UK may have passed peak talent shortage as skills gap narrows for first time in 10 years
ManpowerGroup’s 2025 Talent Shortage report reveals that for the first time in 10 years, businesses are reporting a decrease in skills shortages, with 76% of employers reporting difficulty filling roles due to a lack of skilled talent – down from 80% in 2024.
Following significant economic uncertainty over the past few years, employers are finding their feet and coming to terms with the less predictable shape and state of the market. However, hiring optimism remains subdued as businesses navigate rising employment costs.
Michael Stull, Managing Director, ManpowerGroup UK, said: “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. Although any movement towards closing the skills gap is positive, we must bear in mind that many other indicators point to a hiring recession.
“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”
Find out more in the 2025 Talent Shortage report including:
Talent shortages by sector, region and company size
Top five hardest to find skills
How employers are addressing talent shortages.
