Key to a harmonious inter-generational workforce in 2026

As the UK labour market faces a perfect storm of an ageing workforce, rapid digital advancements and rising employment costs, businesses must implement a more demographically strategic approach to support their workforces, ensuring a structure is in-place for upskilling.

According to the most recent data from the Office for National Statistics (ONS), the UK employment rate for individuals aged 50 to 64 increased to 71.6% – indicating we have more older people working in the UK today than any other time in modern history, due to a mixture of factors from the rising state pension age, to longer life expectancy, to the cost of living crisis.

The modern UK workforce is being completely redefined by a combination of demographic shift, technological change, new working patterns and evolving skills demands. 

In an age where we are living longer, naturally it seems we will be working longer too. Couple this with rapid technological developments and a challenging economic backdrop, employees are being faced with the very real prospect of remaining in employment for longer than previous generations. However, with younger generations continuing to join the workforce, employers must find a way of balancing investment and skills support to ensure a unified, fair, cohesive and productive workforce.

A great place to start when faced with such a complex workforce identity is a review of what is working and what isn’t. Skills audits, for example, are a systematic process used to identify, evaluate and map specific skills of individuals or teams. An audit can help to highlight current workforce strengths and uncover crucial gaps across a business. This information is then integral to guide targeted training, hiring and career development across any business.

Technological advancement also plays a crucial role in mapping workforce needs for the future. Our Future World of Work Report found that adaptability (49%), resilience (43%) and communication skills (41%) were top ranked projected skills required for the world of work by 2028. IT and artificial intelligence (AI) skills (32%) reflect growing demand in that area and are perceived as increasingly important areas of knowledge for individuals to actively demonstrate when searching for work.

Data from Deloitte’s ‘2026 Gen Z and Millennial Survey’ found that globally nearly three-quarters of Gen Zs (74%) and millennials (74%) report using AI to some extent in their day-to-day work, largely seeing it as an accelerant rather than a threat. However, many feel they are adopting quicker than their organisations.

A major concern for older generations is digital exclusion. The working world as we know it is being greatly impacted by a raft of new, innovative technologies that are set to transform existing roles and create opportunities we never knew were possible.