacturing and complex operations. At Barbour's factory in South Shields, HR director Lynn Bassett emphasizes that each department is interlinked, making teamwork essential. When hiring, Barbour looks for evidence of how candidates have worked with others, even if they lack specific technical experience. Addie Pattas, a fashion student on placement at the factory, works in the repair department and has learned that keeping people informed across the warehouse, factory floor, and shipping team is central to the job. This kind of cross-functional communication is increasingly common as organizations become more interconnected.

Creative thinking—the ability to approach problems from unexpected angles—matters across industries, not just in fashion or design. When something goes wrong, Bassett says, the best solutions often come from thinking differently about the problem. Data literacy represents a higher-order skill in an age of artificial intelligence. Companies need people who can look at raw data and understand what story it tells, what matters, and why. India Chaplin notes that data alone doesn't communicate meaning; it requires human judgment to determine what is significant and what should be shared with other teams. For engineers working on power lines, for example, understanding weather forecasts means knowing which information is critical to pass along.

Jude Hillary, the economist who led the NFER project, argues that these human-centered skills are where job growth will concentrate as automation advances. "This is where the job growth is going to be in the labour market," he says. "It's really important young people come into the labour market being able to compete for these jobs." The implication is clear: in a working life that may involve dramatic shifts as technology replaces existing roles, the ability to communicate, solve problems, collaborate, and think creatively becomes the foundation for adaptability itself. In September, the Milburn review is expected to release its final report with proposals for getting more young adults into secure work, signaling that both government and employers are treating this skills gap as urgent.