Skills Gap Analysis 2025

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Posted 14.01.25

Skills Gap Analysis 2025

Back in January 2023, we highlighted the growing skills gap within engineering teams, focusing on the challenges businesses face when trying to find the right people for highly specialized roles. Fast forward to 2025, and while some strides have been made in training and upskilling, the gap remains a pressing issue. Below, we revisit this topic with fresh insights, updated data, and practical tips for employers seeking to build strong engineering teams in today’s market.

A Snapshot of the Current Market

In 2023, we noted that 45% of engineering employers (based on various industry surveys) struggled to fill critical vacancies. By 2025, that figure has edged even higher, hovering around 50% in many parts of the UK and beyond. According to the latest findings from the Institution of Engineering and Technology (IET), the widespread adoption of digital technologies, AI, and automation has outpaced the supply of qualified engineers who can implement, maintain, and innovate in these ever-evolving fields.
At the same time, new roles continue to emerge, such as data-driven sustainability engineers and robotics integration specialists, further fuelling demand for niche skills. Employers who were once seeking ‘traditional’ mechanical or electrical engineers now find themselves needing talent with software expertise, AI experience, and a keen understanding of environmental impact.

Why the Skills Gap Persists

  1. Emerging technologies change the nature of engineering jobs faster than the workforce can adapt. AI-driven manufacturing and digital twins are just two examples that have reshaped engineering roles over the past two years.
  2. While some businesses invest in on-the-job upskilling, others still rely on outdated hiring practices, hoping to find “ready-made” candidates. This approach often overlooks talented people who could thrive with the right training.
  3. Engineering professionals with the most sought-after skill sets can often choose from multiple job offers, forcing companies to compete with higher salaries, benefits, and flexible working options.
  4. Employers need a broader range of skills—combining mechanical, electrical, software, and environmental knowledge—making it harder to find candidates who meet every requirement.

Practical Steps to Close the Gap

  1. Embrace Continuous Learning and Upskilling
    Consider developing internal training programmes or partnering with professional bodies and universities to ensure your existing workforce has the chance to learn new skills. In 2025, many industry leaders are setting aside dedicated budgets for continuous training, including online courses and immersive workshops.
  2. Broaden Your Talent Pool
    Traditional qualifications are no longer the only yardstick, more diverse experience brings new perspectives and can fill critical gaps. By widening your hiring criteria, you increase your chances of finding the right people.
  3. Offer Clear Career Progression
    Today’s professionals want more than a job; they want a future. Show potential hires the paths for growth because clear career frameworks reduce turnover and help you attract driven candidates.
  4. Focus on Employer Branding
    In a competitive market, a strong employer brand can be the deciding factor. Promote your company culture, values, and developmental opportunities. Showcase employee success stories, especially from those who’ve upskilled within your organisation.
  5. Collaborate with Specialist Recruiters
    We’ve spent over 20 years helping engineering organisations find talent. Working closely with a specialist consultancy can help pinpoint candidates with the ideal mix of technical know-how and soft skills, saving you time and resources.

Looking Ahead

As we move further into 2025, the need for flexible, future-proof engineering teams remains urgent. Technology continues to reshape the industry at breakneck speed, requiring adaptable engineers who can pivot as needs change. By investing in training, expanding your talent pool, and nurturing a strong employer brand, you can close the skills gap and position your organisation for long-term success.

If you’d like help identifying your talent needs or refining your recruitment strategy, Energi People is  here to support you. We’ve worked in engineering recruitment for over two decades and understand how to match today’s roles with tomorrow’s talent.

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