According to a report from Universities UK (the “collective voice” of 136 universities in England, Scotland, Wales and Northern Ireland), the onset of the Fourth Industrial Revolution (4IR) automation, robotics, artificial intelligence and digital technology), the challenges of Brexit and an ageing population are creating rising demand for those with qualifications above Level 4 (HNC/Ds, foundation, undergraduate and postgraduate degrees).

The report (www.universitiesuk.ac.uk) — Solving future skills challenges — highlights the need for continual skill upgrading, lifelong learning and study of higher education qualifications at all levels.

It also says 4IR will increase the complexity of work, and that the relentless and rapid pace of change will create even stronger demand for those with transferable skills developed at university across all subjects.

The percentage of young people from England entering higher education has reached 49%, although there has been a steady decline in part-time and mature-study numbers in recent years.

The report calls on policy makers to reverse this drop and incentivise closer links between universities and employers, particularly small and medium-size businesses.

Alistair Jarvis, chief executive of Universities UK, said there is significant evidence of the need to increase student numbers: “There is rising employer demand for the broad skills developed at university across a wide range of subjects and levels.

"The UK economy needs more graduates. Educating more people of all ages at university would grow our economy faster, by increasing productivity, competitiveness and innovation.

“The analytical and learning skills developed at university help people adapt in the rapidly changing jobs market.

“To meet future challenges, the Government should develop new policies to make part-time study more appealing, make up-skilling easier and encourage lifelong learning among our ageing population.”

The report reveals that in 2016, 440,000 new professional jobs were created, yet there were only 316,690 first-degree UK-based graduates, leaving a recruitment gap of 123,310 — more than double the gap in 2015.

Employers have told the CBI that they expect the greatest demand for skills over the next three to five years to be for people with higher-level skills, where there is already a much higher employment rate.