Study Shows UK Faces Potential Shortage of Skilled Workers in Finance and Tech Industries
An investigation by recruitment firm Hays revealed that the UK is in danger of falling behind due to a potential shortage of skilled workers in industries like technology and banking. This comes as the home secretary announced a ‘new approach’ to legal migration.
Research released on Wednesday by Hays indicates that the UK is among the top five countries facing talent shortages. Others on the list include New Zealand, Portugal, Canada, and Switzerland.
Hays collected data from 31 countries using job adverts and candidate profiles, focusing on sectors like technology, engineering, manufacturing, life sciences, and financial services.
The analysis highlighted the pressing need for the UK to address its skills shortages to avoid falling behind. In contrast, countries like the United States, China, India, Germany, and Brazil ranked highly in talent networks across all sectors.
Nigel Kirkham, the chief executive of enterprise solutions at Hays, emphasized the importance of a steady supply of skilled talent for the UK to remain competitive globally.
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Hays and other recruitment agencies have observed a decline in hiring rates due to economic and political uncertainties along with financial pressures, causing many employers to be cautious about hiring new staff.
Chancellor Rachel Reeves previously highlighted the importance of the financial services sector for Labour’s growth agenda.
Meanwhile, Home Secretary Yvette Cooper announced a new approach to legal migration aimed at enhancing the UK workforce’s skills before looking abroad for recruitment.
Cooper pointed out that the increase in legal migration in recent years signified a failure to address skills shortages and other labor market issues in the UK.
In a ministerial statement, Cooper cited a rise in non-EU long-term migration and work visas, emphasizing the need to align migration policy with skills and labor market policies.
Under the new approach, the Migration Advisory Council will collaborate with Skills England and other entities to create a cohesive strategy for skills, migration, and labor market policies.
Cooper also mentioned retaining the Tories’ minimum income requirement for partner/spouse visas without committing to raise it as the previous administration had done.
These changes come amidst plans to increase the income requirement gradually by 2025.
PA Media contributed to this report.
