Job Market Research January 2026

UK and Global Software Development Job Market: 2021-2026 Analysis

The software development job market experienced a historic boom-and-bust cycle from 2021-2026, with UK job postings peaking at 175% of pre-pandemic levels in early 2022 before declining to 65% by 2025. Despite this volatility, software developers remain the most in-demand technical profession globally, with 15-17% projected growth through 2034 and 87,000 additional UK roles expected by 2030.

Job Posting Growth Reveals Dramatic Market Volatility

The period 2021-2026 marked the most volatile era in software hiring history. The COVID-driven digital transformation sparked unprecedented demand in 2021-2022, followed by aggressive tech layoffs and a prolonged correction.

UK Software Developer Job Postings Index

Year Index (Feb 2020 = 100) Year-over-Year Change UK Tech Employment
20201002.00 million
2021135+35%2.00 million
2022 (Peak Q1)175+30%2.05 million
2022 (Year-end)110-37% from peak2.05 million
202378-29%2.10 million
202468-13%2.13 million
202565-4%2.14 million (projected)

Source: Federal Reserve Economic Data (FRED); CompTIA State of the Tech Workforce UK 2024

The 2022-2023 Tech Layoffs Reshaped Hiring Patterns

Global tech layoffs totaled approximately 428,000 employees in 2022-2023 combined, fundamentally altering company hiring strategies.

165,000
Layoffs in 2022
262,735
Layoffs in 2023 (Peak)
22.1%
Software Engineers Affected
27%
Re-employment Rate

Source: Layoffs.fyi; 365 Data Science analysis

Salary Growth Stabilised After Post-Pandemic Surge

UK software engineer salaries grew 8.5% in 2024 but slowed dramatically to 1.6% in 2025, signaling market stabilisation. The UK maintains Europe's highest software engineer salaries outside Switzerland.

UK Software Developer Salary Trends

Year Median Salary YoY Growth Key Driver
2021£55,000-58,000Post-COVID recovery
2022£60,000+5%Competitive hiring
2023£63,500+6%Talent shortage
2024£68,900+8.5%Strong demand
2025£70,000+1.6%Market stabilisation
2026£70,500 (proj.)+1%Plateau expected

Source: Ravio 2026 Compensation Trends Report

UK Salary Ranges by Role (2025-2026)

Role Entry-Level Mid-Level Senior
Frontend Developer£28,000-38,000£40,000-60,000£55,000-85,000
Backend Developer£30,000-45,000£45,000-70,000£60,000-100,000
Full-Stack Developer£30,000-45,000£45,000-65,000£60,000-90,000
DevOps Engineer£35,000-50,000£55,000-85,000£80,000-130,000
Software Architect£55,000-85,000£85,000-120,000£100,000-150,000+

Source: Indeed UK, Glassdoor UK, IT Jobs Watch

Programming Languages: Clear Winners and Losers

JavaScript/TypeScript combined dominate job postings at 31%, followed by Python at 20%. TypeScript achieved remarkable growth from 12% adoption (2017) to #1 on GitHub by August 2025.

Programming Language Job Demand (2024)

Language Job Posting Share Jobs Analysed Trend
JavaScript/TypeScript31%651,000Stable
Python20%408,000Growing (AI/ML driver)
Java18%376,000Stable
C#12%246,000Growing
PHP10%~210,000Declining
Go3%~49,000Growing

Source: DevJobsScanner analysis of 12M+ jobs

AI/ML Leads Role-Specific Growth

AI/ML engineering leads growth projections at 40-82% through 2030, while traditional development roles grow at 15-22%. Entry-level hiring has contracted 60% since 2022.

Projected Growth Rates by Role (2024-2034)

Role Projected Growth Source
AI/ML Engineer40-82%WEF Future of Jobs 2025
Data Engineer100%+ (to 2030)World Economic Forum
DevOps Engineer20% CAGRGlobal Market Insights
Full-Stack Developer22%BLS, Daily.dev
Software Developer (general)15-17%US Bureau of Labor Statistics

Skills Gap Remains Severe Despite Market Cooling

75% of global employers and 80% of UK employers struggle to find candidates with required skills—the UK's most severe shortage in 18 years. AI skills jumped from 6th to #1 most scarce in just 18 months.

80%
UK Employers Struggling to Hire
52,000
Unfilled IT Jobs in UK
£63B
Annual Cost of Skills Gap
51%
Report AI/ML Shortage

Source: ManpowerGroup UK 2024; Harvey Nash Digital Leadership Report 2025

Future Projections: Continued Growth with AI Transformation

The US Bureau of Labor Statistics projects 15% growth (287,900 new positions) for software developers from 2024-2034. The UK government identifies programmers as the occupation with the largest additional demand, projecting 87,000 new roles by 2030.

Key Takeaways

  • AI integration is becoming mandatory across all developer roles, with AI fluency demand growing sevenfold in two years
  • Experience-first hiring means entry-level positions face the steepest decline (60% fewer postings) while senior roles remain competitive
  • 39% of core skills are expected to transform by 2030, with AI orchestration, security, and complex system design becoming essential
  • The market is stabilising in a "low-hiring, low-firing" phase

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