The UK automotive sector is confronting the most severe skills shortage of any industry in the country, with more than nine in ten employers struggling to fill key positions, according to new research.
Data from ManpowerGroup’s 2026 Talent Shortage Survey shows that 92 percent of UK automotive employers report difficulty recruiting qualified staff, significantly higher than the national average of 73 percent across all sectors.
The findings highlight growing strain as the industry undergoes a major technological transformation. The shift toward electric vehicles, advanced software systems, and modern manufacturing processes has increased demand for specialized skills, but the supply of qualified candidates is falling behind.
Engineering roles remain the most difficult to fill, with 46 percent of employers citing shortages in this area. Manufacturing and production roles are also under pressure, with a quarter of businesses reporting difficulties recruiting workers with the required technical experience.
The shortage is especially acute in traditional automotive hubs such as the West Midlands. Companies there, including established manufacturers and emerging electric vehicle firms, are competing for the same limited pool of skilled engineers and technical specialists.
The recruitment challenges coincide with declining production levels. UK vehicle manufacturing fell to its lowest level in more than seven decades in 2025, reaching figures not seen since 1952. The combination of reduced output and rising technological complexity is intensifying pressure on companies already navigating structural changes in the global automotive market.
Industry leaders warn that the skills gap could slow the UK’s transition to electrified and software-driven vehicles unless immediate action is taken to expand the talent pipeline.
Michael Stull, managing director of ManpowerGroup UK, said the research shows a widening mismatch between employer needs and the skills available in the workforce. “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 technology-driven roles, the demand for new capabilities is growing much faster than the available talent.”
Stull added that addressing the shortage will require long-term investment in workforce development. “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,” he said.
The rise of electric and connected vehicles has created new roles in software engineering, battery technology, data analysis, and advanced manufacturing, skills that have traditionally been associated with the technology sector rather than conventional car production. This has intensified competition between automotive companies and tech firms for the same engineers and digital specialists.
Analysts stress that expanding technical education, modern apprenticeships, and training pathways is essential to maintain the UK’s competitiveness in the global shift to electric mobility. Without immediate action, prolonged recruitment challenges could hinder investment, innovation, and production capacity in the coming years.
