While much of the UK jobs market faces a slowdown, the technology sector is accelerating in the opposite direction, with salaries for specialist roles soaring and hiring intentions remaining robust.
Tech Sector Defies Economic Headwinds
New research from the jobs platform Totaljobs indicates that median advertised pay for tech roles saw a significant 7.5 per cent increase to just over £33,500. This growth is occurring against a backdrop of rising redundancies and hiring freezes across UK PLC, driven by higher taxes, weaker growth, and regulatory uncertainty.
The surge is overwhelmingly fuelled by demand for expertise in artificial intelligence, data, and software engineering. For instance, the report found that Python developers now command salaries of up to £90,000, with tech architects close behind at £87,500. AI software developers are earning around £75,000, and senior engineers sit on approximately £70,000 per year.
Specialist Skills in High Demand
The appetite for technical capabilities is only intensifying. Mentions of tech-related skills in UK job adverts rose by 12 per cent between 2024 and 2025. Furthermore, one in four recruiters now ranks AI as the most valuable skill when determining pay or a promotion.
This demand is translating directly into pay packets. Two-thirds of tech workers received a pay rise in the last 12 months, a figure well above the national average. Hiring intentions also remain strong, with separate research by Robert Half finding that 56 per cent of UK businesses plan to expand their tech teams in the first half of 2026, despite rising unemployment and a fall in overall vacancies.
A Widening Pay and Regional Divide
The flip side of this tech boom is a deepening pay gap within the UK economy. Frontline sectors such as hospitality, retail, and travel continue to lag, with median salaries stuck around £27,000. Totaljobs' research suggests these industries are falling further behind as investment flows toward high-skill, high-productivity roles.
Regional disparities persist but are beginning to shift. London remains the highest-paying city with a median annual salary of £40,000. However, regional hubs like Oxford, Birmingham, and Leeds are starting to close the gap as the tech and professional services sector expands beyond the capital.
Luke McKend, managing director at Stepstone Group, commented that the figures point to a "clear re-calibration" in the labour market. "Hiring volumes remain softer than the post-pandemic break, yet advertised pay continues to rise – particularly for roles requiring advanced technical or AI-driven skills", he said.
