UK Skills Shortages in 2025: Closing the Skills Gap with TMC

Despite a strong economic rebound, the UK continues to face significant skills shortages. Skills shortages are common in high-growth sectors such as digital technology, health & social care, engineering, and green industries.

According to the Department for Education’s survey, nearly a third of UK vacancies (531,200) remain unfilled due to skills shortages, double the number in 2017. In engineering alone, there’s an annual shortfall of up to 59,000 skilled workers. Also, green tech job postings have surged by 55% over the last five years without enough qualified recruits.

The Greater Manchester region mirrors these national trends but with unique regional pressures. A Chamber of Commerce report found that 48% of local employers struggle to hire staff with adequate digital skills, while 32% report a general lack of applicants.

In this blog, we’ll explore:

• What skills shortages are, and why they matter in 2025
• Hard vs soft skills: what employers genuinely want
• Regional skills gaps, with a special focus on Manchester
• What courses at The Manchester College close these gaps
• How you can futureproof your career in today’s evolving labour market

What are hard vs soft skills?

You may hear people talk about hard skills and soft skills, but what’s the difference between the two?

Hard skills tend to be measurable, such as reading, writing, maths and technical skills relating to a specific job type e.g. engineering.

Soft skills are less easy to measure as they tend to be traits that a person has and develops, such as communication, work ethic, adaptability.

You often hear of transferable skills, and these tend to be made up of soft skills. You can develop them in any environment – work, education, hobbies – and they are transferable to other environments.

What are skills shortages?

Skills shortages refer to gaps in the labour market where employers struggle to fill roles due to a lack of suitably skilled candidates. These are often called Skills Shortage Vacancies (SSVs). These shortages can be due to:

• A lack of technical qualifications
• Inadequate work experience
• Poor soft skill development

According to UK GOV, over 35% of all vacancies are considered hard-to-fill due to skills shortages.

Regional Skills Shortages in Greater Manchester

Greater Manchester is experiencing growing demand for skilled workers across several key sectors. According to the Greater Manchester Local Skills Improvement Plan (LSIP), employers are finding it increasingly difficult to recruit candidates with the right mix of technical ability, leadership skills, and digital know-how.

High-demand areas include:

• Health and Social Care: driven by an ageing population and expanded care services
• Green Technologies & Sustainability: supporting Manchester’s 2038 carbon neutrality goal
• Construction and Civil Engineering: fuelled by large-scale development and regeneration projects
• Digital and Cybersecurity: where digital transformation has outpaced the current talent pool

These challenges reflect national trends. The ONS Labour Market Overview reports persistent shortages in professional, scientific, and technical roles across the UK. In Manchester, this is particularly evident in sectors like tech, healthcare, and engineering, fields that are essential to the region’s economic growth.

Learn more: Top 7 Growing Industries and How Our Courses Prepare You for Them

The digital skills divide

In 2025, digital skills are essential across nearly every job, but many lack even the basics. Over half (52%) of working-age adults in the UK cannot complete the full set of 20 essential digital tasks required in today's workplace. At current rates, it would take more than 25 years to close this gap.

This digital deficit impacts key groups in Manchester:

• SMEs navigating digital transformation but lacking staff with foundational tech skills
• Mid-career professionals needing to refresh digital literacy to stay competitive
• Young jobseekers, even “digital natives,” facing barriers entering tech-first roles

Filling this gap isn’t just about economics, it’s about opportunity and inclusion. Individuals who upskill can earn an estimated £897 more annually, while the UK economy could gain £23 billion in productivity and £9 billion in additional profits each year

What is The Manchester College doing for student skill development?

We offer a range of courses, advice and support as well as help to secure work placements. Everything we do at The Manchester College is about preparing you for industry and helping you take the steps you need to secure your first job in your dream career.

Our new Centres of Excellence complement a range of qualifications with dedicated employability sessions to help equip you with all the skills you need to become ‘work-ready’. In our Industry Excellence Academies, you will benefit from a programme of study that has been co-developed with our industry partners. This input from our employer partners helps ensure that our courses are aligned with current industry skills demands.

Personalised career advice

A career path is rarely ever linear. You’ll find that it is often a winding path, made up by taking opportunities as they present themselves and trying new things. Continuing to invest in your own personal development by updating skills and knowledge is essential.

You can get impartial help from qualified Careers Professionals. They will help you to assess your skills and interests to match these against the labour market. This will help you identify what the right path is for you to take.

The labour market is constantly changing, and it may feel your future has never been more uncertain. However, with change comes opportunities. By seeking help from a qualified Careers Professional, you’ll get the personal guidance you need to navigate those changes.

Whether you're starting on your journey, at a roadblock or looking for a change, a Careers Professional will help you to take the next steps.

Enrol on to a college course at TMC

If you’re ready to close your skills gap and take the next step toward a successful career, now’s the perfect time to enrol on a course at The Manchester College. Whether you’re just leaving school, returning to education, or looking to upskill for a career change, we offer a wide range of courses designed in collaboration with employers to meet real industry needs. At The Manchester College, you’ll gain both the technical and transferable skills that employers are looking for. Explore our courses and enrol today.