Despite previous economic uncertainty, the UK economy and the UK tech industry is proving to be more resilient than previously thought and we’re emerging stronger than most analysts predicted. The challenge now is for organisations to take advantage of this opportunity.
In this blog, I’ll be exploring the resilience of the UK market, how the tech sector is driving growth, and how organisations can strike whilst the iron is hot to attract the best tech talent the UK has to offer.
The UK’s economic strength
The UK economy is showing signs of real strength with many macroeconomic indicators pointing to much better times ahead. We have seen it recover strongly for the past two quarters, growing 0.6% between April and June of this year.
The commentary over the last few years warned us that we should expect to have a deep and prolonged recession and struggle to navigate challenging economic times. Although there have been struggles, especially following the recovery from the global pandemic, we confounded the critics and technically only went into a recession for one financial quarter.
This is absolutely a reason to get behind the data we’ve been seeing with a general positive tone being set by the economic conditions – and we should be proud that technology and the service sector is leading the way. We are starting to see interest rates drop and inflation come down following the General Election – down to 2.2% (in July) from a peak of 11.1%. GDP figures also increased by 0.7% earlier this year, and it was highlighted that the services sector was performing strongly – with IT and tech being a standout.
This all highlights that we are a nation full of wonderful entrepreneurs with real opportunities in the tech sector, with new research showing that technology could add £520 billion to the UK economy by 2030.
The UK and the tech sector
This country is positioning itself as the world leader in AI, becoming a global focal point in the media. There have been many commitments from organisations and funding in creating the UK as the global centre for AI, with great opportunities for technology in the UK.
Why is this important when we speak about economic recovery? Because AI touches everything and creates opportunities in all core technology areas with rising demand for Software Developers, Data Engineers and other associated technologies.
Whilst the growth of AI is, of course, exciting and will increase opportunities within technology, data underpins everything and will enable AI to deliver the business outcomes that organisations desire.
However, most organisations looking to take advantage of AI do not have their own data in a good and healthy place. In a recent survey, only 32% of IT leaders believed their organisation’s data was ready to reap the rewards of AI due to their data being unorganised. Understandably, much of the recent IT investments has gone into cybersecurity and digital transformation as people modernise their businesses. However, AI is becoming top of the agenda, and we are seeing businesses prioritise the organisation of their data.
So, how many organisations can say they are ready for AI to be let loose on their data? You can have the most innovative tools and data technology, but if you’re pointing it towards inaccurate and bad data the consequences could be catastrophic. There is a real need for organisations to commit to data governance and get their data in a place where they can really take advantage of AI and automation.
Great data with great tech and AI capabilities can open up wonderful opportunities and competitive advantages.
Taking advantage in technology recruitment
Organisations need to be brave and bold and take advantage of the candidate market now. In our latest What Tech Candidates Want 2024 survey, we found that 87% of candidates are expecting to look for new roles in the next 12 months. There is a latent workforce that have not moved roles, and the average tenure of people in technology at an all-time high with candidates waiting for the right opportunity to present itself.
Why is this? Because one of the characteristics of the brief recession we went through was that there was not ‘wholesale layoffs’ – organisations reduced their headcount, but not to the scale we have seen in previous rough economic times. Organisations have held on to their staff, knowing how hard it was to attract them originally. Candidates will now start to make crucial career choices, and it’s important that organisations are at the front of the queue for the best talent.
Organisations that want to take advantage of improving market conditions and tech growth, including AI, have now got the best opportunity they have ever had. The research shows, many candidates are looking to make a change. This is great news for employers, as they have a talent pool that is ready to take on the next generation of tech within AI and associated tools.
Our What Tech Candidates Want report also highlighted upskilling being prioritised over financial reward for many candidates, with 32% of under 45s wanting to learn new technology. It’s clear that candidates recognise the changing skills of the economy and have a desire to get involved with organisations that are forward-thinking and adopting new technology.
UK PLC has exceeded expectations, and tech is leading the way. Now is the time for organisations to take advantage of the workforce that is looking to move over the next year. Act now, take advantage of the best opportunities to secure candidates.
To take advantage of the candidate market, learn what we can do for your organisation and contact us here. For more Lorien insights, click here.
