Persistent skills gaps: Tech talent still in high demand

While the broader UK job market shows signs of cooling, one area remains red-hot: technology. Employers across sectors continue to grapple with persistent skills shortages, particularly in artificial intelligence (AI), cybersecurity, and cloud computing. These roles are critical to business growth and resilience, yet the supply of qualified candidates lags far behind demand.

This imbalance is creating intense competition for top tech talent. Companies are finding themselves in bidding wars, with salaries and benefits packages steadily rising as they seek to secure the expertise they need. For candidates with in-demand skills, this presents significant opportunities, not just in terms of pay, but also in greater choice over roles, working arrangements, and career progression.

For employers, however, the shortage poses a strategic challenge. Projects in digital transformation, automation, and data security cannot be delayed, and yet the talent pipeline is not keeping pace. To bridge the gap, many organisations are increasingly turning to contract workers and specialist consultants. This provides short-term relief, allowing critical projects to move forward, but it also highlights the need for longer-term solutions.

Upskilling and reskilling initiatives are becoming central to workforce strategies. Companies are recognising that investing in training their existing employees may be the only sustainable way to close the gap. Partnerships with educational institutions, apprenticeships, and in-house development programmes are gaining traction as businesses look to build talent from within.

Despite the wider cooling in the job market, tech remains a candidate-driven space. Employers must act decisively to attract and retain the talent that underpins innovation and resilience. Addressing the persistent skills gap is not just about filling vacancies, it’s about ensuring the UK remains competitive in a digital-first global economy.