The tech pipeline and UK tech hiring in transition
19 November 2025
This is a suite of three reports published by NFER, funded by The Hg Foundation, on changes in UK tech hiring, future opportunities in the sector, education pathways into tech jobs and diversity in the tech pipeline and workforce. The three reports cover:
- The Tech Pipeline: Investigating educational pathways into the tech sector in England – This report summarises the results from secondary data analysis on educational pathways into tech sector jobs, which are critical for the UK economy, as well as for social mobility. It also reviews the extent to which there are disparities between different groups (defined by gender, ethnicity and disadvantage) within the education pipeline and the tech workforce.
- The Tech Pipeline Technical Report: Investigating educational pathways into the tech sector in England – This report supplements the above report and provides more detail on how educational pathways support entry into the tech workforce, and disparities between different groups in entry, progression and earnings in the tech workforce.
- UK tech hiring in transition? The current state of play and where future opportunities might lie - This report presents the findings of primary qualitative research with leaders in almost 100 organisations on past and current trends in tech hiring, future predictions for tech hiring, recruitment into UK tech roles and skills and qualifications requirements.
The first two of these reports show that people who study qualifications in tech subjects are more likely to subsequently work in the tech industry and also tend to earn more than their peers who studied other subjects, despite the fact those who do tech qualifications at some levels have lower levels of prior attainment.
This suggests tech qualifications can be a driver of social mobility, as well as creating pathways into tech jobs that are critical to the UK economy. It is important that people from all backgrounds can access opportunities in the digital economy, but our research suggests some groups, particularly girls, are less likely to engage in tech subjects and less likely to progress into tech jobs when they do.
The third of these reports builds on an earlier report - A narrowing pipeline? What changes in UK tech hiring might tell us about future opportunities in the sector – which showed that there has been a sharp slowdown in UK tech hiring over the past three years. This follow-on report shows that the slowdown has been caused by a perceived over-recruitment coming out of the Covid-19 pandemic, the effects of the macro-economic environment, an increase in offshoring, and the emerging impact of AI and automation. Future predictions are inherently uncertain, but most consultees did not expect an upturn in tech vacancies in the UK in the coming years.
However, some specialisms are likely to grow, such as data and analytics, AI and machine learning, and cybersecurity. Increasing adoption of AI is also likely to result in the emergence of new roles and will redefine what it means to work in the tech sector. A range of commercial skills, essential skills, and character traits are also receiving greater emphasis in recruitment.
These three reports are accompanied by a fourth short report – The Tech Talent Pipeline – Summary and Implications – written by The Hg Foundation, which draws out the implications of our research findings for their strategy, and for the broader tech sector and policy makers.
Key Findings
- People who study qualifications in tech subjects tend to subsequently earn more (at age 28) than their peers who study other subjects. They are also more likely to work in a tech industry, particularly those that do a tech apprenticeship or degree. Vocational qualifications in tech subjects appear to be associated with especially favourable outcomes.
- This is even though those who do tech qualifications sometimes have lower levels of prior attainment than their peers who do other subjects, suggesting tech qualifications can benefit social mobility.
- A-level tech subjects are an effective route into doing a tech degree, working in the tech industry, and achieving relatively high early career earnings. Students who do tech subjects at lower levels are also much more likely to study these subjects at higher levels.
- Girls are less likely to engage in tech subjects than boys, and women are less than half as likely to work in tech at age 28 than men.
- People from ethnic minority groups are more likely to study tech subjects at most levels of qualifications than their White peers.
- People from poorer family backgrounds are less likely to study tech subjects (except at degree level) or enter the tech industry than their peers from relatively more advantaged backgrounds.
- There has been a sharp slowdown in UK tech hiring in recent years, with entry-level roles particularly impacted. Hiring managers and senior leaders tend to attribute this to: a perceived over-recruitment coming out of the Covid-19 pandemic; the effects of the macro-economic environment; an increase in offshoring; and the emerging impact of AI and automation.
- Most consultees in focus groups and interviews felt it was unlikely that there would be an upturn in tech vacancies in the UK over the next three years. However, prospects for roles in some specialisms – such as data and analytics, AI and machine learning, and cybersecurity – appear much better.
- AI is likely to redefine what it means to work in the tech sector. Demand for tech knowledge and skills is likely to continue growing across a broader range of occupations, and using AI is likely to become a foundational skill.
- Organisations will be increasingly looking for new recruits who have knowledge and skills in AI, machine learning and data science, but also a range of commercial and essential skills, and character traits, which are growing in importance in recruitment.