The UK automotive sector is facing the most severe skills shortage of any industry in the country, with more than nine in ten employers struggling to recruit the specialist talent they need, according to new research.
Data from ManpowerGroup’s 2026 Talent Shortage Survey shows that 92 per cent of UK automotive employers report difficulty filling roles, making it the hardest-hit sector for recruitment in the country. The figure sits almost 20 percentage points above the national average, where 73 per cent of employers say they are unable to find suitable candidates.
The findings highlight growing strain within the automotive industry as the sector undergoes one of the most significant technological transformations in its history. Electrification, advanced vehicle software, and new manufacturing technologies are reshaping the types of skills companies require, but the supply of qualified workers is struggling to keep pace with demand.
Engineering skills remain the most difficult capability for employers to source, with 46 per cent of automotive businesses reporting a shortage in this area. Manufacturing and production roles follow closely behind, with 25 per cent of employers saying they are struggling to recruit workers with the required technical experience.
The shortage is particularly acute in regions traditionally associated with automotive manufacturing. The West Midlands, widely regarded as the historic centre of the UK automotive industry, is experiencing especially intense competition for engineering and technical talent. Manufacturers, suppliers and emerging electric vehicle companies across the region are increasingly competing for the same limited pool of skilled specialists.
The recruitment pressures come at a time when the sector is also grappling with declining production levels. UK vehicle manufacturing fell to its lowest level in more than seven decades in 2025, with output dropping to levels not seen since 1952. The combination of falling production and rising technological complexity is placing further pressure on companies already struggling to adapt to structural changes in the global automotive market.
Industry leaders warn that the shortage of skilled workers could slow the UK’s transition toward electrified and software-driven vehicles if urgent steps are not taken to expand the talent pipeline.
Michael Stull, managing director of ManpowerGroup UK, said the findings reveal a growing mismatch between the capabilities employers need and the skills currently available in the labour market.
“Automotive businesses are telling us they simply cannot get the skills they need,” he said. “Engineering talent in particular is in critically short supply. As the sector accelerates towards electrification and more technology-driven roles, the demand for new capabilities is growing much faster than the available talent.”
He added that solving the shortage will require long-term investment in workforce development rather than short-term recruitment strategies.
“Employers will only overcome these pressures by investing in upskilling programmes and working closely with schools, colleges and training providers to widen access to future-focused skills,” Stull said.
The shift toward electric vehicles and connected car technologies is creating new categories of roles across the industry, including software engineering, battery technology, data analysis and advanced manufacturing engineering. Many of these skills have historically been associated more closely with the technology sector than with traditional automotive manufacturing.
As a result, carmakers and suppliers are increasingly competing with technology companies for the same engineers and digital specialists.
Analysts say the growing skills gap underscores the importance of expanding technical education pathways and modern apprenticeships to ensure the UK automotive industry can remain competitive in the global transition to electric mobility.
Without a significant expansion of the talent pipeline, the sector risks facing prolonged recruitment challenges that could constrain investment, innovation and production capacity in the years ahead.
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Automotive skills shortage reaches critical levels as 92% of UK employers struggle to recruit
