Manchester’s tech sector is being hit by skills shortage

The tech sector in Manchester is struggling to cope with a skills shortage – according to a survey of the sector.

Independent trade association Manchester Digital carried out a skills audit which involved 100 businesses based in the city.

According to the audit

• Almost a third of digital businesses had to turn work away over the past year as a result of not being able to find the right talent
• One in four said they had to offshore work
• 60%of businesses have had to inflate salaries to compete for talent, up from 48% the previous year
• 54%of businesses reported turnover growth this year compared to 83% in 2014, with much of this contraction attributed to Brexit uncertainty
• There is an ongoing gender gap in the sector, with only one in five technical roles filled by women

The slowdown in activity in the market is also being blamed on the uncertainty generated by Brexit.

Released at Manchester Digital’s seventh annual Digital Skills Festival in Manchester, the findings of the audit of over 100 digital and tech businesses across the North West also highlighted a gender gap.

Managing director Katie Gallagher said: “While the North West continues to be a very attractive place to do business, we’ve found that growth has slowed this year as a result of ongoing political uncertainty and Brexit worries.

“We can also see that, for another consecutive year, talent worries continue to hamper the region’s businesses.

“Many of those surveyed are still concerned that the current curriculum is not relevant to industry needs and still don’t believe careers advisers are able to accurately advise on the opportunities available to young people.

“The skills shortage is multi-faceted, and everyone from Government, to education, to industry, has a part to play in solving it.

“Skills will remain a key priority for Manchester Digital over the coming year, with initiatives launched to tackle the shortage from education level up, including ‘Digital Her’, which aims to get more young women interested in a career in tech.”

In terms of job function, developer roles were most in demand for the sixth year in a row, with over a 20% salary jump reported for these roles since 2014.

Alison Ross, at Auto Trader and chair of Manchester Digital, said: “The digital skills shortage is undoubtedly the biggest barrier to growth of any tech business in the UK, and the Digital Skills Festival is an excellent opportunity to reflect on what the region’s priorities must be to tackle it.

“As a sector we need to work together to look for some quick wins as well as lay down some long term strategic plans, industry must lead the way on this and ensure that government and education has the right information and support to meet our current and future needs.”