Vacancysoft & APSCo IT Sector Trends Report | August 2026

The UK technology labour market is forecast to strengthen in 2026, with IT Professional vacancies projected to increase by 20.4% year on year. Indeed reported that UK job postings declined during the first half of the year, while demand for artificial intelligence skills reached a record level. This points to a selective labour market where employers are restricting recruitment while continuing to invest in technology capabilities that support productivity, automation and growth.

The strength of IT recruitment reflects an increase in technology investment, with Q2 producing 22.3% more vacancies than the equivalent quarter in 2025. During London Tech Week, the UK Government announced multibillion-pound investment commitments linked to artificial intelligence and digital infrastructure. These included projects from AMD, AI cloud provider Nebius and data centre operator Ark. The Government introduced support for AI hardware, semiconductors, business adoption and workforce skills. Together, these developments suggest that technology hiring has stabilised at a higher level as businesses move from AI trials towards implementation.