Retirement Crisis and Engineering – UK Tech Labour Market Trends Report, November 2025
UK Telecoms Faces Engineering Crisis as Retirement Wave Collides with Skills Shortage
Key findings include:
- UK on track to lose 1.5 million engineers by 2030
- Shortage threatens £22 billion in 5G and fibre projects
- Key regions risk being left behind in digital rollout
- Vacancies soar as firms scramble to retain talent
DOWNLOAD THE REPORT
DOWNLOAD THE REPORT
Retiring engineers leave UK infrastructure on shaky ground
The UK is heading into a severe engineering shortage, with a looming retirement wave set to leave critical gaps in telecoms and infrastructure. By 2030, as many as 200,000 engineers are expected to exit the workforce, while just 14,000 graduate annually. Apprenticeships help, but not enough to meet demand.
Firms are already feeling the pinch. Around 95% say they are struggling to hire. In telecoms, 60% of engineers are over 50. Just 3% are under 35. With immigration rules tightening and new hires scarce, experts warn the UK could fall behind in the global race for digital leadership.
This is according to the latest UK labour market trends report by Fuel Recruitment and market data analysts, Vacancysoft.
Skills shortfall threatens UK’s AI and 5G ambitions
Telecoms underpins the UK’s AI infrastructure, but without engineers, the rollout stalls. From 5G to fibre networks, connectivity is critical to enabling next-gen technologies across sectors such as transport, logistics, and healthcare. Officials estimate widespread 5G adoption could add £159 billion to the economy by 2035.
To seize that growth, the government and industry have launched a £21.5 billion wave of telecom investments. Projects such as Project Gigabit, the 5G Innovation Fund, and Openreach’s full-fibre rollout are already underway. Yet without 5,000 additional engineers, analysts warn progress could stall. The UK risks losing ground to global competitors if delivery falters.
Regional digital divide deepens as skills fail to keep pace
Investment is rising fast, but only some regions are ready. London, the South East and the North West are each receiving more than £4 billion in telecom funding. But skills shortages threaten uneven rollout. Wales, Northern Ireland, and the North East face a lack of wireless and fibre specialists. A third of senior engineers are not trained in emerging technologies like 5G and Open RAN.
This puts projects at risk of delays and missed targets. Industry leaders are calling for urgent action on reskilling, apprenticeships and immigration reform. Without it, the UK’s digital future will be patchy, unequal and expensive.
Vacancy spike fuels salary surge and skills rethink
Telecoms hiring is already ramping up. Engineering vacancies are 18% higher than last year. Maintenance roles are up 130% as networks expand and the focus shifts from rollout to reliability. Health and safety roles have climbed 18%, driven by regulatory pressure and complex remote deployments.
Salaries are rising, too. Pay for mid-career engineers is expected to rise by 15% over the next five years. Employers are turning to apprenticeships to plug the gap. BT, Vodafone and TalkTalk are expanding training schemes, supported by government funding. But experts warn that without deeper investment in talent, the skills crisis will continue to escalate.
Access the full report to boost your recruitment strategy with the latest market data!
All data featured in this report is available in the Vacancy Analytics platform, which is updated in real-time and allows for interactive analysis, giving you the power to drill into trends to identify the key insights you need to power your business.
If you would like to book a consultation with us to analyse trends in your market, you can schedule one here.
