Year in Review – UK Tech Labour Market Trends Report, January 2026
UK Telecoms Faces Engineering Crisis as Retirement Wave Collides with Skills Shortage
Key findings include:
- UK IT professional vacancies rose around 15% year-on-year in 2025.
- London remained the largest hiring market, accounting for nearly 45% of demand.
- Fintech IT vacancies in London surged by around 48% year-on-year.
- Product management roles recorded the fastest growth, rising 67%.
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Technology hiring expands despite cautious economic climate
The UK technology labour market continued to grow in 2025 despite a fragile economic environment and restrained corporate confidence. While many sectors approached hiring cautiously, investment in digital capability proved more resilient. Employers focused on improving operational efficiency, strengthening digital infrastructure and supporting existing teams rather than pursuing large-scale workforce expansion.
IT professional vacancies increased by around 15% compared with 2024. London remained the primary driver of demand, with vacancies rising by around 20% to nearly 43,000 roles, accounting for just under 45% of national demand. Outside the capital, growth was more moderate, with vacancies across the rest of the UK increasing by approximately 12%.
Regional growth highlights uneven digital investment
Although London continued to dominate the technology labour market, several regions recorded notable growth. Yorkshire and the Humber emerged as one of the strongest performers, with vacancies increasing by almost 14% to just over 4,000 roles. The North West also recorded solid growth of just over 10%, although its share of national demand edged slightly lower.
Elsewhere, the picture was more mixed. The South East recorded modest growth of 3.3%, accounting for just under 10% of demand. The East Midlands performed more strongly, with vacancies rising by approximately 12%. By contrast, the West Midlands saw vacancies decline by around 6%, reflecting weaker hiring momentum in parts of the region.
Fintech hiring becomes increasingly concentrated
Fintech IT hiring in 2025 became more concentrated around established technology hubs. London dominated activity, with vacancies rising by around 48% year-on-year to just under 5,000 roles, accounting for close to three-quarters of national demand.
Outside the capital, regional trends were uneven. The North West and North East recorded increases of around 21% and 22% respectively, though their overall share of national demand remained modest. Several regions experienced contractions. The East of England saw vacancies fall by around 31%, while the South East declined by roughly 7%. Overall, fintech hiring became more geographically concentrated as investment focused on major technology centres.
Banks and consultancies drive demand for IT professionals
Demand for IT professionals remained strong across several sectors. Technology, Media and Telecommunications generated the largest share of vacancies, rising by 16% to around 46,400 roles. Financial services also expanded significantly, with vacancies increasing by 17% to nearly 18,900 roles.
Employer-level trends reflected growing investment in internal technology capability. JPMorgan Chase increased IT vacancies by 38.5%, while Barclays recorded a strong rebound with vacancies rising 69.4%. Capgemini expanded hiring by 54% as demand for digital transformation projects grew. BAE Systems increased IT recruitment by 50%, highlighting the growing importance of digital capability within defence and engineering environments. Meanwhile, BT Group reduced hiring by 30.6%, reflecting continued cost efficiency measures and organisational restructuring.
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