Market News

The UK is at risk of having to fight for highly skilled workers in industries such as technology and banking, according to new research.

It is among the top five countries to face a prevalent shortage of talent, recruitment firm Hays said in a report.

Alongside New Zealand, Portugal, Canada and Switzerland, the UK could face major challenges in finding people to fill in-demand and emerging roles in the future.

On the other hand, the US, China, India, Germany and Brazil rank in the top five talent networks across all the sectors it analysed.

Hays said it collected a large global dataset using job adverts and candidate profiles from 31 countries.

To ensure the UK can continue to compete on the global stage, it needs a steady supply of talent with the right skills

Nigel Kirkham, Hays

It then examined five sectors it viewed as the strongest in terms of how they are adapting to rapid digital transformation. These were technology, engineering, manufacturing, life sciences and financial services.

The analysis found that the UK has a “pressing need” to address its skills shortages or it risks falling behind international peers.

“To ensure the UK can continue to compete on the global stage, it needs a steady supply of talent with the right skills,” said Nigel Kirkham, the chief executive of enterprise solutions at Hays.

The competitiveness of the UK as a place for growth and innovation has been a focal issue for both the current and former government.

Chancellor Rachel Reeves said delivering economic growth is “our national mission” and identified the financial services sector as being “at the heart” of its growth agenda.

Meanwhile, recruitment firms including Hays have flagged a slowdown in hiring over the past year.

They say many employers have been cautious to take on new staff as a result of economic and political uncertainty, and wider cost pressures squeezing their finances.