New research is warning of significant
challenges for young people seeking careers in the tech sector,
as job adverts for tech roles plummet in the
UK.
The report conducted
by NFER and funded by The Hg Foundation, finds there has been
around a 50 per cent decline in tech job adverts between 2019/20
and 2024/25.
This rate of decline is significantly
faster than the wider economy, where there has been a 31 per cent
decline in adverts over the same period. The report links these
trends to more tech roles being relocated overseas and the
anticipated impact of Artificial Intelligence
(AI).
The slowdown has been particularly
large for roles in areas like software development. Adverts for
programmer jobs have fallen by almost 70 per cent between 2019/20
and 2024/25, with a particular acceleration in the decline over
the last two years. Looking beyond job adverts, the research
shows there were fewer people working as software developers in
2024 than in 2023, the first time there has been a fall since
2006.
This downturn will have implications
for the talent pipeline into tech roles, particularly for young
people:
-
Entry-level roles in tech have been
particularly affected. Demand is now more focussed at senior
levels, impacting entry-level opportunities for young talent.
In programming, there are now four times as many adverts for
senior roles as junior roles. The report warns that over time,
a reduction in junior recruitment could feed through into
shortages of experienced workers able to progress into
senior-level tech roles.
-
Qualification barriers are on the
rise. Because there is less competition for recruits, employers
are being pickier, with a higher rate of tech jobs listing
qualification requirements since
2022.
The analysis is based on data from
Adzuna, which captures 95 per cent of UK job
adverts.
Commenting on the research,
NFER Research Director, Luke Bocock,
said:
“The UK has long been a leader in
tech innovation, but this report signals a worrying
shift.
“While economic challenges play a
role, the sharp decline in tech job adverts points to deeper
structural issues, including relentless competition from
international markets and the emerging influence of
AI.
“If left unaddressed, these trends
could limit career opportunities for young
people.
“This is not to say it is all bad
news; voices in tech stress the need for developers with
specialist skills, like AI. Roles in engineering (apart from
software), science, and research have also held up relatively
well since 2022.
“If current trends continue, there
will be some areas of growing demand for young people looking to
enter the tech workforce, but there will be fewer opportunities
overall.”
James Turner, Chief Executive
of The Hg Foundation, added:
“Tech continues to offer many
opportunities for social mobility, but this research gives us
serious pause for
thought.
“It is more important than ever to
understand exactly which parts of the tech sector will grow and
what skills and experiences young people are likely to need to
access those jobs. As well as certain specialist expertise, many
employers will also be looking for a flexible skillset which
allows employees to adapt to a rapidly changing
environment.
“It is crucial that those from
underrepresented backgrounds aren't left behind as this unfolds
and it makes the work of those engaged in widening access to
opportunities in the tech sector even more
important.”
This report is the first in a wider
research programme examining pathways into tech jobs and how
skills requirements are
evolving.
The next phase will explore
explanations for the trends and patterns reported in this study.
It will collect the views from a representative sample of senior
leaders and hiring managers within tech
sectors.
Wider research will explore access to
jobs in tech in the recent educational and labour market data. It
will look at how access to tech-related qualifications is
changing over time, as well as the pathways those currently in
the sector have followed. This analysis will be released in
future reports this year.
