Summary of UK Tech Jobs Market 2023
The UK tech jobs market is an exciting and rapidly growing sector that is set to boom in the coming years. By 2023, the UK is expected to be one of the leading tech hub in Europe, with a rapidly growing tech sector that is creating thousands of new job opportunities. In this article, we will explore the most in-demand tech jobs in the UK in 2023 and look through all the newest trends in UK tech market. We will also touch upon the problems of the UK technology market for specialists and their concerns about latest unfavourable trends in the global world.
Compared to 2020 and 2021, there were sharp reductions in investment, the growth of startups slowed down, and a period of mass layoffs and job cuts broke out on the world stage. The US tech sector has been in the news lately due to the prevalence of layoffs and hiring freezes, more than 760 tech companies have implemented employee layoffs in 2022. While some companies are downsizing a few employees, others such as Meta and Twitter are releasing thousands of workers. But the truth is that the industry will continue to face a significant skills gap that outweighs the layoff crisis.
With the shift towards remote work during the pandemic, some companies may have realized that they do not need as many employees in certain roles or locations. This could lead to layoffs as companies restructure their workforce.
We also see another reason for layoffs in large tech companies. Investors often look for profitability and growth, and if a company is not meeting those expectations, they may pressure the company to make changes to improve its financial performance. One way to do that is to reduce costs, which can include layoffs.
Even in such an unstable market opportunity for qualified specialist still exist and in this sense the UK is able to make an impact and continue to show significant growth.
Current and Future Trends in the UK Tech Jobs Market
According to Tech Nation’s report, the UK tech ecosystem has been valued at almost $1tn in 2022, which makes it the third-largest in the world after US and China. This represents a significant increase from its value of $53.6bn ten years ago, which is more than 17 times lower than the current figure. Additionally, the report highlights that the scale up ecosystem has been valued at over 50 times its value from a decade ago.
Starting from 2015, Tech Nation has conducted an analysis of the opportunities and challenges faced by the UK’s technology sector on an annual basis. In its 2020 report, Tech Nation has tracked the growth of the sector in recent years, which has been driven by record investments in the country’s technology and a significant surge in employment. According to a report by Tech Nation, the UK’s digital tech sector accounted for 10% of the country’s GDP in 2020. The same report also stated that the UK’s tech sector has been growing at a faster rate than the overall economy, with a 6.6% increase in jobs in the tech sector between 2017 and 2020, compared to a 3.5% increase in jobs across all sectors.
The UK’s tech sector has already made a major impact in the country, with the number of tech jobs increasing by over 30% in the last three years alone. This trend is only expected to continue, with tech jobs projected to account for an estimated 7% of all UK jobs by 2023. This growth is set to be driven by the increasing demand for digital skills, with the UK government investing heavily in digital skills training and initiatives to encourage the uptake of these skills.
According to Tech Nation’s People and Skills Report 2022, which relies on data from job search platform Adzuna, the proportion of tech roles in the UK job market has increased to 14%, up from 11% in 2019. The demand for tech products and services over the past two years has led to a surge in tech job opportunities in the UK, reaching a 10-year high.
Over the past decade, salaries in the tech industry have increased by 36%, which is significantly more than the average wage growth across other industries. It’s worth noting that the COVID-19 pandemic has continued to impact the job market in various ways, and the ongoing uncertainty may be affecting the tech sector. Some reports suggest that the pandemic has accelerated digital transformation and increased demand for tech skills.
Current trends in the UK tech jobs market include an increase in remote working, a focus on cloud technologies, and a greater emphasis on data-driven decision making. In the future, we expect to see a continued growth in the number of tech jobs and an increase in the number of specialised, high-skilled roles. Companies will continue to invest heavily in the latest technologies, and the UK will remain a global hub for tech innovation.
The Top 20 Technology Jobs That Will Be in High Demand in 2023
According to digital trends, there is a wide range of technology jobs that are expected to be in high demand in 2023.
Here is the list of the most promising roles in tech:
- One of the fastest-growing tech jobs in the UK is software development. Software developers are responsible for creating, testing, and maintaining software applications and systems.
- Data Scientist are responsible for analysing large data sets and identifying patterns and insights that can inform business decisions.
- Artificial Intelligence Specialist – AI is revolutionizing the way we live and work. AI specialists are needed to develop intelligent systems that can automate processes and improve efficiency.
- Cybersecurity specialists are responsible for protecting computer networks and systems from cyber attacks and data breaches.
- Cloud Architect – Cloud computing is becoming increasingly popular as companies look to reduce costs and improve scalability. Cloud architects are responsible for designing and managing cloud-based infrastructure.
- DevOps Engineer – DevOps is a methodology that combines software development and IT operations.
- Full Stack Developer – Full stack developers are skilled in both front-end and back-end development.
- UX Designer – User experience (UX) is a critical factor in the success of software applications and websites.
- Mobile App Developer – Mobile apps are becoming increasingly popular as more people use smartphones and tablets.
- Project Manager – Project managers are responsible for overseeing the development and implementation of technology projects.
- Network Engineer – Network engineers are responsible for designing, implementing, and maintaining computer networks.
- Business Analyst – Business analysts are responsible for identifying business needs and developing solutions that meet those needs.
- Technical Writer – Technical writers are responsible for creating documentation that explains how software applications and systems work.
- Cloud Engineer – Cloud engineers are responsible for designing and implementing cloud-based solutions.
- Data Scientist – Data scientists are responsible for analysing large data sets and identifying patterns and insights that can inform business decisions.
- Quality Assurance Analyst – Quality assurance analysts are responsible for testing software applications to ensure that they meet quality standards.
- Solution Architect – Solution architects are responsible for designing and implementing technology solutions that meet business needs.
- Product Manager – Product managers are responsible for overseeing the development and launch of technology products.
- Digital Marketing Manager – Digital marketing managers are responsible for developing and implementing marketing campaigns that use digital channels.
- AI Ethics Specialist – As AI becomes more pervasive, there is a growing need for professionals who can ensure that AI systems are used ethically.
The tech industry offers a diverse range of job positions, including legal, data, product, sales, tech, and user experience roles. As demonstrated below, this broad spectrum of opportunities is reflected in the fact that 36.8% of positions are non-tech related, while an additional 33% are technical roles outside of the traditional tech sector. Tech nation report says that more than a third of employment opportunities within the digital tech industry are found in non-technical roles such as Sales, User Experience, Product Management, and People. We understand that these roles in IT companies will also be in demand in the future.
In addition to the increasing demand for tech professionals, the UK tech jobs market is also expected to benefit from the emergence of new technologies. With the increasing adoption of artificial intelligence and machine learning, there will be an increased demand for professionals with the skills to develop and implement these technologies. The growth of emerging technologies such as blockchain is also expected to create additional job opportunities, as businesses look to capitalise on the potential of these new technologies.
How Qualified Immigrants Influence The UK Tech Job Market
The UK technology industry has experienced significant growth over the past few years. This growth was partly facilitated by the influence of skilled talented immigrants, who had a significant impact on the UK technology labor market.
Due to the growing demand for technical talent in areas such as data science, machine learning and software development, it has become difficult for many companies to find candidates with the necessary knowledge from the UK.
The Skilled Worker Visa program is one of the most popular routes for non-UK citizens to immigrate to the UK. It fits for individuals who have a job offer from a UK employer and who meet certain eligibility requirements. But many of the UK immigrants do not want to be bound by a job offer, so they choose a different path.
Tech specialists often contemplate applying for a Global Talent Visa (IT), which is a different type of visa. We provide information on our website about the process of obtaining a visa approval, and we encourage you to read our blog where we share detailed information about all the stages and criteria involved in Global Talent Visa endorsement process.
By attracting highly skilled individuals from around the world, the Global Talent Visa UK has helped to address the talent shortage in the UK tech industry. This has had a positive impact on the industry, as companies have been able to access a larger pool of highly skilled individuals, including those with specialist knowledge and expertise that is not widely available within the UK. In addition to the Global Talent Visa, the UK government has also introduced a number of other tech visas that are designed to attract highly skilled individuals to the UK. This has helped to create a more dynamic and innovative tech market, which is essential for the industry’s growth and success in the long term. By 2023, there is expected to be a wide range of tech jobs available, from software development to cybersecurity. These jobs are highly sought-after and will offer a range of opportunities for those looking to develop their career within the tech industry.
If you are unsure whether your area of expertise meets the visa requirements, we would like to highlight the primary list of positions of business skills and technical skills that are eligible for Tech Nation endorsement, according Tech Nation Global Talent Visa guide.
You can explore the remaining sought-after positions by following the link: Tech Nation Visa Guide – Tech Nation
In addition to the above the challenge of creating a long-term hiring strategy has always been present in the industry, and many employers struggle to engage with the next generation of workers.
Companies need to engage with young people early in their careers to future proof their business and the wider industry, as they represent an untapped talent pool.
Generation Z is the first generation that has grown up entirely in the digital age, and as they enter the tech workforce, they bring with them a digital skillset that surpasses that of previous generations. Employers have a significant opportunity to tap into their unique perspectives on technology and culture, and leverage their expertise to their advantage.
The UK government understands that The Global Talent Visa (IT) program is an excellent opportunity for tech companies in the UK to tap into the expertise and knowledge of Generation Z. With the demand for tech skills at an all-time high, engaging with young talent early in their careers is essential to future-proofing the industry. Furthermore, the Global Talent Visa program provides a pathway for international talent to work in the UK, and many talented individuals from Generation Z may be based overseas. Engaging with this talent pool and bringing them to the UK can help companies to build a more diverse and inclusive workforce, which has been shown to improve company performance and profit.
Challenges Are Being Faced By The UK Tech Industry In 2023
The UK tech sector is currently facing several challenges that could impact its growth and development. Firstly, there is a significant shortage of tech talent, especially in areas like artificial intelligence, cyber security, and data science. This talent gap could limit companies’ ability to fill critical positions and limit opportunities for growth.
Secondly, Brexit has created uncertainty for the tech sector, particularly concerning access to international markets, data protection, and the recruitment of skilled professionals. The UK’s ability to attract and retain talent from across the globe may be impacted, potentially limiting the sector’s growth potential.
It is necessary to add that securing funding for growth is another challenge faced by UK tech companies. Despite experiencing significant growth, many businesses still struggle to secure the funding needed to scale their operations. The economic uncertainty caused by Brexit may have worsened the problem.
Bernard Marr is a world-renowned futurist, leader in the field of business and technology believes that the acceleration of digital transformation during the pandemic continues unabated, it also raises concerns on the market. This pace of technological advancement poses an additional challenge. Technologies like cloud computing, edge computing, machine learning, metaverse, web3, non-fungible tokens (NFTs), robotics, Internet of Things (IoT), and 5G are all progressing at a remarkable speed, making it difficult for companies to keep up. To remain competitive, companies must stay ahead of the curve in terms of technological innovation, or risk being left behind by their rivals.
We also see a challenge in the growth of AI technology. Here is a list of professions that could potentially be replaced in the future, compiled by Chat GPT:
- Data entry and processing
- Routine customer service tasks
- Quality assurance and testing
- Basic coding and software development
- Cybersecurity monitoring and threat detection
- Predictive analytics and forecasting
- Administrative tasks, such as scheduling and email management
- Social media management and content creation
- Document translation and language processing
- Digital marketing and advertising optimization.
Despite the inevitable impact of AI on the future of work, there are numerous perspectives on the nature of this transformation, and not all of them are bleak or pessimistic. Moreover, as AI becomes more widespread, there will be a growing need for human workers to facilitate the integration of this technology in a manner that reduces workloads rather than intensifying them.
The UK Tech Market is Expected to Experience Both Growth and Challenges in 2023
Robert Half’s 2023 UK Salary Guide reveals that demand for skilled workers in the tech industry is at an all-time high, despite reports of ongoing layoffs such as Amazon’s announcement to lay off over 18,000 employees.
The primary areas of focus for 2023 include IT security, improving efficiency, and cloud computing projects.
Data collected by Robert Half shows that, despite recent layoffs resulting from hyper growth, 79% of UK-based CIOs and CTOs are very confident about their businesses’ growth prospects in the upcoming year. Additionally, 30% of these executives plan to create new permanent full-time positions.
We can see with confidence that the UK tech market is expected to experience both positive and negative trends in 2023. On the positive side, the tech industry in the UK is experiencing unprecedented demand for skills, particularly in areas such as artificial intelligence, data science, and cyber security. This presents an opportunity for young people, who are the first truly digital generation, to bring their unique digital skillset to the industry.
On the negative side, there are a number of challenges facing the UK tech market in 2023. One of the major challenge is the shortage of tech talent in the UK. This shortage of qualified candidates has made it difficult for companies to fill crucial positions and could limit growth opportunities.
In conclusion, while there are both positive and negative trends in the UK tech market for 2023, it is clear that the industry is in a state of constant evolution. Companies must navigate these challenges and embrace new opportunities in order to thrive in this dynamic and rapidly changing industry.
We see great potential for the industry to attract tech talents from around the world to accelerate the process of closing positions and add growth to the market. Such programs as Global Talent Visa (IT) gives an opportunity for the market to grow and develop and also attracts experts and talents for the development of the whole country.
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