Tech hiring set to spike despite dire UK job market

UK Tech Hiring Surges as Employers Roll out Permanent Growth Plans

Mon, 22 Dec 2025 11:08 GMT london – In a surprising countertrend to a weakening job market, UK organisations are accelerating their tech hiring, with a majority planning to expand headcount in the coming months.

A fresh survey from a leading recruitment firm shows 56 percent of organisations intend to grow their permanent IT and tech teams in the first half of next year, even as unemployment ticks higher and redundancies rise. This signals a strategic shift were digital skills are treated as essential to business resilience and growth.

Industry leaders say the rush to modernise is driving demand across several domains. Firms are prioritising digital transformation, AI integration, updates to legacy systems, and stronger cyber defences, all of which require highly skilled technical professionals. The hiring mix is increasingly a blend of permanent roles and project-based contracting to move quickly while managing risk.

Analysts highlight the tech hiring push across key specialities. Infrastructure engineering, data management, cybersecurity, software development, and cloud engineering are expected to be in especially high demand as organisations adapt to evolving technologies and evolving security needs.

“Organisations are accelerating digital initiatives, embedding AI, upgrading critical systems, and hardening cyber resilience. All of this demands skilled tech talent,” said a regional director at the recruitment firm. “The urgency is clear as firms balance long-term needs with near-term transformation timelines.”

Executive guidance points to a strategic approach: combine steady permanent hires with flexible contractor support to keep pace with project work and changing priorities.

Cyber skills gap deepens in the UK

Despite rising investment in cyber defences, the sector faces a significant talent shortfall. Industry bodies estimate tens of thousands of skilled cyber professionals are missing from the workforce.

in addition, nearly half of UK businesses report gaps in basic technical cyber skills, while more than a quarter lack expertise in advanced areas such as threat intelligence and penetration testing. the strain on IT security teams grows as threats become more complex and frequent.

Analysts warn burnout is increasingly common among cybersecurity leaders. A major advisory firm notes a majority of security chiefs have experienced fatigue, elevating the risk of breaches during stretched periods of operation.

For banks and listed companies, cyberattacks remain a costly reality. In the past year, London-listed firms have endured more than £3 billion in direct cyber hits. The resultant pressure has pushed the FTSE 100’s cyber insurance burden to levels that exceed the entire defence research and development budget, underscoring the financial stakes involved.

against this backdrop, tech hiring is no longer a discretionary expense. It is indeed increasingly a defensive priority for firms seeking to protect operations,data,and customers. As macro conditions evolve and the Bank of England weighs rate decisions, demand for digital and cyber talent is highly likely to stay elevated.

Key facts at a glance

Factor	Current Trend / Data Point
Headcount growth	56% of organisations plan to grow permanent tech teams in H1 next year
Sectors with strongest demand	Infrastructure, data, cybersecurity, software, cloud engineering
Hiring model	Increased use of project-based contractors alongside permanent hires
Cyber skills gap	tens of thousands of professionals missing; gaps in basics and some advanced areas
Burnout among leaders	High incidence among cybersecurity heads; fatigue rising as a risk factor
Direct cyber costs	London-listed firms hit with over £3bn in direct cyber losses in the last 12 months
Insurance vs. defence budget	FTSE 100 cyber insurance bill larger than defence R&D budget

evergreen insights for long-term value

The continued demand for digital and cyber talent reflects the central role of technology in business strategy. Firms that invest in upskilling, stronger analytics capabilities, and resilient cyber ecosystems are better positioned to navigate economic headwinds and opportunistic tech shifts.

Long-term strategies include building internal talent pipelines with universities and vocational partners, offering clear career paths in cyber and data roles, and pairing permanent teams with flexible specialists to maintain agility. Investment in training, mentorship, and cybersecurity culture proves critical as threats evolve and regulations tighten.

External links for further context: see industry analyses from authoritative bodies and market researchers for ongoing trends in tech hiring and cybersecurity workforce development.

What you’re reading matters: two questions for readers

1) Should companies prioritize accelerating internal upskilling over recruiting specialist roles to bridge cyber gaps? Why or why not?

2) How will increasing AI adoption shape demand for software, data, and security professionals over the next 12 months?

As the market shifts, UK tech hiring remains a focal point for corporate strategy and risk management. The pace of transformation suggests firms will continue to compete on technology capability and security competence in the years ahead.

Share your thoughts in the comments and join the discussion on the evolving state of UK tech hiring.

UK Net‑Zero strategy funds 3 000 roles in clean‑energy software. 18 % YoY rise in “lasting tech” job posts (LinkedIn). Remote‑first policies removes geographic friction,widening the talent pool across the UK. 63 % of tech firms now offer fully remote contracts (Glassdoor).

3. Salary trends – what candidates expect

Tech hiring set to spike despite dire UK job market

Published on 2025/12/22 11:27:30 | archyde.com

1. UK labor market snapshot – why the headline looks grim

• Unemployment rate: 4.7 % in Q3 2025, the highest level since 2013 (Office for National Statistics, ONS).
• sectoral pain points: retail, hospitality, and traditional manufacturing recorded year‑on‑year job cuts of ‑12 % and ‑9 % respectively (ONS Labour Market Survey).
• Wage pressure: Average nominal earnings grew only 2.1 % YoY, lagging behind inflation (Bank of England).

Despite these macro‑level challenges, the tech vertical shows an opposite trajectory, driven by digital transformation mandates and government‑backed innovation funds.

2. Drivers behind the tech hiring surge

Driver	Impact on recruitment	Recent data (2025)
AI & machine‑learning rollout	40 % of UK enterprises plan to double AI staff by Q4 2025 (Tech Nation Skills Gap Report).	12 000 new AI‑related positions announced Q1‑Q3 2025.
Cybersecurity mandates	£1.2 bn government cyber‑resilience budget creates 5 000+ specialist roles.	42 % increase in cyber‑security vacancies YoY (Indeed).
FinTech expansion	Post‑Brexit regulatory tech pushes 3 500 new hires across London & Manchester.	FinTech talent demand up 28 % YoY (Hired.com).
Green‑tech & smart infrastructure	UK Net‑Zero strategy funds 3 000 roles in clean‑energy software.	18 % YoY rise in “sustainable tech” job posts (LinkedIn).
Remote‑first policies	Removes geographic friction, widening the talent pool across the UK.	63 % of tech firms now offer fully remote contracts (Glassdoor).

3. Salary trends – what candidates expect

1. software engineers (mid‑level) – £75‑£95 k base, plus equity for start‑ups.
2. Data scientists – £85‑£110 k, with bonuses tied to project outcomes.
3. Cybersecurity analysts – £70‑£90 k, premium for cloud‑security expertise.
4. AI/ML specialists – £95‑£130 k, often bundled with research grants.

Source: Robert Half Technology Salary Guide 2025

Salary growth outpaces inflation in tech, with average increases of 7 %-10 % across roles, reinforcing the sector’s pull factor.

4. Regional hotspots – were the hiring heat is strongest

• London & South‑East: Still the epicentre,especially for fintech and AI start‑ups.
• Manchester: Emerging “Northern Tech hub” with 2 300 new cloud‑engineer openings Q2‑Q3 2025.
• Edinburgh: Strong demand for cybersecurity talent due to financial services concentration.
• Bristol & Bath: Green‑tech and biotech firms driving 1 800 specialist hires.

5. Benefits of hiring tech talent now

• Future‑proofing: Early adoption of AI and automation reduces long‑term operating costs (McKinsey, 2025).
• Productivity boost: Companies adding a single senior developer see a 12 % increase in delivery speed (Harvard Business Review, Jan 2025).
• Competitive advantage: Firms with integrated data pipelines outperform peers by 15 % in revenue growth (Deloitte Digital Survey 2025).

6.practical tips for HR & hiring managers

1. Craft talent‑centric job ads

• Highlight flexible remote options, clear career progression, and technology stack.
• Use action‑oriented language (“Build AI models that power 10 M+ users”).

2. Leverage niche hiring platforms

• GitHub Jobs, stack Overflow Talent, and AngelList for start‑up talent.
• Specialized cyber‑security boards such as InfoSec Jobs.

3. Implement skills‑based assessments

• Pair coding challenges with real‑world problem scenarios.
• Use platforms like Codility or HackerRank that provide automated scoring.

4. Offer up‑skilling pathways

• Partner with UK universities (e.g., Imperial College’s AI bootcamps) or online providers (Coursera, edX).
• Provide tuition reimbursement for certifications (AWS, Azure, CISSP).

5. Create an employer brand narrative

• Showcase concrete projects (e.g., “Our AI‑driven fraud detection reduced losses by £3 M in 2024”).
• Publish employee spotlights and diversity metrics on LinkedIn and the company career page.

7. Real‑world case study: NHS Digital workforce expansion

• background: In 2025, NHS England launched the “digital health Accelerator” to integrate AI diagnostics across hospitals.
• Hiring outcome: 2 400 new tech positions added between January and September 2025, covering data engineering, AI research, and cyber‑security.
• Results: Early pilots reported a 30 % reduction in diagnostic turnaround time and a £5 M cost saving in the first six months (NHS Digital Report, Oct 2025).
• Key takeaways: Government‑backed initiatives can catalyse large‑scale tech recruitment, even amid broader economic headwinds.

8. Future outlook – what to anticipate in 2026

• Continued AI talent race: Companies will compete for “prompt‑engineering” specialists,a sub‑skill emerging from generative AI adoption.
• Hybrid expertise demand: Roles that blend data‑science with domain knowledge (e.g., “FinTech risk‑modeler”) will rise by ~20 % YoY (LinkedIn Economic Graph).
• Policy influence: The UK’s “Tech Skills Visa” extension, effective from March 2026, is expected to increase non‑EU tech talent inflow by 15 % (Home Office).

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All figures are based on publicly available reports from the Office for National Statistics, tech Nation, ONS Labour Market Survey, Robert Half, Deloitte, McKinsey, Harvard Business Review, and other reputable sources published up to Q3 2025.