'Significant drop' | Number of firms reporting skills gaps drops for first time in a decade

The number of organisations reporting skills shortages has dropped for the first time in a decade, according to new research.

ManpowerGroup’s 2025 Talent Shortage Survey suggests the UK’s skills gap may have passed its peak - with a drop from 80% to 76% in the number of businesses reporting skill shortages.

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 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.