Business Barometer 2025 report

How low local participation in higher education could be constraining your access to skills – and what employers can do about it.

Access to skills should not depend on postcode. Yet across the UK, many employers are operating in higher education ‘cold spots’ – places where relatively few local people progress into higher education.


This employer-facing report explores a critical question:

Could being based in a higher education cold spot be holding back your ability to build skills locally?

Drawing on insights from 350+ employers located in cold spot areas, and the views of a number of skills experts, the report looks at how low higher education participation affects recruitment, retention, diversity and growth – and how employers can respond by working differently with higher and further education providers.



Get exclusive access to the report

What you’ll learn

  • What higher education cold spots are – and where they exist across the UK
  • How being in a cold spot affects employers’ access to skills, growth opportunities and productivity
  • Why competition for graduate and higher-level skills is particularly intense in these areas
  • Which critical skills (including digital, AI and professional services) are most in short supply
  • How employers are responding – and where opportunities are being missed
  • Practical ways employers can build skills locally, even where HE participation is low
  • Case studies of best practice local skills partnership-working

In some parts of the UK, access to skills is a daily challenge for employers, as talent is everywhere but opportunity is not.

Professor Mark Durkin
Pro Vice-Chancellor, Partnerships and Enterprise, The Open University