The Technical Skills Landscape in the Digital and Technologies Sector report projects that up to 120,000 extra technical professionals may be needed by 2035 to match growth in the UK’s Digital and Technologies sector.
New insights reveal ‘widespread’ and ‘persistent’ technical skills shortages in the Advanced Connectivity Technologies (ACT), Artificial Intelligence (AI), Cyber Security, Engineering Biology, Quantum Technologies, and Semiconductor industries.
These six frontier industries are part of the Government’s Digital and Technologies Industrial Strategy 8 (IS-8) sector and fundamental to the UK’s Modern Industrial Strategy.
Published by Frontier Economics and commissioned by the UK Institute for Technical Skills & Strategy (UK ITSS), the report highlights some key strengths but warns of intensifying cumulative shortfalls by 2035.
Barriers to entering and progressing in the sector and misalignment between educational pathways and industry needs are cited as the biggest challenges.
Workforce insights from the report include:
- The AI, Cyber Security, and Semiconductors industries face the most acute shortages, with a projected cumulative shortfall of up to 79,000 technical professionals by 2035 in the UK.
- Significant diversity and inclusion challenges persist. On average, men hold around 78% of roles relevant to these six industries. Where data exists, persistent under-representation of ethnic minorities and disabled people is reported.
- Demographic imbalances risk compounding future shortages – for example, 40% of the UK Semiconductors workforce is expected to retire within 15 years.
Estimated cumulative shortfall in technical professionals to 2035 in industry:
| Frontier industry | 2025 | 2030 | 2035 |
| ACT | 0 – 100 | 100 – 700 | 300 – 1,500 |
| AI | 600 | 3,500 – 7,900 | 6,600 – 38,700 |
| Cyber security | 600 – 1,000 | 3,700 – 8,400 | 6,900 – 21,000 |
| Engineering biology | 300 – 600 | 2,000 – 5,800 | 3,700 – 17,000 |
| Quantum technologies | 200 – 500 | 1,000 – 5,500 | 1,900 – 20,700 |
| Semiconductors | 400 – 900 | 2,700 – 7,400 | 5,000 – 18,900 |
The report makes several recommendations to improve technical workforce diversity, secure the future talent pipeline through alternative career pathways, and increase collaboration and alignment between universities and industry.
High-impact solutions include:
- Standardising data collection across industries to unlock detailed workforce analysis to help improve workforce diversity and enhance future skills forecasting.
- Investigate alternative technical career pathways such as apprenticeships, T Levels and V Levels, funded through the Growth and Skills Levy.
- Align university curricula with industry needs and increase collaboration between universities, Centres for Doctoral Training and industry.
Download Technical Skills Landscape in the Digital and Technologies Sector Policy Recommendations (PDF)
A new Frontier Industries Skills Coalition is now being established by the UK Institute for Technical Skills & Strategy. It will convene partners across government, industry, universities and research institutes to translate the recommendations into practical actions.
Activities will include strengthening collaboration between education and industry, improving the visibility of technical careers and supporting the alignment of workforce development activity across the UK’s frontier industries.
Download Technical Skills Landscape in the Digital and Technologies sector report (pdf)