How is the UK tech labour market changing — and what does this mean for young people without degrees looking to enter the sector?

The first Tech Labour Market Briefing from The Hg Foundation’s Intelligence Hub examines how demand for tech roles has changed in the UK, where entry-level opportunities still exist, and how accessible those routes are to people without degrees.

The briefing combines Lightcast analysis of more than 70 million UK online job postings, including over 6 million tech postings, with employer insights led by PF Global. Together, the research explores how hiring has changed since 2019, which occupations and skills are in demand, how opportunities vary across the UK, and what this means for employers, training providers and policymakers.

Key findings

• The tech labour market has reset. After falling sharply from its post-pandemic peak, hiring appears to be stabilising. There were around 470,000 tech job postings in the year to June 2026, roughly 10,000 more than the year before.

• Tech remains one of the best-paid parts of the UK economy, with an average advertised salary of £63,248 in the first half of 2026, around 60% above the UK average.

• Entry-level opportunities have roughly halved. Employers advertised more than 114,000 entry-level tech roles in 2019–20, compared with around 57,000 in 2025–26. Entry-level roles have also become a smaller share of tech hiring.

• Thousands of entry-level tech roles remain open to people without degrees, despite a tougher entry-level market. More than 5,600 postings explicitly did not require a degree in 2025–26, seven percent above the previous year, although well below 2019–20 levels. Among entry-level postings that state an education requirement, almost half (49%) do not require a degree.

• Entry routes are highly concentrated. Around 71% of all entry-level tech vacancies sit in just five occupations. For entry-level roles not requiring a degree, the concentration is even greater, at 81%.

• AI growth is not translating into obvious entry routes. Specialist AI roles are growing quickly but offer few obvious entry points, particularly for those without degrees. Instead, AI skills are increasingly being requested across broader entry-level and non-degree tech roles.

• Employers want a blend of skills. Communication, problem solving and customer service sit alongside technical and AI capabilities, reinforcing the importance of combining technical training with the essential skills needed in the workplace.

• Access varies sharply by region. Among entry-level tech postings that state an education requirement, 29% in London do not require a degree, compared with 60% in the East Midlands.

The findings show that widening access is not simply about creating more training: programmes need to prepare young people for roles where there is real employer demand, while employers also need to maintain credible first routes into the sector.

The briefing is the first publication from the Intelligence Hub, part of the AI & Economic Opportunity Fund  — a three-year initiative from The Hg Foundation and JPMorganChase supporting low-income young adults without degrees into high-quality tech careers. The Intelligence Hub will continue to track how entry routes are changing and use this evidence to inform the Fund’s programmes, employers and policymakers.

What comes next?

This is the first in a regular series of Tech Labour Market Briefings. The next briefing is planned for spring 2027 and will build on this analysis by bringing in broader and more detailed employer evidence on future hiring intentions and how demand for different entry-level pathways is likely to evolve.