Has the UK skills gap peaked?

The skills gap has been a constant challenge across all the major industries world wide for the decade. We are now finally witnessing the skills gap narrowing for the first time in ten year. PAs and EAs take note of where your experience and skills are ranked – administration and office support skills are still in the top 10 skills in highest demand but have declined since 2024…

ManpowerGroup’s 2025 Talent Shortage Survey is published today and for the first time in 10 years, we see a decline in the volume of organisations reporting skills shortages. The fall from 80% to 76% suggests that the UK’s skills gap may have passed its peak.

Reduction in talent shortages indicates that UK skills gap has peaked

With concerns from employers over rising inflation and business costs following the increases to National Insurance contributions however, Michael Stull, UK managing director of ManpowerGroup, is cautious about what the current skills gap means for the future of British business and productivity. He says:

“The significant drop in the UK Talent Shortage could mean we’re over the peak of the skills gap which has intensified over the past decade since its last drop in 2014. Organisations have worked hard during this time to drive positive change amidst major challenges; by upskilling, reskilling, seeking out new talent pools and through smarter use of technology.

Hiring recession slows demand for skilled workers

“Although any movement towards closing the skills gap is positive, we must bear in mind that many other indicators point to a hiring recession. There are fewer jobs out there and this is playing a role in slowing the demand for skills. Employers and government must continue to focus on measures to improve UK productivity to pull businesses out of this hiring recession and away from the prospect of an economic recession. Now is the time for a smart response that doesn’t rest on improvements already made.”

The four percentage-point drop is the most movement seen in the survey in five years. It brings the UK closer to the global average where 74% of employers are reporting talent scarcity (the global figure remains unchanged on the year).

Following the upheaval and significant socio-economic events over recent years, employers are finding their feet and coming to terms with the less predictable shape and state of the market.

“In many instances, employers are seeking less niche skills and learning to succeed with what is available in the market,” says Stull.

Overcome skills shortages by upskilling and reskilling current workforce

The most popular action being taken by employers to overcome talent shortages, is upskilling and reskilling current employees (28%). This is a sensible approach as they seek to cut back on recruitment costs by driving internal mobility. Increasing temporary recruitment is only favoured by 14% of employers as they show preference in targeting new talent pools (23%) and increasing wages (21%) despite the prevalent challenges.

The Survey shows how the needs of UK employers have shifted significantly over the past 10 years, with IT and data skills now seeing the greatest demand (placed 8th in 2014) and a greater need for customer-facing and office support staff. Engineering skills however, remain high in demand.

What skills are most in demand in 2025

Demand for admin and office support skills in decline

The demand for sales and marketing skills has risen over the year while requirements for admin and office support skills have declined. This reflects how businesses are driving efforts to recuperate higher costs and improve return on investment. The new AI and tech tools take more prevalence in substituting for many key administrative functions.

Stull adds: “Increased demand for in-person experiences has driven the growth in customer-facing and front office roles over recent years.  While the drop in demand for technical, manufacturing and production skills reflects how off-shoring has had an impact following many high-profile factory and plant closures. ESG and sustainability skills weren’t areas we tracked ten years ago and these will definitely move up through the ranks over the next decade.

“While the UK macro circumstances remain challenging, any closing of the skills gap should be seen as a sign of green shoots for improving productivity. But we can’t rest where we are and must continue to invest in training and development, preparing thoroughly for further changes in workplace legislation, and adapting recruitment practices without compromising on longer-term goals.”

You can see the full details of the ManpowerGroup 2025 Talent Shortage Survey

About ManpowerGroup

ManpowerGroup, the leading global workforce solutions company, helps organisations transform in the fast-changing world of work. This is possible by sourcing, assessing, developing and managing the talent that enables them to win. We develop innovative workforce solutions for hundreds of thousands of organisations every year, while connecting millions of people with meaningful, sustainable employment across a wide range of industries and skills.