NSAR’s 2024 Workforce Survey reveals the urgency of addressing the skills shortage in UK rail – and the sector’s image problem
Women now represent 17.4% of the UK rail workforce
UK rail plays a central role in holding the country’s social fabric together. Not only is it of critical importance economically – helping people commute to work and transporting goods from place to place – but it is also vital in connecting communities. Just think, for example, of the many millions of people who will be travelling by rail to visit friends and family over the festive period.
But for all its importance in bringing the UK together, the rail industry is struggling to bring in the new recruits it needs – at a time when its objectives for growth are especially ambitious. With a high percentage of the sector’s existing workforce heading towards retirement, UK rail is up against a challenge to recruit younger people and those from diverse backgrounds, many of whom still feel that a career in rail is not a viable – or desirable – option for them.
The latest Workforce Survey from the National Skills Academy for Rail (NSAR), at times, makes uncomfortable reading for those of us who are dedicated to the rail industry and want to put it on a secure footing for the long term. Nevertheless, the report does provide a comprehensive overview of where UK rail stands today and highlights crucial gaps that need to be addressed if the sector is to be able to look to the future with real confidence.
What is clear is that to put UK rail on a firm foundation, we must be prepared as an industry to challenge some of the prevailing perceptions that surround the sector. This involves crafting a new narrative, emphasising rail’s centrality as a public service along with its myriad benefits to the economy and society, and convincing the next generation of workers that there is a place for them on the railways.
A shrinking, ageing workforce
NSAR’s new Workforce Survey reveals that UK rail’s total workforce now stands at approximately 220,500, a decline of 9.4% year-on-year. This decline is largely attributed to reductions in the supply chain labour force and threatens the rail industry’s ability to deliver on its plans for the coming years.
One mildly encouraging sign is the apparent uptick in the proportion of younger workers, which rose to 6.3% in 2024 from 4.7% in 2023, a 20.2% increase year-on-year, while the average age of the UK rail workforce dipped from 45 last year to 44.1 in 2024.
But the overall picture is of a labour force that is both shrinking and ageing. The proportion of workers aged between 31 and 49 fell to 43.8% in 2024, a year-on-year decrease of 12.4% and amounting to a loss of more than 25,000 workers; a concerning trend given this age group’s combined experience and its pivotal role in providing leadership and technical know-how.
The sector must actively cultivate a modern, inclusive image befitting its role in society
A third of the UK rail industry’s workforce is aged 50 or over and the modest rise in the proportion of young workers is still insufficient to replace the 47,000 employees NSAR estimates will retire by 2030, while as many as 90,000 could leave rail through both retirement and attrition over the next five years. With the average retirement age in rail standing at 62, this underscores the urgency of succession planning and knowledge transfer.
The skills gap
The NSAR report highlights the skills gaps UK rail faces in key areas, including signalling and telecoms, systems engineering, and electrification and plant. Not only this, but 40% of active trainers are expected to retire by the end of the decade, further exacerbating the problem.
This lack of sufficient numbers of skilled workers threatens the rail sector’s overall productivity levels and its ability to complete projects on time and within budget, as well as its ability to grow passenger numbers – something which is crucial if the UK is to meet its climate goals.
In addition to project delays, the lack of workers in specific areas of the rail industry has fuelled wage inflation. Wage premiums for electrification and signalling roles have risen by 12% and 10% respectively and it is estimated that these labour shortages could cost up to £720m annually through increased wages, delayed projects and deferred training.
According to NSAR, the workforce shortage is set to create skills gaps across a range of professions, among them engineers, train drivers, technicians and project managers. Addressing these deficits is not just a matter of operational efficiency but also represents a significant economic opportunity, with the potential to generate an estimated £344m in extra economic value and £122m in social value between 2025 and 2029.
Recruiting the workforce of the future
NSAR’s report makes clear that tackling the skills gap requires a multi-faceted approach. In particular, the industry cannot afford to discount the importance of diversity at all levels of the rail workforce, bringing in new recruits from a genuinely wide range of backgrounds. The industry’s strategy for tackling the skills shortage, therefore, must focus on workplace diversity, industry perception and training capacity.
Certainly, the sector’s efforts to diversify its labour force so far have yielded some successes. Women now represent 17.4% of the UK rail workforce (up from 16.3% in 2023), while the proportion of workers from ethnic minority backgrounds has risen to 14.4%, though both figures still trail behind national averages.
Increasing the number of young workers on the railways is likewise of crucial importance. Creating more apprenticeships could provide a structured pathway for more young people to gain industry-specific skills, while reaching out to more recruits from disadvantaged backgrounds could enhance social mobility while addressing UK rail’s skills needs. NSAR also notes an increase in STEM subject uptake at GCSE and A-level, which the rail sector should leverage to attract more young employees.
By embracing diversity and inclusion, UK rail can go a long way to addressing its skills shortage
There’s no denying that the rail industry still suffers from an image problem. In particular, it is often viewed as outdated and male-dominated. This deters many potential recruits from pursuing careers in the sector, particularly younger workers, women and people from ethnic minorities. It is therefore incumbent on UK rail to change the narrative.
Public awareness campaigns highlighting the industry’s central role in achieving carbon reduction goals could improve rail’s appeal to younger workers, while sharing stories of diverse professionals thriving in rail can challenge stereotypes and inspire diverse applicants. Partnerships with schools and universities will also continue to be important in showcasing career opportunities in rail.
Rising to the challenge
For UK rail to successfully tackle its skills shortage, it must undergo a cultural shift. This is a prerequisite to recruit from a broader talent pool and involves redefining how the industry presents itself to the public. Rail must embrace diversity and inclusivity as cornerstones of its future. Perception is a powerful driver in career choice, and the sector must actively cultivate a modern, inclusive image befitting its role in society and reflecting the public it serves.
Often seen as the preserve of men and highly technical, rail is still perceived as lacking opportunities for creativity, innovation and social impact. While this narrative is unfair in many respects – the rail industry offers a huge plethora of career opportunities across a wide range of professions – it does nevertheless deter many young people, women and people from minority backgrounds from considering a career in the sector.
Diverse leadership is a powerful catalyst for cultural change. Leaders drawn from a broad range of backgrounds and experiences can inspire others and provide visible proof that rail is an industry where anyone can succeed. Moreover, diverse leadership teams are better equipped to understand and
address the needs of a varied workforce and customer base, bringing fresh ideas and perspectives to the table.
However, diversity alone is insufficient: inclusion is key to unlocking its benefits. This means creating an environment where all employees feel they belong and that their voices are heard. Inclusive leaders set the tone for workplace culture, encouraging open dialogue, collaboration and mutual respect. This, in turn, creates an environment where all employees feel valued and motivated to contribute.
A call to action
In conclusion, rising to the challenge of reshaping public perceptions and fostering diversity in leadership is not just a moral imperative or a legal requirement – it is a practical, strategic necessity. By embracing diversity and inclusion, UK rail can go a long way to addressing its skills shortage while driving innovation and helping to secure a sustainable, prosperous future for the country at large.
NSAR’s 2024 Workforce Survey underscores the urgency of addressing the skills shortage in UK rail. The industry must act decisively to attract younger and more diverse talent; improving its public image and emphasising its economic and social value will inevitably be crucial to positioning the rail sector as an employer of choice.
The time to act is now. The stakes are high: failing to address the challenges facing UK rail could result in delayed projects, increased costs and a diminished ability to adapt to future demands. By responding flexibly and creatively, however, the industry might yet transform its skills crisis into an opportunity for growth and transformation.
ABOUT THE AUTHOR: Nina Lockwood is CEO of Intuitive Talent Solutions and has specialised in recruiting talented leaders for over 20 years. For seven years, Nina has chaired the Outstanding Personal Contribution category for the National Rail Awards and judged the Outstanding Teamwork category. She also sits on the Women in Rail North West Committee and is a mentor for the Women in Transport Mentoring Scheme.
This story appears inside the latest issue of Passenger Transport.
It’s time to change the narrative on rail
by Passenger Transport on Dec 16, 2024 • 10:05 am No CommentsNSAR’s 2024 Workforce Survey reveals the urgency of addressing the skills shortage in UK rail – and the sector’s image problem
UK rail plays a central role in holding the country’s social fabric together. Not only is it of critical importance economically – helping people commute to work and transporting goods from place to place – but it is also vital in connecting communities. Just think, for example, of the many millions of people who will be travelling by rail to visit friends and family over the festive period.
But for all its importance in bringing the UK together, the rail industry is struggling to bring in the new recruits it needs – at a time when its objectives for growth are especially ambitious. With a high percentage of the sector’s existing workforce heading towards retirement, UK rail is up against a challenge to recruit younger people and those from diverse backgrounds, many of whom still feel that a career in rail is not a viable – or desirable – option for them.
The latest Workforce Survey from the National Skills Academy for Rail (NSAR), at times, makes uncomfortable reading for those of us who are dedicated to the rail industry and want to put it on a secure footing for the long term. Nevertheless, the report does provide a comprehensive overview of where UK rail stands today and highlights crucial gaps that need to be addressed if the sector is to be able to look to the future with real confidence.
What is clear is that to put UK rail on a firm foundation, we must be prepared as an industry to challenge some of the prevailing perceptions that surround the sector. This involves crafting a new narrative, emphasising rail’s centrality as a public service along with its myriad benefits to the economy and society, and convincing the next generation of workers that there is a place for them on the railways.
A shrinking, ageing workforce
NSAR’s new Workforce Survey reveals that UK rail’s total workforce now stands at approximately 220,500, a decline of 9.4% year-on-year. This decline is largely attributed to reductions in the supply chain labour force and threatens the rail industry’s ability to deliver on its plans for the coming years.
One mildly encouraging sign is the apparent uptick in the proportion of younger workers, which rose to 6.3% in 2024 from 4.7% in 2023, a 20.2% increase year-on-year, while the average age of the UK rail workforce dipped from 45 last year to 44.1 in 2024.
But the overall picture is of a labour force that is both shrinking and ageing. The proportion of workers aged between 31 and 49 fell to 43.8% in 2024, a year-on-year decrease of 12.4% and amounting to a loss of more than 25,000 workers; a concerning trend given this age group’s combined experience and its pivotal role in providing leadership and technical know-how.
A third of the UK rail industry’s workforce is aged 50 or over and the modest rise in the proportion of young workers is still insufficient to replace the 47,000 employees NSAR estimates will retire by 2030, while as many as 90,000 could leave rail through both retirement and attrition over the next five years. With the average retirement age in rail standing at 62, this underscores the urgency of succession planning and knowledge transfer.
The skills gap
The NSAR report highlights the skills gaps UK rail faces in key areas, including signalling and telecoms, systems engineering, and electrification and plant. Not only this, but 40% of active trainers are expected to retire by the end of the decade, further exacerbating the problem.
This lack of sufficient numbers of skilled workers threatens the rail sector’s overall productivity levels and its ability to complete projects on time and within budget, as well as its ability to grow passenger numbers – something which is crucial if the UK is to meet its climate goals.
In addition to project delays, the lack of workers in specific areas of the rail industry has fuelled wage inflation. Wage premiums for electrification and signalling roles have risen by 12% and 10% respectively and it is estimated that these labour shortages could cost up to £720m annually through increased wages, delayed projects and deferred training.
According to NSAR, the workforce shortage is set to create skills gaps across a range of professions, among them engineers, train drivers, technicians and project managers. Addressing these deficits is not just a matter of operational efficiency but also represents a significant economic opportunity, with the potential to generate an estimated £344m in extra economic value and £122m in social value between 2025 and 2029.
Recruiting the workforce of the future
NSAR’s report makes clear that tackling the skills gap requires a multi-faceted approach. In particular, the industry cannot afford to discount the importance of diversity at all levels of the rail workforce, bringing in new recruits from a genuinely wide range of backgrounds. The industry’s strategy for tackling the skills shortage, therefore, must focus on workplace diversity, industry perception and training capacity.
Certainly, the sector’s efforts to diversify its labour force so far have yielded some successes. Women now represent 17.4% of the UK rail workforce (up from 16.3% in 2023), while the proportion of workers from ethnic minority backgrounds has risen to 14.4%, though both figures still trail behind national averages.
Increasing the number of young workers on the railways is likewise of crucial importance. Creating more apprenticeships could provide a structured pathway for more young people to gain industry-specific skills, while reaching out to more recruits from disadvantaged backgrounds could enhance social mobility while addressing UK rail’s skills needs. NSAR also notes an increase in STEM subject uptake at GCSE and A-level, which the rail sector should leverage to attract more young employees.
There’s no denying that the rail industry still suffers from an image problem. In particular, it is often viewed as outdated and male-dominated. This deters many potential recruits from pursuing careers in the sector, particularly younger workers, women and people from ethnic minorities. It is therefore incumbent on UK rail to change the narrative.
Public awareness campaigns highlighting the industry’s central role in achieving carbon reduction goals could improve rail’s appeal to younger workers, while sharing stories of diverse professionals thriving in rail can challenge stereotypes and inspire diverse applicants. Partnerships with schools and universities will also continue to be important in showcasing career opportunities in rail.
Rising to the challenge
For UK rail to successfully tackle its skills shortage, it must undergo a cultural shift. This is a prerequisite to recruit from a broader talent pool and involves redefining how the industry presents itself to the public. Rail must embrace diversity and inclusivity as cornerstones of its future. Perception is a powerful driver in career choice, and the sector must actively cultivate a modern, inclusive image befitting its role in society and reflecting the public it serves.
Often seen as the preserve of men and highly technical, rail is still perceived as lacking opportunities for creativity, innovation and social impact. While this narrative is unfair in many respects – the rail industry offers a huge plethora of career opportunities across a wide range of professions – it does nevertheless deter many young people, women and people from minority backgrounds from considering a career in the sector.
Diverse leadership is a powerful catalyst for cultural change. Leaders drawn from a broad range of backgrounds and experiences can inspire others and provide visible proof that rail is an industry where anyone can succeed. Moreover, diverse leadership teams are better equipped to understand and
address the needs of a varied workforce and customer base, bringing fresh ideas and perspectives to the table.
However, diversity alone is insufficient: inclusion is key to unlocking its benefits. This means creating an environment where all employees feel they belong and that their voices are heard. Inclusive leaders set the tone for workplace culture, encouraging open dialogue, collaboration and mutual respect. This, in turn, creates an environment where all employees feel valued and motivated to contribute.
A call to action
In conclusion, rising to the challenge of reshaping public perceptions and fostering diversity in leadership is not just a moral imperative or a legal requirement – it is a practical, strategic necessity. By embracing diversity and inclusion, UK rail can go a long way to addressing its skills shortage while driving innovation and helping to secure a sustainable, prosperous future for the country at large.
NSAR’s 2024 Workforce Survey underscores the urgency of addressing the skills shortage in UK rail. The industry must act decisively to attract younger and more diverse talent; improving its public image and emphasising its economic and social value will inevitably be crucial to positioning the rail sector as an employer of choice.
The time to act is now. The stakes are high: failing to address the challenges facing UK rail could result in delayed projects, increased costs and a diminished ability to adapt to future demands. By responding flexibly and creatively, however, the industry might yet transform its skills crisis into an opportunity for growth and transformation.
The National Skills Academy for Rail (NSAR) Rail Workforce Survey 2024 can be found at: nsar.co.uk/projects/rail-workforce-survey
ABOUT THE AUTHOR: Nina Lockwood is CEO of Intuitive Talent Solutions and has specialised in recruiting talented leaders for over 20 years. For seven years, Nina has chaired the Outstanding Personal Contribution category for the National Rail Awards and judged the Outstanding Teamwork category. She also sits on the Women in Rail North West Committee and is a mentor for the Women in Transport Mentoring Scheme.
This story appears inside the latest issue of Passenger Transport.
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