Billions of pounds of economic growth are at risk due to digital vacancies in the financial and professional services and technology sectors, which could be filled by reskilling mid-career women who are currently overlooked by rigid hiring processes.

This is according to new research published by the City of London Corporation’s Women Pivoting to Digital Taskforce, which evaluated the impact of digital talent shortages on UK economic growth.

Due to difficulty in hiring talent, more than 12,000 digital vacancies went unfilled in the financial and professional services and technology sectors in 2024. These vacancies cost the UK economy nearly £1 billion in lost productivity while wiping nearly £300 million from firms’ bottom line.

Firms have tried to address shortages through raising wages far above the national average. The Taskforce warns that increasing pay alone won’t solve the problem, with shortages expected to persist until at least 2035. In this scenario, the UK economy would miss out on a total of £10.8 billion of economic growth, with firms missing out on £3.3 billion in profits.

To buck the trend, the City Corporation says that employers should focus on reskilling mid-career women, who are currently being sidelined by rigid hiring practices, who are underrepresented in these sectors, and whose jobs, overall, are more likely to be under threat by automation and AI. Additionally, employers should make use of women who are completing publicly funded digital bootcamps.

Digital roles require constant upskilling, and the Taskforce argues that this provides an opportunity for employers to focus more on a candidate’s potential, rather than past technical experience. Reskilling could also see firms avoid up to £757 million in severance payments.

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Some employers have already begun to evidence the success in assessing for potential rather than prior technical experience, and are subsequently investing in targeted training that take the risk out of hiring from alternative pathways like bootcamps or short courses. These employers are starting to fill digital roles faster and with stronger long-term outcomes.

“The City of London is one of the world’s most exciting places to build a career where innovation, ambition and talent come together, and where people from all backgrounds can thrive,” The Lady Mayor of the City of London, Dame Susan Langley, said. “Women are already making a powerful contribution to the digital economy, bringing fresh perspectives, skills and creativity that help businesses grow and compete globally.

“By investing in people and supporting the development of digital skills within the workforce, employers can unlock enormous potential and build stronger, more resilient teams. Focusing on talent, adaptability and opportunity will ensure the UK continues to lead on innovation and remains a global hub for digital excellence.”

Sarah Underhill, People Director, Group Chief Operating Office, Lloyds Banking Group: “The skills landscape is changing so rapidly that ensuring a future-ready talent supply will continue to be a challenge for businesses and the wider UK economy.

“At Lloyds Banking Group, we recognise that demand for advanced digital, data and technology skills is accelerating, and we actively look to a wide range of pathways to attract, grow and develop the talent required to drive transformation and growth for our customers.

“Reports like this help to shine a light on the scale of the challenge and the importance of building a sustainable, diverse technology talent pipeline for the future.”