AI adoption and upskilling, aligned to high growth industrial sectors, could boost the Yorkshire and Humber economy by £38bn, new report reveals

Posted on Sunday 27 September 2026

The analysis integrates live workforce data (drawn from 750 million data points) with mayoral growth strategies and current and future labour market needs across the region to set out a roadmap for high-value job creation.

Published by the University of York in partnership with global higher education analyst QS and consultancy Public First, the report analyses nearly 2,000 occupations and more than 40,000 skills. The research maps how AI, automation and upskilling, and green transitions will reshape the regional labour market.

As part of the report, the University of York is calling for integrated regional collaboration between local mayors, higher education providers, and industry leaders to protect the capacity of universities to operate as civic and economic engines, ensuring the region fully captures the potential of AI.

Supercharging

The report - entitled Supercharging Yorkshire & Humber: Unlocking £38 billion in growth through AI, skills and system scale integrated planning - was unveiled at the Labour Party Conference.

Key takeaways include:

• AI could unlock a £38 billion GDP uplift for Yorkshire and the Humber by 2030 (and £490 billion nationally), generating up to 379,000 new regional jobs.
• Over 80% of critical roles (and 92% of the top 280 priority high growth occupations) across the core Industrial Strategy sectors require degree-level qualifications or higher
• While technical Level 4/5 apprenticeships provide a vital foundation, data reveals how integrating higher education and degree-level training into regional growth strategies will ensure the UK fully captures multi-billion-pound growth opportunities.
• The research maps current demographic shifts and university intakes, offering regional leaders actionable intelligence to build resilient, high-value talent pipelines in critical STEM and industrial disciplines. 
• 967,000 jobs (38% of regional employment) sit across the 8 Modern Industrial Strategy sectors (Advanced Manufacturing, Clean Energy, Life Sciences, Digital, Financial, Creative, Defence, Business Services).
• 92% of the 280 most critical roles across these sectors require a university degree.
• Specific acute shortages include a regional shortfall of 2,160 engineering graduates per year (rising to 3,470 under high AI adoption), 900 in computing, and 700 in education/specialist leadership. 

Pathway

The authors of the report say the findings offer the Mayors in West Yorkshire, South Yorkshire, York & North Yorkshire, and Hull & East Yorkshire a pathway to skills funding and cross-sector collaboration. 

The findings, which build on a national report published earlier this year, highlight the urgent need for joined-up action across regional Mayoral Combined Authorities, leveraging devolved funds to align higher education with regional growth strategies in advanced manufacturing, clean energy, life sciences, and digital technologies.

The research forms part of a broader UK-wide evaluation. Nationally, the QS World Future Skills Index 2027 ranks the UK third out of 89 economies for its readiness to navigate digital and green transitions. 

Across the UK’s eight Industrial Strategy sectors, AI could augment work in 75% of occupations, potentially adding £490 billion to UK GDP by 2030 if businesses and universities effectively equip workers to operate alongside automated technologies.

Opportunity

Joan Concannon, Chief Reputation & Stakeholder Relations Officer, at the University of York, said: “Devolution offers an extraordinary, generational opportunity to align higher education with regional economic prosperity.

“This report provides a key focus on the demand and supply side labour market data to empower our Mayors to realise a £38 billion regional economic growth opportunity. 

“But it also highlights the critical urgency of a shared plan to navigate severe demographic pressures - including an ageing population where retirees outnumber the economically active - and the resulting urgent need to retain more graduates in our region.

“There is clear scope for Mayors and universities across the region to collaborate further, ensuring Yorkshire and the Humber have a talented workforce to lead innovation in the digital revolution we are navigating.”

Nunzio Quacquarelli, President and Founder of QS Quacquarelli Symonds, said: “By understanding how AI could change work in each place, we can do more than prepare for the future. We can help shape a future worthy of the people whose lives it will change.

“Proactively capturing the potential of AI augmentation will be critical to the region’s growth. Achieving this will require collaboration between mayors, educational institutions and employers, with support at national level.”