The UK’s tech sector is suffering from a skills shortage that could “choke growth”, an industry body has warned.
TechNation’s Liz Scott said it was “a real issue” that needed to be addressed.
There were more than two million tech job vacancies in the UK last year, more than any other job, but an industry coalition says nearly 12 million workers lack basic digital skills.
The government told the BBC that it is working very closely with industry on digital skills training.
However, programs such as boot camps, apprenticeships and apprenticeships do not appear to be sufficient to bridge the gap.
Michelle Donelan, former education secretary, said: “Employers big and small are demanding that more people be trained in digital skills.
“An apprenticeship is a great opportunity for that. Not only for young people, but also for those who want to continue their education.”
But according to the government, almost half of all apprentices in all sectors, not just engineering, dropped out in the past year.
Data quoted in the latest UK jobs report from the professional services network KPMG and the Recruitment and Employment Confederation shows that the number of applicants for vacancies has fallen.
The report said this was because:
- a generally low unemployment rate in the UK
- Concerns about job security
- increased economic insecurity that made people reluctant to change jobs
One place that teaches young people important technical subjects is ADA, the National College for Digital Skills, in London.
It encourages students to study the core stem cell subjects—science, technology, engineering, and math—that form the backbone of the industry.
Principal Tina Gotschi said: “Many of the jobs that these students will have in the future do not even exist at this point – many of them will be digital jobs.
“The college was originally created to fill the skills gap, but unfortunately it’s only getting bigger over time. The pipeline of students coming through is also shrinking.”
There is also a financial incentive to acquire digital skills. According to TechNation, tech salaries in the UK are on average almost 80% higher than salaries for non-tech jobs.
The average tech salary is £62,000, which is more than double the average UK household income.
Ronan Harris, chief executive of Google (UK and Ireland), told the BBC that big tech companies are trying to play a role in upskilling people.
“We have trained over 800,000 people in the UK on a range of digital skills,” he said.
“We want people to be enthusiastic about technology. But we are increasingly seeing that all advertised jobs have some form of digital requirements.”
Ben Francis, founder of online clothing company Gymshark, agrees.
“The historical perspective of someone who works in engineering is probably more of a geeky person.
“But I think the more unconventional view of techies is that tech is a creative outlet.”
Gymshark is a success story of a British technology startup. The company achieved unicorn status in 2020, meaning it is valued at $1bn (£848m) or higher.
“If you’re a great graphic designer, if you’re a great web designer, if you want to create great apps or NFTs – all of that happens through technology and understanding of technology,” said the entrepreneur.
James Hallahan, director of recruitment firm Hays, said: “Due to increasing digital transformation in recent years, the demand for tech talent shows no signs of slowing down.”
He added that skills shortage jobs included software developers, data scientists, data analysts, enterprise architects, and program and project managers.
However, according to industry coalition FutureDotNow, a significant proportion of the UK workforce is nowhere near qualified to apply for such positions. It states that around 11.8 million workers lack basic digital skills — let alone more complex ones.
However, Ms Scott says: “There are good jobs here. We just need people who understand that they are available and then know how to access them and where to find the right signpost for retraining or retraining courses.”
The place of residence may also become less of a hindrance.
Over the past decade, UK companies like Deliveroo, Darktrace and Depop have been founded, funded and scaled by dedicated entrepreneurs and investors.
Fintech companies are also growing, with companies like Monzo, Starling, Marshmallow and Cazoo all reaching unicorn status.
Most of them had strong ties to London, but that’s slowly changing.
According to IT company Accenture, demand for tech talent is increasing across the UK as the number of professionals with the right skills is growing faster in the north of England than in London.
Shaheen Sayed, his head of technology in the UK, said: “Companies are bullish on investing in technology and attitudes – particularly in skills like AI, cloud and robotics.
“The pool of technology professionals is also growing, with growth in the north [of England] exceeds growth in the South [of England]and emerging tech hubs in Edinburgh and Manchester are beginning to compete with the capital.”
Follow Shiona McCallum on Twitter @shionamc
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