Women, people from ethnic minority backgrounds, non-graduates and people from lower socioeconomic groups must be trained for jobs in tech to close skills gap previously estimated at £63 billion1, a new report highlights.
Independent policy and research organisation Learning and Work Institute has found that one half (49%) of polled employers in England and Scotland say they are struggling to recruit workers with the digital skills they need, and three-quarters (74%) agree that recruiting from non-traditional channels would help to bridge skills gaps. But only 37% of adults from lower socioeconomic groups polled for this research see a job in tech as a realistic option for them.
L&W is calling for an urgent rethink of pathways into tech, placing a greater focus on social mobility. One external study suggests the UK’s rapidly expanding tech has the potential to boost the UK economy by an additional £413 billion by 20302. However, this growth is being held back by gaps in digital and tech skills which cannot be filled by graduates alone.
The new research, commissioned by Generation and supported by JPMorganChase, shows that employers have a key role to play in adapting how they recruit and design jobs to attract new workers. The Government can also help to expand high-quality opportunities for people from disadvantaged backgrounds to enter tech jobs – for example, through the soon-to-be-reformed Growth and Skills Levy.
Businesses are missing out on diverse talent in part because when they recruit to tech roles, they tend to stick to traditional, graduate-focused hiring routes. As a result, they often overlook the talents of people who are under-represented in tech, including women, people from ethnic minority backgrounds, and people from lower socio-economic groups.
Discover the full report
‘Unlocking potential: Digital skills training and social mobility’
Read moreStephen Evans, Chief Executive of Learning and Work Institute, said:
“Tackling the UK’s digital and technology skills shortages can help improve economic growth. Employers can do so through better recruitment, high quality training, and increased government and employer investment in skills. This can give us a win-win by helping businesses to capitalise on new opportunities and promoting social mobility by opening up career pathways in tech for people from underrepresented groups.
“The Government’s upcoming post-16 education strategy for England can help make this happen. The new reformed Growth and Skills Levy needs to make sure we increase apprenticeship opportunities for young people and encourage employers to invest in training outside apprenticeships where this adds value and reaches people that miss out today. All of this needs to be part of a simplified skills and employment system, which adapts quickly to changing digital and tech skills needs.”
Michael Houlihan, Chief Executive, of Generation UK, said:
“With a new government, and a new skills strategy in development, this is a critical time for discussions and decisions about the skilling infrastructure of the UK. The digital skills gap is a very real risk; it threatens to be a big constraint on growth for several sectors. In parallel, the lack of access to those high paid, high skill careers, is one of the reasons we have low social and economic mobility across the UK.
“The opportunity is crystal clear: widening access to these great digital careers is a win-win-win. A win for the economy and public purse, a win for employers, and a win for people that can be supported into a digital career.
“It’s also clear there are initiatives that are already live across the system that work and can be scaled further. This report adds real weight to the evidence base, and we look forward to more action to create more positive change and opportunity through skilling.”
Alison Macpherson, Head of recruitment for Global Technology, Digital, Data & Analytics at JPMorganChase said:
“This new research provides valuable insights about how to address the skills gap in the UK, while also looking at ways to drive better access to opportunities for those facing barriers to employment. At JPMorganChase, we know that having employees from diverse backgrounds brings different ways of thinking and adds value for our clients and business. It is important that employers, policymakers and educational bodies work together to ensure that our skills landscape is able to evolve rapidly, and in line with the major and ever-accelerating technology and digital shifts affecting the workforce.”
1Department for Digital, Culture, Media and Sport (2022) New Digital Strategy to make UK a global tech superpower – GOV.UK (www.gov.uk)
2Public First, 2022. AWS UK – Unlocking Europe’s Digital Potential (publicfirst.co.uk)
