The UK automotive sector is facing the biggest skills shortage of any sector in the country. According to a new study, more than nine out of ten employers are having difficulty recruiting the skilled workers they need.
Data from ManpowerGroup’s 2026 Talent Shortage Survey shows that 92 percent of employers in the UK automotive sector report difficulties filling roles, making it the hardest hit sector for recruitment in the country. The number is almost 20 percentage points higher than the national average, where 73 percent of employers say they are unable to find suitable candidates.
The findings highlight the growing strain on the automotive industry as the industry undergoes one of the most significant technological changes in its history. Electrification, advanced vehicle software and new manufacturing technologies are changing the types of skills companies need, but the supply of skilled workers is struggling to keep up with demand.
Engineering expertise remains the most difficult skill for employers to source, with 46 percent of automotive companies reporting a shortage in this area. Manufacturing and production follow closely behind, with 25 percent of employers reporting difficulty recruiting workers with the required technical experience.
The shortage is particularly acute in regions traditionally associated with automobile production. Widely regarded as the historic center of the UK automotive industry, the West Midlands is experiencing particularly intense competition for engineers and technical talent. Manufacturers, suppliers and emerging electric vehicle companies across the region are increasingly competing for the same limited pool of skilled talent.
The recruitment pressure comes at a time when the industry is also grappling with declining production levels. In 2025, British vehicle manufacturing fell to its lowest level in more than seven decades and production fell to levels not seen since 1952. The combination of declining production and increasing technological complexity is putting further pressure on companies already struggling to adapt to structural changes in the global automotive market.
Industry leaders warn that the skills shortage could slow the UK’s transition to electrified and software-driven vehicles unless urgent action is taken to expand the talent pipeline.
Michael Stull, managing director of ManpowerGroup UK, said the results showed a growing mismatch between the skills employers need and the skills currently available in the labor market.
“Automotive companies tell us they just can’t get the skills they need,” he said. “In particular, the talent shortage in engineering is dramatic. As the sector moves increasingly towards electrification and increasingly technology-driven roles, the demand for new skills is growing much faster than the available talent.”
He added that solving the shortage will require long-term investments in workforce development rather than short-term recruitment strategies.
“Employers can only overcome these pressures by investing in upskilling programs and working closely with schools, colleges and training providers to expand access to future-focused skills,” said Stull.
The shift toward electric vehicles and connected vehicle technologies is creating new job categories across the industry, including software development, battery technology, data analytics and advanced manufacturing. Many of these skills have historically been associated with the technology sector rather than traditional automotive manufacturing.
As a result, car manufacturers and suppliers are increasingly competing with technology companies for the same engineers and digital specialists.
Analysts say the growing skills gap highlights the importance of expanding technical 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 ongoing recruitment challenges that could limit investment, innovation and production capacity in the coming years.
