The 4 UK Sectors with the Largest Skills Gaps

According to the Recruitment and Employment Confederation, the UK skills shortage could cost the economy up to £39 billion annually. That's not just a statistic; it's a staggering figure that affects businesses across every sector. From construction sites struggling to find bricklayers to tech firms unable to secure cybersecurity specialists, skills gaps remain a fundamental barrier to growth.

There are, however, signs of progress. ManpowerGroup's 2025 Talent Shortage Survey has found that 76% of employers now report difficulty filling positions, down from 80% in 2024, suggesting the UK's persistent skills shortage may have reached a turning point. While this modest improvement is encouraging, the challenge remains substantial, with three-quarters of UK employers still struggling to find the talent they need.

For HR leaders and hiring managers, understanding which sectors face the most significant challenges is essential to developing recruitment strategies that actually work. This article examines the four industries experiencing the most severe skills shortages and provides practical strategies to help address recruitment challenges in your organisation.

Understanding Skills Gaps and Their Impact

A skills gap occurs when the workforce capabilities available in the market don't match employers' needs. This extends beyond simple vacancy rates, as it reflects the inability to find candidates with the right combination of technical expertise, experience, and soft skills required for specific roles.

The business impact is substantial:

• Reduced productivity and operational efficiency

• Stalled innovation and digital transformation

• Project delays and missed deadlines

• Increased recruitment and training costs

• Lost growth opportunities and competitive advantage

  
  

Digital skills shortages alone could cost the UK economy £27.6 billion by 2030, underscoring how this challenge extends beyond individual organisations and threatens national economic competitiveness. Four sectors currently face particular pressure.

1) Construction

The scale of the challenge

According to the Federation of Master Builders, 60% of construction firms report difficulties recruiting skilled workers. The shortage spans multiple essential trades, including bricklayers, electricians, plumbers, and carpenters, creating significant bottlenecks that delay projects, increase costs, and threaten the UK's housing and infrastructure delivery targets.

Contributing factors

The sector faces several compounding challenges. 15% of the current workforce are individuals over 60, while Brexit has significantly reduced the flow of skilled EU workers who previously filled critical gaps. Simultaneously, declining apprenticeship numbers mean insufficient new tradespeople are entering the sector to replace those leaving.

Looking forward

Despite these challenges, progressive construction firms are finding solutions by broadening their recruitment strategies. J. Murphy & Sons, a specialist engineering and construction company, has offered over 100 jobs to prison leavers between 2022 and 2024, working directly with prisons to build skills and support successful transitions into construction careers.

One pathway forward lies in looking beyond conventional recruitment channels and recognising transferable capabilities that can be developed into sector-specific expertise. For detailed insights on addressing construction sector challenges, see our article on addressing skills gaps in construction.

2) Digital & tech

Five years of sustained shortage

IT and data skills have ranked as the hardest to find for five consecutive years, indicating this is a structural rather than cyclical challenge. Currently, 75% of IT organisations struggle to find qualified candidates, while 7.5 million UK adults lack the essential digital skills needed for modern workplaces.

Critical roles are in short supply

The shortage affects several strategic positions:

• AI and machine learning engineers

• Cybersecurity professionals

• Cloud computing specialists

• Data analysts and scientists

• Software developers

  
  

What sets digital skills apart

Digital skills have become essential across all sectors, meaning tech firms compete for talent not only with each other but also with manufacturers, retailers, healthcare providers, and financial services organisations.

Global tech companies drive up salary expectations, while the rapid pace of technological change means skills can become outdated faster than traditional training programmes can adapt.

The consequences include stifled innovation, delayed digital transformation projects, and competitive disadvantage for organisations unable to attract and retain digital talent.

Creative approaches to this skills shortage

Despite these persistent challenges, innovative organisations are finding success through alternative talent development strategies. DWP Digital, for instance, has recruited almost 50 DevOps apprentices from diverse backgrounds, including delivery drivers, car plant technicians, housing officers, charity workers, musicians, and teachers, resulting in more appointments than an entire year of traditional recruitment activities.

3) Manufacturing & engineering

The scale of the problem

97% of manufacturers identify hiring and retaining skilled labour as a challenge to business growth, indicating this is an industry-wide issue. With 85% of engineering and manufacturing businesses facing unfilled positions and an annual demand for 168,000 new workers, the shortage represents a significant constraint on sector growth.

The skills mismatch

Modern manufacturers require production managers, robotics engineers, automation specialists, technical product managers, and data analysts who can work in manufacturing environments. Industry 4.0 technologies demand fundamentally different capabilities than traditional manufacturing roles, yet apprenticeship starts in engineering and manufacturing have declined by 28% over five years.

The sector also faces perception challenges that deter young people from considering manufacturing careers, despite the increasingly sophisticated, technology-driven nature of modern production environments.

Impact on competitiveness

Without appropriate talent, organisations cannot adopt the automation and digital technologies necessary to remain competitive. This constrains growth, limits innovation capacity, and creates opportunities for competitors who have successfully addressed their skills challenges.

How the sector is adapting

Forward-thinking manufacturers are responding by significantly expanding apprenticeship programmes and broadening their recruitment approach. Network Rail, for instance, is recruiting 2,000 apprentices this year as part of its Railway 200 initiative, with plans to bring in over 10,000 more over the next five years. The organisation is actively working to attract more women, people from ethnic minorities, and those with neurodiversity into mechanical and electrical engineering roles.

4) Adult social care

The current vacancy landscape

A 2024 report from Skills for Care found that adult social care faced 131,000 vacancies, representing an 8.3% vacancy rate, three times higher than the wider UK economy. While this represents improvement from pandemic peaks, the situation remains critical and faces additional pressures.

Policy and funding challenges

Recent policy changes have intensified recruitment difficulties. A £115 million reduction in training funding has decreased the proportion of qualified staff, while visa rule changes have significantly restricted international recruitment. The government's May 2025 decision to end overseas recruitment for new care workers makes effective domestic recruitment strategies essential.

Structural challenges

The sector confronts a fundamental paradox: care work requires substantial skill, empathy, and emotional intelligence, yet it remains characterised as "low-skilled" and among the lowest-paid work in the economy.

High turnover rates of 25% in care homes reflect these structural challenges, while demographic changes drive increasing demand for services and competition with the NHS for nursing talent intensifies.

Social care providers must develop new approaches to attract and retain the workforce required to deliver critical health and community care services.

Rebuilding the pipeline

Major care providers are investing heavily in apprenticeship programmes to create sustainable career pathways. Bupa, for instance, recruits around 700 people into apprenticeship roles annually across its dental and care services, with over 80% remaining with the organisation after completing their training.

The company has also created a new Care Practitioner role that sits between senior carers and nurses, providing a clear progression route for frontline staff.

3 Strategic Solutions for Employers

Addressing skills gaps effectively requires a multifaceted approach that combines immediate solutions with longer-term workforce development.

Adopt skills-based recruitment

Skills-based hiring prioritises demonstrable capabilities and potential over traditional qualification requirements. This approach opens access to talented candidates with transferable skills from adjacent sectors. Career changers often bring valuable experience, maturity, and strong commitment.

Organisations should critically evaluate whether every requirement is genuinely necessary, or whether some skills can be developed through on-the-job training and appropriate support structures.

Partner with specialist organisations

Organisations like Offploy help employers implement inclusive recruitment practices that expand talent pools while maintaining quality standards.

These partnerships provide access to overlooked candidates who demonstrate a strong work ethic, loyalty, and commitment, addressing immediate hiring needs while supporting improved long-term retention. Learn more at our free webinar: Getting started in employing people with convictions.

Such collaborations offer proven methodologies that enhance existing inclusive values rather than requiring wholesale process changes. For more information on building the business case, see our article on building a strong business case for another chance hiring.

Invest in workforce development

Upskilling current employees addresses emerging skill requirements while demonstrating organisational commitment to workforce development.

Effective strategies include creating clear progression pathways, developing apprenticeship programmes, collaborating with educational institutions, and implementing mentorship schemes that transfer knowledge from experienced workers to newer team members before critical expertise is lost to retirement.

Moving Forward

While the UK's skills gaps present significant challenges, they also create opportunities for organisations willing to think differently about talent. By combining strategic workforce planning with inclusive recruitment practices, employers can address immediate hiring needs while building more resilient, diverse teams for the long term. For practical guidance on implementing inclusive recruitment in your organisation, download our employer toolkit.

Effective solutions exist. Success depends on your organisation’s willingness to look beyond traditional approaches and systematically explore all available talent pools. For employers facing skills shortages, the critical question is whether current recruitment strategies are accessing the full breadth of available talent in the market.