Tech skills gap is affecting UK productivity and business resilience

Job prospects are at a 10-year high, but a skills deficit is stifling growth

With the growth in demand for tech products and services over the last two years, tech job prospects in Britain have reached a 10-year high. However, a sizable portion of the British workforce lack the skills to apply for the roles.

This skills deficit may 'stifle growth' across the nation, industry analysts have warned.

'The gap in basic digital capability in the UK workforce is real and huge. And it ' s affecting productivity and business resilience at a time when the economic outlook is bleak and the nation is looking for answers,' industry coalition FutureDotNow said in a report published last month.

Nearly 11.8 million UK workers lack the basic digital skills necessary for the modern workplace, according to the research findings.

'Like a smartphone with a low battery, businesses are underpowered because their workforces lack essential digital skills.'

Nearly a third of British workers who possess at least a basic level of digital skills are unable to use digital systems, such as budgeting software to manage digital records or financial accounts.

There are around 6 million workers who can ' t update the privacy settings of the computer, and approximately 9 million are unable to update computer security systems when it is required to shield against viruses and other threats.

That is at a time when tech job opportunities in the UK have reached a 10-year high.

There were almost 2 million job openings in the tech sector between May 2021 and May 2022, out of a total of 14.9 million openings across the economy, according to recent data compiled by job search firm Adzuna, and analysed by Tech Nation on behalf of the UK's Digital Economy Council (DEC).

Tech roles now account for 14% of job openings in the nation, up from 11% shortly before the pandemic.

The Government says it is collaborating with the industry on the development of digital skills.

"Employers both large and small are crying out for more people to be trained in digital skills," said Michelle Donelan, former education minister (she held the post for two days - Ed.).

"An apprenticeship is a fantastic way to achieve that. Not just for young people, but also those looking to upskill."

However, according to government statistics, nearly half of all apprentices in all industries, not just in technology, left their positions last year.

The National College for Digital Skills in London is one institution teaching young people about tech subjects, steering them in the direction of the fundamental STEM disciplines of science, technology, engineering and maths.

"The college was initially founded to address the skills gap, but unfortunately over time, it is just getting greater," said principal Tina Gotschi.

"The pipeline of students coming through is shrinking and there is a lack of computer science teachers too."

James Hallahan, director at recruitment company Hays, said the demand for tech talent shows no signs of slowing due to the surge in digital transformation over recent years.

Some of the roles suffering a lack of skilled workers include software developers, data analysts, data scientists, enterprise architects and projects managers.