Something peculiar is occurring in the tech ecosystem right now. Simultaneously, along with tens of thousands of layoffs across the sector, there is a widening skills gap and a talent crunch that shows no signs of abating.
Hard as it may be to reconcile a demand for talent alongside 2022 and 2023’s redundancies––recent figures from Layoffs.fyi indicate that 658 tech companies have let 191,416 employees go so far this year––Gartner measured the deficit in a 2022 survey and confirmed that a skills shortage exists.
Its report found that 86% of CIOs said they were experiencing more competition for qualified candidates, and 73% were worried about IT talent attrition.
This can be explained in a couple of ways. Despite those enormous layoff figures, Gartner research has found that the companies behind the 10 largest layoffs are still employing over 150,000 more people in total than they were at the beginning of 2020.
Secondly, many of those being laid off are being made redundant from business functions such as HR and sales, as opposed to technical roles. Layoffs.fyi founder Roger Lee has noticed the same issue.
“Sales is the most common role, accounting for 20% of the laid-off tech workers. Recruiting and HR are the functions most disproportionately affected relative to their size; it’s becoming quite common for companies to lay off 50% or more of their talent teams,” he says.
Additionally, Deloitte’s Finance 2025 report found that the battle for top talent can be attributed to the accelerated pace of automation-driven change across the business world.
Hot skills
As a result, we are seeing a squeeze for tech talent even as those job losses garner column inches. There are now a number of very specific skills that are in top demand, according to The European Software Skills Alliance (ESSA).
In its 2021 Needs Analysis Report it identified skills gaps in the areas of data analysis and said that the key areas influencing software skills are AI, Big Data, Industry 4.0, and modelling, particularly in research.
“There is a shift to new kinds of developers, like full stack developers and low code developers, but the most important insight is that developers are becoming more and more part of the regular organisation instead of a separate entity. Soft skills and knowledge of the business are therefore increasingly important for developers to be able to function,” the report stated.
Software developers in demand
A recent hiring trends report has highlighted key opportunities for those working in software development. It found that starting pay for developers and engineers is 64% above the UK average. And when it comes to specific software jobs, there are three key standout functions that are commanding top salaries.
Backend, full stack, and frontend engineers are the top three most in-demand roles, receiving the highest volume of interview requests compared to other roles, with data finding that in particular, demand for frontend engineers is outpacing that for backend engineers.
Despite layoffs and downsizing, 68% of engineers are confident they’ll remain in work, and it is work that is well compensated: UK engineering salaries are set to increase by 8% from 2021 to 2022.
Yet more jobs could be on the way as a whole new breed of start-ups launch. In what could be a symptom of big tech’s layoffs, the startup accelerator Y Combinator said applications increased by 20% in 2022, and in total it received over 38,000 applications.
Positive position
That’s all good news for software developers. Depending on whether your skills are in the frontend, backend or full stack, UKTN’s job board has thousands of open software jobs, like the three below.
A fully remote Frontend Engineer role is on offer at Jobbio. You’ll be a JavaScript developer, proficient with React.js, and will work on developing and implementing user interface components. You will also be responsible for profiling and improving front-end performance and documenting the front-end codebase. Previous working experience as a React.js developer is required, and you will have in-depth knowledge of JavaScript, CSS, HTML, and front-end languages too.
Citi has a number of full stack roles on offer. In this Full Stack Developer software job in London, you’ll work on Citi’s FX e-Commerce development team, working on its multi-award winning Single-Dealer Platforms. Previous full stack/server work experience with Java is preferred and you’ll need two years’ of experience building web UIs. Or, in this Senior Full Stack Developer (Hybrid) role, you will head up a technical team, working on a strategic risk management and reporting platform used across multiple businesses within Citi’s Markets Risk & Controls Technology Group.
To be considered, you’ll need Java and React experience, relevant experience in the financial service industry, and experience at a senior level in an applications development role.
Octopus Energy is seeking a Senior Backend Developer in London. You’ll architect and build services that will empower the rapidly expanding customer base, as well as giving internal teams the tools to continue providing a five-star service at scale.
To apply, you will need strong technical knowledge and proven ability in the Python ecosystem, a passion for writing clean, maintainable and testable code as well as experience of microservices, event-driven architecture and building applications at scale.
For thousands more software engineering roles, visit the UKTN Job Board today
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