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How the 2025 Industrial Strategy Will Reshape UK Recruitment

​The UK Government’s new Modern Industrial Strategy is a 10-year roadmap to grow the economy through eight high-potential sectors. With more than £100 billion in new public investment already committed, the implications for recruitment, talent, and workforce development are profound.

Below are the most recruitment-relevant initiatives that are not just strategic in vision, but also backed by hard funding:

Global Talent Taskforce – £54 million

To combat talent shortages in high-growth sectors like AI, clean energy, and defence, the Government has launched a £54m Global Talent Taskforce. This team will:

  • Attract international talent in specialist roles

  • Streamline visa processes for priority sectors

  • Coordinate global outreach for top-tier technical and scientific skills

Skills Funding – £1.2 billion per year by 2028–29

Domestic talent pipelines are receiving a boost through:

  • Expanded apprenticeships and technical training linked to IS-8 sectors

  • System reform to align vocational pathways with emerging roles

  • A strong emphasis on engineering, green tech, AI, and manufacturing capabilities

R&D Talent Expansion – £86 billion investment

A massive investment in deep-tech R&D will reshape hiring in research and technical fields:

  • £670 million

    for quantum computing development

  • £380 million

    for engineering biology

  • Part of

    £2 billion

    in AI infrastructure targeted at workforce needs

Construction Skills & Planning Roles – £625 million

In a bid to modernise the construction industry and speed up housing delivery:

  • £625 million

    will fund training for

    60,000 new workers

    in modern construction techniques

  • The Government will also

    hire 1,000 new planning officers

    across local authorities to reduce delays in housing development

Defence & Security Recruitment – £330 million via NSSIF

National security-related hiring will receive a £330m boost, supporting companies building UK defence capabilities and creating demand for high-skill, security-cleared roles.

Scaling SMEs & Tech Startups – £27.8bn NWF + £25.6bn British Business Bank

These funds aim to stimulate scale-up hiring in fast-growing tech and industrial businesses, particularly those aligned to the IS-8 sectors.

Key Takeaways for Talent Leaders

  • Talent mobility, both global and local, is being financially prioritised for the first time at this scale

  • Hiring in deep-tech, clean energy, construction, defence, and life sciences will see accelerated demand

  • Workforce development is now backed by long-term funding certainty, not just policy ambition

  • Recruitment teams should anticipate an evolving skills infrastructure, new training providers, and international pathways linked to sector plans