2025 State of Information Technology Employment Report

The Information Technology employment landscape in 2025 is shaping up to be one of contrasts. On one hand, there’s a high demand for skills in AI and Cloud Computing. On the other hand, increasing economic uncertainty and lower employer confidence can put expansion plans on hold and slow recruitment.

2025 can be a year of uncertainty, but it also offers growth opportunities. This report explores the key developments in Information Technology Employment, offering insights for IT professionals and employers facing this evolving market.

The UK Tech Job Market: High Skills Demand vs. Job Uncertainty

Job Security Concerns on the Rise

Recent reports from REC suggest that UK professionals are increasingly anxious about job security. The cost-of-living crisis, ongoing economic uncertainties, and a slowdown in investment are making job seekers more cautious. This shift is evident in the reluctance to change roles, leading to fewer job applications and extended recruitment cycles.

Slower Hiring Processes

While demand for Information Technology Employment remains high, hiring is becoming more complex. Employers are more selective, sometimes extending interview rounds or delaying final offers. Lengthier hiring processes are frustrating for job seekers and recruiters, but they reflect the broader economic sentiment of uncertainty in the UK.

AI, Cloud and Cyber Security Remain Hot Areas

Companies across finance, healthcare, financial services and retail are actively hiring AI engineers, data scientists, and cybersecurity experts. Additionally, with many businesses migrating to the cloud, cloud engineers and DevOps specialists remain highly sought after.

AI, the UK Government’s New Strategy to Boost Employment

The UK government has announced a bold new plan to turbocharge AI, positioning it as central to economic renewal. With a commitment to AI Growth Zones, £14 billion in private investment, and significant public sector integration, the initiative aims to create thousands of new tech jobs across the country.

Besides the AI Growth Zones involving big building projects, the UK Government’s plan to boost growth proposes using AI technologies for road inspection or cancer diagnosis. It encourages the Education sectors, the NHS and SMEs to adopt AI tools for faster planning and record-keeping.

The End of Remote-First Hiring?

Another notable trend is the continued decline of remote work opportunities. Many UK companies, particularly in finance and enterprise IT, are calling employees back to the office, either full-time or on hybrid models. This shift could impact talent acquisition as candidates have grown accustomed to flexible working arrangements.

The US: Political Shifts and Market Disruptions

How Trump’s Return Affects the Technology Jobs Market

Donald Trump’s return to the presidency brings potential policy changes affecting the Information Technology sector. His administration previously placed restrictions on H-1B visas, impacting international talent acquisition. If similar policies return, this could create hiring challenges for US companies and push talent to explore opportunities in the UK and EU instead.

Tech Layoffs vs AI Hiring Boom

The US tech sector saw waves of layoffs in 2023 and 2024. Amazon and Facebook have announced new layoffs in 2025, but AI-driven hiring remains strong. While traditional software development roles may see fluctuations, AI specialists, Automation engineers, and Robotics experts continue to be in high demand.

Uncertainty in Tech Investments

Venture capital funding slowed down in 2024, and with economic uncertainty looming, startups might struggle to secure funding in 2025. However, major tech giants like Google, Microsoft, and Amazon are doubling down on AI investments, keeping opportunities open for IT professionals in these digital and tech roles.

The EU’s AI Investment Surge

A Multi-Billion Euro AI Investment

Just last week, the European Union announced a groundbreaking investment in AI infrastructure, talent development, and ethical AI research. This €200 billion investment strengthens the EU’s position as a leader in AI innovation and presents significant employment opportunities for companies and IT professionals across Europe.

Impact on the UK Market

Since Brexit, UK tech firms don’t directly benefit from EU investments, but British businesses operating across Europe may still access funding and partnerships. For UK-based professionals, this means potential job opportunities in EU-funded AI projects, either remotely or via relocation.

Tech Talent Migration

With AI investments creating a hiring surge in the EU, UK companies might face increased competition for top talent. Businesses that fail to adapt and offer competitive salaries or work environments may struggle to attract skilled professionals.

Opportunities and Challenges for IT Professionals in the UK

The job market in 2025 presents exciting opportunities for Information Technology professionals in the UK, but it’s not without its challenges. Economic uncertainty is slowing down hiring processes, but at the same time, the demand for AI, cloud computing, and cybersecurity talent is higher than ever.

Here’s how you can stay competitive if you’re looking for a new entry level role, or you’re an experienced marketing, digital or IT professional looking for the next step in your career:

Upskill is the Key to IT Career Progression

The safest career move in 2025 is upskilling. AI expertise is increasingly valuable, even for professionals in non-technical roles. Whether it’s learning prompt engineering, automation, or data analytics, professionals of any expertise and industries who enhance their skills will be a step closer to reaching their goals.

Hiring Slowdowns Don’t Mean No Jobs

This is very important for job seekers to understand: While hiring processes are taking longer, and it might look like nobody is hiring, job opportunities still exist, particularly in AI, cloud, and cybersecurity. To save you the stress and frustration of constantly sourcing the web for new vacancies, work with a trusted specialist recruitment consultant. Our team can offer career insights and personalised advice.

Look Beyond London for Information Technology Employment

AI talent is in global demand, meaning skilled professionals can explore options beyond the UK’s uncertain market. If you consider moving within the UK, we can help, too. We have many clients across the UK. We might find a role for you if you want to relocate from London to Sheffield, Manchester, Leeds, or other emerging UK hubs.

How Employers Can Attract and Retain IT Talent in 2025

With increasing competition for top talent and shifting candidate expectations, we understand how challenging hiring and retaining top tech talent can be. Employers must refine their strategies to stand out from the competition and attract the best IT talent.

Here are some ways UK employers can get in control of their recruitment:

Close the AI Talent Gap with Expert Help

The UK tech industry is a key player in AI innovation, but competition is fierce. With the EU investing billions and the US tech giants hiring aggressively, UK employers must use all the tools in their hands to create a competitive advantage, such as offering competitive salaries and benefits packages or partnering with recruitment specialists to find any gaps in their process.

→ We have recently helped a company in the CyberSecurity sector grow their team with AI engineers, so we can share first-hand insights we’ve learnt partnering with our client if you want to chat and double-check that your organisation isn’t missing out on top talent.

Adapt to Candidate Expectations

Understandably, UK candidates in 2025 are more cautious about switching jobs. Employers must ensure they offer clear career progression, competitive salaries, and hybrid work options to secure top talent.

→ Effectively communicating your company culture can be a decisive factor for professionals deciding between two job offers or quitting their job and accepting a job offer.

Avoid Longer Hiring Processes

When companies delay hiring decisions, they risk losing candidates to their competitors. The best approach? Speed up decision-making in your recruitment processes. You can use an external recruitment company to source new talent faster and do the leg work for you, maintaining rigorous candidate assessments but ensuring candidates don’t drop out due to extended wait times.

→ Our team uses innovative talent-sourcing tools and agile processes to provide you with a list of qualified professionals so you only interview those candidates who match what you’re after.

Invest in Training and Retention

With fewer professionals eager to change jobs, businesses should focus on retaining and upskilling their existing workforce. Internal AI training programs and professional development opportunities will become key differentiators.

Conclusions: The Future of Information Technology Employment in the UK

Both challenges and opportunities define the Information Technology Employment landscape in 2025. Economic uncertainty is slowing down hiring and increasing job insecurity. However, there is still a high demand for talent in AI, cloud, and cybersecurity. The UK government’s strategy for AI could create new chances. However, businesses need to act fast to find the best talent.

For IT professionals, upskilling and adaptability will be crucial. For Information Technology employers, refining recruitment and retention strategies will determine success. Even with uncertainty, one thing is clear: those who accept change and learn the right skills will succeed in the changing tech job market.

For more information on hiring IT talent or advancing your career, contact the Adria team today.