Squeeze on tech talent tightens as skilled migration in the sector declines

Talent shortages in UK tech are coming under further pressure as the number of skilled tech workers choosing to work in the UK declines, putting growth and innovation at risk, warns RSM UK.

RSM’s freedom of information request to UK Visas and Immigration shows the number of international workers applying for a visa to work in UK tech dropped 11% from 8,739 in Q2 2025 to 7,768 in Q3 2025 and was down 6% year-on-year from 8,233 in Q3 2024.

At the same time, the technology industry is facing various other workforce pressures. RSM’s Technology Outlook found nearly a fifth (22%) of tech leaders said maintaining employee engagement was their biggest workforce challenge, followed by the cost of UK-based talent (19%) and upskilling non-technical staff (17%).

James Bull, technology industry senior analyst, RSM UK said: “Tech businesses are being hit with both a decline in skilled immigration and existing talent shortages. Workforce is likely to be one of the biggest challenges for the UK tech industry in the year ahead. Tech businesses are facing a lack of future-proof skills, which risks hindering growth and innovation, and puts the country further behind in the global tech race.

“The war on talent is a real issue in the tech industry. Individuals with the “right” specialist skills are few and far between, and businesses are struggling to upskill their existing staff fast enough. Some will need to look overseas, but that requires a straightforward and painless visa application process, as well as ensuring the UK is an attractive place to live and work.

“Employers are having to grapple with AI – adopt it too quickly and there’s a risk of damaging employee engagement, but adopt it too slowly, and businesses could lose out on increased productivity and growth opportunities. Tech leaders need to respond by bringing their workforce onboard with the technology, and upskilling experienced workers to help successfully deploy AI and drive growth.”

authors:james-bull