AI reshaping IT in London as Data roles surge
Key findings include:
- London IT vacancies are down 50.5% as PE/VC funding dries up
- Fintech hit hardest as recruitment in the sector falls 60%
- Rise of AI translates to ever more data analysts; now hitting record share of all IT
- Lloyds digital hiring surges, with vacancies up 18.8% YOY
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The deceleration of tech-centric sectors in London during 2023 mirrors the broader downturn experienced across the UK, with IT vacancies plummeting by 50.5% in the capital compared to 36.3% regionally. Hence the fact that demand for IT professionals has fallen 42.8% compared to the peaks seen in 2022, is a temporary blip. This according to the latest UK Technology Labour Market Trends report by Hiring Hub and market data analysts Vacancysoft.
Simon Swan – Founder – Hiring Hub – comments:
“We saw more a significant decline in tech jobs during 2023 but the green shoots of a recovery are emerging as hiring confidence looks set to slowly return in 2024.”
Fintech hiring dips amid financial challenges
London’s position as one of the top three global cities, coupled with its ability to draw more private equity and venture capital funding in Europe than all EU financial capitals combined, underscores its significance in the tech sector. However, the notable reduction in funding experienced in 2023 has resulted in a substantial 60% decline in Fintech recruitment within London, paralleled by a significant 39.7% decrease across the rest of the UK, raising questions about the sector’s resilience and adaptability in the face of financial challenges.
AI revolution leads to a disruption in IT and software development vacancies
The Technology, Media & Telecoms sector retains its dominance as the largest cluster, despite experiencing a notable decline in job openings, down by 54.8%. The emergence of Generative AI has profoundly impacted IT and software development, leading to a drastic 55% decrease in software development vacancies. Conversely, the demand for data analysts has risen to a record high of 4.1% as a share of total vacancies.
Tech titans’ hiring slump
Amazon experienced a significant reduction in IT vacancies, plummeting from 3809 in 2022 to a mere 469 in 2023, marking an 87.7% decline. Consequently, Amazon’s position as a premier IT recruiter across industries has shifted, with the company now falling outside the top ten recruiters. Additionally, Barclays and JPMorgan Chase & Co have recorded a drop in recruitment by 57.4% and 56.7%, respectively. Indeed, such is the slowdown in the recruitment of IT, that of the top twenty recruiters, only three companies had increases in activity year on year.
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All data featured in this report is available in the Vacancy Analytics platform, which is updated in real-time and allows for interactive analysis, giving you the power to drill into trends to identify the key insights, you need to power your business.
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