Fewer people were working as software developers in the UK last year than in 2023 – the first time there has been a fall since 2006.
The number of advertisements for tech jobs in the UK has gone down by 50pc since pre-pandemic levels, according to the National Foundation for Educational Research (NFER).
Overall, there has been a 31pc decrease in job postings across industries in the UK. However, tech roles are disproportionately affected, going down by half – from 123,000 listings between 2019 and 2020 to just 62,000 now.
In its report, the NFER links this decline to the rise of artificial intelligence (AI) and to a rise in tech roles being relocated to foreign countries. Looking deeper, the report finds further distinction between specific tech roles.
According to its findings, advertisements for programming and software development roles are down by 68pc, while ‘core tech’ roles such as web designing and IT project management are down 61pc. Meanwhile ‘tech adjacent’ jobs are only down by 26pc.
The research shows there were fewer people working as software developers in 2024 than in 2023 – the first time there has been a fall in these numbers since 2006.
However, the steep decline of nearly 70pc in ‘core tech’ opportunities in the UK post pandemic is not endemic to the UK, according to the report, with similar roles in the US also taking a sharp hit since 2022.
Entry-level tech roles are the most affected, the study finds, with there now being more demand for talent focused at the mid and senior levels. According to the NFER, there are now four times as many advertisements for senior than junior programming roles, raising serious challenges for less experienced employees attempting to enter the tech industry.
The report warns that over time, a reduction in junior recruitment could feed through into shortages of experienced workers being able to progress into senior-level tech roles.
Moreover, the nature of tech jobs and the skills required is also changing fast, the report states. Software development skills are now emphasised “much less” in job adverts than they were previously. While general skills such as project management, as well as some specific technological skills such as data science, have grown in importance.
NFER research director Luke Bocock says that these developments signal “a worrying shift”.
“While economic challenges play a role, the sharp decline in tech job adverts points to deeper structural issues, including relentless competition from international markets and the emerging influence of AI.
“If left unaddressed, these trends could limit career opportunities for young people.”
However, not all is bad, Bocock explains. “Voices in tech stress the need for developers with specialist skills, like AI. Roles in engineering (apart from software), science and research have also held up relatively well since 2022.”
Still, he says that if the current trend continues, “there will be fewer opportunities overall”.
James Turner, CEO of the Hg Foundation, which funded the NFER study, added: “Tech continues to offer many opportunities for social mobility, but this research gives us serious pause for thought.
“It is more important than ever to understand exactly which parts of the tech sector will grow and what skills and experiences young people are likely to need to access those jobs. As well as certain specialist expertise, many employers will also be looking for a flexible skillset which allows employees to adapt to a rapidly changing environment,” he said.
“It is crucial that those from underrepresented backgrounds aren’t left behind as this unfolds and it makes the work of those engaged in widening access to opportunities in the tech sector even more important.”
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