Rigid hiring practices that exclude mid-career women from digital roles could cost the UK's financial services and technology sectors £10.8 billion in lost productivity over the next decade, according to research published today by the City of London Corporation's Women Pivoting to Digital Taskforce.

The report found that more than 12,000 digital vacancies went unfilled across these sectors in 2024 due to recruitment difficulties, resulting in £949 million in lost productivity and £296 million in reduced profits. Each unfilled digital vacancy costs firms an average of £78,600 in annual productivity, with financial services experiencing particularly high losses of £143,853 per vacancy.

"The City of London is one of the world's most exciting places to build a career where innovation, ambition and talent come together," said Dame Susan Langley, Lady Mayor of the City of London. "By investing in people and supporting the development of digital skills within the workforce, employers can unlock enormous potential and build stronger, more resilient teams."

Current hiring processes systematically exclude capable candidates through automated CV screening, narrow definitions of relevant experience, and penalties for career gaps related to caring responsibilities. Women account for only 21 per cent of the tech workforce despite representing approximately 51 per cent of the UK's overall workforce.

The taskforce warns that without intervention, artificial intelligence and automation could displace around 119,000 clerical workers in these sectors by 2035, most of them women. Firms could face up to £757 million in severance payments, whereas reskilling programmes could save an average of £49,025 per employee.

Sarah Underhill, people director at Lloyds Banking Group, said demand for advanced digital, data and technology skills is accelerating. "Reports like this help to shine a light on the scale of the challenge and the importance of building a sustainable, diverse technology talent pipeline for the future," she told researchers.

Employers have attempted to address shortages by raising wages well above the national average. Between April 2023 and April 2024, weekly full-time earnings in tech and finance grew by 9.5 per cent, compared with 3.5 per cent nationally. The report argues that increasing pay alone will not solve persistent talent shortages expected to continue until at least 2035.

The research recommends firms focus on reskilling mid-career women and recruiting from publicly funded digital bootcamps. Some employers have already demonstrated success by assessing candidates for potential rather than prior technical experience, reporting faster role filling times and stronger long-term outcomes.

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