London – UK Tech Labour Market Trends, July 2023
IT Vacancies on track for a 47% fall on last year, London hardest hit
Key findings include:
- There has been a 54.2% decrease when compared to the same period in 2022
- Within Tech firms, Development sees the sharpest fall, down 67%
- Banking proving more resilient than most sectors, only down 28%
- Lloyds on track to have a 48% uplift in vacancies on last year
When examining the overall half-year totals for 2023, we can see a substantial 54.2% decrease when compared to the same period in 2022, where across all sectors, companies have been slowing down.
Whilst the technology industry has been the hardest hit, other sectors to see significant drops include media, banking, and retail, according to the latest UK Technology Labour Market Trends report by Robert Walters and market data analysts Vacancysoft.
Ben Litvinoff – Associate Director, Technology at Robert Walters comments:
“It would be amiss to not acknowledge that demand for technology professionals sky-rocketed during and post-pandemic – so a lot the decline we are seeing in roles is more so a levelling out process, where job vacancies now are on-par with what we saw pre-Covid (2019).”
Early March saw the collapse of Silicon Valley Bank – sending shockwaves through the global tech market, with investors around the world holding back to see what the fallout may be.
The following month saw tech giant Meta layoff 4,000 employees, with Google’s parent company Alphabet announcing 12,000 job losses at the start of this year, and Twitter’s new CEO Elon Musk stating that he had cut company headcount by 80% since taking over at the backend of 2022.
London’s banking & financial services sector continues to invest back into its tech function – with 28.8% of all London tech roles coming from this sector.
In fact, this year alone, the volume of new tech roles across banks such as NatWest Group and Lloyds has increased by +72.5% and +48.4% respectively. In contrast, Amazon after several years of explosive recruitment, have had their activity drop by 91% year on year.
As a final observation, of the top twenty companies recruiting for IT this year, only three have seen growth on 2022, which is symptomatic of the slowdown overall.
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