First published in June 2025, the UK Industrial Strategy was unveiled to tackle persistent economic, social and technological challenges that have constrained national growth. At its heart lies a bold government assumption: targeted state investment in industry, underpinned by central planning, can drive productivity and economic expansion.

The strategy sets out four central objectives:

• Preparing for Industry 4.0 – As automation, digitalisation and artificial intelligence reshape jobs and industries, the strategy aims to equip the workforce with the skills needed to adapt.
• Fostering Innovation and Collaboration – The government seeks to strengthen the so-called “triple helix” of government, academia and industry, converting research into commercial success.
• Addressing Low Productivity Growth – Plans are in place to close regional productivity gaps and narrow the UK’s performance relative to other advanced economies, ensuring all regions share in economic progress.
• Strengthening Global Competitiveness – The strategy aims to position the UK at the forefront of emerging sectors such as AI, clean energy and life sciences.

The initiative, branded IS-8 (Industrial Strategy 8), prioritises eight sectors: Advanced Manufacturing, Clean Energy, Creative Industries, Defence, Digital & Technologies, Life Sciences, Financial Services, and Professional & Business Services. Government investment over the next four years is set to exceed £86 billion, a gamble that the economic returns will emerge in time for the next election, allowing ministers to claim political credit.

Early signs are encouraging. The recent trade deal with the United States has already triggered significant foreign investment, particularly in AI, Financial Services and Energy. Telecoms and defence sectors are also experiencing renewed activity. These industries are expected to be the focal points for both public funding and private investment as the government seeks to counteract the headwinds of a slowing economy and rising taxation. With the next budget approaching, the pace of intervention is likely to accelerate, as ministers aim to stimulate private sector growth in the areas most aligned with the IS-8 strategy.

With this in mind, we are launching the IS-8 Vacancy Index, which will monitor professionally qualified vacancies across key industries, providing monthly updates on headline trends. In October, vacancies among the constituent companies reached the second-highest level recorded so far this year. If you would like to know more about how we can help you monitoring the job flows within the IS-8, by sector, location, job type or company even, get in touch, we are well positioned to help.

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