UK tech job ads plunge by half as structural issues emerge

In the UK, the tech job market has experienced a significant decline, with a 50% reduction in job advertisements compared to pre-pandemic levels. This downturn reflects broader issues within the sector, particularly as the number of software developers has also dropped for the first time since 2006, indicating a worrying trend for the future of tech employment. The National Foundation for Educational Research (NFER) outlines that there were only 62,000 tech job listings at present, down from 123,000 between 2019 and 2020, showcasing a sharp decline in opportunities available. The analysis conducted by NFER suggests that the fall in job advertisements pertains particularly to programming and software development roles, which have plummeted by 68%. Core tech roles, including web design and IT project management, have also seen a significant reduction, with a 61% decline. The report indicates that the impacts of this decline are not limited to the UK alone, as similar trends have been observed in the tech job markets across the United States since 2022, suggesting that a global shift is taking place in response to technological advancements and market needs. The NFER highlights that entry-level positions in tech have been hit the hardest, leading to a ratio where four times as many senior-level programming roles are currently advertised compared to junior roles. Such a drastic shift in demand raises concerns about the future for aspiring tech workers, who may find it increasingly challenging to break into the industry amidst a lack of available entry-level positions. The report warns that this could lead to long-term shortages of experienced tech professionals able to progress into senior roles. Interestingly, while general project management skills are gaining traction in job listings, there is a decline in the emphasis on software development skills in advertisements. Specific tech skills, particularly in artificial intelligence and other specialized areas, are becoming crucial for potential candidates. Luke Bocock, NFER research director, notes these shifts as part of a broader trend driven by competition and advancements in AI. Employers are looking for a flexible skillset that allows employees to adapt to the rapidly changing tech landscape. If these trends remain unaddressed, they could significantly limit career opportunities for young professionals seeking to enter and thrive in the tech industry.