The Sheffield Digital Skills Audit 2025 provides a snapshot of the challenges and opportunities faced by our city’s tech businesses over the past year, as well as insights into the future needs of the sector (and how we continue to gather this data). The report is now live; read on for our key takeaways and download the full report here.
A challenging year for recruitment
It’s no surprise that 2024 was a tough year. Recruitment levels were noticeably down compared to 2023, and just over half of responding companies reported a reduction in staffing levels. However, for those businesses that were hiring, filling vacancies was slightly easier than in the previous year, reflecting a more available talent pool.
Consistency in Sheffield’s tech cluster – with some shifts
The shape of Sheffield’s tech cluster remains consistent, with the top three industry areas staying the same. Likewise, the core skills that businesses anticipate needing in the future have remained largely unchanged since the first audit. That said, we’ve seen some interesting shifts in the specific skills companies expect to recruit for over the next 12 months, perhaps reflecting the adoption of new technologies and changing customer requirements.
A more cautious outlook for 2025
Looking ahead, confidence among companies appears to have dipped. Last year’s predictions for 2024 were more optimistic—only 20% of respondents anticipated downsizing, yet this year’s audit revealed that 50% ended up shrinking. This has understandably led to greater caution in forecasting for the year ahead.
Encouraging progress on diversity and inclusion
One of the most positive findings in this year’s report is the increase in responses related to diversity and inclusion. In the first skills audit, there was very little data to report on this issue. This time around, we’ve gathered much more information, which suggests that companies are beginning to prioritise diversity and are actively collecting relevant data. The report highlights some fantastic examples of how businesses are working to create more inclusive workplaces.
The need for a long-term approach to skills
When launching last year’s report, we spoke about the need for both optimism and realism in tackling skills challenges. That message still holds true. What’s encouraging is that central government, who we are able to feed into via our involvement in the UK Tech Cluster Group, appears to be interested in innovative approaches and long-term strategies. If that thinking translates into policy, we could see meaningful support for future skills development.
The role of our educational partners
A huge thank you goes to our university ecosystem partners, The University of Sheffield and Sheffield Hallam University, and The Sheffield College for their ongoing collaboration and commitment to supporting digital skills development in the region. Their contributions play a crucial role in equipping the next generation of digital tech talent with the skills our industry needs.
Thank you – and what’s next?
Gathering this kind of data is challenging. We know it’s a big ask for businesses to take the time to respond, and we’re incredibly grateful to those that did. This kind of insight remains valuable, but we also recognise the need to find a better way to collect this data moving forward. We hope this report sparks conversations and informs action to support Sheffield’s digital skills pipeline. Read the full report, share your thoughts, and let’s keep working together to ensure our tech sector grows and thrives.