The picture is one of caution at the top and pressure underneath. Across a subdued economic backdrop, businesses have taken a careful approach to hiring, but clear demand hotspots have emerged for specialist tech skills including AI, data, enterprise applications and cyber security Computer Weekly's 2026 tech recruitment outlook. So the volume is down, but the appetite for the right skills is not.
The wider labour market backs this up. In the three months to October 2025, the largest volume increase in vacancies came in the professional, scientific and technical activities sector, which rose by 5,000 ONS vacancies data for November 2025. Technology-heavy work is still creating openings even while the overall market cools.
Where those openings sit matters too. London accounts for nearly two-thirds of all technology vacancies in the UK, and 80% of AI-related job postings Accenture figures reported by The Register. If you are hiring outside the capital, that concentration shapes both the talent you can reach and the competition you face for it.
Open Microsoft 365 roles, the people who run and secure the platforms teams use every day, map closely to the skills the market rates most highly. The critical-demand list makes that plain: IT business analysts, architects and systems designers, a group of around 193,000 workers, sit among the occupations in critical demand, with three of five indicators flagged as critical in 2025 GOV.UK Occupations in Demand 2025. These are the very roles that design, migrate and support Microsoft 365 environments.
Security is the sharpest pressure point. The UK cyber security workforce stands at roughly 143,000 people, with growth accelerating from 2% in 2022 to 5% in 2024 GOV.UK cyber security skills research 2025. Yet 70% of cyber firms reported at least one hard-to-fill vacancy the AI Labour Market Survey 2025. If your Microsoft 365 roles include identity, compliance or endpoint security, expect a crowded field.
AI demand is reshaping the mix. Demand for AI skills rose nearly 200% in a year Accenture data via The Register, and apprenticeships now make up 19% of AI hires, up from just 3% in 2020 the DSIT AI Labour Market Survey 2025. At the entry end the squeeze is real: UK entry-level job postings have dropped 30% since ChatGPT launched techUK's analysis of Adzuna data, and the tech sector cut graduate jobs by 46% in a year Institute of Student Employers figures reported by The Register. Open roles are tilting toward proven, specialist experience.
Start by writing the job around outcomes, not tool lists. A Microsoft 365 role that says "secure our tenant and cut support tickets" attracts sharper applications than one that reels off product names. With three of five demand indicators critical for IT architects and systems designers GOV.UK Occupations in Demand 2025, the people you want are scarce and will read your advert closely.
Widen the routes in. Apprenticeships already account for 19% of AI hires the DSIT AI Labour Market Survey 2025, and for most engineering roles the vast majority of new hires come from the resident labour force rather than international recruitment GOV.UK's review of professionals in IT and engineering. Blending experienced hires with apprentices and home-grown talent spreads your risk when specialist skills are hard to find.
Then move quickly. The KPMG and REC UK Report on Jobs tracks how candidate availability and hiring speed shift month to month the KPMG and REC UK Report on Jobs, June 2026. In a market where good Microsoft 365 and security people field several conversations at once, a slow, multi-stage process loses them. Shorten your steps, brief interviewers early, and decide fast.
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