The UK economy is suffering a staggering annual loss of £57.2 billion as a result of a widespread data skills gap among workers in knowledge-intensive sectors, according to a new report from Multiverse.
The Multiverse Skills Intelligence Report, which assessed the skills of over 12,000 employees from 1,000 companies across 18 major UK industries, reveals a significant shortfall in data competencies.
The report highlights that workers spend an average of 14.3 hours per week on data-related tasks—such as data entry, analysis, visualisation, and report generation.
Crucially, employees estimate that 4.3 of those hours, representing over 10 percent of their total working time, are spent inefficiently due to inadequate skills in areas like data analysis, automation, and predictive modelling. This inefficiency leads to slowed project development, delayed problem-solving, compounded errors, missed trends, and prolonged time-to-market for products and services.
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The impact of this data skills gap is pervasive, extending beyond IT and data science teams. It affects various departments, from marketing teams struggling to interpret customer analytics to HR managers grappling with workforce data synchronisation issues.
According to the UK Office for National Statistics (ONS) Business Register and Employment Survey (BRES) 2022, and adjusted for 2024, approximately 8.2 million workers in knowledge-intensive industries—about 27.4 percent of the UK workforce—are potentially impacted by this skills deficit. These industries include Information & Communication, Finance & Insurance, Professional, Scientific & Technical services, and Education. The estimated 4.3 hours of unproductive time spent on data tasks per week translates to 25 days of lost productivity per year, costing British companies up to £57.2 billion annually, based on an average salary of £64,428 in these sectors.
Key findings from the report include:
- The Education and Manufacturing & Engineering sectors are most affected, with employees estimating they spend 38 percent and 36 percent of their time unproductively on data tasks, respectively.
- A significant 87 percent of business leaders acknowledge substantial skills gaps within their organisations.
- Half of the employees (50%) report lacking the skills to efficiently analyse data or automate processes.
- An overwhelming 90 percent of employees across all industries express a desire to enhance their data skills.
Euan Blair, founder and CEO of Multiverse, commented on the findings: “Companies are aware of the value of big data and are collecting it extensively. However, their employees are spending hours struggling with spreadsheets because they haven’t been trained in the necessary skills. This inefficiency is costing billions, hindering business growth, career progression, and overall economic prosperity. Companies have invested heavily in software but not nearly enough in the skills needed to utilise it effectively.”
Minister for Skills, Jacqui Smith, emphasised the urgency of addressing this issue: “The UK is falling behind in data skills, as highlighted by Multiverse’s report. We must address this gap to lay a solid foundation for economic growth. Through initiatives like Skills England, we aim to unite businesses, unions, local leaders, and training providers to bridge these skills gaps and equip our workforce for the dynamic industries of the future.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
- Amelia Brand
- Amelia Brand
- Amelia Brand
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