The days of explosive tech hiring are behind us—at least for now. After years of rapid expansion, companies are shifting away from large-scale recruitment and focusing on high-impact, strategic hires. So, what’s driving this change, and how should employers respond? Let’s break it down.
Demand for Tech Talent Is Cooling
Since 2022, demand for tech professionals has dropped by 54%, with an additional 27% decline in the past year.
UK Tech Job Postings, January 2022 - December 2024
It’s not just tech—hiring is slowing across the UK, with total job openings down 40% over three years and 14% in the last 12 months.
UK Job Postings, All Industries, January 2022 - December 2024
Wages for Are Rising, Despite Lower Demand
UK Job Postings, All Industries, January 2022 - December 2024
Even as hiring slows, tech salaries keep climbing. It’s a paradox, but there’s a clear reason: companies are willing to pay a premium for deep expertise and specialised skills. We believe several factors are at play:
- Normalisation After Hyper-Growth: The explosive growth in Cloud adoption, AI implementation, and Cybersecurity awareness over the past few years created an unprecedented demand for these skills. Now that businesses have built their initial capacity, they’re focusing on optimisation rather than expansion.
- The Rise of the Specialist: Companies have moved beyond initial technology rollouts and now need experts to refine and scale their systems. This requires a level of expertise that generalists simply can't provide.
- Automation and Efficiency: Advanced automation and AI-driven tools mean businesses can do more with fewer hires. This reduces the demand for broad-scope tech professionals while increasing demand for highly skilled professionals who can architect and maintain these complex systems.
- Experience Matters More Than Ever: As tech hiring slows, companies are raising the bar for experience. They're seeking candidates who can hit the ground running and contribute immediately to mission-critical projects—placing a premium on deep expertise and hands-on experience.
Implications and Strategies for Employers
With demand cooling and specialised skills becoming increasingly crucial, companies need to take a fresh look at how they hire and manage their workforce.
Compete Beyond Compensation
For smaller or mid-sized companies, the data above might have you wondering how to stand out against tech giants offering sky-high salaries for specialised talent. But here’s the good news— AI specialists are drawn to more than just a paycheck; they want to work on groundbreaking projects, make a real impact, and continuously expand their skills. Build an EVP that speaks to what truly matters—career-defining opportunities, rapid growth paths, and benefits that go beyond salary. Show AI talent why your company is the place to build something remarkable.
Broaden Your Talent Search (Beyond the Usual Suspects)
Sticking to “brand-name” candidates (like FAANG/MAMAA alumni) means you might be missing out on highly skilled professionals. Look beyond the obvious—tap into adjacent industries or collaborate with universities or bootcamps that focus on specialised skills. Consider candidates with niche certifications and demonstrated project experience, even if they don't have a household name on their resume.
Invest In Your Existing Talent
Hiring specialists is tough (and expensive), so it’s worth prioritising the people you already have. Keep top tech talent engaged with clear career growth opportunities, continuous learning, and an environment where they feel challenged and valued. Helping them level up internally can also fill those hard-to-hire skill gaps.
Explore Flexible Staffing Models
Not every role needs a full-time hire, and rigid hiring strategies can slow down innovation. Contract workers, freelancers, and project-based hires offer a way to bring in specialised expertise to bridge skills gaps and support high-priority initiatives—without the long-term overhead.
The UK job market is shifting, but there’s still strong demand for high-impact tech talent. Companies that prioritise impactful hiring, expand their talent search, and invest in workforce agility will be the ones that thrive in the next phase of tech hiring.
About LevelUP
LevelUP Human Capital Solutions was founded in 2012 with the mission to modernise talent acquisition. We specialise in developing and executing strategic talent acquisition plans that align with the unique challenges and opportunities faced by our clients. Our customised solutions ensure organisations not only attract top talent but also build a workforce that drives long-term success.
