The latest talent shortage survey from ManpowerGroup indicates that the number of º£½ÇÊÓƵ companies struggling to find skilled workers has dropped for the first time in a decade, hinting that the skills gap might be diminishing.
The survey revealed that 76% of firms experienced a skills shortage entering 2025, a decrease from 80% the previous year, marking the first decline since 2014 and bringing the º£½ÇÊÓƵ closer to the global average of 74%, as reported by .
IT & data expertise topped the list of in-demand skills, followed by operations & logistics and engineering. To combat the skills shortage, 28% of businesses are focusing on reskilling their current workforce, while 23% are exploring new talent pools and 21% are offering higher salaries despite economic headwinds.
However, Michael Stull, º£½ÇÊÓƵ managing director at ManpowerGroup, cautioned that this apparent improvement might simply reflect a subdued hiring environment. "Although any movement towards closing the skills gap is positive, we must bear in mind that many other indicators point to a hiring recession," he commented.
"There are fewer jobs out there and this is playing a role in slowing the demand for skills."
Business groups have long been sounding the alarm on the skills shortage, cautioning that it could hinder progress in key economic sectors such as green energy.
Darren Davidson, the º£½ÇÊÓƵ head of Siemens, highlighted on Monday that addressing the worker shortfall is "one of the challenges Britain needs to get right" amid the accelerating energy transition.
Davidson projected a need for approximately 500,000 additional workers in energy roles in the near future. In response, the government has set up Skills England, an initiative designed to unite businesses, training providers, and unions with local authorities nationwide.
Nevertheless, there are concerns that this new entity may lack the necessary influence or autonomy to effectively orchestrate a skills strategy across diverse industries.
