The UK’s tech sector which contributes £150bn to the UK economy every year (techUK), is facing a critical challenge: a severe shortage of skilled talent.
This skills gap is not merely a minor inconvenience, but a major threat to the industry’s long-term growth, innovation, and competitiveness.
The demand for tech professionals in the UK is soaring.
A recent report by Tech Nation revealed that 72% of UK tech businesses are experiencing difficulties in recruiting skilled workers. In-fact, 82% of Tech Businesses anticipate a skills shortage within the next 5 years (British Computer Society).
So, what’s causing the skills shortage?
Technological advancement
Technology is advancing so quickly that staff can’t upskill fast enough. There are a few areas particularly in demand including Machine Learning and Cybersecurity. A 2023 study by McKinsey Global Institute estimated that 375 million workers worldwide will need to reskill or retrain by 2030.
Education
The UK education system is quite slow in the evolving needs of the employment world, it’s not often curriculums and modules change within school and college settings. Although times are changing with GCSE Computer Science now an option to study within 78% of schools.
Staffing
With many other up and coming tech hubs, it’s been pretty challenging for the UK to stay ahead, the likes of the US, Germany and Netherlands are main competitors when it comes to attracting top talent.
A 2022 report by the Centre for Economic and Business Research found that the UK ranks 10th globally in terms of attracting tech talent.
Has this had a strong impact so far?
There are a few key areas which have been hardest hit and cybersecurity is a huge one.
Cyber risks
With less cyber professionals being clued up on the latest firmware and hardware, it’s leaving more businesses susceptible to attacks. It’s estimated cybercrime costs will reach $8 trillion by 2025 according to Cybersecurity Ventures.
Hinderance on tech developments
With less skilled workers, innovation slows, particularly with how quickly technology is advancing. Not only does this stunt innovation within the sector and prevent the UK standing out amongst other counties, but also means productivity slows.
Economic loss
If the UK takes a back seat amongst global competition, it could have a detrimental economic impact. Forecasted by Tech Nation in a 2023 report, it was estimated the UK tech sector could contribute £280 billion to the economy by 2030, but this is dependent on address the current skills shortage.
To stay up to date with the latest tech news and insights, connect with us here on LinkedIn.
Read our latest blog here: ‘Understanding Security Clearance’
