Annual Summit – How the £80bn Industrial Strategy Is reshaping the UK jobs market

 

 

How the £80bn Industrial Strategy Is reshaping the UK jobs market

 

Next week, we present our findings on the impact of the industrial strategy so far on jobs within the UK, and give our forecasts on what to expect next. The report analyses the UK by industry, with each section prepared in partnership with a leading organisation within the industry. Firms participating include Hays, Sanderson, Morgan Mckinley, APSCo and others, and acts to provide unique insight on the opportunities emerging, at a time when the UK economy is faltering.

The UK’s industrial strategy aims to drive long-term growth by concentrating investment in priority sectors, including artificial intelligence, clean energy, defence, life sciences and telecoms. The theory is that targeted public funding will crowd in private capital, enable IP led industries to scale further and create high-skill jobs. Recent geopolitical shocks and technological change have made this focus both urgent and necessary.

Artificial Intelligence sits at the heart of the strategy. The government has backed AI research funding, compute capacity and innovation clusters in an effort to attract global firms and scale domestic start-ups. Major technology companies have announced data centre expansions and AI research investments in the UK, reinforcing its ambition to be a leading European AI hub. However, AI investment is both capital-intensive and concentrated in highly specialised roles. The job gains are often limited to a relatively small number of highly skilled engineers and researchers, raising questions about how widely employment benefits will spread across regions and skill levels.

Energy production therefore is critical. Large commitments to offshore wind, nuclear development and grid upgrades are designed to strengthen energy security and accelerate the transition to net zero. Yet the employment effects have been uneven. Offshore wind projects often depend heavily on imported components, limiting domestic manufacturing gains. Grid connection delays and planning constraints slow project timelines, which in turn delays hiring. At the same time, workers in oil and gas face uncertainty about long-term prospects, and retraining systems have struggled to provide clear pathways into renewables. While capital expenditure in energy is rising, the jobs impact is yet to manifest.

Life sciences have also received strong backing, with funding for research, clinical trials and manufacturing facilities. The UK’s established research base gives it comparative strength, and pharmaceutical and biotech investments can create high-value employment. However teething issues with MHRA approvals process mean that major pharmaceuticals companies have questioned if the UK is the right place for their projects, and has acted as a drag on investment into the UK.

Telecommunications investment provides a further example. Project Gigabit, designed to expand high-speed broadband to hard-to-reach areas, represents substantial public funding aimed at digital infrastructure. While it supports construction and engineering jobs during rollout, much of the employment effect is temporary. The longer-term productivity benefits may be significant, but the direct labour market impact is less transformative than industrial rhetoric implies.

The big question is whether the industrial strategy can survive a change in Government. The cost of the program is significant (£80 Billion in this parliament) and this is being paid for by increased borrowing and taxation. With that, there is no guarantee that a future Government, for example Reform, choose to continue with it, and in that scenario, what then happens?

These are the themes we will be discussing next week, so if you would like to attend, register here:

https://vacancysoft.com/events/annual-summit-february-2026/

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