Economic value

Introduction

This section provides resources for relating career guidance work to outcomes beyond individuals. This page covers discussions that relate career guidance to economic outcomes, ranging from qualitative arguments, about how career guidance contributes to functioning labour market. to quantitative assessments of 'return on investment' from career guidance interventions, for the tax-payer or Government. Arguments also exist that review past effects and look forward and argue the need for CEIAG given growing social and economic challenges.

Case study examples are shown, that give examples of interventions where the outcomes support economic performance. There are different mechanisms by which these are achieved.

Overall, this page provides references that describe the landscape for careers, CEIAG practice case studies, research-active institutions, relevant publications, and data sources that offer contexts such as effect sizes and trends.

Key points

The economic drivers for career guidance are found in many places, relating to skills gaps and skills mismatches: 

• Many studies across many parts of the world point to frequent and significant mismatches between skills and employment that persist into early careers e.g. Andrews (2020), Albert et al, (2024)

• 62% of British businesses are facing skills shortages (British Chamber of Commerce & Open University, 2024) Our knowledge-based and digital economy is leading to unprecedented impacts on peoples’ careers. While a segment of workers, who are highly digitally capable, will see many more opportunities, most workers will experience globalisation as a source of disruption that may demand changes throughout a career lifespan and greater threats of the obsolescence of their skills or role. (Hood, M., & Creed, P.A., 2019)

• We have a number of possible scenarios that determine the UK’s future skills demand, but all see a strong demand on upskilling and retraining (Dunkerley et al, 2022)

• A review by the National Foundation of Educational Research found that “whilst specialist skills and knowledge are vital in most occupations, it is transferable ‘essential employment skills’ that will be in greatest demand across the labour market in 2035.” (Dicerson, A., and Rossi, G, 2023),

• Internationally, the demand for re-skilling is fuelling additional demand for career guidance (Barnes, 2023)

• The consensus of international evidence finds that the ROI for career guidance is 2.5:1 for schools and 3.2:1 for unemployed adults. (Hooley et al, 2023)
• Analysis by Phoenix Insights suggest that the UK could benefit by £15bn over five years from better career advice across the career span from just the impact of reducing skills mismatches (Phoenix Insights, 2025)