Data reveals sharpest tech skills shortages in software engineering, data science and cybersecurity

The vast majority (90%) of businesses face challenges when recruiting entry-level tech talent according to research by mthree, a talent and training partner which supports clients in building job-ready teams.

A recent study* reveals that 90% of businesses are struggling to recruit entry-level tech talent. The company’s fourth annual Diversity in Tech report highlights significant skills gaps in the tech industry, with rising concerns over the future of the sector.

Key Findings:

  • 61% of businesses are facing major shortages in specific technical skills.
  • The most difficult area to recruit for is software engineering, with 62% of employers reporting significant hiring challenges.
  • Data science and cybersecurity follow closely, with 47% and 41% of businesses respectively identifying substantial skills gaps.
  • Beyond technical expertise, employers also report a deficit in soft skills. 31% of employers say that new recruits lack essential professional skills, such as communication and problem-solving abilities.

Imran Akhtar, Head of Academy at mthree, commented on the findings, stating, “Tech employers are facing a skills shortage in key areas like software engineering, data science, and cybersecurity, while also grappling with the lack of essential soft skills in new recruits. This dual deficit is hindering recruitment and retention of entry-level talent in the tech industry.”

The research highlights the urgent need for organizations to reconsider their workforce strategies to address these growing challenges. Failing to bridge the gap in both technical skills and soft skills could result in delayed innovation and lost business opportunities for companies.

Akhtar continues, “Businesses must take a proactive approach by investing in targeted training programs focused on both technical proficiency and job-ready skills. This will help close the gap between education and employment, ensuring that emerging talent is equipped to succeed in today’s competitive tech landscape.”

*report from mthree – mthree Diversity in Tech Report 2024

Read more

Latest News

Read More

Wellbeing pays: the ROI HR can’t ignore

9 October 2025

Skills

7 October 2025

How to build a skills-based strategy

A key challenge for organisations looking at their skills strategy is getting their job data under control. Discover how creating a single source of truth...

Artificial Intelligence, Globalisation

7 October 2025

Talent strategies for business expansion and growth

Global Expansion 2025: Powerful Talent Management Strategies for a Diverse and AI-Driven Workforce....

Newsletter

Receive the latest HR news and strategic content

Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

Latest HR Jobs

London School of Hygiene & Tropical Medicine – Human ResourcesSalary: £39,432 to £45,097 per annum (pro-rata) inclusive

Harper Adams University – Human ResourcesSalary: £46,049 to £50,253 per annum. Grade 10

University of Cambridge – Department of Clinical NeurosciencesSalary: £27,319 to £31,236

Royal Conservatoire of ScotlandSalary: £52,074 to £58,611

Read the latest digital issue of theHRDIRECTOR for FREE

Read the latest digital issue of theHRDIRECTOR for FREE