Apprenticeships offer practical experience and industry-specific training while allowing individuals to earn a wage
Apprenticeships can out-earn university degrees within five years, according to Logistics UK, which is urging a rethink of how Britain values technical skills.
Speaking during National Apprenticeship Week, the business group said higher level apprentices earn an average of ÂŁ37,300 five years after qualifying, compared with ÂŁ32,100 for the average graduate over the same period.
Bethany Windsor, head of skills policy at Logistics UK, said the figures show the need to align training more closely with labour market demand.
“There is a pool of untapped talent of almost one million 16-to-24-year-olds who are not in education, employment or training and, at the same time, there are some 213,000 job vacancies that are attributed to skills shortages,” she said.
She described the mismatch as “a massive, missed opportunity” and argued it reflects an education system that has historically prioritised academic routes over technical pathways.
Apprenticeships, she said, offer practical experience and industry-specific training while allowing individuals to earn a wage.
“Apprenticeships offer employees hands-on experience, sector-specific skills and professional training – all while earning a salary,” she said.
She added that many young people are encouraged towards degrees that may not suit their strengths or reflect economic need.
“Currently, 37 per cent of graduates are over-qualified for their jobs and 41 per cent work outside of their field of study,” she said.
While acknowledging that university education has long-term value, Ms Windsor stressed the UK needs to invest equally in technical training.
“The UK needs both world-class universities and world-class technical training if it is to compete globally,” she said.
Logistics UK also backed the government’s proposal to replace the Apprenticeship Levy with a Growth and Skills Levy, arguing it would give employers greater flexibility.
Under the proposed reforms, up to 50% of levy funds could be used for high-quality non-apprenticeship training to meet immediate workforce needs.
Ms Windsor said Skills England must move quickly to approve a broader range of sector-relevant courses to ensure the system responds to labour shortages.
She added that the reformed levy should support national careers initiatives such as Generation Logistics, aimed at attracting new entrants into essential sectors.
Logistics UK, which represents businesses across road, rail, water and air freight, said it remains committed to developing the next generation of talent.
As a government-approved apprenticeship provider, it offers programmes ranging from Level 2 Traffic Coordinators to Level 5 Operations Managers, designed to strengthen skills across the logistics workforce.
The organisation represents companies responsible for moving goods across the UK supply chain, employing more than seven million people in the making, selling and distribution of products.