#skills-shortage

#skills-shortage

In Australia, AI has largely been positioned as a way to stretch limited skills capacity in high-cost specialist roles, rather than as a headcount reduction tool. Despite widespread tech layoffs globally and locally over the past few years, Australia's skills shortage has remained largely unchanged. Cuts at large technology firms have often weakened the broader ecosystem, impacting smaller suppliers and subcontractors alongside the firms making redundancies. Rather than releasing excess capacity into the market, layoffs have tended to redistribute pressure across an already constrained talent

Almost all industry leaders surveyed reported "low" or "very low" confidence in the UK development market entering 2026, citing weak market sentiment, slower decision-making, and persistent economic uncertainty. The report also indicates that financing remains available, but on selective and more expensive terms, with many debt funds struggling to deploy capital due to a shortage of viable projects. Typical financing costs remain between 7-12% per annum, further undermining scheme viability.

Shabana Mahmood said a "very large number of people" arriving in the UK in an "unprecedented way" in recent years does "demand an answer" from the government. Ministers want to double the time it takes most migrant workers to qualify for permanent residence from five years to 10 years. But around 40 Labour MPs have raised concerns about the impact of the proposals on migrants already living here, describing the retrospective approach as "un-British" and "moving the goalposts".

After a torrid 2024, the wider macroeconomic conditions affecting cyber security professionals showed signs of levelling off in 2025, with reports of budget cuts and layoffs to cyber teams dropping slightly this year after surging in the prior period. However, constrained budgets remain a key driver behind the ongoing cyber skills shortage. This is according to the annual Cybersecurity workforce study produced by cyber professional association ISC2, which polled over 16,000 security professionals to produce this year's report.

"AI is no longer emerging, it's fully here. It's reshaping how we work and how businesses operate," said Nick Catino, global head of policy at Deel. "Entry-level jobs are changing, and the skills companies look for are too. Both workers and businesses need to adapt quickly. This isn't about staying competitive, it's about staying viable."

Perkins said: The government's target to build 1.5m homes by the end of this parliament is incredibly ambitious. Achieving it alongside our existing targets on climate and sustainability which are set in law will require effort on a scale not seen before. That certainly will not be achieved by scapegoating nature, claiming that it is a blocker' to housing delivery. We are clear in our report: a healthy environment is essential to building resilient towns and cities. It must not be sidelined.

The findings reflect an environment of mounting pressures both within, and outside, of businesses. Internally, a growing number of people are delaying their retirement and choosing to work for longer; earlier this year nearly two fifths (36%) of employees said they had already, or were considering delaying their retirement because they wanted to continue working, or due to financial reasons (34%).

Royal Mail has launched a £1 million apprenticeship levy gifting fund to help small UK businesses address skills shortages and foster growth opportunities.