Almost a third of digital businesses have had to turn away work due to an inability to find adequate talent in the past year. The constraints within the digital sector have become more apparent with a recently published skills audit by an independent trade association.
The audit highlighted a growth slowdown among tech firms in the North West over 2018. Factors such as political uncertainty and Brexit were among the primary contributors to this decline, showing a clear impact on turnover and operational capabilities in the region.
Impact of Brexit and Political Uncertainty
A new skills audit has highlighted a contraction in the growth of tech firms across the North West, with 54% of over 100 digital and tech businesses reporting turnover growth compared to 83% in 2014. Much of this slowdown has been attributed to Brexit, with 37% of businesses reporting these negative impacts.
Political uncertainty continues to cast a shadow over the tech industry in the North West. Katie Gallagher, Manchester Digital’s managing director, remarked that while the region remains an attractive business hub, the ongoing uncertainties have indeed hampered growth.
Talent Shortages and Workforce Issues
Talent shortages are a significant concern, with many businesses struggling to find the right experts. In fact, 60% of businesses had to increase salaries just to stay competitive in the labour market, and one in four had to offshore work to meet demands.
Katie Gallagher further criticised the current educational curriculum for its lack of alignment with industry needs, indicating a significant disconnect between schooling and practical application. She stressed the need for a multi-faceted approach involving government, education, and industry to address these shortages.
Gender Gap in the Tech Industry
There remains a considerable gender gap within the tech industry. Only one in five technical roles are filled by women.
To combat this disparity, initiatives such as ‘Digital Her’ have been launched to encourage more young women to consider careers in tech. These initiatives are part of a broader strategy to address the gender imbalance within the tech sector.
Graduate and Apprenticeship Schemes
Despite these challenges, there is positive news regarding graduate and apprenticeship schemes. Nearly 29% of businesses indicated they have their own graduate schemes, while 58% participate in or run apprenticeship schemes.
These schemes aim to bridge the talent gap by developing a skilled workforce that meets the current demands of the industry. They provide practical experience and training, which is crucial for sustaining growth within the sector.
In-Demand Roles and Salary Trends
Developer roles remain the most in-demand for the sixth consecutive year, with a notable 20% salary increase since 2014. This demand reflects the core skill needs of businesses within the North West.
Other roles such as AI & Machine Learning, and User Experience, are also expected to see increased demand. These areas are rapidly growing, reflecting broader industry trends and the evolving digital landscape.
Industry Perspectives on Skills Shortages
Alison Ross, director of people, culture, and technology, voiced that the digital skills shortage is the most significant barrier to growth for tech businesses in the UK. She emphasised the need for strategic plans and quick wins to address this issue.
Stuart Bullock, the managing director at BJSS, echoed these sentiments, highlighting that their involvement in the Skills Audit helps the industry reflect on its realities and grow responsibly.
Collaborative Efforts and Future Initiatives
The tech sector is actively seeking solutions to these challenges through collaborative efforts. Organisations like Manchester Digital and other key players in the community are working together.
These efforts include promoting gender diversity and supporting programmes such as ‘Digital Her’. The goal is to create a more inclusive and skilled workforce that can drive the industry forward.
The skill shortage and growth slowdown experienced by digital businesses in the North West illustrate the urgent need for a multifaceted approach to address these challenges. Political uncertainties and educational misalignments have exacerbated these issues.
Ultimately, sustained efforts in graduate and apprenticeship schemes, tackling the gender gap, and collaborative industry approaches present a pathway to mitigating these hurdles and fostering future growth in the digital sector.
