AI, Talent Shortages & New Tax Rules: What’s Next?
Contracting’s in flux. Talent pipelines are under pressure. And AI is rewriting the rules faster than legislation can keep up. For employers navigating STEM hiring in 2025, the signals are clear: change is coming. The smart move? Start preparing now.
1. AI isn’t just hype — it’s the top disruptor
When asked what they expect to impact their roles most in the next five years, STEM professionals named AI as the number one disruptor, ahead of economic instability, policy reform and skills shortages (Matchtech Voice of the Workforce Survey 2025 link). For employers, this isn’t just about tech capability — it’s about the workforce implications.
- Only 25% of respondents think their role won’t change due to AI.
- In fields like Cybersecurity and Telecoms, more than 1 in 8 expect AI to significantly grow their role.
- In sectors like Transport & Planning, concerns are sharper: 12% believe their role is at risk, and 3% think it may not exist at all.
If you’re not already investing in AI literacy, transformation readiness, and change support, your competitors probably are.
2. Talent shortages are here and they’re biting
In half of the ten key STEM sectors surveyed, talent shortages — especially among emerging talent — were named as the biggest threat to stability. Attracting, training and retaining early-career talent is now a critical business risk.
That’s a warning shot for any employer still relying on outdated recruitment models. As experienced professionals weigh up their contracting options and younger talent questions their long-term prospects, the need for future-fit career pathways is growing louder.
3. The tax landscape is about to shift again
New compliance and tax measures are causing friction — and could trigger major changes in contractor supply:
- Two-thirds of STEM professionals say the changes will impact how they contract.
- 1 in 6 may move to permanent employment altogether.
- Just 4% plan to expand their business to offset the impact — most are unsure how to respond.
More worrying? 80% of the current STEM contractor pool say they’d consider working overseas if the UK becomes less favourable. That includes 84% of senior leaders — exactly the talent your programmes can’t afford to lose.
4. So, what’s the solution?
In an era of disruption, agility and empathy will be your edge. Here’s where to focus:
- Invest in AI upskilling – not just for tech teams, but across your workforce.
- Build clearer career mobility pathways, especially for younger talent at risk of churn.
- Treat contractors like strategic assets – not just stopgaps. This means faster onboarding, transparent IR35 policies, and payment terms that reflect real-world risks.
- Be a voice for fair reform – through industry groups and networks, employers have a role to play in shaping better contracting policy. Don’t stay silent.
Final thoughts?
This isn’t a moment for playing safe. It’s a moment for redesigning how work works — with people, policy and productivity in mind. The employers who act now to future-proof their contractor strategies won’t just survive the disruption. They’ll be first in line to lead the recovery.