Shortfall of 33,300 IT and tech workers estimated in UK by 2050 due to skills shortages, ageing workforce and restrictive migration policy.
Specialist recruiter Randstad Technologies predicts that the UK’s workforce will have a 3.1 million person shortfall by 2050, representing nine percent of the country’s required workforce, if skills shortages are not addressed, with the IT sector being in the top five disciplines set to be most affected.
The company used employment rates from the most recent European population analysis from Eurostat, the statistical office of the EU, as a measure of demand and analysed the projected changes in UK population and working age rate for 2050 to establish the gap between employment demand and workforce supply, noting that with a total population of 74.5 million in 2050, the UK will need a working population of 35.4 million. However, with the country’s ageing population, it has been estimated that just 32.3 million people will be eligible for employment, leaving the country 3.1 million short of its required workforce.
Another factor influencing the shortage in workforce is the UK’s migration policy, with statistics showing that work-related emigration has risen by 16 percent since 2007 while work-related immigration has fallen by 24 percent, leaving the country with a steadily decreasing workforce.
Mike Beresford, Managing Director of Randstad Technologies commented: “The IT and tech sectors are vital for the overall health of the UK economy – the countries who lead the digital evolution are the ones who will recover fastest […] Our projections for the size of the IT and technology workforce are conservative, yet they paint a very grim picture for the UK’s economic prospects. Unless we can plug the employment gap, we’ll be unable to capitalise on the advance and growth we’ve achieved over the last few years and this will have serious consequences for the overall prosperity of the country.”
To deter workers from moving abroad, salaries in the IT and tech industry have begun to increase, and Randstad forecasts that employees with skills in IT systems and infrastructure will see the largest pay rises, with London workers predicted to rise by 20.4 percent next year.
Beresford continued: “If the UK economy is to grow and overcome the difficulties of the last few years then it requires a strong workforce capable of meeting demand. However, we also need to compete with other countries who are also keen to boost their IT and technological capabilities.
“Unfortunately, with a stagnant economy and crippling migration policy, the UK represents a much less attractive option for both domestic and overseas talent. A growing economy will not only help prevent home-grown skilled IT and technology workers from moving overseas, but combined with a sensible migration policy, it will also encourage foreign talent to consider a career in the UK. Without foreign skills bolstering the IT and tech workforce the sector will have to deal with a large black hole over the coming years.”