Is the UK running out of STEM talent? Find out what leaders need to do next

The UK has long been recognised as a global leader in STEM, but the talent pipeline that underpins this strength is under strain. Skills shortages are widespread, hiring has become slower, and access to international talent is shrinking. At the same time, employee expectations have shifted, with job flexibility and purpose now impacting career decisions more than ever.

For STEM leaders, this means evolving strategies to stay competitive in a rapidly changing market. While the landscape presents clear challenges, organisations that adapt effectively will be able to create opportunities for growth and innovation.

External talent supply is weakening

The UK’s STEM talent pipeline is narrowing as hiring becomes more complex, with wage inflation and higher employer National Insurance Contributions making permanent recruitment significantly more expensive. These pressures are also reflected in insights highlighted in the Hays Global Talent Tracker, which points to growing constraints around flexibility, value and the alignment of technical skills with industry needs.

Persistent gaps in technical capability and regional disparities in talent development are contributing to pockets of mismatch, further tightening the supply of STEM professionals. Alongside this, tighter immigration rules are reducing the flow of international specialists into the UK.

Sector‑specific pressures are reshaping life sciences

The life sciences sector continues to be shaped by post‑Brexit market dynamics. Shifts in regulatory alignment and market access are prompting some organisations to redirect activity or investment away from the UK, affecting where specialist talent is deployed and reducing the UK’s share of high-value STEM roles.

Recent decisions, including AstraZeneca pledging a $15 billion investment in China by 2030, have further fuelled concerns about the UK’s long‑term competitiveness in attracting and retaining life sciences talent. Meanwhile, the nature of life sciences work is evolving, with organisations increasingly seeking professionals that can combine scientific expertise with stronger data and analytical capability, as highlighted in Everest Group’s Global Pharma and Life Sciences Talent Report. Together, these pressures are reducing the availability of talent and intensifying competition for the skills that remain in the market.

However, growth across STEM is not uniform. While some areas face slower momentum or increased regulatory complexity, others – namely technology and engineering – are expected to continue expanding, according to Oxford Economics’ Global Industry Service. Engineering in particular is showing strong momentum across life sciences and medical technology, where demand for specialist skills continues to rise. This presents a clear opportunity for organisations able to attract, develop and retain engineering talent in these high‑growth areas.

Internal challenges persist

Across all UK sectors – STEM and beyond – skills shortages are now almost universal, with 99% of leaders saying they have contended with these challenges over the past 12 months, based on our survey of almost 500 UK executives. The main implications of these gaps include detriments to productivity, revenue and project delivery. Retention has also become a key concern, with over half (52%) citing this as one of the greatest internal obstacles they expect to face in the year ahead. It’s clear why this sits high on the leadership agenda: turnover drives up recruitment costs and erodes critical organisational knowledge.

Succession planning plays a crucial role in ensuring continuity of knowledge, yet over a third (34%) of organisations lack any formal approach and barely a quarter (28%) have a leadership development programme in place. In STEM fields – where expertise is deep, technical and often built over years – knowledge loss is particularly damaging. The result is a pipeline shrinking from the outside and weakening from within, leaving organisations vulnerable to capability gaps.

Employee expectations have shifted

Employee expectations are changing rapidly, shaped by economic pressures and shifting attitudes toward work. The increased cost of living has made job security a more prominent concern, while generational mindset shifts mean loyalty to a single employer is no longer seen as the norm. And with many professionals now wanting greater control over their career trajectories, project-based work can sometimes seem more appealing than traditional, permanent roles.

A compelling employee value proposition (EVP) is equally important, reflecting modern expectations around meaningful work, flexibility, autonomy and clear progression – all of which have become central to how individuals assess roles and employers. However, data from our 2026 Salary & Recruiting Trends guide shows that almost half (49%) of employees feel their organisation’s EVP does not match their lived experience, signalling a clear gap leaders need to address.

Opportunities for organisations that embrace change

Despite the challenges facing the UK STEM landscape, there are also clear opportunities for organisations willing to adapt. The rapid increase in accessible AI training – including a new government‑backed AI training tool that is free for all adults in the UK – is allowing workers to upskill at pace, helping businesses strengthen capability from within rather than relying solely on external hiring. This shift is encouraging more organisations to explore internal redeployment and structured development pathways, creating a more resilient and future‑ready workforce.

At the same time, the rise of flexible workforce models is giving businesses greater agility, allowing them to access specialist expertise quickly and cost‑effectively. While not a new development, outsourcing project delivery is becoming increasingly relied on by organisations looking to gain vetted experts and accelerate digital transformation amid a competitive hiring market.

This trend is mirrored in the growing number of professionals choosing consultancy or portfolio careers, opening up new ways for organisations to engage talent. Above all, the pace of change itself is creating space for innovation. Organisations that embrace new ways of working, learning and deploying talent will be able to turn challenges and uncertainty into opportunities for growth.

How STEM leaders can strengthen the pipeline

STEM leaders need a strategic, long-term approach to strengthening the talent pipeline. Here are some key considerations:

• Use automation and AI to relieve skills gaps: Automation and AI can help maintain output when specialist skills are limited. This includes streamlining routine tasks, supporting faster data analysis, and enabling teams to focus their expertise where it adds the most value. Used effectively, these tools can reduce the impact of skills shortages and help organisations operate more efficiently.

• Adopt blended workforce models: Many organisations will benefit from blended workforce models that combine permanent employees with contract, freelance and project-based talent. This creates the agility needed in a fast-moving market and provides access to niche skills that may be more challenging to secure through traditional hiring.

• Invest earlier in talent development: Building sustainable capability depends on investing earlier in people through apprenticeships, graduate pathways and structured development programmes. These initiatives will help to build internal capability over time and ensure a steady flow of emerging talent to support future growth.

• Stay close to policy developments: STEM leaders must keep on top of policy developments, particularly around immigration, to anticipate changes, plan workforce strategies more effectively, and ensure continued access to global talent.

Positioning for long-term success

UK STEM organisations are operating in a talent environment that is more complex and competitive than ever. External pressures are tightening the supply of specialist skills, while internal gaps and shifting employee expectations are reshaping what it takes to attract and retain skilled professionals.

The leaders who succeed will be those who invest early in talent, embrace flexible workforce models, and stay attuned to market shifts. By acting now, organisations can protect their pipelines and position themselves for growth as the business environment continues to transform.

For more market insights to help position your organisation for long-term success, explore the Hays Global Talent Tracker.

Alternatively, access our 2026 Salary & Recruiting Trends guide – Leadership Insights for more information on the key challenges and strategic priorities shaping boardroom decisions in the year ahead.