UK STEM skills shortages jeopardise growth, net-zero, digital progress, demanding inclusive, proactive solutions

The UK STEM skills shortage costs our economy an estimated £1.5bn every year, placing business growth, net-zero objectives, and digital transformation at risk.

Adecco’s Plugging the STEM Skills Gap whitepaper provides achievable solutions and workforce development strategies to address talent shortfalls in your business and beyond. Download your free report now. 

The deepening impact of the UK STEM skills shortage

Longstanding STEM skills shortages continue to impact productivity, economic advancement, and broader policy objectives. According to the UK Commission for Employment & Skills, 43% of STEM vacancies are hard to fill – primarily due to a lack of applicants with the required skills and experience.

The resulting talent deficit has left employment gaps across key fields, including engineering, defence, aerospace, and energy. According to research commissioned by National Grid, the UK’s energy sector needs to expand the net-zero energy workforce by 400,000 people before 2050. The automotive industry will also be significantly affected, with employment structures heavily altered by the transition to electric mobility.

Hundreds of thousands of technology and IT-related positions are also going unfilled. The UK tech sector has grown tenfold in the last decade, with organisations setting ambitious digital transformation goals across cyber security, artificial intelligence (AI), and robotics. However, almost 70% of UK digital leaders say talent shortfalls are slowing the pace of progress.

Despite the imbalance of talent supply and demand, STEM workforce projections show a wealth of opportunity for organisations that embrace automation, technology, and networking. 49% of manufacturing companies say they will need more higher-level capabilities and 46% expect to take on more mid-level skills. The trend continues in other STEM-led areas, such as streamlining engineering to enhance efficiency and using AI experts and robotics engineers to optimise quality control, safety, and production schedules.

While these emerging fields offer new employment and development avenues, upskilling staff and sourcing qualified technical and analytical talent is crucial to filling future roles.

Obstacles to successful STEM talent acquisition

Employers face persistent STEM recruitment challenges, including an ageing workforce, barriers to entry for underrepresented groups, and difficulties in attracting and retaining young people with STEM qualifications.

The future of STEM in the UK relies on developing domestic talent, inclusive and accessible STEM training and education, and stronger links between business, academia, and industry. Although statistics from the Universities and Colleges Admissions Service (UCAS) show more young people taking STEM subjects at university than ever before, the percentage of new entrants, students, and graduates in engineering, manufacturing, and construction among all higher education students in the UK is relatively low.

Limited awareness, outdated STEM stereotypes, and diversity issues could be driving the disconnect.

For businesses struggling with STEM talent acquisition, these untapped applicant pools present a vital source of skills. However, work must be done to ensure early engagement, provide clear access to opportunities, and offer attractive STEM career pathways.

For example, women are less likely than men to select subjects such as computer science, engineering, or maths at university level. Females currently make up only 13% of computing A-Level students in England and 23% of physics students. According to Engineering UK, 115,000 more girls need to take maths or physics at A-Level to reach equal numbers of male and female students studying engineering and technology degrees.