Report
Report
UK tech hiring in transition? The current state of play and where future opportunities might lie
The UK’s tech labour market has entered a period of transformation, with previous research by the National Foundation for Educational Research (NFER) demonstrating that there were in 2025 half as many adverts for jobs in tech occupations such as software development than there were before the COVID-19 pandemic, with entry level jobs disproportionately affected. This report presents the findings of primary research with employers, drawing on the experiences and perspectives of hiring managers and senior leaders in almost 100 tech and non-tech organisations that hire for tech roles. Through focus groups, interviews and a survey, the NFER explore reasons for recent trends in tech hiring, the qualifications and skills needs in the tech labour market and predictions for the future.
Employers reported that:
Post-pandemic over-recruitment, macroeconomic pressures, increased offshoring, and the emerging effects of Artificial Intelligence (AI) and automation are key drivers of recent hiring trends.
AI’s direct effect on tech hiring remained limited for many companies, but some developer roles are being automated or consolidated, and new specialist roles are emerging that require expertise in AI systems.
Demand is likely to continue or increase for AI, data analytics, cybersecurity, DevOps, and hybrid roles combining technical and business expertise. Prospects are less positive in cloud computing or Quality Assurance (QA) and testing roles according to respondents.
Hiring for entry level roles is unlikely to rise, with few predicting an upturn.
AI literacy and coding skills, alongside essential skills such as resilience, adaptability, problem solving, as well as commercial awareness are increasingly valued.
This report is one output from a broader research programme, funded by The Hg Foundation and conducted by the NFER. The other reports in the series are:
