Digital skill shortages could have cost the UK £4.4 billion last year alone, with projections escalating to a staggering £27.6 billion by 2030. The West Midlands, in particular, is experiencing increasing demand for intermediate and advanced digital skills - as stated by a recent research from the University of Birmingham’s City-Regional Economic Development Institute (City-REDI).
While these figures are alarming, they are not surprising. Addressing digital skills shortages in our region represents a significant economic opportunity. With the right interventions, we have the potential to unlock unprecedented growth.
Nearly five months into my role as Director of Digital Skills and Commercial Impact at TechWM, I’ve had countless conversations with organisations across various sectors. My goal? To understand their immediate and long-term digital skills needs—and, more importantly, why there remains such a stark mismatch between digital skills supply and demand in the West Midlands.
Photo: Victoria Pargetter-Garner, Director - Digital Skills & Commercial Impact
Shifting Perspectives on the Digital Skills Gap
Initially, I assumed that this challenge was primarily supply-side: a lack of skilled individuals entering the workforce. However, after deeper exploration, I’ve uncovered significant demand-side barriers that are preventing businesses from fully leveraging digital talent.
Let’s rewind to 2020, when the pandemic forced businesses to adopt digital tools overnight. At that time, the focus was on up-skilling the workforce to ensure employees could use essential platforms like Microsoft Teams and Zoom. There was also a surge in demand for advanced technical skills in areas such as cybersecurity, data analytics, and AI.
Since then, numerous policy interventions have aimed to boost digital skills. However, these initiatives have often been fragmented, poorly promoted, and disconnected from the businesses that could benefit the most.
The Business Reality: Short-Term Pressures Stalling Long-Term Growth
Today, while the supply of digital talent is improving, external factors such as economic uncertainty and budget constraints are forcing businesses into survival mode. Many organisations, instead of planning for the next three to five years, are focused on making it through the next quarter.
This short-term approach limits investment in digital transformation. Businesses are firefighting rather than strategising—missing out on opportunities to implement AI, automation, and other digital efficiencies that could drive productivity and profitability. Ironically, the very investments that could help businesses cut costs and gain a competitive edge are being delayed due to perceived financial and time constraints.
Photo: Yiannis Maos MBE, Richard Bovey, Victoria Pargetter-Garner, Mayor Richard Parker, Vikki Bradney-Spencer, Mike Lattimer, Lauren Monks, David Gaughan
The Disconnect Between Employers and Digital Talent
We know that businesses are struggling to find the right digital talent. Yet, paradoxically, we also know that many skilled individuals—particularly those completing digital skills bootcamps—are struggling to secure relevant employment.
So, what’s going wrong?
1. Do employers simply not know about available training initiatives?
2. Are businesses hesitant to onboard talent that lacks real-world experience?
3. Is it a case of limited resources, where employers can’t afford to train new hires?
Similarly, we see a significant underutilisation of free or heavily subsidised upskilling programs. Despite funding being available, many businesses are not taking advantage of these opportunities. Why? Is it a lack of awareness? Are course costs still perceived as too high? Or is it simply that businesses can’t afford to release staff for training?
Help Us Shape the Future of Digital Skills in the West Midlands
These are just some of the working hypotheses based on the conversations I’ve had so far. But to drive meaningful change, we need more data. That’s why, as part of the West Midlands Digital Skills Consortium—a collaboration between TechWM, the West Midlands Combined Authority, IBM UK Ltd., AND Digital, In4 Group, the Greater Birmingham Chambers of Commerce, and Skills West Midlands and Warwickshire—we are launching an employer survey.
This survey aims to provide a comprehensive view of the current digital skills landscape, helping us design initiatives that truly meet business needs. By combining this data with insights from previous surveys, such as the Local Skills Improvement Plan, we hope to develop a regional blueprint for digital skills growth—one that drives economic prosperity.
Get Involved
If you’re a business leader in the West Midlands, we need your input. Please take
five minutes to complete our
Employer Survey
. Your insights will directly inform new initiatives and interventions to bridge the digital skills gap.
Additionally, we will be hosting a series of workshops to explore these challenges in greater depth. If you’d like to contribute to shaping the future of digital skills in our region, drop me an email on:
vickie@techwm.com
and I’d love to have a chat.
Together, we can build a stronger, more digitally empowered West Midlands—one that is ready to tackle the challenges of today and seize the opportunities of tomorrow. Let’s make tech succeed, in the most human of places!
