27/01/2025
A Look Ahead: Technology Recruitment in 2025
Nick Boulton

Few in the technology recruitment industry were sorry to see 2024 in the rearview mirror. It was a year fraught with challenges, uncertainty impacted demand, and companies adopted a cautious approach. Meanwhile, many candidates opted for stability, hesitating to make career moves.
As we step into 2025, I’m optimistic about improvement. Technology remains one of the fastest-growing industries globally, and the UK is no exception. Offering diverse roles across areas like artificial intelligence, cloud computing, and cybersecurity, the sector continues to innovate at pace. While challenges persist, such as changes to tax policy and economic uncertainty, demand for top professionals will undoubtedly grow as businesses pursue digital transformation.
What trends and developments should we expect in the year ahead?
Here are key factors to watch in 2025:
The Evolving Remote Work Dynamic
Remote and hybrid working, championed during the pandemic, still tops the list of benefits for tech talent. Yet, as we move forward, leaders are making a growing push for employees to return to the office more often. The concern is clear: declining productivity and rising operational costs have raised questions about whether long-term remote models are sustainable. Over the next few years, many businesses might advocate for a phased return to office-centric work. By 2028, we could see a full return to pre-pandemic norms becoming a reality for a significant portion of the workforce.
Navigating the National Insurance Hike
The recent increase in National Insurance contributions adds financial pressure for employers, especially in cost-sensitive sectors like technology. Startups, in particular, may face greater challenges, which could prompt a cautious approach to hiring or a pivot toward contract-based roles to maintain flexibility.
While the hike introduces complexities, it’s unlikely to dampen overall demand for top talent in high-growth fields. Instead, we expect adjustments in pay structures and contract terms as companies balance hiring costs against their need for skilled workers.
UK Innovation Hubs Leading the Way
The UK’s tech startup ecosystem remains one of its greatest strengths, particularly in vibrant hubs like Manchester, Newcastle, Bristol, and Edinburgh. These cities are fuelling demand for developers, engineers, and data specialists as innovation surges. Despite the additional financial strain introduced by the National Insurance increase, government initiatives to bolster the tech sector should help sustain the growth of these hubs throughout 2025. Startups in these cities will continue to drive exciting new opportunities in the job market.
Upskilling to Meet Top-Talent Demands
Advancements in areas like AI, cybersecurity, and data science mean upskilling and continuous learning are non-negotiable for both individuals and businesses. Technology boot camps, apprenticeships, and e-learning platforms will play a pivotal role in keeping the workforce prepared for rapidly changing demands. Employers are also likely to increase investments in training programs, recognising the importance of equipping teams with the skills they need to succeed.
Accelerating Diversity and Inclusion
Diversity and inclusion efforts will remain at the forefront of recruitment strategies in 2025. Companies are placing even greater emphasis on attracting candidates from underrepresented groups, fostering varied perspectives that fuel innovation. This focus on inclusivity will be supported by initiatives from both public and private sectors, helping businesses meet growing expectations from employees, investors, and stakeholders alike.
The Year Ahead
The UK’s technology job market is poised for growth in 2025. While economic pressures persist and growth rates remain moderate, advances in technology, talent shortages, and regulatory shifts will drive demand across the sector.
We anticipate challenges but also see immense opportunity. Adapting to the market’s evolving dynamics, staying committed to learning, and embracing innovation will be essential for both companies and candidates aiming to thrive in a competitive and rapidly changing landscape.
Here’s to a promising year ahead!